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Document And Entity Information - USD ($)	12 Months Ended
Document And Entity Information - USD ($)	Dec. 31, 2013	Feb. 28, 2014	Jun. 30, 2013
Document Information [Line Items]
Entity Registrant Name	TRANSENTERIX INC.
Entity Central Index Key	0000876378
Document Type	10-K
Document Period End Date	Dec. 31, 2013
Amendment Flag	false
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 10,671,629
Entity Common Stock, Shares Outstanding		244,272,728

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Current Assets
Cash and cash equivalents	$ 10,014	$ 8,896
Short-term investments	6,191	907
Accounts receivable, net	188	536
Interest receivable	68	16
Inventory, net	701	1,382
Other current assets	593	235
Total Current Assets	17,755	11,972
Restricted cash	375	375
Property and equipment, net	1,864	1,767
OTHER ASSETS
Intellectual property, net	2,741	3,241
Trade names, net	10	0
Goodwill	93,842	0
Other long term assets	127	205
Total Assets	116,714	17,560
Current Liabilities
Accounts payable	1,804	521
Accrued expenses	1,406	538
Note payable - current portion	3,879	1,519
Total Current Liabilities	7,089	2,578
Long Term Liabilities
Preferred stock warrant liability	0	109
Note payable - less current portion	4,602	8,481
Total Liabilities	11,691	11,168
Commitments and Contingencies
Stockholders' Equity (Deficit)
Common stock $0.001 par value, 750,000,000 and 130,322,900 shares authorized at December 31, 2013 and December 31, 2012, respectively; 244,207,733 and5,391,095 shares issued and outstanding at December 31, 2013 and December31, 2012, respectively	244	5
Additional paid-in capital	203,043	1,288
Accumulated deficit	(98,264)	(69,906)
Total Stockholders' Equity (Deficit)	105,023	(68,613)
Total Liabilities, Redeemable Convertible Preferred Stock, and Stockholders' Equity (Deficit)	116,714	17,560
Series A Redeemable Convertible Preferred Stock [Member]
Long Term Liabilities
Redeemable Convertible Preferred Stock	0	19,885
Series B Redeemable Convertible Preferred Stock [Member]
Long Term Liabilities
Redeemable Convertible Preferred Stock	0	40,016
Series B-1 Redeemable Convertible Preferred Stock [Member]
Long Term Liabilities
Redeemable Convertible Preferred Stock	$ 0	$ 15,104

Consolidated Balance Sheets [Parenthetical]	Dec. 31, 2012 $ / shares shares
Stockholders Equity
Common stock, par value (in dollars per share) \| $ / shares	$ 0.001
Common stock, shares authorized	130,322,900
Common stock, shares issued	5,391,095
Common stock, shares outstanding	5,391,095
Series A Redeemable Convertible Preferred Stock [Member]
Stockholders Equity
Redeemable convertible preferred stock, par value (in dollars per share) \| $ / shares	$ 0.001
Redeemable convertible preferred stock, shares authorized	5,734,402
Redeemable convertible preferred stock, shares issued	5,696,261
Redeemable convertible preferred stock, shares outstanding	5,696,261
Series B Redeemable Convertible Preferred Stock [Member]
Stockholders Equity
Redeemable convertible preferred stock, par value (in dollars per share) \| $ / shares	$ 0.001
Redeemable convertible preferred stock, shares authorized	11,504,298
Redeemable convertible preferred stock, shares issued	11,489,972
Redeemable convertible preferred stock, shares outstanding	11,489,972
Series B-1 Redeemable Convertible Preferred Stock [Member]
Stockholders Equity
Redeemable convertible preferred stock, par value (in dollars per share) \| $ / shares	$ 0.001
Redeemable convertible preferred stock, shares authorized	48,454,545
Redeemable convertible preferred stock, shares issued	45,998,220
Redeemable convertible preferred stock, shares outstanding	45,998,220

Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Sales	$ 1,431	$ 2,115
Operating Expenses
Cost of goods sold	4,810	4,420
Research and development	12,700	6,283
Sales and marketing	1,943	3,723
General and administrative	4,221	2,763
Loss on disposal of property and equipment	450	0
Merger expenses	2,911	0
Total Operating Expenses	27,035	17,189
Operating Loss	(25,604)	(15,074)
Other (Expense) Income
Remeasurement of fair value of preferred stock warrant liability	(1,800)	0
Interest expense, net	(954)	(351)
Total Other (Expense) Income, net	(2,754)	(351)
Net Loss	(28,358)	(15,425)
Other comprehensive income (loss)	0	0
Comprehensive loss	$ (28,358)	$ (15,425)
Net loss per share - basic and diluted (in dollars per share)	$ (0.45)	$ (2.86)
Weighted average common shares outstanding - basic and diluted (in shares)	63,655	5,391

Consolidated Statements of Preferred Stock and Stockholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands	Total	Series A Preferred Stock	Series B Preferred Stock	Series B-1 Preferred Stock	Series B Non-Redeemable Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning Balance at Dec. 31, 2011	$ (53,611)	$ 19,972	$ 40,020	$ 14,822	$ 0	$ 5	$ 865	$ (54,481)
Beginning Balance, Shares at Dec. 31, 2011		5,734	11,504	45,121	0	5,282
Proceeds from Issuance of Series B-1 Preferred Stock net of issuance costs of $21	0	$ 0	$ 0	$ 268	$ 0	$ 0	0	0
Proceeds from Issuance of Series B-1 Preferred Stock net of issuance costs of $21, Shares		0	0	877	0	0
Accretion of issuance costs	(106)	$ 46	$ 46	$ 14	$ 0	$ 0	(106)	0
Stock-based compensation	343	0	0	0	0	0	343	0
Exercise of stock options	$ 3	$ 0	$ 0	$ 0	$ 0	$ 0	3	0
Exercise of stock options, Shares	48	0	0	0	0	48
Conversion of preferred stock to common stock	$ 183	$ (133)	$ (50)	$ 0	$ 0	$ 0	183	0
Conversion of preferred stock to common stock, Shares		(38)	(14)	0	0	61
Net loss	(15,425)	$ 0	$ 0	$ 0	$ 0	$ 0	0	(15,425)
Ending Balance at Dec. 31, 2012	(68,613)	$ 19,885	$ 40,016	$ 15,104	$ 0	$ 5	1,288	(69,906)
Ending Balance, Share at Dec. 31, 2012		5,696	11,490	45,998	0	5,391
Accretion of issuance costs	(40)	$ 0	$ 31	$ 9	$ 0	$ 0	(40)	0
Stock-based compensation	941	0	0	0	0	0	941	0
Exercise of stock options	$ 54	$ 0	$ 0	$ 0	$ 0	$ 0	54	0
Exercise of stock options, Shares	341	0	0	0	0	341
Exercise of warrants	$ 90	$ 0	$ 0	$ 0	$ 0	$ 1	89	0
Exercise of warrants, Shares		0	0	0	0	833
Reverse acquisition recapitalization adjustment	168,843	$ (19,885)	$ (40,047)	$ (15,113)	$ 0	$ 162	168,681	0
Reverse acquisition recapitalization adjustment, Shares		(5,696)	(11,490)	(45,998)	0	162,217
Redemption of TransEnterix Surgical shares for cash to non-accredited investors	0	$ 0	$ 0	$ 0	$ 0	$ 0	0	0
Redemption of TransEnterix Surgical shares for cash to non-accredited investors, Shares		0	0	0	0	(271)
Conversion of preferred stock warrants to common stock warrants	1,909	$ 0	$ 0	$ 0	$ 0	$ 0	1,909	0
Issuance of Preferred Stock	30,197	$ 0		$ 0	$ 30,197	$ 0	0	0
Issuance of Preferred Stock, Shares		0	0	0	7,570	0
Conversion of preferred stock to common stock	0	$ 0	$ 0	$ 0	$ (30,197)	$ 76	30,121	0
Conversion of preferred stock to common stock, Shares		0	0	0	(7,570)	75,697
Net loss	(28,358)	$ 0	$ 0	$ 0	$ 0	$ 0	0	(28,358)
Ending Balance at Dec. 31, 2013	$ 105,023	$ 0	$ 0	$ 0	$ 0	$ 244	$ 203,043	$ (98,264)
Ending Balance, Share at Dec. 31, 2013		0	0	0	0	244,208

Consolidated Statements of Preferred Stock and Stockholders' Equity (Deficit) [Parenthetical] $ in Thousands	12 Months Ended
	Dec. 31, 2012 USD ($)
Series B-1 Preferred Stock
Proceeds from Issuance of Preferred Stock net of issuance costs	$ 21

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Operating Activities
Net loss	$ (28,358)	$ (15,425)
Adjustments to reconcile net loss to net cash and cash equivalents used inoperating activities:
Depreciation and amortization	1,483	1,713
Amortization of debt issuance costs	103	39
Remeasurement of fair value of preferred stock warrant liability	1,800	0
Accretion/amortization of bond discount/premium	52	144
Stock-based compensation	941	343
Loss on disposal of property and equipment	31	48
Impairment loss on property and equipment	450	0
Changes in operating assets and liabilities:
Accounts receivable	402	(226)
Interest receivable	(52)	(16)
Inventory	731	(143)
Other current and long term assets	(328)	(108)
Restricted cash	0	125
Accounts payable	641	(139)
Accrued expenses	868	(484)
Net cash and cash equivalents used in operating activities	(21,236)	(14,148)
Investing Activities
Purchase of investments	(6,240)	(8,150)
Proceeds from sale and maturities of investments	904	7,098
Cash received in acquisition of a business, net of cash paid	246	0
Purchase of property and equipment	(1,377)	(184)
Proceeds from sale of property and equipment	0	49
Net cash and cash equivalents used in investing activities	(6,467)	(1,187)
Financing Activities
Proceeds from issuance of debt	1,998	10,000
Payment of debt	(1,519)	0
Proceeds from issuance of preferred stock, net of issuance costs	28,199	268
Debt issuance costs	0	(44)
Proceeds from exercise of stock options and warrants	143	3
Net cash and cash equivalents provided by financing activities	28,821	10,227
Net increase (decrease) in cash and cash equivalents	1,118	(5,108)
Cash and Cash Equivalents, beginning of year	8,896	14,004
Cash and Cash Equivalents, end of year	10,014	8,896
Supplemental Disclosure for Cash Flow Information
Interest paid	824	306
Supplemental Schedule of Noncash Investing and Financing Activities
Issuance of preferred stock warrants and debt issuance costs	0	128
Conversion of bridge notes to preferred stock	1,998	0
Conversion of preferred stock warrants to common stock warrants	1,909	0
Conversion of preferred stock to common stock	$ 30,197	$ 0

Organization and Capitalization

12 Months Ended

Dec. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Capitalization

1. Organization and Capitalization

TransEnterix, Inc., formerly known as SafeStitch Medical, Inc., a Delaware corporation (“SafeStitch”) was originally incorporated in August 1988 as NCS Ventures Corp., after which NCS Ventures Corp. name was changed to Cellular Technical Services Company, Inc. On September 4, 2007, Cellular Technical Services Company, Inc. acquired SafeStitch LLC, and, in January 2008, changed its name to SafeStitch Medical, Inc. On September 3, 2013, SafeStitch and TransEnterix Surgical, Inc., a Delaware corporation formerly known as TransEnterix, Inc. (“TransEnterix Surgical”) consummated a merger transaction whereby TransEnterix Surgical merged with a merger subsidiary of SafeStitch, with TransEnterix Surgical as the surviving entity in the merger (“the Merger”) As a result of the Merger, TransEnterix Surgical became a wholly owned subsidiary of SafeStitch. On December 6, 2013, SafeStitch changed its corporate name to TransEnterix, Inc. As used herein, the term “Company” refers to the combination of SafeStitch and TransEnterix Surgical after giving effect to the Merger, the term “SafeStitch” refers to the business of SafeStitch Medical, Inc. prior to the Merger, and the term “TransEnterix Surgical” refers to the business of TransEnterix Surgical, Inc. prior to the Merger.

Pursuant to the Merger Agreement, each share of TransEnterix Surgical’s capital stock issued and outstanding immediately preceding the Merger was converted into the right to receive 1.1533 shares (“the Exchange Ratio”) of SafeStitch’s common stock, par value $0.001 per share , other than those shares of TransEnterix Surgical’s common stock held by non-accredited investors, which shares were instead converted into the right to receive an amount in cash per share of SafeStitch common stock equal to $1.08, without interest, which was the volume-weighted average price of a share of common stock on the OTCBB for the 60-trading day period ended on August 30, 2013 (one business day prior to the effective date of the Merger). Upon the closing of the Merger, and in accordance with the terms of the Merger Agreement, the Company issued an aggregate of 105,549,746 shares of the Company’s common stock as Merger consideration and paid $293,000 to unaccredited investors in lieu of common stock. Additionally, pursuant to the Merger Agreement, upon consummation of the Merger, the Company assumed all of TransEnterix Surgical’s options, whether vested or unvested, and warrants issued and outstanding immediately prior to the Merger at the same Exchange Ratio.

In connection with the Merger, the Company entered into a securities purchase agreement with certain private investors, the majority of which were considered related parties as existing investors in SafeStitch and TransEnterix Surgical, pursuant to which the investors agreed to purchase an aggregate of 7,569,704.4 shares of the Company’s Series B Convertible Preferred Stock for a purchase price of $4.00 per share of Series B Preferred Stock, which was paid in cash, cancellation of certain indebtedness of TransEnterix Surgical or a combination thereof (the “Private Placement”). Each share of Series B Preferred Stock was automatically converted upon authorization of additional common shares into ten shares of our common stock, par value $0.001 per share, on December 6, 2013.

The Company is a medical device company that is focused on the development and commercialization of a robotic assisted surgical system called the SurgiBot™ System (“the SurgiBot System”). The SurgiBot System utilizes flexible instruments through articulating channels controlled directly by the surgeon, with robotic assistance, at the patient’s bedside. The flexible nature of the SurgiBot System allows for multiple instruments to be introduced and deployed through a single site, thereby offering room for visualization and manipulation once in the body. The SurgiBot System also integrates three-dimensional, (“3-D”), high definition vision technology. The Company has also commercialized the SPIDER® Surgical System, (“the SPIDER System”) a manual laparoscopic system in the United States, Europe and the Middle East. The SPIDER System utilizes flexible instruments and articulating channels controlled directly by the surgeon, allowing for multiple instruments to be introduced via a single site. The product is U.S. Food and Drug Administration cleared. The Company sells its products through a direct sales force and international distributors.

Prior to the Merger, SafeStitch was focused on developing its Gastroplasty Device for the treatment of obesity and GERD.

The Company operates in one business segment.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

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+ Details

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2013

Summary Of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Going Concern

The accompanying consolidated financial statements have been prepared on a going concern basis. The Company has accumulated a deficit of $98.3 million, including a net loss of $28.4 million for the year ended December 31, 2013, and has not generated significant revenue or positive cash flows from operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts of liabilities that might result from the outcome of this uncertainty. To meet its capital needs, the Company is considering multiple alternatives, including, but not limited to, additional equity financings, debt financings and other funding transactions. There can be no assurance that the Company will be able to complete any such transaction on acceptable terms or otherwise. If the Company is unable to obtain the necessary capital, it will need to pursue a plan to license or sell its assets, seek to be acquired by another entity, cease operations and/or seek bankruptcy protection.

Consolidation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Isis Tele-Communications, Inc., which has no current operations, SafeStitch LLC, and TransEnterix Surgical, Inc. All inter-company accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include identifiable intangible assets and goodwill, the valuation of common stock for purposes of determining stock compensation expense, excess and obsolete inventory reserves, allowance for uncollectible accounts, and deferred tax asset valuation allowances.

Reverse Merger

On September 3, 2013, SafeStitch and TransEnterix Surgical, consummated the Merger whereby TransEnterix Surgical merged with a merger subsidiary of SafeStitch, with TransEnterix Surgical as the surviving entity in the Merger. As a result of the Merger, TransEnterix Surgical became a wholly owned subsidiary of SafeStitch. On December 6, 2013, SafeStitch changed its corporate name to TransEnterix, Inc.

The Reverse Merger has been accounted for as a reverse acquisition under which TransEnterix Surgical was considered the acquirer of SafeStitch. As such, the financial statements of TransEnterix Surgical are treated as the historical financial statements of the combined company, with the results of SafeStitch being included from September 3, 2013.

As a result of the Reverse Merger with SafeStitch, historical common stock amounts and additional paid in capital have been retroactively adjusted using an Exchange Ratio of 1.1533.

Cash and Cash Equivalents, Restricted Cash, and Short-Term Investments

The Company considers all highly liquid investments with original maturities of 90 days or less at the time of purchase to be cash equivalents and investments with original maturities of between 91 days and one year to be short-term investments. In order to manage exposure to credit risk, the Company invests in high-quality investments rated at least A2 by Moody’s Investors Service or A by Standard & Poor.

Restricted cash consisting of a money market account used as collateral securing a letter of credit under the terms of the corporate office operating lease that commenced in 2010 was $375,000 as of December 31, 2013 and 2012.

The Company’s investments consist of corporate bonds and are classified as available for sale. Investments classified as available for sale are measured at fair value, and net unrealized gains and losses are recorded as a component of accumulated other comprehensive income (loss) on the balance sheet until realized. Realized gains and losses on sales of investment securities are determined based on the specific-identification method and are recorded in interest and other income. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity computed under the effective interest method. Such amortization and accretion is included in interest and other income.

Accounts Receivable

Accounts receivable are recorded at net realizable value, which includes an allowance for estimated uncollectable accounts. The allowance for uncollectible accounts was determined based on historical collection experience.

Fair Value of Financial Instruments

The carrying values of cash equivalents, accounts receivable, interest receivable, accounts payable, and certain accrued expenses at December 31, 2013 and 2012, approximate their fair values due to the short-term nature of these items. The Company’s debt balance approximates fair value as of December 31, 2013 and 2012.

Concentrations and Credit Risk

The Company’s principal financial instruments subject to potential concentration of credit risk are cash and cash equivalents and investments held in money market accounts. The Company places cash deposits with a federally insured financial institution. The Company maintains its cash at banks and financial institutions it considers to be of high credit quality; however the Company’s cash deposits may at times exceed the FDIC insured limit. Balances in excess of federally insured limitations may not be insured. The Company has not experienced losses on these accounts, and management believes that the Company is not exposed to significant risks on such accounts.

The Company had one customer who constituted 61% of the Company’s net accounts receivable at December 31, 2013. The Company had two customers who constituted 42% and 13%, respectively, of the Company’s net accounts receivable at December 31, 2012. The Company had one customer who accounted for 37% and 21% of revenues in 2013 and 2012, respectively.

Inventory

Inventory, which includes material, labor and overhead costs, is stated at standard costs which approximates actual cost, determined on a first-in, first-out basis, not in excess of market value. Raw materials consist of purchased material as well as sub-assemblies for which some labor has been applied. The Company records reserves, when necessary, to reduce the carrying value of inventory to their net realizable value. At the point of loss recognition, a new, lower-cost basis for that inventory is established, and any subsequent improvements in facts and circumstances do not result in the restoration or increase in that newly established cost basis.

Identifiable Intangible Assets and Goodwill

Identifiable intangible assets are recorded at cost, or when acquired as part of a business acquisition, at estimated fair value. Certain intangible assets are amortized over 10 years. Similar to tangible personal property and equipment, the Company periodically evaluates identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. No impairment existed at December 31, 2013 or 2012.

Indefinite-lived intangible assets, such as goodwill are not amortized. The Company tests the carrying amounts of goodwill for recoverability on an annual basis at December 31^st or when events or changes in circumstances indicate evidence of potential impairment exists, using a fair value based test. No impairment existed at December 31, 2013.

Debt Issuance Costs

The Company capitalizes costs associated with the issuance of debt instruments and amortizes these costs to interest expense over the term of the related debt agreement using the effective yield amortization method. Unamortized debt issuance costs will be charged to operations when indebtedness under the related credit facility is repaid prior to maturity.

Business Acquisitions

Business acquisitions are accounted for using the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) 805, “Business Combinations.” ASC 805 requires, among other things, that assets acquired and liabilities assumed be recognized at their fair values, as determined in accordance with ASC 820, “Fair Value Measurements,” as of the acquisition date. For certain assets and liabilities, book value approximates fair value. In addition, ASC 805 establishes that consideration transferred be measured at the closing date of the acquisition at the then-current market price, which may be different than the amount of consideration assumed in the pro forma financial statements. Under ASC 805, acquisition related costs (i.e., advisory, legal, valuation and other professional fees) and certain acquisition-related restructuring charges impacting the target company are expensed in the period in which the costs are incurred. The application of the acquisition method of accounting requires the Company to make estimates and assumptions related to the estimated fair values of net assets acquired. Significant judgments are used during this process, particularly with respect to intangible assets. Generally, intangible assets are amortized over their estimated useful lives. Goodwill and other indefinite-lived intangibles are not amortized, but are annually assessed for impairment. Therefore, the purchase price allocation to intangible assets and goodwill has a significant impact on future operating results.

Impact of Recently Issued Accounting Standards

In July 2013, the Financial Accounting Standards Board issued ASU No. 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists," which updated the guidance in ASC Topic 740, Income Taxes. The amendments in ASU 2013-11 provide guidance for the presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The guidance requires an unrecognized tax benefit to be presented as a decrease in a deferred tax asset where a net operating loss, a similar tax loss, or a tax credit carryforward exists and certain criteria are met. This guidance is effective January 1, 2014. The Company does not expect adoption of this guidance to have a material impact on its consolidated results of operations and financial condition.

Effective January 1, 2013, the Company adopted the amended guidance in ASC Topic 220, Comprehensive Income. The amended guidance requires entities to disclose additional information about reclassification adjustments, including (1) changes in accumulated other comprehensive income by component and (2) significant items reclassified out of accumulated other comprehensive income by presenting the amount reclassified and the individual income statement line items affected. The adoption of ASU No. 2013-02 did not have a material impact on the Company’s consolidated financial position or results of operations.

Risk and Uncertainties

The Company is subject to a number of risks similar to other similarly-sized companies in the medical device industry. These risks include, without limitation, the historical lack of profitability, our ability to raise additional capital, our ability to successfully develop, clinically test and commercialize our products, the timing and outcome of the regulatory review process for our products, changes in the health care and regulatory environments of the United States and other countries in which we intend to operate, our ability to attract and retain key management, marketing and scientific personnel, competition from new entrants, our ability to successfully prepare, file, prosecute, maintain, defend and enforce patent claims and other intellectual property rights, our ability to successfully transition from a research and development company to a marketing, sales and distribution concern, and our ability to identify and pursue development of additional products.

Property and Equipment

Property and equipment consists primarily of molds, machinery, manufacturing equipment, computer equipment, furniture, and leasehold improvements, which are recorded at cost.

Depreciation is recorded using the straight-line method over the estimated useful lives of the assets as follows:

	Molds		3 years
	Machinery and manufacturing equipment		5 years
	Computer equipment		3 years
	Furniture		5 years
	Leasehold improvements		Lesser of lease term or 3 to 10 years

Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation and amortization are removed from the accounts and any resulting gain or loss is credited or charged to operations. Repairs and maintenance costs are expensed as incurred.

Intellectual Property

Intellectual property consists of purchased patent rights. Amortization is recorded using the straight-line method over the estimated useful life of the patents of 10 years. This method approximates the period over which the Company expects to receive the benefit from these assets.

Long-Lived Assets

The Company reviews its long-lived assets including property and equipment and purchased intellectual property, for possible impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. To determine the recoverability of its long-lived assets, the Company evaluates the probability that future estimated undiscounted net cash flows will be less than the carrying amount of the assets. If such estimated cash flows are less than the carrying amount of the long-lived assets, then such assets are written down to their fair value. The Company’s estimates of anticipated cash flows and the remaining estimated useful lives of long-lived assets could be reduced in the future, resulting in a reduction to the carrying amount of long-lived assets.

Preferred Stock Warrant Liability

In January and December 2012, TransEnterix Surgical entered into promissory notes with two lenders and issued preferred stock warrants to each lender in connection with the issuance of the promissory notes. At December 31, 2012, TransEnterix Surgical accounted for these freestanding warrants to purchase TransEnterix Surgical Series B-1 Convertible Preferred Stock as liabilities at fair value on the accompanying balance sheet. The warrants were subject to re-measurement at each balance sheet date prior to the Merger, and the change in fair value through the Merger date was recognized as other income (expense). TransEnterix Surgical used the Monte Carlo simulation method to value the warrants prior to the Merger which is a generally accepted statistical method used to generate a defined number of stock price paths in order to develop a reasonable estimate of the range of TransEnterix Surgical’s future expected stock prices and minimizes standard error. In connection with the Merger, the warrants, which previously were convertible into shares of TransEnterix Surgical Series B-1 Convertible Preferred Stock, were amended to be convertible into warrants to purchase the Company’s common stock. Upon conversion of the warrants upon the date of the Merger, the preferred stock warrant liability was reclassified into additional paid-in capital.

Significant assumptions used in the valuation of the preferred stock warrants liability December 31, 2012 were as follows:

Exercise price	$	0.29
Risk-free interest rate		1.78	%
Expected volatility		160	%
Expected life (years)		9
Expected dividend yield		0	%

Revenue Recognition

Revenue from product sales is recognized when persuasive evidence of an arrangement exists, delivery has occurred which is typically at shipping point, the fee is fixed or determinable and collectability is reasonably assured. Shipping and handling costs billed to customers are included in revenue.

Cost of Goods Sold

Cost of goods sold consists of materials, labor and overhead incurred internally to produce the products. Shipping and handling costs incurred by the Company are included in cost of goods sold.

Research and Development Costs

Research and development expenses primarily consist of engineering, product development and regulatory expenses, incurred in the design, development, testing and enhancement of our products and legal services associated with our efforts to obtain and maintain broad protection for the intellectual property related to our products. Research and development costs are expensed as incurred.

Stock-Based Compensation

The Company follows ASC 718 (“Stock Compensation”) and ASC 505-50 (“Equity-Based Payments to Non-employees”), which provide guidance in accounting for share-based awards exchanged for services rendered and requires companies to expense the estimated fair value of these awards over the requisite service period. The Company determines the fair value of the stock-based compensation awards granted as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. If the fair value of the equity instruments issued is used, it is measured using the stock price and other measurement assumptions as of the earlier of either of (1) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date at which the counterparty’s performance is complete.

The Company records as expense the fair value of stock-based compensation awards, including employee stock options. Compensation expense for stock-based compensation was $941,245 and $343,137 for the years ended December 31, 2013 and 2012, respectively.

Income Taxes

The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets or liabilities for the temporary differences between financial reporting and tax basis of the Company’s assets and liabilities, and for tax carryforwards at enacted statutory rates in effect for the years in which the asset or liability is expected to be realized. The effect on deferred taxes of a change in tax rates is recognized in income during the period that includes the enactment date. In addition, valuation allowances are established when necessary to reduce deferred tax assets and liabilities to the amounts expected to be realized.

Comprehensive income (loss)

Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The Company’s comprehensive net loss is equal to its net loss for all periods presented.

Cash, Cash Equivalents, Restricted Cash, and Short-term Investments

12 Months Ended

Dec. 31, 2013

Cash and Cash Equivalents [Abstract]

Cash, Cash Equivalents, Restricted Cash, and Short-term Investments

3. Cash, Cash Equivalents, Restricted Cash, and Short-term Investments

Cash, cash equivalents, restricted cash, and short-term investments consist of the following:

	December 31
	2013		2012
	(In thousands)

Cash	$	930	$	729
Money market		9,084		8,167
Total cash and cash equivalents	$	10,014	$	8,896

Corporate bonds	$	6,191	$	907
Total short-term investments	$	6,191	$	907

Total restricted cash	$	375	$	375

Total	$	16,580	$	10,178

- Definition

The entire disclosure for cash and cash equivalent footnotes, which may include the types of deposits and money market instruments, applicable carrying amounts, restricted amounts and compensating balance arrangements. Cash and equivalents include: (1) currency on hand (2) demand deposits with banks or financial institutions (3) other kinds of accounts that have the general characteristics of demand deposits (4) short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only investments maturing within three months from the date of acquisition qualify.

+ References + Details

Fair Value

12 Months Ended

Dec. 31, 2013

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]

Fair Value

4. Fair Value

The Company held certain assets and liabilities that are required to be measured at fair value on a recurring basis. These assets and liabilities include available for sale securities classified as cash equivalents and a preferred stock warrant liability, respectively. ASC 820-10 (“Fair Value Measurement Disclosure”) requires the valuation using a three-tiered approach, which requires that fair value measurements be classified and disclosed in one of three tiers. These tiers are: Level 1, defined as quoted prices in active markets for identical assets or liabilities; Level 2, defined as valuations based on observable inputs other than those included in Level 1, such as quoted prices for similar assets and liabilities in active markets, or other inputs that are observable or can be corroborated by observable input data; and Level 3, defined as valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants.

For assets and liabilities recorded at fair value, it is the Company’s policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements, in accordance with the fair value hierarchy. Fair value measurements for assets and liabilities where there exists limited or no observable market data and therefore, are based primarily upon estimates, are often calculated based on the economic and competitive environment, the characteristics of the asset or liability and other factors. Therefore, the results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability. Additionally, there may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results of current or future values. The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures.

As prescribed by U.S. GAAP, the Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. An adjustment to the pricing method used within either Level 1 or Level 2 inputs could generate a fair value measurement that effectively falls in a lower level in the hierarchy.

The determination of where an asset or liability falls in the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures and based on various factors, it is possible that an asset or liability may be classified differently from period to period. However, the Company expects changes in classifications between levels will be rare.

The following are the major categories of assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 and 2012, using quoted prices in active markets for identical assets (Level 1); significant other observable inputs (Level 2); and significant unobservable inputs (Level 3):

	December 31, 2013
	(In thousands)
Description	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Total
	(Level 1)		(Level 2)		(Level 3)		December 31, 2013
Assets measured at fair value
Cash and Cash Equivalents	$	10,014	$	-	$	-	$	10,014
Restricted Cash		375		-		-		375
Short term investments		-	$	6,191		-	$	6,191

Total Assets measured at fair value	$	10,389	$	6,191	$	-	$	16,580

	December 31, 2012
	(In thousands)
	Quoted Prices in
	Active Markets for		Significant Other		Significant
	Identical Assets		Observable Inputs		Unobservable Inputs		Total
Description	(Level 1)		(Level 2)		(Level 3)		December 31, 2012

Assets measured at fair value
Cash and Cash Equivalents	$	8,896	$	-	$	-	$	8,896
Restricted Cash		375		-		-		375
Short term investments		-		907		-		907

Total Assets measured at fair value	$	9,271	$	907	$	-	$	10,178

Liabilities measured at fair value
Preferred Stock Warrant Liability	$	-	$	-	$	(109)	$	(109)

Total Liabilities measured at fair value	$	-	$	-	$	(109)	$	(109)

The change in the fair value of the Level III preferred stock warrant liability is summarized below:

	December 31,
	2013		2012
	(In thousands)
Fair value at beginning of year	$	109	$	-
Issuances		-		128
Change in fair value recorded in other income (expense)		1,800		(19)
Reclassification to additional paid-in capital upon the merger		(1,909)		-
Fair value at end of year	$	-	$	109

The Company utilized the Monte Carlo simulation to value the liability related to the preferred warrants, which requires significant unobservable, or Level 3, inputs. The Monte Carlo simulation is a generally accepted statistical method used to generate a defined number of stock price paths in order to develop a reasonable estimate of the range of the Company’s future expected stock prices and minimizes standard error.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Investments

12 Months Ended

Dec. 31, 2013

Investments, Debt and Equity Securities [Abstract]

Investments

5. Investments

The aggregate fair values of investment securities along with unrealized gains and losses determined on an individual investment security basis are as follows:

	(In thousands)
	Amortized Cost		Unrealized Gain		Unrealized (Loss)		Fair Value
December 31, 2013
Corporate bonds	$	6,191	$	-	$	-	$	6,191

December 31,2012
Corporate bonds	$	907	$	-	$	-	$	907

None of the securities have contractual maturities of more than one year and therefore do not have continuous unrealized losses greater than 12 months. Gross realized gains were $0 and $177 for the years ended December 31, 2013 and 2012, respectively.

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References + Details

Accounts Receivable, Net

12 Months Ended

Dec. 31, 2013

Receivables [Abstract]

Accounts Receivable, Net

6. Accounts Receivable, Net

The following table presents the components of accounts receivable:

	December 31,		December 31,
	2013		2012
	(In thousands)

Gross accounts receivable	$	220	$	586
Allowance for uncollectible accounts		(32)		(50)
Total accounts receivable, net	$	188	$	536

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Inventories

12 Months Ended

Dec. 31, 2013

Inventory Disclosure [Abstract]

Inventories

7. Inventories

The following table presents the components of inventories:

	December 31,		December 31,
	2013		2012
	(In thousands)

Finished goods	$	896	$	708
Raw materials		-		784
Reserve for excess and obsolete inventory		(195)		(110)
Total inventories	$	701	$	1,382

During the year ended December 31, 2013, the reserve for excess and obsolete inventory was increased by approximately $803,000 primarily to reserve for raw materials that the Company no longer anticipates selling. Of this amount, approximately $718,000 was written-off and removed from inventory, resulting in an increase in the reserve for excess and obsolete inventory of approximately $85,000.

Property and Equipment

12 Months Ended

Dec. 31, 2013

Property and Equipment [Abstract]

Property and Equipment

8. Property and Equipment

Property and equipment consisted of the following:

	December 31,		December 31,
	2013		2012
	(In thousands)

Machinery and manufacturing equipment	$	2,453	$	2,722
Molds		-		1,228
Computer equipment		1,327		1,081
Furniture		287		286
Leasehold improvements		1,249		673

Total property and equipment		5,316		5,990
Accumulated depreciation and amortization		(3,452)		(4,223)

Property and equipment, net	$	1,864	$	1,767

Depreciation expense was $982,616 and $1,212,819, for the years ended December 31, 2013 and 2012, respectively.

During the year ended December 31, 2013, an impairment charge of $449,853 was incurred for a charge in the estimate of the useful lives for certain manufacturing property and equipment that the Company does not anticipate using in the future.

Intellectual Property

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Intellectual Property

9. Intellectual Property

In 2009, the Company purchased certain patents from an affiliated company for $5 million in cash and concurrently terminated a license agreement related to the patents. Intellectual Property consisted of the following:

	December 31,		December 31,
	2013		2012
	(In thousands)
Patents	$	5,000	$	5,000
Accumulated amortization		(2,259)		(1,759)

Intellectual property, net	$	2,741	$	3,241

Amortization expense was $500,004 for the years ended December 31, 2013 and 2012. At December 31, 2013, the estimated amortization expense for each of the five succeeding years is approximately $500,000 per year. The patent expiration dates begin in 2027.

Debt Issuance Costs

12 Months Ended

Dec. 31, 2013

Debt [Abstract]

Debt Issuance Costs

10. Debt Issuance Costs

In connection with the issuance of notes payable, TransEnterix Surgical incurred debt acquisition costs in the amount of $109,133 and $43,853 during the years ended December 31, 2011 and 2012, respectively. TransEnterix Surgical capitalizes these costs and is amortizing them over the life of the debt, using the straight-line method of amortization which approximates the effective-interest method. Amortization expense for the debt issuance costs was $65,318 and $28,285 for the years ended December 31, 2013 and 2012, respectively.

In January 2012, TransEnterix Surgical recorded $63,030 of debt issuance costs related to the issuance to the lenders of warrants to purchase Series B-1 Convertible Redeemable Preferred Stock. The preferred stock warrants were issued in conjunction with a promissory note issued to the lenders. At that time, TransEnterix Surgical began amortizing the debt issuance costs over the four year term of the promissory note resulting in $15,921 and $10,539 of interest expense for the years ended December 31, 2013 and 2012, respectively.

In December 2012, TransEnterix Surgical recorded $65,455 of debt issuance costs related to the issuance of warrants to purchase Series B-1 Convertible Redeemable Preferred Stock to lenders. The preferred stock warrants were issued in conjunction with a promissory note issued to the lender. At that time, TransEnterix Surgical began amortizing the debt issuance costs over the three year term of the promissory note resulting in $21,601 and $592 of interest expense for the year ended December 31, 2013 and 2012, respectively.

Total amortization expense related to issuance of warrants was $37,522 and $39,416 for the years ended December 31, 2013 and 2012, respectively. Total accumulated amortization for the warrant issuance costs was $76,938 and $39,416 at December 31, 2013 and 2012, respectively. Debt issuance costs, net of amortization, are recorded within other assets on the consolidated balance sheets.

Income Taxes

12 Months Ended

Dec. 31, 2013

Income Taxes [Abstract]

Income Taxes

11. Income Taxes

No income tax expense or benefit has been recorded for the years ended December 31, 2013 or December 31, 2012. This is due to the establishment of a valuation allowance against the deferred tax assets generated during those periods. The valuation allowance was recorded due to management’s assessment of the likelihood that said deferred tax assets will be realized in future periods.

Significant components of the Company’s deferred tax assets consist of the following at December 31 (in thousands):

	2013		2012
Current deferred tax assets:
Inventory reserves	$	71	$	41
Accrued expenses		331		77
Deferred Rent		14		30
Allowance for uncollectible accounts receivable		12		18
Valuation allowance		(428)		(166)

Net current deferred tax asset		—		—

Noncurrent deferred tax assets:
Stock-based compensation		1,170		186
Contribution carryforward		2		—
Research credit carryforward		2,307		874
Fixed assets		235		141
Capitalized start up costs		4,676		2,180
Net operating loss carryforwards		38,286		22,820
		46,676		26,201
Valuation allowance		(46,672)		(26,201)

Net noncurrent deferred tax asset		4		—

Noncurrent deferred tax liability
Purchase accounting intangibles		(4)		—

Net deferred tax asset (liability)	$	—	$	—

The Merger transaction described in Note 1 was in the form of a tax-free reorganization under Internal Revenue Code Sec. 368. The transaction qualifies as a Business Combination under ASC 740. The goodwill recorded under U.S. GAAP purchase accounting is not deductible for tax purposes.

At December 31, 2013 and 2012, the Company has provided a full valuation allowance against its net deferred assets, since realization of these benefits is not more likely than not. The valuation allowance increased approximately $20.7 million from the prior year. At December 31, 2013, the Company had federal and state net operating loss tax carryforwards of approximately $104.7 million and $75.6 million, respectively. These net operating loss carryforwards expire in various amounts starting in 2027 and 2022, respectively. At December 31, 2013, the Company had federal research credit carryforwards in the amount of $2.3 million. These carryforwards begin to expire in 2027. The utilization of the federal net operating loss carryforwards and credit carryforwards will depend on the Company’s ability to generate sufficient taxable income prior to the expiration of the carryforwards. In addition, the maximum annual use of net operating loss and research credit carryforwards is limited in certain situations where changes occur in stock ownership.

On July 23, 2013, North Carolina enacted House Bill 998, which reduced the corporate income tax rate from 6.9% in 2013 to 6% in 2014 and to 5% in 2015. As a result of the new enacted tax rate, the Company adjusted its deferred tax assets in 2013 by applying the lower rate, which resulted in a decrease to the deferred tax assets and a corresponding decrease to the valuation allowance of approximately $0.4 million.

The Company has evaluated its tax positions to consider whether it has any unrecognized tax benefits. As of December 31, 2013 and 2012, the Company has not recorded any amounts associated with unrecognized tax benefits.

The Company recognizes interest and penalties related to uncertain tax positions in the provision for income taxes. As of December 31, 2013, the Company had no accrued interest related to uncertain tax positions.

The Company has analyzed its filing positions in all significant federal and state jurisdictions where it is required to file income tax returns, as well as open tax years in these jurisdictions. With few exceptions, the Company is no longer subject to United States Federal, state, and local tax examinations by tax authorities for years before 2010, although carryforward attributes that were generated prior to 2010 may still be adjusted upon examination by the taxing authorities if they either have been or will be used in a future period. No income tax returns are currently under examination by taxing authorities.

Taxes computed at the statutory federal income tax rate of 34% are reconciled to the provision for income taxes as follows for the years ended December 31:

	2013					2012
			Percent of					Percent of
			Pretax					Pretax
	Amount		Earnings			Amount		Earnings
United States federal tax statutory rate	$	(9,642)		34.0	%	$	(5,245)		34.0	%
State taxes (net of deferred benefit)		(662)		2.3	%		(469)		3.0	%
Non-deductible expenses		1,556		(5.5)	%		—		0.0	%
Change in valuation allowance		20,733		(73.1)	%		5,101		(33.1)	%
Adjustment for valuation allowance recorded as part of purchase accounting		(11,785)		41.6	%		—		0.0	%

Other, net		(200)		0.7	%		613		(3.9)	%

Provision for income taxes	$	—		0.0	%	$	—		0.0	%

Related-Party Transactions

12 Months Ended

Dec. 31, 2013

Certain Relationships and Related Party Transactions [Abstract]

Related-Party Transactions

12. Related-Party Transactions

At December 31, 2012, Synecor, LLC owned 37% of the common stock of TransEnterix Surgical. In addition, at December 31, 2012, Synecor, LLC and its shareholders and officers collectively owned approximately 85% of the common stock of TransEnterix Surgical, as well as 17% of the preferred stock of TransEnterix Surgical. At December 31, 2013, Synecor, LLC and its shareholders and officers collectively owned approximately 12% of the Company’s common stock. Various research and development services were purchased from Synecor LLC and its wholly owned subsidiary Synchrony Labs LLC and totaled approximately $90,000 and $108,000 for the years ended December 31, 2013 and 2012, respectively.

The Company’s directors Dr. Hsiao and Dr. Frost are each significant stockholders and/or directors of Non-Invasive Monitoring Systems, Inc. (“NIMS”), a publicly-traded medical device company, Tiger X Medical, Inc. (“Tiger X”) (formerly known as Cardo Medical, Inc.), a publicly-traded medical device company, and TigerMedia, Inc. (“TigerMedia) (formerly known as SearchMedia Holdings Limited), a publicly-traded media company operating primarily in China. Director Richard Pfenniger is also a shareholder of NIMS. The Company’s Chief Legal Officer serves under a Board-approved cost sharing arrangement as Corporate Counsel of TigerMedia and as the Chief Legal Officer of each of NIMS and Tiger X. Additionally, the Company’s former Chief Financial Officer, also serves as the Chief Financial Officer and supervises the accounting staff of NIMS under a Board-approved cost sharing arrangement whereby the total salaries of the accounting staffs of the companies are shared. The Company has recorded reductions to general and administrative expenses for the years ended December 31, 2013 of $55,000, to account for the sharing of accounting and legal administrative costs under this arrangement. Aggregate accounts receivable from NIMS, Tiger X and TigerMedia were approximately $14,000 as of December 31, 2013 and are included in other receivable – related party.

SafeStitch entered into a five-year lease for office space in Miami, Florida with a company controlled by Dr. Frost. The current rental payments under the Miami office lease, which commenced January 1, 2008 and expired on December 31, 2012, are approximately $12,000 per month and are currently on a month-to-month basis. The Company recorded $48,000 of rent expense related to the Miami lease for the year ended December 31, 2013.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

Stock-Based Compensation

12 Months Ended

Dec. 31, 2013

Stock-Based Compensation [Abstract]

Stock-Based Compensation

13. Stock-Based Compensation

The Company’s stock-based compensation plans include the TransEnterix, Inc. 2007 Incentive Compensation Plan, previously named the SafeStitch Medical, Inc. 2007 Incentive Compensation Plan (the “2007 Plan”), as well as options outstanding under the TransEnterix, Inc. Stock Option Plan (the “2006 Plan”). As part of the Merger, options outstanding, whether vested or unvested, under the 2006 Plan were adjusted by the Exchange Ratio of 1.1533, and assumed by the Company concurrent with the closing of the Merger .

The 2007 Plan was approved by the majority of the SafeStitch’s stockholders on November 13, 2007. The 2007 Plan was amended on June 19, 2012 to increase the number of shares of common stock available for issuance to 5,000,000 and was amended on October 29, 2013 to (a) increase the number of shares of common stock authorized for issuance under the 2007 Plan from 5,000,000 shares of common stock to 24,700,000 shares of common stock, (b) increase the per-person award limitations for options or stock appreciation rights from 1,000,000 to 2,500,000 shares and for restricted stock, deferred stock, performance shares and/or other stock-based awards from 500,000 to 1,000,000 shares, and (c) change the name of the 2007 Plan to reflect the change to the TransEnterix, Inc. 2007 Incentive Compensation Plan. Under the 2007 Plan, which is administered by the Compensation Committee, the Company may grant stock options, stock appreciation rights, restricted stock and/or deferred stock to employees, officers, directors, consultants and vendors. The exercise price of stock options or stock appreciation rights may not be less than the fair market value of the Company’s shares at the date of grant and, within any 12 month period. Additionally, no stock options or stock appreciation rights granted under the 2007 Plan may have a term exceeding ten years.

The 2006 Plan was adopted in September 2006 and provided for the granting of up to 400,000 stock options to employees, directors, and consultants. Under the 2006 Plan, both employees and non-employees were eligible for such stock options. In 2009, the 2006 Plan was amended to increase the total options pool to 5,550,264. In 2011, the 2006 Plan was amended to increase the total options pool to 16,890,945. The Board of Directors had the authority to administer the plan and determine, among other things, the exercise price, term and dates of the exercise of all options at their grant date. Under the 2006 Plan, options become vested generally over four years, and expire not more than 10 years after the date of grant. As part of the Merger, options outstanding under the 2006 Plan were adjusted by the Conversion Ratio, and remain in existence as options in the combined entity.

During the years ended December 31, 2013 and 2012, the Company recognized $941,245 and $343,137, respectively, of stock-based compensation expense.

The Company recognizes as expense, the grant-date fair value of stock options and other stock based compensation issued to employees and non-employee directors over the requisite service periods, which are typically the vesting periods. The Company uses the Black-Scholes-Merton model to estimate the fair value of its stock-based payments. The volatility assumption used in the Black-Scholes-Merton model is based on the calculated historical volatility based on an analysis of reported data for a peer group of companies. The expected term of options granted by the Company has been determined based upon the simplified method, because the Company does not have sufficient historical information regarding its options to derive the expected term. Under this approach, the expected term is the mid-point between the weighted average of vesting period and the contractual term. The risk-free interest rate is based on U.S. Treasury rates whose term is consistent with the expected life of the stock options. The Company has not paid and does not anticipate paying cash dividends on its shares of common stock; therefore, the expected dividend yield is assumed to be zero. The Company estimates forfeitures based on the historical experience of the Company and adjusts the estimated forfeiture rate based upon actual experience.

The fair value of options granted were estimated using the Black-Scholes-Merton option pricing model based on the assumptions in the table below:

Year ended December 31,	2013		2012
Expected dividend yield		0%		0%
Expected volatility		62%-63%		55% - 67%
Risk-free interest rate		1.64% - 1.98%		0.4% - 3.7%
Expected life (in years)		5.7 – 6.1		2.9 - 10.0

The Company is also required to estimate the fair value of the common stock underlying the stock-based awards when performing the fair value calculations with the Black-Scholes option-pricing model. The fair value of the common stock underlying the stock-based awards for the common stock before the Company was public was estimated on each grant date by the Board of Directors, with input from management. The Board of Directors is comprised of a majority of non-employee directors with significant experience in the medical device industry. Given the absence of a public trading market of the Company’s common stock prior to the Merger, and in accordance with the American Institute of Certified Public Accountants Practice Guide, Valuation of Privately- Held-Company Equity Securities Issued as Compensation, the Board of Directors exercised reasonable judgment and considered numerous objective and subjective factors to determine the best estimate of the fair value of the common stock, including among other things, the rights, preferences and privileges of the redeemable convertible preferred stock, business performance, present value of future cash flows, likelihood of achieving a liquidity event, illiquidity of the Company’s capital stock, management experience, stage of development, industry information and macroeconomic conditions. In addition, the Company’s Board of Directors utilized independent valuations performed by an unrelated third-party specialist to assist with the valuation of the common stock; however, the Company and the Board of Directors have assumed full responsibility for the estimates. The Board of Directors utilized the fair values of the common stock derived in the third-party valuations to set the exercise price for options granted during the year ended December 31, 2012, and also for options granted prior to the Merger in fiscal 2013.

The following table summarizes the Company’s stock option activity, including grants to non-employees, for the years ended December 31, 2013 and 2012:

					Weighted-
					Average
			Weighted-		Remaining
	Number of		Average		Contractual
	Shares		Exercise Price		Term (Years)

Options outstanding at December 31, 2011		4,164,090	$	0.48		7.58
Granted		11,769,866		0.07
Cancelled		(2,962,834)		0.14
Exercised		(48,356)		0.07

Options outstanding at December 31, 2012		12,922,766	$	0.08		8.70
Options assumed through merger with SafeStitch		3,547,750		0.75
Granted		3,015,696		0.44
Cancelled		(30,643)		0.08
Exercised		(341,133)		0.16
Options outstanding at December 31, 2013		19,114,436	$	0.26		7.95

The following table summarizes information about stock options outstanding at December 31, 2013:

					Weighted-
					Average
			Weighted-		Remaining
	Number of		Average		Contractual
	Shares		Exercise Price		Term (Years)
Exercisable at December 31, 2013		10,031,605	$	0.30		7.23
Vested or expected to vest at December 31, 2013		18,788,438	$	0.26		7.94

The aggregate intrinsic value of stock options outstanding, exercisable, and vested or expected to vest at December 31, 2013 was approximately $24.8 million, $12.7 million, and $24.3 million, respectively. This amount is before applicable income taxes and represents the closing market price of the Company’s common stock at December 31, 2013 less the grant price, multiplied by the number of stock options that had a grant price that is less than the closing market price. This amount represents the amount that would have been received by the optionees had these stock options been exercised on that date.

The following table summarizes the unvested stock option activity:

			Weighted-Average
	Number of Shares		Fair Value
Unvested options at December 31, 2011		1,683,733	$	0.33
Granted		11,769,866		0.07
Vested		(3,612,025)		0.14
Forfeited		(1,303,895)		0.23

Unvested options at December 31, 2012		8,537,679	$	0.08
Unvested options assumed through merger with SafeStitch		1,116,000		0.49
Granted		3,015,696		0.19
Vested		(3,559,092)		0.25
Forfeited		(27,452)		0.04

Unvested options at December 31, 2013		9,082,831	$	0.22

The Company granted 3,015,696 and 11,769,866 options to employees and nonemployees during the years ended December 31, 2013 and 2012, respectively, with a weighted-average grant date fair value of $0.19 and $0.07, respectively. The total intrinsic value of options exercised during 2013 and 2012 was approximately $347,593 and $0, respectively.

The total fair value of options vested during 2013 and 2012 was $879,826 and $263,751, respectively. As of December 31, 2013, the Company had future employee stock-based compensation expense of $1,790,930 related to unvested share awards, which is expected to be recognized over an estimated weighted-average period of 2.6 years.

Restricted Stock Units

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Restricted Stock Units

14. Restricted Stock Units

In 2013, the Company issued Restricted Stock Units (“RSUs”) to certain employees which vest over three years. By their terms, the RSUs become immediately vested upon the earlier of (i) a change of control and (ii) defined vesting dates, subject to the continuous service with the Company at the applicable vesting event. When vested, the RSUs represents the right to be issued the number of shares of the Company’s common stock that is equal to the number of RSUs granted. The fair value of each RSU is estimated based upon the closing price of the Company’s common stock on the grant date. Share-based compensation expense related to RSUs and awards is recognized over the requisite service period as adjusted for estimated forfeitures.

The following is a summary of the RSU activity for the year ended December 31, 2013:

	Number of Restricted Stock Units Outstanding	Weighted Average Grant Date Fair Value
Unvested, December 31, 2012	-		-
Granted	1,050,000	$	1.44
Vested	-		-
Unvested, December 31, 2013	1,050,000	$	1.44

As of December 31, 2013, the Company recorded $121,169 in compensation expense for the RSUs. As of December 31, 2013, the unrecognized stock-based compensation expense related to unvested RSUs was approximately $1.4 million, which is expected to be recognized over a weighted average period of approximately 2.8 years. The weighted average grant date fair value of the RSUs granted in 2013 was $1.44.

Warrants

12 Months Ended

Dec. 31, 2013

Warrants and Rights Note Disclosure [Abstract]

Warrants

15. Warrants

On March 22, 2013, SafeStitch entered into a stock purchase agreement (the “2013 Stock Purchase Agreement”) with approximately 17 investors (the “2013 PIPE Investors”) pursuant to which the 2013 PIPE Investors agreed to purchase an aggregate of approximately 12,100,000 shares of common stock at a price of $0.25 per share for aggregate consideration of approximately $3.0 million. Included in this private placement was the issuance of PIPE Warrants to purchase approximately 6,048,000 common shares, representing one warrant for every two common shares purchased, with an exercise price of $0.33 per share and five year expiration. Among the 2013 PIPE Investors purchasing Shares were related parties who purchased 6.4 million shares and received 3.2 million warrants. There were approximately 6 million warrants outstanding that were assumed as of the Merger. During the year ended December 31, 2013, 270,000 warrants were exercised.

On January 17, 2012, TransEnterix Surgical entered into the SVB-Oxford Loan and Security Agreement with Silicon Valley Bank (“SVB”) and Oxford Finance LLC (“Oxford”). Pursuant to this agreement, TransEnterix Surgical issued preferred stock warrants to SVB and Oxford on January 17, 2012 and December 21, 2012, respectively, to purchase shares of capital stock. The warrants expire 10 years from the issue date. The warrants were remeasured immediately prior to the Merger. As a result of the remeasurement, the Company recorded approximately $1.8 million of other expense in the accompanying statements of operations and other comprehensive income (loss). As of the Merger, the preferred stock warrants converted to common stock warrants, adjusted based on the Exchange Ratio of 1.1533, and the preferred stock warrant liability was reclassified to additional paid-in capital.

These warrants are exercisable for an aggregate of approximately 1,397,939 shares of common stock. During the year ended December 31, 2013, 698,967 warrants were exercised in a cashless transaction for 563,834 shares of common stock. The summary of warrant activity for the years ended December 31, 2012 and 2013 is as follows:

				Weighted
		Weighted		Average
		Average		Remaining		Weighted
	Number of	Exercise		Contractual		Average
	Warrants	Price		Life (in years)		Fair Value

Outstanding at January 1, 2012	-	$	-		-	$	-
Granted	1,397,939		0.29		9.1		0.11
Exercised	-		-		-		-
Expired/cancelled	-		-		-		-

Outstanding at December 31, 2012	1,397,939	$	0.29		9.1	$	0.09
Granted
Warrants assumed in merger with
SafeStitch	5,998,000		0.33		4.3		0.23
Exercised	(968,969)		0.29		-		1.05
Expired/cancelled	-		-		-		-

Outstanding at December 31, 2013	6,426,970	$	0.29		4.7	$	0.35

The aggregate intrinsic value of the preferred stock warrants in the above table was $8.7 million and $0 at December 31, 2013 and 2012, respectively. The aggregate intrinsic value is before applicable income taxes and is calculated based on the difference between the exercise price of the warrants and the estimated fair market value of the Company’s Series B-1 Preferred Stock as of the respective dates.

Notes Payable

12 Months Ended

Dec. 31, 2013

Debt [Abstract]

Notes Payable

16. Notes Payable

On January 17, 2012, TransEnterix Surgical entered into a loan and security agreement (the “ SVB-Oxford LSA”) with Silicon Valley Bank and Oxford Finance, LLC (collectively, “the Lenders”). The terms of the agreement provide for two term loans in aggregate of $10,000,000 comprised of a $4,000,000 term loan and a $6,000,000 term loan. In connection with the Merger, the Company assumed and became the borrower under TransEnterix Surgical’s outstanding credit facility. The Second and Third Amendment to the SVB-Oxford LSA, dated as of September 3, 2013 and October 31, 2013, respectively, amend the SVB-Oxford LSA among the lenders and the Company (as so amended, the “Amended Loan Agreement”). The Amended Loan Agreement evidences a term loan, which will mature on January 1, 2016 (the “Term Loan”). The following table presents the components of long-term debt:

As of December 31, 2013 future principal payments under the Company’s notes payable agreements are as follows:

Years ending December 31, (In thousands)
2014	$	3,879
2015		4,232
2016		370

Total	$	8,481

The Term Loan bears interest at a fixed rate equal to 8.75 %.

Commencing August 2013, the Amended Loan Agreement provides for the amortization of principal in the form of level monthly payments of principal and interest. The Term Loan will be required to be prepaid if the Term Loan is accelerated following an event of default. In addition, the Company is permitted to prepay the Term Loan in full at any time upon 10 days’ written notice to the Lenders. Upon the earliest to occur of the maturity date, acceleration of the Term Loan, or prepayment of the Term Loan, the Company is required to make a final payment equal to the original principal amount of the Term Loan multiplied by 3.33 % (the “Final Payment Fee”). Any prepayment, whether mandatory or voluntary, must include the Final Payment Fee, interest at the default rate (which is the rate otherwise applicable plus 5 %) with respect to any amounts past due, the Lenders’ expenses, and all other obligations that are due and payable to the Lenders.

The Amended Loan Agreement is secured by a security interest in substantially all assets of the Company and any future subsidiaries, other than intellectual property. The Amended Loan Agreement contains customary representations, tested on a continual basis that, subject to exceptions, restrict the Company’s ability to do the following things: declare dividends or redeem or repurchase equity interests; incur additional liens; make loans and investments; incur additional indebtedness; engage in mergers, acquisitions, and asset sales; transact with affiliates; fail to appoint a chief executive officer, chief financial officer, and chief technology officer upon vacancy; undergo a change in control; add or change business locations; and engage in businesses that are not related to the Company’s existing business.

In conjunction with the SVB-Oxford LSA, TransEnterix Surgical issued the Lenders warrants to purchase 1,397,939 shares of the Company’s Series B-1 Convertible Preferred Stock. The warrants were issued on January 17, 2012 and December 12, 2012 with an initial exercise price of $0.29 per share and expire on January 16, 2022. The warrants were recorded at fair value as a liability on the Company’s balance sheet on the date of issuance and are revalued as of each balance sheet date. The warrants converted to common stock warrants on the Merger date, adjusted based on the Exchange Ratio of 1.1533, and the preferred stock warrant liability was reclassified to additional paid-in capital (see Note 15 Warrants).

Basic and Diluted Net Loss per Share

12 Months Ended

Dec. 31, 2013

Basic and Diluted Net Loss Per Share [Abstract]

Basic and Diluted Net Loss per Share

17. Basic and Diluted Net Loss per Share

Basic net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed giving effect to all dilutive potential common shares that were outstanding during the period. Diluted potential common shares consist of incremental shares issuable upon exercise of stock options and warrants and conversion of preferred stock. In computing diluted net loss per share for the years ended December 31, 2013 and 2012, no adjustment has been made to the weighted average outstanding common shares as the assumed exercise of outstanding options and warrants and conversion of preferred stock would be anti-dilutive.

Potential common shares not included in calculating diluted net loss per share are as follows:

	December 31,
	2013	2012
Stock options	19,114,436	12,922,766
Stock warrants	6,426,968	1,397,939
Nonvested Restricted stock units	1,050,000
Total	26,591,404	14,320,705

Closing of Merger and Financing Transaction

12 Months Ended

Dec. 31, 2013

Merger and Financial disclosure [Abstract]

Closing of Merger and Financing Transaction

18. Closing of Merger and Financing Transaction

On September 3, 2013, the Company consummated the Merger in which a wholly owned subsidiary of SafeStitch merged with TransEnterix Surgical, pursuant to the Merger Agreement. Under the terms of the Merger Agreement, TransEnterix Surgical remained as the surviving corporation and as a wholly-owned subsidiary SafeStitch.

Pursuant to the Merger Agreement, each share of TransEnterix Surgical’s capital stock issued and outstanding immediately preceding the Merger was converted into the right to receive 1.1533 shares of the Company’s common stock, par value $0.001 per share , other than those shares of TransEnterix Surgical’s common stock held by non-accredited investors, which shares were instead converted into the right to receive an amount in cash per share of SafeStitch common stock equal to $1.08, without interest, which was the volume-weighted average price of a share of common stock on the OTCBB for the 60-trading day period ended on August 30, 2013 (one business day prior to the effective date of the Merger). Upon the closing of the Merger, and in accordance with the terms of the Merger Agreement, the Company issued an aggregate of 105,549,746 shares of the Company’s common stock as Merger consideration and paid $ 293,000 to unaccredited investors in lieu of common stock. Additionally, pursuant to the Merger Agreement, upon consummation of the Merger, the Company assumed all of TransEnterix Surgical’s options, whether vested or unvested, and warrants issued and outstanding immediately prior to the Merger at the same Exchange Ratio.

During July 2013, TransEnterix Surgical issued promissory notes (the “Bridge Notes”) to related parties consisting of existing investors of TransEnterix Surgical, in the aggregate principal amount of $2.0 million, as contemplated by the Merger Agreement. The Bridge Notes bore interest at a rate of 8% per annum. The Bridge Notes were not secured by any collateral and were subordinated in right of payment to the loan evidenced by the Loan and Security Agreement dated as of January 17, 2012, among Oxford, SVB and TransEnterix Surgical. The Bridge Notes were converted into Series B preferred stock at the effective time of the Merger.

Concurrent with the closing of the Merger, and in accordance with the terms of a Securities Purchase Agreement, the Company issued 7,544,704 .4 shares of Series B Preferred Stock, each share of which is convertible, subject to certain conditions, into ten (10) shares of common stock, for a purchase price of $ 4.00 per share of Series B Preferred Stock, which was paid in cash, cancellation of certain Bridge Notes of TransEnterix Surgical or a combination thereof. The majority of the Series B Preferred Stock was issued to related parties who were existing stockholders of SafeStitch and TransEnterix Surgical. Pursuant to the Securities Purchase Agreement, the Company issued and sold an additional 25,000 shares of Series B Preferred Stock within the period provided in the Securities Purchase Agreement resulting in gross proceeds to the Company of approximately $100,000. Each share of Series B Preferred Stock was converted into ten shares of our common stock, par value $0.001 per share, on December 6, 2013.

At the closing of the Merger, each outstanding share of capital stock of TransEnterix Surgical was cancelled and extinguished and converted into the right to receive a portion of the Merger consideration in accordance with the Merger Agreement. The Bridge Notes were terminated at the closing of the Merger, and the holders of such Bridge Notes received Merger consideration in accordance with the Merger Agreement.

The Merger effectuated on September 3, 2013 qualified as a tax-free reorganization under Section 368 of the Internal Revenue Code. As a result of the Merger, the utilization of certain tax attributes of the Company may be limited in future periods under the rules prescribed under Section 382 of the Internal Revenue Code.

The Company’s assets and liabilities are presented at their preliminary estimated fair values, with the excess of the purchase price over the sum of these fair values presented as goodwill.

The following table summarizes the purchase price (in thousands):

Common shares outstanding at the date of merger		61,749
Closing price per share	$	1.52
	$	93,858
Cash consideration		293
Total purchase price	$	94,151

The purchase price was allocated to the net assets acquired utilizing the methodology prescribed in ASC 805. The Company recorded goodwill of $93.9 million after recording net assets acquired at fair value as presented in the following table.

The following table summarizes the allocation of the purchase price to the net assets acquired (in thousands):

Cash and cash equivalents	$	597
Accounts receivable		54
Inventory		50
Other current assets		53
Property and equipment		185
Other long-term asset		2
Intangible assets		10
Goodwill		93,842
Total assets acquired	$	94,793
Accounts payable and other liabilities		642
Total purchase price	$	94,151

The Company allocated $ 10,000 of the purchase price to identifiable intangible assets of trade names that met the separability and contractual legal criterion of ASC 805. The trade names will be amortized using the straight-line method over 5 years.

The results of operations of SafeStitch have been included in the Company’s consolidated financial statements from the date of the Merger. The following pro forma results of operations assume the acquisition of SafeStitch as of the beginning of 2012. The pro forma results for the year ended December 31, 2013 presented below reflect our historical data and the historical data of the SafeStitch business. The pro forma results of operations presented below may not be indicative of the results the Company would have achieved had the Company completed the Merger on January 1, 2013, or that the Company may achieve in the future.

	Year ended December 31,
	2013		2012
	(In thousands, except per share)

Revenues	$	1,456	$	2,150
Net loss		(30,420)		(22,149)

Earnings per share	$	(0.17)	$	(0.13)

Stockholders' Equity (Deficit)

12 Months Ended

Dec. 31, 2013

Stockholders Equity Note [Abstract]

Stockholders’ Equity (Deficit)

19. Stockholders’ Equity (Deficit)

TransEnterix Surgical

Common and Preferred Stock

On July 12, 2006, TransEnterix Surgical had 11,533,000 shares of common stock authorized. On December 27, 2007, TransEnterix Surgical authorized an additional 2,883,250 shares of common stock for a total of 14,416,250 authorized shares. On October 2, 2009, TransEnterix Surgical authorized an additional 24,219,300 shares of common stock for a total of 38,635,550 authorized shares. On November 30, 2011 TransEnterix Surgical authorized an additional 88,227,450 shares of common stock for a total of 126,863,000 authorized shares. In January 2012 TransEnterix Surgical authorized an additional 3,459,900 shares of common stock for a total of 130,322,900 authorized shares. As of December 31, 2012, 5,391,095 shares of common stock were issued at $0.001 par value per share and were outstanding. Each holder of common stock was entitled to one vote for each share held thereof. In connection with the Merger, the TransEnterix Surgical common stock was converted to common stock of the Company.

On December 27, 2007, TransEnterix Surgical had 6,500,000 shares of preferred stock authorized. On October 2, 2009, TransEnterix Surgical authorized an additional 15,234,402 shares of preferred stock for a total of 21,734,402 authorized shares. On November 30, 2011, TransEnterix Surgical authorized an additional 40,958,843 shares of preferred stock for a total of 62,693,245 authorized shares. In January 2012, TransEnterix Surgical authorized an additional 3,000,000 shares of preferred stock for a total of 65,693,245 shares. In connection with the Merger, the TransEnterix Surgical preferred stock was converted to common stock of the Company.

On December 31, 2007, TransEnterix Surgical completed the issuance of 3,143,749 shares of Series A Redeemable Convertible (“Series A”) Preferred Stock at $3.49 per preferred share. In March 2008, TransEnterix Surgical completed a second closing of Preferred Stock and had 3,373,882 shares of Series A Preferred Stock at $3.49 per preferred share issued and outstanding as of December 31, 2008. On February 18, 2009, TransEnterix Surgical completed the final closing of Series A Preferred Stock and had 5,734,402 shares of Preferred Stock at $3.49 per preferred share issued and outstanding as of December 31, 2011. During 2012, 38,141 shares of Series A Preferred Stock were converted to common stock. At December 31, 2012 TransEnterix Surgical had 5,696,261 shares of Series A Preferred Stock at $3.49 per preferred share issued and outstanding. In connection with the Merger, the TransEnterix Surgical Series A Preferred Stock was converted to common stock of the Company.

On October 6, 2009, TransEnterix Surgical completed the issuance of 11,504,298 shares of Series B Redeemable Convertible (“Series B”) Preferred Stock at $3.49 per preferred share. On November 30, 2011, TransEnterix Surgical completed the closing of Series B-1 Reedemable Convertible (“Series B-1”) Preferred Stock and had 45,121,691 shares of Preferred Stock at $0.33 per preferred share issued and outstanding as of December 31, 2011. In January 2012, TransEnterix Surgical completed a second closing of Series B-1 Preferred Stock. During 2012, 49,998 shares of TransEnterix Surgical’s Series B Preferred Stock were converted to common stock. TransEnterix Surgical had 45,998,220 shares of Series B-1 Preferred Stock at $0.33 per share issued and outstanding at December 31, 2012. In connection with the Merger, the TransEnterix Surgical Series B-1 Preferred Stock was converted to common stock of the Company.

TransEnterix Surgical recorded the shares of redeemable convertible preferred stock at their fair values at issuance, net of issuance costs. These shares have been presented outside of permanent equity due to the redemption feature. The carrying value of TransEnterix Surgical’s redeemable convertible preferred stock was increased by periodic accretion using the effective interest method so that the carrying amount will equal the redemption value at the redemption date.

Voting Rights

The holders of TransEnterix Surgical common stock and preferred stock shall vote together and not as separate classes, except as otherwise provided by law or agreed to contractually. Each holder of preferred stock was entitled to the number of votes equal to the number of shares of common stock, into which the shares of preferred stock held by such holder could be converted immediately after the close of business on the record date fixed for a stockholders meeting or the effective date of a written consent. The holders of shares of preferred stock were entitled to vote on all matters on which the common stock was entitled to vote and act by written consent in the same manner as the common stock.

Holders of preferred stock were entitled to notice of any stockholders meeting in accordance with the bylaws of TransEnterix Surgical. Fractional votes were not, however, permitted and any fractional voting rights were disregarded.

Dividends

In any calendar year, the holders of outstanding shares of preferred stock were entitled to receive dividends, when, as and if declared by the Board of Directors, out of any assets at the time legally available therefore, at the dividends rate specified for such shares of preferred stock payable in preference and priority to any declaration or payment of any distribution on Common stock of TransEnterix Surgical in such calendar year. No distributions were to be made with respect to the common stock until all declared dividends on preferred stock had been paid or set aside for payment to the preferred stock holders. Payments of any dividends to the holders of the Preferred Stock were to be made on a pro rata basis. The right to receive dividends on shares of preferred stock were not to be cumulative, and no right to such dividends were to accrue to holders of preferred stock by reason of the fact that dividends on said shares were not paid or declared in any calendar year. No dividends were declared during the years ended December 31, 2013 and 2012.

Liquidation

In the event of a liquidation, dissolution, or winding up of TransEnterix Surgical, either voluntary or involuntary, the holders of Series B-1 Preferred Stock and Series B Preferred Stock were entitled to receive, prior and in preference to any distribution of any of the assets or surplus funds of TransEnterix Surgical to the holders of Series A Preferred Stock and the holders of common stock by reason of their ownership of such stock, an amount per share for each share of preferred stock held by them equal to the sum of the liquidation preference for the Series B-1 Preferred Stock and the Series B Preferred Stock, respectively and (ii) all declared and unpaid dividends on such shares of preferred stock. If upon liquidation, the assets of TransEnterix Surgical were insufficient to permit the payments to such stock holders, then the entire assets of TransEnterix Surgical legally available for distributions were to be distributed with equal priority and pro rata among the holders of Series B-1 Preferred Stock and the Series B Preferred Stock in proportion to the full amounts to which they would otherwise be entitled.

After payment or setting aside for payment to the holders of Series B-1 Preferred Stock and Series B Preferred Stock, the holders of Series A Preferred Stock were entitled to receive, prior and in preference to any distribution of any of the assets or surplus funds of TransEnterix Surgical to the holders of common stock by reason of their ownership of such stock, an amount per share for each share of preferred stock held by them equal to the sum of the liquidation preference for the Series A Preferred Stock and (ii) all declared and unpaid dividends on such shares of preferred stock. If upon liquidation, the assets of TransEnterix Surgical are insufficient to permit the payments to such stock holders, then the assets of TransEnterix Surgical legally available for distributions to the holders of Series A Preferred Stock after payment of the full amount payable to the holders of Series B-1 Preferred Stock and Series B Preferred Stock were to be distributed with equal priority and pro rata among the holders of Series A Preferred Stock in proportion to the full amounts to which they would otherwise be entitled.

After the payment or setting aside for payment to the holders of preferred stock of the full amounts to holders of Preferred Series B-1, Preferred Series B, and Preferred Series A Stock, the remaining assets of TransEnterix Surgical legally available for distribution were to be distributed pro rata to the holders of the Series B-1 Preferred Stock, Series B Preferred Stock, and common stock of TransEnterix Surgical in proportion to the number of shares of common stock held by them, with the share of Series B-1 Preferred Stock and Series B Preferred Stock being treated for this purpose as if they had been converted to shares of common stock at the then applicable Conversion Rate, as defined in TransEnterix Surgical’s Articles of Incorporation.

Conversion

Each share of Preferred Stock was convertible, at the option of the holder, at any time after the date of issuance at the office of TransEnterix Surgical or any transfer agent for the preferred stock, into that number of fully paid nonassessable shares of common stock determined by dividing the original issue price for the relevant series of preferred stock by the conversion price for such shares in said series. The conversion price for the Preferred Stock Series A and B shall mean $3.49, and Series B-1 shall mean $0.33, and was subject to adjustment from time to time for recapitalizations. In connection with the Merger, the TransEnterix Surgical Series A, Series B and Series B-1 Preferred Stock was converted to common stock of the Company.

Redemption

At the written request of any holder of preferred stock delivered to TransEnterix Surgical on or after the fifth anniversary of the date of the filing of the amended and restated Certificate of Incorporation (November 30, 2016), TransEnterix Surgical shall redeem up to 25% of the shares of preferred stock then held by such holder within 20 days after receiving such notification and up to another 25% of the shares of preferred stock then held by the holder on each of the first three anniversaries of such initial redemption request. The redemption price was equal to the original issuance price plus all declared but unpaid dividends.

Carrying Value

The preferred stock was initially recorded by TransEnterix Surgical at the total proceeds received upon issuance, less the issuance costs. The difference between the total proceeds and the total redemption value at the redemption date is charged first to paid-in capital, if any, and then to the accumulated deficit over the period from issuance until redemption first becomes available. The amount of accretion during each period is determined by using the effective interest rate method. Accretion amounted to approximately $40,000 and $106,300 for the years ended December 31, 2013 and 2012, respectively.

The Company

In connection with the Merger, the Company entered into a securities purchase agreement with accredited investors pursuant to which the investors agreed to purchase an aggregate of 7,569,704.4 shares of the Company’s Series B Convertible Preferred Stock for a purchase price of $4.00 per share of Series B Preferred Stock, which was paid in cash, cancellation of certain indebtedness of TransEnterix Surgical or a combination thereof. Each share of Series B Preferred Stock was converted into ten shares of our common stock, par value $0.001 per share, on December 6, 2013 amounting to 75,697,044 shares of common stock.

On December 6, 2013, the Company increased the number of shares of common stock authorized from 225,000,000 to 750,000,000.

As of December 31, 2013, 25,000,000 shares of preferred stock are authorized, no shares are issued and outstanding.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

Agreement with Creighton University

12 Months Ended

Dec. 31, 2013

Agreement With University [Abstract]

Agreement with Creighton University

20. Agreement with Creighton University

On May 26, 2006, SafeStitch entered into an exclusive license and development agreement (the “Creighton Agreement”) with Creighton University (“Creighton”), granting the Company a worldwide exclusive (even as to the university) license, with rights to sublicense, to all the Company’s product candidates and associated know-how based on Creighton technology, including the exclusive right to manufacture, use and sell the product candidates.

Pursuant to the Creighton Agreement, the Company is obligated to pay Creighton, on a quarterly basis, a royalty of 1.5% of the revenue collected worldwide from the sale of any product licensed under the Creighton Agreement, less certain amounts including, without limitation, chargebacks, credits, taxes, duties and discounts or rebates. Also pursuant to the Creighton Agreement, the Company agreed to invest, in the aggregate, at least $2.5 million over 36 months, beginning May 26, 2006, towards development of any licensed product. This $2.5 million investment obligation excluded the first $150,000 of costs related to the prosecution of patents, which the Company invested outside of the Creighton Agreement. The Company is further obligated to pay to Creighton an amount equal to 20% of certain of the Company’s research and development expenditures as reimbursement for the use of Creighton’s facilities. Failure to comply with the payment obligations above will result in all rights in the licensed patents and know-how reverting back to Creighton. As of December 31, 2013, the Company had satisfied the $2.5 million investment obligation and the facility reimbursement obligation described above.

Pursuant to the Creighton Agreement, SafeStitch is entitled to exercise its own business judgment and sole and absolute discretion over the marketing, sale, distribution, promotion and other commercial exploitation of any licensed products, provided that, if the Company has not commercially exploited or commenced development of a licensed patent and its associated know-how by the seventh anniversary of the later of the date of the Creighton Agreement or the date such technology is disclosed to and accepted by SafeStitch, then the licensed patent and associated know-how shall revert back to the university, with no rights retained by the Company, and the university will have the right to seek a third party with whom to commercialize such patent and associated know-how, unless the Company purchases one or more one-year extensions. The Company is in compliance with these requirements.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies [Abstract]

Commitments and Contingencies

21. Commitments and Contingencies

On November 2, 2009, TransEnterix Surgical entered into an operating lease for its corporate offices for a period of five years commencing in April 2010, with an option to renew for an additional six years. On October 25, 2013, the Company entered into an operating lease for its warehouse for a period of four years and four months commencing in January 2014, with an option to renew for an additional six years. Rent expense was approximately $360,000 for each of the years ended December 31, 2013 and 2012. As of December 31, 2013, the Company’s approximate future minimum payments for its operating lease obligations are as follows:

Years ending December 31,
(In thousands)
2014	$	498
2015		218
2016		117
2017		121
2018		124

Total	$	1,078

TransEnterix Surgical leases its manufacturing facility under a one-year lease from third parties. Rent expense under this lease was $54,533 and $51,455 for the years ended December 31, 2013 and 2012, respectively. SafeStitch leases various office space on a month to month basis. Rent expense under these leases was $55,301 for the year ended December 31, 2013, including $48,000 to a company controlled by a shareholder.

The Company is obligated to pay royalties to Creighton on the sales of products licensed from Creighton pursuant to an exclusive license and development agreement (see Note 20). The Company is also obligated under an agreement with Dr. Parviz Amid to pay a 1.5% royalty for the first three years and then a 4% royalty on the following seven years to Dr. Amid on the net sales of any product developed with Dr. Amid’s assistance, including the AMID HFD, for a period of ten years from the first commercial sale of such product. Royalties were incurred in the amount of $1,300 during the year ended December 31, 2012 and no royalties were incurred during the year ended December 31, 2013.

The Company has placed orders with various suppliers for the purchase of certain tooling, inventory and contract engineering and research services. Each of these orders has a duration or expected completion within the next twelve months. The Company currently has no material commitments with terms beyond twelve months.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2013

Summary Of Significant Accounting Policies [Abstract]

Going Concern

Going Concern

Consolidation

Consolidation

Use of Estimates

Use of Estimates

Reverse Merger

Reverse Merger

As a result of the Reverse Merger with SafeStitch, historical common stock amounts and additional paid in capital have been retroactively adjusted using an Exchange Ratio of 1.1533.

Cash and Cash Equivalents, Restricted Cash, and Short-Term Investments

Cash and Cash Equivalents, Restricted Cash, and Short-Term Investments

Accounts Receivable

Accounts Receivable

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Concentration and Credit Risk

Concentrations and Credit Risk

Inventory

Inventory

Identifiable Intangible Assets and Goodwill

Identifiable Intangible Assets and Goodwill

Debt Issuance Costs

Debt Issuance Costs

Business Acquisitions

Business Acquisitions

Impact of Recently Issued Accounting Standards

Impact of Recently Issued Accounting Standards

Risk And Uncertainties

Risk and Uncertainties

Property and Equipment

Property and Equipment

Property and equipment consists primarily of molds, machinery, manufacturing equipment, computer equipment, furniture, and leasehold improvements, which are recorded at cost.

Depreciation is recorded using the straight-line method over the estimated useful lives of the assets as follows:

	Molds		3 years
	Machinery and manufacturing equipment		5 years
	Computer equipment		3 years
	Furniture		5 years
	Leasehold improvements		Lesser of lease term or 3 to 10 years

Intellactual Property

Intellectual Property

Long-lived assets

Long-Lived Assets

Preferred Stock Warrant Liability

Preferred Stock Warrant Liability

Significant assumptions used in the valuation of the preferred stock warrants liability December 31, 2012 were as follows:

Exercise price	$	0.29
Risk-free interest rate		1.78	%
Expected volatility		160	%
Expected life (years)		9
Expected dividend yield		0	%

Revenue Recognition

Revenue Recognition

Cost of Good Sold

Cost of Goods Sold

Cost of goods sold consists of materials, labor and overhead incurred internally to produce the products. Shipping and handling costs incurred by the Company are included in cost of goods sold.

Research and Development Costs

Research and Development Costs

Stock-Based Compensation

Stock-Based Compensation

Income Taxes

Income Taxes

Comprehensive income (loss)

Comprehensive income (loss)

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Summary Of Significant Accounting Policies [Abstract]

Summary of Estimated Lives of Assets

Depreciation is recorded using the straight-line method over the estimated useful lives of the assets as follows:

	Molds		3 years
	Machinery and manufacturing equipment		5 years
	Computer equipment		3 years
	Furniture		5 years
	Leasehold improvements		Lesser of lease term or 3 to 10 years

Summary of Preferred Stock Warrants

Significant assumptions used in the valuation of the preferred stock warrants liability December 31, 2012 were as follows:

Exercise price	$	0.29
Risk-free interest rate		1.78	%
Expected volatility		160	%
Expected life (years)		9
Expected dividend yield		0	%

Cash, Cash Equivalents, Restricted Cash, and Short-term Investments (Tables)

12 Months Ended

Dec. 31, 2013

Cash and Cash Equivalents [Abstract]

Summary of Cash and Cash Equivalent and Restricted Cash

Cash, cash equivalents, restricted cash, and short-term investments consist of the following:

	December 31
	2013		2012
	(In thousands)

Cash	$	930	$	729
Money market		9,084		8,167
Total cash and cash equivalents	$	10,014	$	8,896

Corporate bonds	$	6,191	$	907
Total short-term investments	$	6,191	$	907

Total restricted cash	$	375	$	375

Total	$	16,580	$	10,178

Fair Value (Tables)

12 Months Ended

Dec. 31, 2013

Defined Benefit Plan Disclosure [Line Items]

Summary of Fair Value

	December 31, 2013
	(In thousands)
Description	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Total
	(Level 1)		(Level 2)		(Level 3)		December 31, 2013
Assets measured at fair value
Cash and Cash Equivalents	$	10,014	$	-	$	-	$	10,014
Restricted Cash		375		-		-		375
Short term investments		-	$	6,191		-	$	6,191

Total Assets measured at fair value	$	10,389	$	6,191	$	-	$	16,580

	December 31, 2012
	(In thousands)
	Quoted Prices in
	Active Markets for		Significant Other		Significant
	Identical Assets		Observable Inputs		Unobservable Inputs		Total
Description	(Level 1)		(Level 2)		(Level 3)		December 31, 2012

Assets measured at fair value
Cash and Cash Equivalents	$	8,896	$	-	$	-	$	8,896
Restricted Cash		375		-		-		375
Short term investments		-		907		-		907

Total Assets measured at fair value	$	9,271	$	907	$	-	$	10,178

Liabilities measured at fair value
Preferred Stock Warrant Liability	$	-	$	-	$	(109)	$	(109)

Total Liabilities measured at fair value	$	-	$	-	$	(109)	$	(109)

Fair Value, Inputs, Level 3 [Member]

Defined Benefit Plan Disclosure [Line Items]

Summary of Preferred Stock Warrent Liability

The change in the fair value of the Level III preferred stock warrant liability is summarized below:

	December 31,
	2013		2012
	(In thousands)
Fair value at beginning of year	$	109	$	-
Issuances		-		128
Change in fair value recorded in other income (expense)		1,800		(19)
Reclassification to additional paid-in capital upon the merger		(1,909)		-
Fair value at end of year	$	-	$	109

Investments (Tables)

12 Months Ended

Dec. 31, 2013

Investments, Debt and Equity Securities [Abstract]

Summary of Investment security

The aggregate fair values of investment securities along with unrealized gains and losses determined on an individual investment security basis are as follows:

	(In thousands)
	Amortized Cost		Unrealized Gain		Unrealized (Loss)		Fair Value
December 31, 2013
Corporate bonds	$	6,191	$	-	$	-	$	6,191

December 31,2012
Corporate bonds	$	907	$	-	$	-	$	907

- Definition

Tabular disclosure of all investments in certain debt and equity securities for which the entity has the positive intent and ability to hold until maturity.

+ References + Details

Accounts Receivable, Net (Tables)

12 Months Ended

Dec. 31, 2013

Receivables [Abstract]

Summary of Accounts receivable

The following table presents the components of accounts receivable:

	December 31,		December 31,
	2013		2012
	(In thousands)

Gross accounts receivable	$	220	$	586
Allowance for uncollectible accounts		(32)		(50)
Total accounts receivable, net	$	188	$	536

Inventories (Tables)

12 Months Ended

Dec. 31, 2013

Inventory Disclosure [Abstract]

Summary of Inventories

The following table presents the components of inventories:

	December 31,		December 31,
	2013		2012
	(In thousands)

Finished goods	$	896	$	708
Raw materials		-		784
Reserve for excess and obsolete inventory		(195)		(110)
Total inventories	$	701	$	1,382

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2013

Property and Equipment [Abstract]

Summary of Property and Equipment

Property and equipment consisted of the following:

	December 31,		December 31,
	2013		2012
	(In thousands)

Machinery and manufacturing equipment	$	2,453	$	2,722
Molds		-		1,228
Computer equipment		1,327		1,081
Furniture		287		286
Leasehold improvements		1,249		673

Total property and equipment		5,316		5,990
Accumulated depreciation and amortization		(3,452)		(4,223)

Property and equipment, net	$	1,864	$	1,767

Intellectual Property (Tables)

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Summry of intelectual property

	December 31,		December 31,
	2013		2012
	(In thousands)
Patents	$	5,000	$	5,000
Accumulated amortization		(2,259)		(1,759)

Intellectual property, net	$	2,741	$	3,241

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes [Abstract]

Summary of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets consist of the following at December 31 (in thousands):

	2013		2012
Current deferred tax assets:
Inventory reserves	$	71	$	41
Accrued expenses		331		77
Deferred Rent		14		30
Allowance for uncollectible accounts receivable		12		18
Valuation allowance		(428)		(166)

Net current deferred tax asset		—		—

Noncurrent deferred tax assets:
Stock-based compensation		1,170		186
Contribution carryforward		2		—
Research credit carryforward		2,307		874
Fixed assets		235		141
Capitalized start up costs		4,676		2,180
Net operating loss carryforwards		38,286		22,820
		46,676		26,201
Valuation allowance		(46,672)		(26,201)

Net noncurrent deferred tax asset		4		—

Noncurrent deferred tax liability
Purchase accounting intangibles		(4)		—

Net deferred tax asset (liability)	$	—	$	—

Summary of Provision for Income Taxes

Taxes computed at the statutory federal income tax rate of 34% are reconciled to the provision for income taxes as follows for the years ended December 31:

	2013					2012
			Percent of					Percent of
			Pretax					Pretax
	Amount		Earnings			Amount		Earnings
United States federal tax statutory rate	$	(9,642)		34.0	%	$	(5,245)		34.0	%
State taxes (net of deferred benefit)		(662)		2.3	%		(469)		3.0	%
Non-deductible expenses		1,556		(5.5)	%		—		0.0	%
Change in valuation allowance		20,733		(73.1)	%		5,101		(33.1)	%
Adjustment for valuation allowance recorded as part of purchase accounting		(11,785)		41.6	%		—		0.0	%

Other, net		(200)		0.7	%		613		(3.9)	%

Provision for income taxes	$	—		0.0	%	$	—		0.0	%

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2013

Stock-Based Compensation [Abstract]

Summary of Share Based Fair Value Assumptions

The fair value of options granted were estimated using the Black-Scholes-Merton option pricing model based on the assumptions in the table below:

Year ended December 31,	2013		2012
Expected dividend yield		0%		0%
Expected volatility		62%-63%		55% - 67%
Risk-free interest rate		1.64% - 1.98%		0.4% - 3.7%
Expected life (in years)		5.7 – 6.1		2.9 - 10.0

Summary of Stock Option Activity

The following table summarizes the Company’s stock option activity, including grants to non-employees, for the years ended December 31, 2013 and 2012:

					Weighted-
					Average
			Weighted-		Remaining
	Number of		Average		Contractual
	Shares		Exercise Price		Term (Years)

Options outstanding at December 31, 2011		4,164,090	$	0.48		7.58
Granted		11,769,866		0.07
Cancelled		(2,962,834)		0.14
Exercised		(48,356)		0.07

Options outstanding at December 31, 2012		12,922,766	$	0.08		8.70
Options assumed through merger with SafeStitch		3,547,750		0.75
Granted		3,015,696		0.44
Cancelled		(30,643)		0.08
Exercised		(341,133)		0.16
Options outstanding at December 31, 2013		19,114,436	$	0.26		7.95

Summary of Stock Options Outstanding

The following table summarizes information about stock options outstanding at December 31, 2013:

					Weighted-
					Average
			Weighted-		Remaining
	Number of		Average		Contractual
	Shares		Exercise Price		Term (Years)
Exercisable at December 31, 2013		10,031,605	$	0.30		7.23
Vested or expected to vest at December 31, 2013		18,788,438	$	0.26		7.94

Summary of Unvested Stock Option Activity

The following table summarizes the unvested stock option activity:

			Weighted-Average
	Number of Shares		Fair Value
Unvested options at December 31, 2011		1,683,733	$	0.33
Granted		11,769,866		0.07
Vested		(3,612,025)		0.14
Forfeited		(1,303,895)		0.23

Unvested options at December 31, 2012		8,537,679	$	0.08
Unvested options assumed through merger with SafeStitch		1,116,000		0.49
Granted		3,015,696		0.19
Vested		(3,559,092)		0.25
Forfeited		(27,452)		0.04

Unvested options at December 31, 2013		9,082,831	$	0.22

Restricted Stock Units (Tables)

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Summary of Restricted Stock Unit Activity

The following is a summary of the RSU activity for the year ended December 31, 2013:

	Number of Restricted Stock Units Outstanding	Weighted Average Grant Date Fair Value
Unvested, December 31, 2012	-		-
Granted	1,050,000	$	1.44
Vested	-		-
Unvested, December 31, 2013	1,050,000	$	1.44

Warrants (Tables)

12 Months Ended

Dec. 31, 2013

Warrants and Rights Note Disclosure [Abstract]

Summary of Warrant Activity

The summary of warrant activity for the years ended December 31, 2012 and 2013 is as follows:

				Weighted
		Weighted		Average
		Average		Remaining		Weighted
	Number of	Exercise		Contractual		Average
	Warrants	Price		Life (in years)		Fair Value

Outstanding at January 1, 2012	-	$	-		-	$	-
Granted	1,397,939		0.29		9.1		0.11
Exercised	-		-		-		-
Expired/cancelled	-		-		-		-

Outstanding at December 31, 2012	1,397,939	$	0.29		9.1	$	0.09
Granted
Warrants assumed in merger with
SafeStitch	5,998,000		0.33		4.3		0.23
Exercised	(968,969)		0.29		-		1.05
Expired/cancelled	-		-		-		-

Outstanding at December 31, 2013	6,426,970	$	0.29		4.7	$	0.35

Notes Payable (Tables)

12 Months Ended

Dec. 31, 2013

Table Text Block Supplement [Abstract]

Summary of Notes Payable Agreements

As of December 31, 2013 future principal payments under the Company’s notes payable agreements are as follows:

Years ending December 31, (In thousands)
2014	$	3,879
2015		4,232
2016		370

Total	$	8,481

Basic and Diluted Net Loss per Share (Tables)

12 Months Ended

Dec. 31, 2013

Basic and Diluted Net Loss Per Share [Abstract]

Summary of Potential Common Shares

Potential common shares not included in calculating diluted net loss per share are as follows:

	December 31,
	2013	2012
Stock options	19,114,436	12,922,766
Stock warrants	6,426,968	1,397,939
Nonvested Restricted stock units	1,050,000
Total	26,591,404	14,320,705

Closing of Merger and Financing Transaction (Tables)

12 Months Ended

Dec. 31, 2013

Merger and Financial disclosure [Abstract]

Summary Of Purchase Price

The following table summarizes the purchase price (in thousands):

Common shares outstanding at the date of merger		61,749
Closing price per share	$	1.52
	$	93,858
Cash consideration		293
Total purchase price	$	94,151

Summary of Business Acquisitions, by Acquisition

The following table summarizes the allocation of the purchase price to the net assets acquired (in thousands):

Cash and cash equivalents	$	597
Accounts receivable		54
Inventory		50
Other current assets		53
Property and equipment		185
Other long-term asset		2
Intangible assets		10
Goodwill		93,842
Total assets acquired	$	94,793
Accounts payable and other liabilities		642
Total purchase price	$	94,151

Summary of Business Acquisition, Pro Forma Information

The pro forma results of operations presented below may not be indicative of the results the Company would have achieved had the Company completed the Merger on January 1, 2013, or that the Company may achieve in the future.

	Year ended December 31,
	2013		2012
	(In thousands, except per share)

Revenues	$	1,456	$	2,150
Net loss		(30,420)		(22,149)

Earnings per share	$	(0.17)	$	(0.13)

Commitment and Contingencies (Tables)

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies [Abstract]

Summary of Future Minimum Payments and Operating Lease Obligations

As of December 31, 2013, the Company’s approximate future minimum payments for its operating lease obligations are as follows:

Years ending December 31,
(In thousands)
2014	$	498
2015		218
2016		117
2017		121
2018		124

Total	$	1,078

Organization and Capitalization (Details Textual)	1 Months Ended	12 Months Ended
Organization and Capitalization (Details Textual)	Aug. 30, 2013 $ / shares	Dec. 31, 2013 USD ($) $ / shares shares	Dec. 06, 2013 $ / shares shares	Nov. 06, 2013 $ / shares	Sep. 30, 2013 $ / shares	Dec. 31, 2012 $ / shares
Organization and Capitalization [Line Items]
Common Stock, Par or Stated Value Per Share		$ 0.001	$ 0.001			$ 0.001
Stockholders Equity Note, Stock Split, Conversion Ratio		1.1533
Payments to Acquire Businesses, Gross \| $		$ 293,000
Merger Agreement [Member]
Organization and Capitalization [Line Items]
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Stockholders Equity Note, Stock Split, Conversion Ratio	1.1533	1.1533
Business Acquisition, Share Price		$ 1.08			$ 1.08
Common Stock [Member]
Organization and Capitalization [Line Items]
Stock Issued During Period, Shares, New Issues \| shares		0
Convertible Preferred Stock, Shares Issued upon Conversion \| shares		10	10
Common Stock, Par or Stated Value Per Share				$ 0.001
Common Stock [Member] \| Merger Agreement [Member]
Organization and Capitalization [Line Items]
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable \| $		$ 105,549,746
Private Placement [Member]
Organization and Capitalization [Line Items]
Stock Issued During Period, Shares, New Issues \| shares		7,545,000
Series B Redeemable Convertible Preferred Stock [Member]
Organization and Capitalization [Line Items]
Share Price		$ 25,000
Series B Redeemable Convertible Preferred Stock [Member] \| Private Placement [Member]
Organization and Capitalization [Line Items]
Stock Issued During Period, Shares, New Issues \| shares		7,570,000
Share Price		$ 4.00

Summary of Significant Accounting Policies (Details)	12 Months Ended
Summary of Significant Accounting Policies (Details)	Dec. 31, 2013
Molds [Member]
Change In Accounting Estimate [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Machinery and manufacturing equipment
Change In Accounting Estimate [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Computer equipment
Change In Accounting Estimate [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Furniture
Change In Accounting Estimate [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Leasehold improvements \| Maximum [Member]
Change In Accounting Estimate [Line Items]
Property, Plant and Equipment, Useful Life	10 years
Leasehold improvements \| Minimum [Member]
Change In Accounting Estimate [Line Items]
Property, Plant and Equipment, Useful Life	3 years

Summary of Significant Accounting Policies (Details 1)	12 Months Ended
Summary of Significant Accounting Policies (Details 1)	Dec. 31, 2012 $ / shares
Change In Accounting Estimate [Line Items]
Exercise price	$ 0.29
Risk-free interest rate	1.78%
Expected volatility	160.00%
Expected life (years)	9 years
Expected dividend yield	0.00%

Summary of Significant Accounting Policies (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Summary of Significant Accounting Policies (Textual) [Abstract]
Retained Earnings (Accumulated Deficit)	$ (98,264,000)	$ (69,906,000)
Net Income (Loss) Attributable To Parent	(28,358,000)	(15,425,000)
Restricted Cash and Cash Equivalents, Current	$ 375,000	375,000
Stockholders Equity Note, Stock Split, Conversion Ratio	1.1533
Employee Stock Option [Member]
Summary of Significant Accounting Policies (Textual) [Abstract]
Allocated Share-based Compensation Expense	$ 941,245	$ 343,137
Patents [Member]
Summary of Significant Accounting Policies (Textual) [Abstract]
Finite-Lived Intangible Asset, Useful Life	10 years
Customer One [Member] \| Accounts Receivable [Member]
Summary of Significant Accounting Policies (Textual) [Abstract]
Concentration Risk, Percentage	61.00%	42.00%
Customer One [Member] \| Sales Revenue, Net [Member]
Summary of Significant Accounting Policies (Textual) [Abstract]
Concentration Risk, Percentage	37.00%	21.00%
Customer Two [Member] \| Accounts Receivable [Member]
Summary of Significant Accounting Policies (Textual) [Abstract]
Concentration Risk, Percentage		13.00%

Cash, Cash Equivalents, Restricted Cash, and Short-term Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Cash and Cash Equivalents [Line Items]
Cash	$ 930	$ 729
Money market	9,084	8,167
Total cash and cash equivalents	10,014	8,896	$ 14,004
Corporate bonds	6,191	907
Total short-term investments	6,191	907
Total restricted cash	375	375
Total	$ 16,580	$ 10,178

Fair value (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Assets measured at fair value
Cash and Cash Equivalents	$ 10,014	$ 8,896
Restricted Cash	375	375
Short term investments	6,191	907
Total Assets measured at fair value	16,580	10,178
Liabilities measured at fair value
Preferred Stock Warrant Liability		(109)
Total Liabilities measured at fair value		(109)
Fair Value, Inputs, Level 1 [Member]
Assets measured at fair value
Cash and Cash Equivalents	10,014	8,896
Restricted Cash	375	375
Short term investments	0	0
Total Assets measured at fair value	10,389	9,271
Liabilities measured at fair value
Preferred Stock Warrant Liability		0
Total Liabilities measured at fair value		0
Fair Value, Inputs, Level 2 [Member]
Assets measured at fair value
Cash and Cash Equivalents	0	0
Restricted Cash	0	0
Short term investments	6,191	907
Total Assets measured at fair value	6,191	907
Liabilities measured at fair value
Preferred Stock Warrant Liability		0
Total Liabilities measured at fair value		0
Fair Value, Inputs, Level 3 [Member]
Assets measured at fair value
Cash and Cash Equivalents	0	0
Restricted Cash	0	0
Short term investments	0	0
Total Assets measured at fair value	0	0
Liabilities measured at fair value
Preferred Stock Warrant Liability	$ 0	(109)	$ 0
Total Liabilities measured at fair value		$ (109)

Fair value (Details 1) - USD ($) $ in Thousands	12 Months Ended
Fair value (Details 1) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value at beginning of year	$ (109)
Change in fair value recorded in other income (expense)	(1,800)	$ 0
Reclassification to additional paid-in capital upon the merger	1,909
Fair value at end of year		(109)
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value at beginning of year	(109)	0
Issuances	0	128
Change in fair value recorded in other income (expense)	1,800	(19)
Reclassification to additional paid-in capital upon the merger	(1,909)	0
Fair value at end of year	$ 0	$ (109)

Investments (Details) - USD ($) $ in Thousands	12 Months Ended
Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Investments [Line Items]
Amortized Cost	$ 6,191	$ 907
Unrealized Gain	0	0
Unrealized (Loss)	0	0
Fair Value	$ 6,191	$ 907

Investments (Details Textual) - USD ($) $ in Thousands	12 Months Ended
Investments (Details Textual) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Schedule of Held-to-maturity Securities [Line Items]
Realized Investment Gains (Losses)	$ 0	$ 177

Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Accounts Receivable Net [Line Items]
Gross accounts receivable	$ 220	$ 586
Allowance for uncollectible accounts	(32)	(50)
Total accounts receivable, net	$ 188	$ 536

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Inventory [Line Items]
Finished goods	$ 896	$ 708
Raw materials	0	784
Reserve for excess and obsolete inventory	(195)	(110)
Total inventories	$ 701	$ 1,382

Inventories (Details Textual) - Inventory Valuation and Obsolescence [Member]	12 Months Ended
	Dec. 31, 2013 USD ($)
Inventory [Line Items]
Valuation Allowances and Reserves, Period Increase (Decrease)	$ 85,000
Raw Materials [Member]
Inventory [Line Items]
Valuation Allowances and Reserves, Period Increase (Decrease)	803,000
Valuation Allowances and Reserves, Deductions	$ 718,000

Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	$ 5,316	$ 5,990
Accumulated depreciation and amortization	(3,452)	(4,223)
Property and equipment, net	1,864	1,767
Machinery and Manufacturing Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	2,453	2,722
Molds [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	0	1,228
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	1,327	1,081
Furniture [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	287	286
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	$ 1,249	$ 673

Property and Equipment (Details Textual) - USD ($)	12 Months Ended
Property and Equipment (Details Textual) - USD ($)	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Line Items]
Depreciation	$ 982,616	$ 1,212,819
Gain (Loss) on Disposition of Assets, Total	(450,000)	$ 0
Impairment of Long-Lived Assets Held-for-use	$ 449,853

Intellectual Property (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Intellectual Property [Line Items]
Intellectual property, net	$ 2,741	$ 3,241
Patents [Member]
Intellectual Property [Line Items]
Patents	5,000	5,000
Accumulated amortization	(2,259)	(1,759)
Intellectual property, net	$ 2,741	$ 3,241

Intellectual Property (Details Textual) - USD ($)	12 Months Ended
Intellectual Property (Details Textual) - USD ($)	Dec. 31, 2013	Dec. 31, 2012
Intellectual Property [Line Items]
Amortization of Intangible Assets	$ 500,004	$ 500,004
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	500,000
Finite-Lived Intangible Assets, Amortization Expense, Year Two	500,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three	500,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four	500,000
Finite-Lived Intangible Assets, Amortization Expense, Year Five	$ 500,000

Debt Issuance Costs (Details Textual) - USD ($)	1 Months Ended		12 Months Ended
Debt Issuance Costs (Details Textual) - USD ($)	Dec. 31, 2012	Jan. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 43,853			$ 43,853	$ 109,133
Amortization of Financing Costs			$ 65,318	28,285
Convertible Preferred Stock [Member]
Debt Instrument [Line Items]
Amortization of Financing Costs			37,522	39,416
Accumulated Amortization, Deferred Finance Costs	39,416		76,938	39,416
Warrant [Member] \| Promissory Note 1 [Member]
Debt Instrument [Line Items]
Interest Expense, Long-term Debt, Total			15,921
Warrant [Member] \| Promissory Note 2 [Member]
Debt Instrument [Line Items]
Interest Expense, Long-term Debt, Total				10,539
Warrant [Member] \| Promissory Note 3 [Member]
Debt Instrument [Line Items]
Interest Expense, Long-term Debt, Total			$ 21,601
Warrant [Member] \| Promissory Note 4 [Member]
Debt Instrument [Line Items]
Interest Expense, Long-term Debt, Total				$ 592
Warrant [Member] \| Convertible Preferred Stock [Member]
Debt Instrument [Line Items]
Debt Issuance Cost	$ 65,455	$ 63,030

Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Current deferred tax assets:
Inventory reserves	$ 71	$ 41
Accrued expenses	331	77
Deferred Rent	14	30
Allowance for uncollectible accounts receivable	12	18
Valuation allowance	(428)	(166)
Net current deferred tax asset	0	0
Noncurrent deferred tax assets:
Stock-based compensation	1,170	186
Contribution carryforward	2	0
Research credit carryforward	2,307	874
Fixed assets	235	141
Capitalized start up costs	4,676	2,180
Net operating loss carryforwards	38,286	22,820
Deferred Tax Assets, Gross	46,676	26,201
Valuation allowance	(46,672)	(26,201)
Net noncurrent deferred tax asset	4	0
Noncurrent deferred tax liability
Purchase accounting intangibles	(4)	0
Net deferred tax asset (liability)	$ 0	$ 0

Income Taxes (Details 1) - USD ($)	12 Months Ended
Income Taxes (Details 1) - USD ($)	Dec. 31, 2013	Dec. 31, 2012
Income Tax Contingency [Line Items]
United States federal tax statutory rate, Amount	$ (9,642)	$ (5,245)
State taxes (net of deferred benefit), Amount	(662)	(469)
Non-deductible expenses, Amount	1,556	0
Change in valuation allowance, Amount	20,733	5,101
Adjustment for valuation allowance recorded as part of purchase accounting, Amount	(11,785)	0
Other, net, Amount	(200)	613
Provision for income taxes, Amount	$ 0	$ 0
United States federal tax statutory rate, Percentof Pretax Earnings	34.00%	34.00%
State taxes (net of deferred benefit), Percentof Pretax Earnings	2.30%	3.00%
Non-deductible expenses, Percentof Pretax Earnings	(5.50%)	0.00%
Change in valuation allowance, Percentof Pretax Earnings	(73.10%)	(33.10%)
Adjustment for valuation allowance recorded as part of purchase accounting, Percentof Pretax Earnings	41.60%	0.00%
Other, net, Percentof Pretax Earnings	0.70%	(3.90%)
Provision for income taxes	0.00%	0.00%

Income Taxes (Details Textual) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
Income Taxes (Details Textual) - USD ($) $ in Millions	Jul. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Contingency [Line Items]
Valuation Allowance, Deferred Tax Asset, Change in Amount	$ 0.4			$ 20.7
Corporate Income Tax Rate				6.90%
Scenario, Forecast [Member]
Income Tax Contingency [Line Items]
Corporate Income Tax Rate For Future Peiod		5.00%	6.00%
Research Tax Credit Carryforward [Member]
Income Tax Contingency [Line Items]
Tax Credit Carry forward, Amount				$ 2.3
Tax Credit Carry forward Expiration Period				2027
Domestic Tax Authority [Member]
Income Tax Contingency [Line Items]
Operating Loss Carry forwards				$ 104.7
State and Local Jurisdiction [Member]
Income Tax Contingency [Line Items]
Operating Loss Carry forwards				$ 75.6
Maximum [Member]
Income Tax Contingency [Line Items]
Operating Loss Carry forwards Expiration Period				2027
Minimum [Member]
Income Tax Contingency [Line Items]
Operating Loss Carry forwards Expiration Period				2022

Related-Party Transactions (Details Textual) - USD ($)	12 Months Ended
Related-Party Transactions (Details Textual) - USD ($)	Dec. 31, 2013	Dec. 31, 2012
Line of Credit Facility [Line Items]
Accounts Receivable, Related Parties, Current	$ 14,000
Related Party Transaction, Amounts of Transaction	$ 55,000
Miami [Member]
Line of Credit Facility [Line Items]
Operating Leases Expiration Period	5 years
Miami Lease Agreement [Member]
Line of Credit Facility [Line Items]
Operating Leases Monthly Rent Expenses	$ 12,000
Accrued Rent, Current	48,000
Synecor, LLC [Member]
Line of Credit Facility [Line Items]
Payments to Acquire in Process Research and Development	$ 90,000	$ 108,000
Synecor, LLC [Member] \| Preferred Stock [Member]
Line of Credit Facility [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners		17.00%
Synecor, LLC [Member] \| Common Stock [Member]
Line of Credit Facility [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners		37.00%
Officer [Member] \| Synecor, LLC [Member] \| Common Stock [Member]
Line of Credit Facility [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	12.00%	85.00%

Stock-Based Compensation (Details)	12 Months Ended
Stock-Based Compensation (Details)	Dec. 31, 2013	Dec. 31, 2012
Summary of Share-Based Compensation of Fair Value Assumptions
Expected dividend yield	0.00%	0.00%
Expected volatility, Minimum	62.00%	55.00%
Expected volatility, Maximum	63.00%	67.00%
Risk-free interest rate, Minimum	1.64%	0.40%
Risk-free interest rate, Maximum	1.98%	3.70%
Maximum [Member]
Summary of Share-Based Compensation of Fair Value Assumptions
Summary of Share Based Compensation of Fair Value Assumptions	6 years 1 month 6 days	10 years
Minimum [Member]
Summary of Share-Based Compensation of Fair Value Assumptions
Summary of Share Based Compensation of Fair Value Assumptions	5 years 8 months 12 days	2 years 10 months 24 days

Stock-Based Compensation (Details 1) - $ / shares	12 Months Ended
Stock-Based Compensation (Details 1) - $ / shares	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Summary of Company's Stock Option activity
Outstanding, Shares	12,922,766	4,164,090
Outstanding, Weighted-Average Exercise Price	$ 0.08	$ 0.48
Outstanding, Weighted-Average Remaining Contractual Term	7 years 11 months 12 days		7 years 6 months 29 days
Options assumed through merger with SafeStitch	3,547,750
Options assumed through merger with SafeStitch, Weighted-Average Excise Price	$ 0.75
Granted, Shares	3,015,696	11,769,866
Granted, Weighted-Average Exercise Price	$ 0.44	$ 0.07
Options assumed through merger with SafeStitch, Weighted-Average Remaining Contractual Term	8 years 8 months 12 days
Cancelled, Shares	(30,643)	(2,962,834)
Cancelled, Weighted-Average Exercise Price	$ 0.08	$ 0.14
Exercised, Shares	(341,000)	(48,000)
Exercised, Weighted-Average Exercise Price	$ 0.16	$ 0.07
Outstanding, Shares	19,114,436	12,922,766	4,164,090
Outstanding, Weighted-Average Exercise Price	$ 0.26	$ 0.08	$ 0.48

Stock-Based Compensation (Details 2)	12 Months Ended
Stock-Based Compensation (Details 2)	Dec. 31, 2013 $ / shares shares
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Exercisable, Number of Shares \| shares	10,031,605
Exercisable, Weighted-Average Exercise Price \| $ / shares	$ 0.30
Exercisable, Weighted-Average Remaining Contractual Term	7 years 2 months 23 days
Vested and expected to vest, Number of Shares \| shares	18,788,438
Vested and expected to vest, Weighted-Average Exercise Price \| $ / shares	$ 0.26
Vested and expected to vest, Weighted-Average Remaining Contractual Term	7 years 11 months 8 days

Stock-Based Compensation (Details 3) - $ / shares	12 Months Ended
Stock-Based Compensation (Details 3) - $ / shares	Dec. 31, 2013	Dec. 31, 2012
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Granted, Shares	3,015,696	11,769,866
Unvested Options [Member]
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Balance Beginning, Number of Shares	8,537,679	1,683,733
Unvested options assumed through merger with SafeStitch, Number of Shares	1,116,000
Granted, Shares	3,015,696	11,769,866
Vested, Number of Shares	(3,559,092)	(3,612,025)
Forfeited, Number of Shares	(27,452)	(1,303,895)
Balance Ending, Number of Shares	9,082,831	8,537,679
Balance Beginning	$ 0.08	$ 0.33
Granted, Weighted-Average FairValue	0.19	0.07
Vested, Weighted-Average FairValue	0.25	0.14
Forfeited, Weighted-Average FairValue	0.04	0.23
Balance Ending, Weighted-Average FairValue	0.22	$ 0.08
Unvested options assumed through merger with SafeStitch, Weighted-Average FairValue	$ 0.49

Stock-Based Compensation (Details Textual)	12 Months Ended
Stock-Based Compensation (Details Textual)	Dec. 31, 2013 USD ($) $ / shares shares	Dec. 31, 2012 USD ($) $ / shares shares	Dec. 31, 2011 shares	Dec. 31, 2009 shares	Oct. 29, 2013 shares	Jun. 19, 2012 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance \| shares					24,700,000	5,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross \| shares	3,015,696	11,769,866
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value \| $	$ 879,826	$ 263,751
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total \| $	$ 1,790,930
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 7 months 6 days
Share-Based Compensation \| $	$ 941,000	$ 343,000
Stockholders Equity Note, Stock Split, Conversion Ratio	1.1533
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value \| $	$ 24,800,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value \| $	12,700,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value \| $	$ 24,300,000
Incentive Compensation Plan 2007 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized \| shares	5,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee \| shares	1,000,000	500,000
Incentive Compensation Plan 2006 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross \| shares	400,000		16,890,945	5,550,264
Stock Appreciation Rights Maximum Term	10 years
Unvested Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross \| shares	3,015,696	11,769,866
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value \| $	$ 347,593	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value \| $ / shares	$ 0.19	$ 0.07
Stock appreciation rights (SARs) [Member] \| Incentive Compensation Plan 2007 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee \| shares	2,500,000	1,000,000
Merger Agreement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stockholders Equity Note, Stock Split, Conversion Ratio	1.1533

Restricted Stock Units (Details) - Restricted Stock Units (RSUs) [Member]	12 Months Ended
	Dec. 31, 2013 $ / shares shares
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Balance Beginning \| shares	0
Granted \| shares	1,050,000
Balance Ending \| shares	1,050,000
Balance Beginning \| $ / shares	$ 0
Granted \| $ / shares	1.44
Balance Ending \| $ / shares	$ 1.44

Restricted Stock Units (Details Textual)	12 Months Ended
Restricted Stock Units (Details Textual)	Dec. 31, 2013 USD ($) $ / shares
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 7 months 6 days
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Deferred Compensation Liability, Current, Total	$ 121,169
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options	$ 1,400,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 9 months 18 days
Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Grants In Period Weighted Average Grant Date Fair Value \| $ / shares	$ 1.44

Warrants (Details) - Warrants Not Settleable in Cash [Member] - $ / shares	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Class of Warrant or Right [Line Items]
Balance Beginning	1,397,939	0
Granted, NumberofWarrants		1,397,939
Forfeited, Number of Shares	5,998,000
Forfeited, Number of Shares	(968,969)	0
Expired/cancelled, Numberof Warrants	0	0
Balance Ending	6,426,970	1,397,939
Granted, Weighted Average Exercise Price		$ 0.29
Warrants assumed in merger with SafeStitch, Weighted Average Exercise Price	$ 0.33
Exercised, Weighted Average Exercise Price	0.29
Balance Ending, Weighted Average Exercise Price	$ 0.29	$ 0.29
Granted, Weighted Average Remaining Contractual Life(inyears)		9 years 1 month 6 days
Warrants assumed in merger with SafeStitch, Weighted Average Remaining Contractual Term	4 years 3 months 18 days
Balance Ending, Weighted Average Remaining Contractual Life (in years)	4 years 8 months 12 days	9 years 1 month 6 days
Balance Begining, Weighted Average FairValue	$ 0.09	$ 0
Granted, Weighted Average Fair Value		0.11
Balance Ending, Weighted Average Fair Value	0.35	$ 0.09
Share Based Compensation Arrangement By Share Based Payment Award Warrants Assumed Weighted Average Grand Date Fair Value	0.23
Share Based Compensation Arrangement By Share Based Paymen tAward Warrants Weighted Average Exercised	$ 1.05

Warrants (Details textual)	12 Months Ended
Warrants (Details textual)	Dec. 31, 2013 USD ($) $ / shares shares	Dec. 31, 2012 USD ($) shares
Class of Stock [Line Items]
Stock Issued During Period, Value, New Issues \| $	$ 30,197,000
Stockholders Equity Note, Stock Split, Conversion Ratio	1.1533
Change in fair value recorded in other income (expense) \| $	$ (1,800,000)	$ 0
Warrants Not Settleable in Cash [Member]
Class of Stock [Line Items]
Warrants Exercised During Period	698,967
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding \| $	$ 8,700,000	$ 0
Stock Purchase Agreement 2013 [Member]
Class of Stock [Line Items]
Stock Issued During Period Private Placement Shares	6,400,000
Warrants Issued During Period Private Placement	3,200,000
Common Stock [Member]
Class of Stock [Line Items]
Stock Issued During Period, Shares, New Issues	0
Stock Issued During Period, Value, New Issues \| $	$ 0
Stock Issued During Period Shares Warrants Exercised	563,834	1,397,939
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Stock Issued During Period, Shares, New Issues	0
Stock Issued During Period, Value, New Issues \| $	$ 0
2013 PIPE investors [Member]
Class of Stock [Line Items]
Number Of Investors	17
Stock Issued During Period, Shares, New Issues	12,100,000
Equity Issuance, Per Share Amount \| $ / shares	$ 0.25
Stock Issued During Period, Value, New Issues \| $	$ 3,000,000
Warrants to purchase common shares	6,048,000
Warrant Exercise Price \| $ / shares	$ 0.33
Warrant Expiry Period	5 years
Merger Agreement [Member]
Class of Stock [Line Items]
Stockholders Equity Note, Stock Split, Conversion Ratio	1.1533
Merger Agreement [Member] \| Warrants Not Settleable in Cash [Member]
Class of Stock [Line Items]
Warrants Exercised During Period	270,000
Warrants Outstanding During Period	6,000,000
Change in fair value recorded in other income (expense) \| $		$ 1,800,000

Notes Payable (Details) - Notes Payable, Other Payables [Member] $ in Thousands	Dec. 31, 2013 USD ($)
Debt Instrument [Line Items]
2014	$ 3,879
2015	4,232
2016	370
Total	$ 8,481

Notes Payable (Details Textual) - USD ($)	1 Months Ended	12 Months Ended
Notes Payable (Details Textual) - USD ($)	Jan. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Jan. 17, 2012	Dec. 31, 2011
Debt Instrument [Line Items]
Debt Instrument, Face Amount			$ 43,853		$ 109,133
Stockholders Equity Note, Stock Split, Conversion Ratio		1.1533
Warrants Expiration Date			Jan. 16, 2022
Debt Conversion, Converted Instrument, Expiration or Due Date		Jan. 01, 2016
Loan and Security Agreement [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount				$ 10,000,000
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate		8.75%
Final Payment Fee Percentage		3.33%
Debt Instrument, Basis Spread on Variable Rate		5.00%
Class Of Warrant Or Right, Number Of Securities Called By Warrants Or Rights		1,397,939
Warrant Exercise Price	$ 0.29		$ 0.33
Merger Agreement [Member]
Debt Instrument [Line Items]
Stockholders Equity Note, Stock Split, Conversion Ratio		1.1533
Term A Loan [Member] \| Loan and Security Agreement [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount				4,000,000
Term B Loan [Member] \| Loan and Security Agreement [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount				$ 6,000,000

Basic and Diluted Net Loss per Share (Details) - shares	12 Months Ended
Basic and Diluted Net Loss per Share (Details) - shares	Dec. 31, 2013	Dec. 31, 2012
Summary of Potential Common Shares
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	26,591,404	14,320,705
Employee Stock Option [Member]
Summary of Potential Common Shares
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	19,114,436	12,922,766
Stock Warrants [Member]
Summary of Potential Common Shares
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	6,426,968	1,397,939
Nonvested Restricted stock units (RSUs) [Member]
Summary of Potential Common Shares
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,050,000

Basic and Diluted Net Loss per Share (Details Textual) - shares	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Basic and Diluted Net Loss per Share [Line Items]
Weighted average outstanding common shares	0	0

Closing of Merger and Financing Transaction (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Business Acquisition [Line Items]
Common shares outstanding at the date of merger	244,207,733	5,391,095
Total purchase price	$ 93,858
Cash consideration	293
Total purchase price	$ 94,151
Merger Agreement [Member]
Business Acquisition [Line Items]
Common shares outstanding at the date of merger	61,749
Closing price per share	$ 1.52

Closing of Merger and Financing Transaction (Details 1) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Business Acquisition [Line Items]
Cash and cash equivalents	$ 597
Accounts receivable	54
Inventory	50
Other current assets	53
Property and equipment	185
Other long-term asset	2
Intangible assets	10
Goodwill	93,842	$ 0
Total assets acquired	94,793
Accounts payable and other liabilities	642
Total purchase price	$ 94,151	$ 93,858

Closing of Merger and Financing Transaction (Details 2) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Business Acquisition [Line Items]
Revenues	$ 1,431	$ 2,115
Net loss	(28,358)	(15,425)
Pro Forma Results [Member]
Business Acquisition [Line Items]
Revenues	1,456	2,150
Net loss	$ (30,420)	$ (22,149)
Earnings per share	$ (0.17)	$ (0.13)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=31042434&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

+ Details

Closing of Merger and Financing Transaction (Details Textual)	1 Months Ended		12 Months Ended
	Aug. 30, 2013 $ / shares	Jul. 31, 2013 USD ($)	Dec. 31, 2013 USD ($) $ / shares shares	Dec. 06, 2013 $ / shares shares	Nov. 06, 2013 $ / shares	Sep. 30, 2013 $ / shares	Dec. 31, 2012 USD ($) $ / shares
Debt Instrument [Line Items]
Payments to Acquire Businesses, Gross \| $			$ 293,000
Debt Instrument Principal Amount \| $		$ 2,000,000
Debt Instrument, Interest Rate, Stated Percentage		8.00%
Goodwill \| $			93,842,000				$ 0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets \| $			$ 10,000
Finite-Lived Intangible Assets, Remaining Amortization Period			5 years
Stockholders Equity Note, Stock Split, Conversion Ratio			1.1533
Common Stock, Par or Stated Value Per Share			$ 0.001	$ 0.001			$ 0.001
Merger Agreement [Member]
Debt Instrument [Line Items]
Stockholders Equity Note, Stock Split, Conversion Ratio	1.1533		1.1533
Common Stock, Par or Stated Value Per Share	$ 0.001		$ 0.001
Business Acquisition, Share Price			$ 1.08			$ 1.08
Common Stock [Member]
Debt Instrument [Line Items]
Stock Issued During Period, Shares, New Issues \| shares			0
Convertible Preferred Stock, Shares Issued upon Conversion \| shares			10	10
Common Stock, Par or Stated Value Per Share					$ 0.001
Common Stock [Member] \| Merger Agreement [Member]
Debt Instrument [Line Items]
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable \| $			$ 105,549,746
Private Placement [Member]
Debt Instrument [Line Items]
Stock Issued During Period, Shares, New Issues \| shares			7,545,000
Series B Redeemable Convertible Preferred Stock [Member]
Debt Instrument [Line Items]
Share Price			$ 25,000
Series B Redeemable Convertible Preferred Stock [Member] \| Private Placement [Member]
Debt Instrument [Line Items]
Share Price			$ 4.00
Stock Issued During Period, Shares, New Issues \| shares			7,570,000

Stockholders' Equity (Deficit) (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 06, 2013	Nov. 06, 2013	Oct. 29, 2013	Jan. 31, 2012	Jan. 17, 2012	Dec. 31, 2011	Nov. 30, 2011	Dec. 31, 2009	Oct. 06, 2009	Oct. 02, 2009	Dec. 31, 2008	Dec. 31, 2007	Dec. 27, 2007	Jul. 12, 2006
Class of Stock [Line Items]
Common Stock, Shares Authorized	750,000,000	130,322,900	225,000,000		24,219,300		3,459,900	126,863,000	88,227,450	38,635,550				14,416,250	2,883,250	11,533,000
Common Stock, Shares, Issued	244,207,733	5,391,095
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	25,000,000	65,693,245				3,000,000		62,693,245	40,958,843	21,734,402		15,234,402			6,500,000
Dividends, Preferred Stock, Total	$ 0	$ 0
Preferred Stock Redemption Percentage	25.00%
Preferred Stock, Accretion of Redemption Discount	$ 40,000	106,300
Conversion of Stock, Amount Issued	$ 1,909,000	$ 0
Private Placement [Member]
Class of Stock [Line Items]
Stock Issued During Period, Shares, New Issues	7,545,000
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Preferred Stock, Shares Issued		5,696,261						5,734,402					3,373,882	3,143,749
Preferred Stock, Par or Stated Value Per Share		$ 3.49						$ 3.49					$ 3.49	$ 3.49
Preferred Stock, Shares Outstanding		5,696,261						5,734,402					3,373,882
Conversion of Stock, Shares Converted		38,141
Stock Conversion Price	$ 3.49
Stock Issued During Period, Shares, New Issues	0
Series B Preferred Stock [Member]
Class of Stock [Line Items]
Preferred Stock, Shares Issued											11,504,298
Preferred Stock, Par or Stated Value Per Share											$ 3.49
Conversion of Stock, Shares Converted		49,998
Stock Conversion Price	$ 3.49
Stock Issued During Period, Shares, New Issues	0
Series B-1 Preferred Stock [Member]
Class of Stock [Line Items]
Preferred Stock, Shares Issued		45,998,220						45,121,691
Preferred Stock, Par or Stated Value Per Share		$ 0.33						$ 0.33
Preferred Stock, Shares Outstanding								45,121,691
Stock Conversion Price	$ 0.33
Stock Issued During Period, Shares, New Issues	0
Series B Redeemable Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Share Price	$ 25,000
Series B Redeemable Convertible Preferred Stock [Member] \| Private Placement [Member]
Class of Stock [Line Items]
Stock Issued During Period, Shares, New Issues	7,570,000
Share Price	$ 4.00
Common Stock [Member]
Class of Stock [Line Items]
Common Stock, Par or Stated Value Per Share				$ 0.001
Stock Issued During Period, Shares, New Issues	0
Conversion of Stock, Amount Issued	$ 75,697,044

Agreement with Creighton University (Details Textual)	12 Months Ended
Agreement with Creighton University (Details Textual)	Dec. 31, 2013 USD ($)
AGREEMENT WITH CREIGHTON UNIVERSITY [Line Items]
Percentage of royalty of product revenue	1.50%
Minimum investment under royalty agreement	$ 2,500,000
Period for minimum investment under royalty agreement	36 months
Patent related under royalty agreement	$ 150,000
Reimbursement percentage of research and development expenses	20.00%

Commitments and Contingencies (Details) $ in Thousands	Dec. 31, 2013 USD ($)
Commitments and Contingencies [Line Items]
2014	$ 498
2015	218
2016	117
2017	121
2018	124
Operating Leases, Future Minimum Payments Due, Total	$ 1,078

Commitments and Contingencies (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Commitments and Contingencies (Textual) [Abstract]
Percentage Of Royalty Paid For One To Three Years	1.50%
Percentage Of Royalty Paid For Four To Ten Years	4.00%
Royalty Expense	$ 0	$ 1,300
Office Building [Member]
Commitments and Contingencies (Textual) [Abstract]
Operating Leases, Rent Expense	55,301
Shareholder [Member] \| Office Building [Member]
Commitments and Contingencies (Textual) [Abstract]
Operating Leases, Rent Expense	48,000
Corporate Office [Member] \| Warehouse [Member]
Commitments and Contingencies (Textual) [Abstract]
Operating Leases, Rent Expense	360,000	360,000
Manufacturing Facility [Member]
Commitments and Contingencies (Textual) [Abstract]
Operating Leases, Rent Expense	$ 54,533	$ 51,455