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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2014	Aug. 01, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2
Entity Registrant Name	TRANSENTERIX INC.
Entity Central Index Key	0000876378
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		62,980,065

Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Statement [Abstract]
Sales	$ 113	$ 521	$ 206	$ 850
Operating Expenses
Cost of goods sold	238	1,156	458	2,038
Research and development	7,882	2,165	12,893	4,946
Sales and marketing	461	540	867	1,052
General and administrative	1,913	702	3,527	1,387
Total Operating Expenses	10,494	4,563	17,745	9,423
Operating Loss	(10,381)	(4,042)	(17,539)	(8,573)
Other (Expense) Income Interest expense, net	(206)	(243)	(527)	(489)
Total Other (Expense) Income, net	(206)	(243)	(527)	(489)
Net Loss	(10,587)	(4,285)	(18,066)	(9,062)
Other comprehensive income (loss)	0		0
Comprehensive loss	$ (10,587)	$ (4,285)	$ (18,066)	$ (9,062)
Net loss per share - basic and diluted	$ (0.18)	$ (3.97)	$ (0.33)	$ (8.41)
Weighted average common shares outstanding - basic and diluted	59,673	1,078	54,264	1,078

Consolidated Balance Sheets - USD ($)
$ in Thousands

Jun. 30, 2014

Dec. 31, 2013

Current Assets

Cash and cash equivalents

$ 52,566

$ 10,014

Short-term investments

6,191

Accounts receivable, net

188

Interest receivable

Inventory, net

438

701

Other current assets

617

593

Total Current Assets

53,719

17,755

Restricted cash

250

375

Property and equipment, net

2,413

1,864

Intellectual property, net

2,491

2,741

Trade names, net

Goodwill

93,842

Other long term assets

127

Total Assets

152,795

116,714

Current Liabilities

Accounts payable

3,616

1,804

Accrued expenses

1,906

1,406

Note payable - current portion

4,052

3,879

Total Current Liabilities

9,574

7,089

Long Term Liabilities

Note payable - less current portion

2,532

4,602

Total Liabilities

12,106

11,691

Commitments and Contingencies

Stockholders' Equity

Common stock $0.001 par value, 750,000,000 shares authorized at June 30, 2014 and December 31, 2013; 62,975,255 and 48,841,417 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively

^[1]

Additional paid-in capital

256,956

203,238

Accumulated deficit

(116,330)

(98,264)

Total Stockholders' Equity

140,689

105,023

Total Liabilities and Stockholders' Equity

$ 152,795

$ 116,714

[1]	Adjusted for 1:5 reverse stock split on March 31, 2014.

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2014	Mar. 31, 2014	Mar. 30, 2014	Dec. 31, 2013	Dec. 06, 2013	Dec. 05, 2013
Statement Of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001		$ 0.001
Common stock, shares authorized	750,000,000			750,000,000	750,000,000	225,000,000
Common stock, shares issued	62,975,255	48,855,255	244,276,923	48,841,417
Common stock, shares outstanding	62,975,255	48,855,255	244,276,923	48,841,417

Consolidated Statements of Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2014 - USD ($)
shares in Thousands, $ in Thousands

Total

Common Stock [Member]

Additional Paid-in Capital [Member]

Accumulated Deficit [Member]

Balance at Dec. 31, 2013

$ 105,023

$ 49

^[1]

$ 203,238

$ (98,264)

Balance, Shares at Dec. 31, 2013

^[1]

48,842

Stock-based compensation

1,202

Exercise of stock options and warrants

Exercise of stock options and warrants, Shares

^[1]

Issuance of common stock, net of issuance costs of $3,934

52,506

$ 14

^[1]

52,492

Issuance of common stock, net of issuance costs of $3,934, Shares

^[1]

14,110

Net loss

(18,066)

Balance at Jun. 30, 2014

$ 140,689

$ 63

^[1]

$ 256,956

$ (116,330)

Balance, Shares at Jun. 30, 2014

^[1]

62,975

[1]	Adjusted for 1:5 reverse stock split on March 31, 2014.

- Definition

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

+ References + Details

Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2014 USD ($)	Jun. 30, 2014 USD ($)
Statement Of Stockholders Equity [Abstract]
Common stock issuance cost	$ 0	$ 3,934
Reverse stock split, ratio	0.2	0.0

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Operating Activities
Net loss	$ (18,066)	$ (9,062)
Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities:
Depreciation and amortization	594	697
Amortization of debt issuance costs	44	53
Stock-based compensation	1,202	130
Loss on disposal of property and equipment	19	32
Changes in operating assets and liabilities:
Accounts receivable	92	392
Interest receivable	66	16
Inventory	263	(82)
Other current and long term assets	(13)	(5)
Restricted cash	125
Accounts payable	1,812	159
Accrued expenses	500	227
Net cash and cash equivalents used in operating activities	(13,362)	(7,443)
Investing Activities
Proceeds from sale and maturities of investments	6,191	907
Purchase of property and equipment	(910)	(150)
Net cash and cash equivalents provided by investing activities	5,281	757
Financing Activities
Payment of debt	(1,897)
Proceeds from the issuance of common stock, net of issuance costs	52,506
Proceeds from exercise of stock options and warrants	24
Net cash and cash equivalents provided by financing activities	50,633
Net increase (decrease) in cash and cash equivalents	42,552	(6,686)
Cash and Cash Equivalents, beginning of period	10,014	8,896
Cash and Cash Equivalents, end of period	52,566	2,210
Supplemental Disclosure for Cash Flow Information
Interest paid	$ 337	$ 437

Description of Business

6 Months Ended

Jun. 30, 2014

Accounting Policies [Abstract]

Description of Business

1.	Description of Business

On September 3, 2013, SafeStitch Medical, Inc., a Delaware corporation (“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 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 historic business of SafeStitch Medical, Inc. prior to the Merger, and the term “TransEnterix Surgical” refers to the historic business of TransEnterix Surgical, Inc. prior to the Merger.

Pursuant to an Agreement and Plan of Merger dated August 13, 2013, as amended by a First Amendment dated August 30, 2013 (collectively, 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 SafeStitch 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). Additionally, pursuant to the Merger Agreement, upon consummation of the Merger, SafeStitch assumed all of TransEnterix Surgical’s options and warrants issued and outstanding immediately prior to the Merger at the same Exchange Ratio. Upon the closing of the Merger, and in accordance with the terms of the Merger Agreement, the Company issued an aggregate of 21,109,949 shares of the Company’s common stock as Merger consideration and paid $293,000 to unaccredited investors in lieu of common stock.

In connection with the Merger, on September 3, 2013, the Company consummated a private placement (the “Private Placement”) transaction in which it issued and sold shares of its Series B Convertible Preferred Stock, par value $0.01 per share (the “Series B Preferred Stock”) to provide funding to support the Company’s operations following the Merger. The Private Placement was done pursuant to a Securities Purchase Agreement (the “Purchase Agreement”) with accredited investors (the “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 7,544,704.4 shares of the Series B Preferred Stock, each share of which was convertible, subject to certain conditions, into two 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 indebtedness of TransEnterix Surgical or a combination thereof. In accordance with the Purchase Agreement, the Company issued and sold an additional 25,000 shares of Series B Preferred Stock on September 17, 2013. Proceeds from the issuance of the Series B Preferred Stock, net of issuance costs, were $28.2 million.

On December 6, 2013, the Company filed an Amended and Restated Certificate of Incorporation (the “Restated Certificate”) to change its name to TransEnterix, Inc. and to increase the authorized shares of common stock from 225,000,000 to 750,000,000. In accordance with the terms of the Certificate of Designation of Series B Preferred Stock, each outstanding share of Series B Preferred Stock automatically converted into two shares of the Company’s common stock upon the filing of the Restated Certificate. An aggregate of 15,139,406 shares of common stock were issued in the conversion of the Series B Preferred Stock.

The Company is a medical device company that is focused on the development and future commercialization of a robotic assisted surgical system called the SurgiBot™ System (“the SurgiBot System”). The SurgiBot System is designed to utilize flexible instruments through articulating channels controlled directly by the surgeon, with robotic assistance, while the surgeon remains patient-side within the sterile field. The flexible nature of the SurgiBot System would allow 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 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 that are controlled directly by the surgeon, allowing for multiple instruments to be introduced via a single site. The SPIDER System has been cleared by the U.S. Food and Drug Administration (“FDA”). The Company also manufactures multiple instruments that can be deployed using the SPIDER System currently, and which are being adapted for use with the SurgiBot System.

Prior to the Merger, SafeStitch was focused on developing its Gastroplasty Device for the treatment of obesity, gastroesophageal reflux disease (“GERD”) and Barrett’s Esophagus. In the second quarter of 2014, the Company determined to cease internal development of the Gastroplasty Device. The Company is evaluating strategic alternatives for the former SafeStitch products.

The Company operates in one business segment.

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 company; and our ability to identify and pursue development of additional products

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2014

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2.	Summary of Significant Accounting Policies

Basis of presentation

The Company has prepared the accompanying unaudited consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The consolidated financial statements are unaudited and should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC on March 5, 2014 and its Form 10-K/A filed with the SEC on April 2, 2014. The accompanying unaudited interim consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of the Company’s management, necessary for a fair statement of the Company’s consolidated financial position, results of operations and cash flows for the periods presented. These principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The principal estimates relate to inventory valuation, stock-based compensation, accrued expenses and income tax valuation. Actual results could differ from those estimates. The year-end balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. All intercompany accounts and transactions have been eliminated in consolidation.

For a description of our critical accounting policies and estimates, please refer to the “Critical Accounting Policies and Estimates” section of the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on March 5, 2014 and its Form 10-K/A filed with the SEC on April 2, 2014. There have been no material changes in any of our accounting policies since December 31, 2013.

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 intercompany accounts and transactions have been eliminated in consolidation.

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.

Stock Split

On March 31, 2014, the Company effectuated a reverse stock split of its issued and outstanding shares of common stock at a ratio of 1 for 5 (the “Reverse Stock Split”). As a result of the Reverse Stock Split, the Company’s issued and outstanding stock decreased from 244,276,923 to 48,855,255 shares of common stock, all with a par value of $0.001. All information related to common stock, stock options, RSUs, warrants and earnings per share for prior periods has been retroactively adjusted to give effect to the Reverse Stock Split, except for the reference to the Merger Exchange Ratio of 1.1533.

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 June 30, 2014 or December 31, 2013.

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 31st or when events or changes in circumstances indicate evidence of potential impairment exists, using a fair value based test. No impairment existed at June 30, 2014 or 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 May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP.

The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2017.

Income Taxes

6 Months Ended

Jun. 30, 2014

Income Tax Disclosure [Abstract]

Income Taxes

3.	Income Taxes

Income taxes have been accounted for using the liability method in accordance with ASC 740 “Income Taxes”. The Company computes its interim provision for income taxes by applying the estimated annual effective tax rate method. The Company estimates an annual effective tax rate of 0% for the year ending December 31, 2014 as the Company incurred losses for the three and six month periods ended June 30, 2014 and is forecasting additional losses through the year, resulting in an estimated net loss for both financial statement and tax purposes for the year ending December 31, 2014. Due to the Company’s history of losses, there is not sufficient evidence at this time to support the conclusion that the Company will generate future income of a sufficient amount and nature to utilize the benefits of its net deferred tax assets. Accordingly, the net deferred tax assets have been reduced by a full valuation allowance. Therefore, no federal or state income taxes are expected and none have been recorded at this time.

The Company’s effective tax rate for each of the six month periods ended June 30, 2014 and 2013 was 0%. At June 30, 2014, the Company had no unrecognized tax benefits that would affect the Company’s effective tax rate.

Basic and Diluted Net Loss per Share

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Basic and Diluted Net Loss per Share

4.	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 three and six months ended June 30, 2014 and 2013, 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.

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

6 Months Ended

Jun. 30, 2014

Cash And Cash Equivalents [Abstract]

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

5.	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 $250,000 and $375,000 as of June 30, 2014 and 2013, respectively.

The Company’s investments at December 31, 2013 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 expense, net. Related unrealized gains and losses were not material as of June 30, 2014 and December 31, 2013. There have been no unrealized gains or losses reclassified to accumulated other comprehensive income.

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


	June 30, 2014		December 31, 2013
	(unaudited)
	(In thousands)
Cash	$	1,642	$	930
Money market		50,924		9,084

Total cash and cash equivalents		52,566		10,014

Corporate bonds		—		6,191

Total short-term investments	$	—	$	6,191


Total restricted cash	$	250	$	375

Total	$	52,816	$	16,580

- 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

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value

6.	Fair Value

The Company held certain assets that are required to be measured at fair value on a recurring basis. These assets include available for sale securities classified as cash equivalents. 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 measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013, using quoted prices in active markets for identical assets (Level 1); significant other observable inputs (Level 2); and significant unobservable inputs (Level 3):


	June 30, 2014
	(In thousands)
	(unaudited)
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total June 30, 2014

Assets measured at fair value
Cash and cash equivalents	$	52,566	$	—	$	—	$	52,566
Restricted cash		250		—		—		250


Total assets measured at fair value	$	52,816	$	—	$	—	$	52,816


	December 31, 2013
	(In thousands)
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total 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

- 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

6 Months Ended

Jun. 30, 2014

Investments Debt And Equity Securities [Abstract]

Investments

7.	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

None of the securities have contractual maturities of more than one year and therefore do not have continuous unrealized losses greater than 12 months. The Company no longer held short-term investments as of June 30, 2014.

- Definition

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

+ References + Details

Inventories

6 Months Ended

Jun. 30, 2014

Inventory Disclosure [Abstract]

Inventories

8.	Inventories

The following table presents the components of inventories:


	June 30, 2014			December 31, 2013
	(In thousands)
	(unaudited)
Finished goods	$	749		$	896
Reserve for excess and obsolete inventory		(311	)		(195	)

Total inventories	$	438		$	701

Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2014

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

9.	Goodwill and Intangible Assets

The following table presents the carrying value of the components of goodwill and intangible assets at the balance sheet dates:


	June 30, 2014			December 31, 2013
	(In thousands)
	(unaudited)
Goodwill	$	93,842		$	93,842

Intangible assets:
Intellectual property		5,000			5,000
Trade names		10			10
Amortization of intangible assets		(2,511	)		(2,259	)

Total intangible assets	$	2,499		$	2,751

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Accrued Expenses

6 Months Ended

Jun. 30, 2014

Text Block [Abstract]

Accrued Expenses

10.	Accrued Expenses

The following table presents the components of accrued expenses:


	June 30, 2014		December 31, 2013
	(In thousands)
	(unaudited)
Bonus	$	388	$	519
Vacation		348		219
Interest		214		62
Severance		204		—
Consulting		186		102
Legal and professional fees		159		99
Vendors		176		182
Other		231		223

Total accrued expenses	$	1,906	$	1,406

Notes Payable

6 Months Ended

Jun. 30, 2014

Debt Disclosure [Abstract]

Notes Payable

11.	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:


	June 30, 2014 (In thousands)
	(unaudited)

Total long-term debt		6,584
Less: Current portion of long-term debt		4,052

Total long-term debt, net of current portion	$	2,532

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

Warrants

6 Months Ended

Jun. 30, 2014

Text Block [Abstract]

Warrants

12.

Warrants

On March 22, 2013, SafeStitch entered into a stock purchase agreement with approximately 17 investors (the “2013 PIPE Investors”) pursuant to which the 2013 PIPE Investors purchased an aggregate of approximately 2,420,000 shares of common stock at a price of $1.25 per share for aggregate consideration of approximately $3.0 million. Included in this private placement was the issuance of warrants to purchase approximately 1,209,600 common shares, representing one warrant for every two common shares purchased, with an exercise price of $1.65 per share and five year expiration. There were approximately 1.2 million warrants outstanding that were assumed as of the Merger. During the year ended December 31, 2013, 54,000 of these warrants were exercised. During the six months ended June 30, 2014, 10,000 of these warrants were exercised.

On January 17, 2012, TransEnterix Surgical entered into the SVB-Oxford LSA 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 preferred stock. The preferred stock expire 10 years from the issue date. The preferred stock 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 279,586 shares of common stock. During the year ended December 31, 2013, 139,793 of these warrants were exercised in a cashless transaction for 112,766 shares of common stock. None of these warrants were exercised during the six months ended June 30, 2014.

Closing of Merger and Financing Transaction

6 Months Ended

Jun. 30, 2014

Business Combinations [Abstract]

Closing of Merger and Financing Transaction

13.	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 21,109,949 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 SVB - Oxford LSA. 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 the 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 two 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 Purchase Agreement, the Company issued and sold an additional 25,000 shares of Series B Preferred Stock within the period provided in the Purchase Agreement resulting in gross proceeds to the Company of approximately $100,000. Each share of Series B Preferred Stock was converted into two shares of our common stock, par value $0.001 per share, on December 6, 2013.

In connection with the Merger Agreement and the September 2013 private placement, certain of SafeStitch’s and TransEnterix Surgical’s former stockholders, comprising approximately 93% of our stock on the effective date of the merger, agreed to enter into Lock-up and Voting Agreements, pursuant to which such persons agreed, subject to certain exceptions, not to sell, transfer or otherwise convey any of the Company’s securities held by them (collectively, “Covered Securities”) for one year following the September 3, 2013 closing date (the “Closing Date”). The Lock-up and Voting Agreements provide that such persons may sell, transfer or convey: (i) up to 50% of their respective Covered Securities during the period commencing on the one-year anniversary of the Closing Date and ending on the eighteen-month anniversary of the Closing Date; and (ii) up to an aggregate of 75% of their respective Covered Securities during the period commencing on the eighteen-month anniversary of the Closing Date and ending on the two-year anniversary of the Closing Date. The restrictions on transfer contained in the Lock-up and Voting Agreements cease to apply to the Covered Securities following the second anniversary of the Closing Date.

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		12,350
Closing price per share	$	7.60

	$	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 $93.8 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

Following the announcement of the Merger, the SafeStitch stock price increased prior to the Merger closing date of September 3, 2013, generating additional goodwill. There may be impairment in the future and the impairment of goodwill will be assessed annually.

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.

- 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

Public Offering of Common Stock

6 Months Ended

Jun. 30, 2014

Equity [Abstract]

Public Offering of Common Stock

14.	Public Offering of Common Stock

On April 14, 2014, the Company sold 12,500,000 shares of common stock at a public offering price of $4.00 per share for aggregate gross proceeds of $50.0 million in an underwritten firm commitment public offering. Certain of the Company’s existing stockholders that are affiliated with certain of the Company’s directors purchased $10 million of common stock in the public offering. The closing of the public offering occurred on April 21, 2014.The Company granted the underwriters an option, exercisable for 30 days, to purchase up to an additional 1,875,000 shares of Common Stock to cover over-allotments. On April 30, 2014, the underwriters exercised a portion of their over-allotment option to acquire an additional 1,610,000 shares at the public offering price of $4.00 per share for aggregate additional gross proceeds of $6.4 million. The purchase of the over-allotment shares closed on May 5, 2014. Total proceeds were $52.5 million, net of issuance costs of $3.9 million. The common stock was offered and sold pursuant to the Shelf Registration Statement (the “Shelf Registration Statement”) which was declared effective on April 2, 2014. The Shelf Registration Statement allowed the Company to raise up to $100.0 million through the sale of debt securities, common stock, preferred stock, or warrants, or any combination thereof.

- 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

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+ Details

Commitments and Contingencies

6 Months Ended

Jun. 30, 2014

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

15.	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. On June 12, 2014, the Company entered into a lease amendment extending the term of the lease for a period of 3 years and 2 months commencing on May 1, 2015 and expiring on June 30, 2018, with an option to renew for an additional three 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. The Company’s approximate future minimum payments for its operating lease obligations are as follow:


Years ending December 31, (In thousands)
2014	$	498
2015		452
2016		592
2017		609
2018		373


Total	$	2,524

On February 13, 2014, TransEnterix Surgical, Inc., a wholly owned subsidiary of the Company, entered into a Robotic Development and Supply Agreement (the “Robotic Agreement”) with Microline Surgical, Inc. (“Microline”). Under the Robotic Agreement, Microline is developing a flexible sealer product for exclusive use by the Company with the SurgiBot System in open, minimally invasive and laparoscopic surgery. Development of the contemplated products under the Robotic Agreement is ongoing. If such products are successfully developed and applicable regulatory approvals obtained, the Company will owe an aggregate of $1,400,000 to Microline in milestone fees. Actual payment of such milestone fees is substantially uncertain, dependent on product development activities. If the products are successfully developed and applicable regulatory approvals obtained, the Company is committed to product supply commitments set forth in the Robotic Agreement.

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2014
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The Company has prepared the accompanying unaudited consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The consolidated financial statements are unaudited and should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC on March 5, 2014 and its Form 10-K/A filed with the SEC on April 2, 2014. The accompanying unaudited interim consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of the Company’s management, necessary for a fair statement of the Company’s consolidated financial position, results of operations and cash flows for the periods presented. These principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The principal estimates relate to inventory valuation, stock-based compensation, accrued expenses and income tax valuation. Actual results could differ from those estimates. The year-end balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. All intercompany accounts and transactions have been eliminated in consolidation. For a description of our critical accounting policies and estimates, please refer to the “Critical Accounting Policies and Estimates” section of the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on March 5, 2014 and its Form 10-K/A filed with the SEC on April 2, 2014. There have been no material changes in any of our accounting policies since December 31, 2013.
Consolidation	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 intercompany accounts and transactions have been eliminated in consolidation.
Reverse Merger	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.
Stock Split	Stock Split On March 31, 2014, the Company effectuated a reverse stock split of its issued and outstanding shares of common stock at a ratio of 1 for 5 (the “Reverse Stock Split”). As a result of the Reverse Stock Split, the Company’s issued and outstanding stock decreased from 244,276,923 to 48,855,255 shares of common stock, all with a par value of $0.001. All information related to common stock, stock options, RSUs, warrants and earnings per share for prior periods has been retroactively adjusted to give effect to the Reverse Stock Split, except for the reference to the Merger Exchange Ratio of 1.1533.
Identifiable Intangible Assets and Goodwill	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 June 30, 2014 or December 31, 2013. 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 31st or when events or changes in circumstances indicate evidence of potential impairment exists, using a fair value based test. No impairment existed at June 30, 2014 or December 31, 2013.
Debt Issuance Costs	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 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	Impact of Recently Issued Accounting Standards In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2017.

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

6 Months Ended

Jun. 30, 2014

Cash And Cash Equivalents [Abstract]

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

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


	June 30, 2014		December 31, 2013
	(unaudited)
	(In thousands)
Cash	$	1,642	$	930
Money market		50,924		9,084

Total cash and cash equivalents		52,566		10,014

Corporate bonds		—		6,191

Total short-term investments	$	—	$	6,191


Total restricted cash	$	250	$	375

Total	$	52,816	$	16,580

Fair Value (Tables)

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Summary of Fair Value


	June 30, 2014
	(In thousands)
	(unaudited)
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total June 30, 2014

Assets measured at fair value
Cash and cash equivalents	$	52,566	$	—	$	—	$	52,566
Restricted cash		250		—		—		250


Total assets measured at fair value	$	52,816	$	—	$	—	$	52,816


	December 31, 2013
	(In thousands)
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total 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

Investments (Tables)

6 Months Ended

Jun. 30, 2014

Investments Debt And Equity Securities [Abstract]

Schedule of Investment Securities

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

- 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

Inventories (Tables)

6 Months Ended

Jun. 30, 2014

Inventory Disclosure [Abstract]

Schedule of Inventories

The following table presents the components of inventories:


	June 30, 2014			December 31, 2013
	(In thousands)
	(unaudited)
Finished goods	$	749		$	896
Reserve for excess and obsolete inventory		(311	)		(195	)

Total inventories	$	438		$	701

Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2014

Goodwill And Intangible Assets Disclosure [Abstract]

Schedule of Goodwill and Intangible Assets

The following table presents the carrying value of the components of goodwill and intangible assets at the balance sheet dates:


	June 30, 2014			December 31, 2013
	(In thousands)
	(unaudited)
Goodwill	$	93,842		$	93,842

Intangible assets:
Intellectual property		5,000			5,000
Trade names		10			10
Amortization of intangible assets		(2,511	)		(2,259	)

Total intangible assets	$	2,499		$	2,751

Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2014

Text Block [Abstract]

Schedule of Accrued Expenses

The following table presents the components of accrued expenses:


	June 30, 2014		December 31, 2013
	(In thousands)
	(unaudited)
Bonus	$	388	$	519
Vacation		348		219
Interest		214		62
Severance		204		—
Consulting		186		102
Legal and professional fees		159		99
Vendors		176		182
Other		231		223

Total accrued expenses	$	1,906	$	1,406

Notes Payable (Tables)

6 Months Ended

Jun. 30, 2014

Debt Disclosure [Abstract]

Schedule of Components of Long-term Debt

The following table presents the components of long-term debt:


	June 30, 2014 (In thousands)
	(unaudited)

Total long-term debt		6,584
Less: Current portion of long-term debt		4,052

Total long-term debt, net of current portion	$	2,532

Closing of Merger and Financing Transaction (Tables)

6 Months Ended

Jun. 30, 2014

Business Combinations [Abstract]

Schedule of Purchase Price

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


Common shares outstanding at the date of merger		12,350
Closing price per share	$	7.60

	$	93,858

Cash consideration		293

Total purchase price	$	94,151

Schedule of Allocation of Purchase Price to Net Assets Acquired

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

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2014

Commitments And Contingencies Disclosure [Abstract]

Summary of Future Minimum Payments and Operating Lease Obligations

The Company’s approximate future minimum payments for its operating lease obligations are as follow:

Years ending December 31, (In thousands)
2014	$	498
2015		452
2016		592
2017		609
2018		373


Total	$	2,524

Description of Business - Additional Information (Detail) $ / shares in Units, $ in Thousands				6 Months Ended
	Dec. 06, 2013 shares	Sep. 17, 2013 USD ($) shares	Sep. 03, 2013 USD ($) $ / shares shares	Jun. 30, 2014 Segment $ / shares shares	Mar. 31, 2014 $ / shares	Dec. 31, 2013 $ / shares shares	Dec. 05, 2013 shares
Organization and Capitalization [Line Items]
Common Stock, Par or Stated Value Per Share \| $ / shares				$ 0.001	$ 0.001	$ 0.001
Common stock, shares authorized \| shares	750,000,000			750,000,000		750,000,000	225,000,000
Number of business segments \| Segment				1
Series B Convertible Preferred Stock [Member]
Organization and Capitalization [Line Items]
Preferred stock, par value (in dollars per share) \| $ / shares			$ 0.01
Shares to be purchased \| shares		25,000	7,544,704.4
Number of common stock shares issuable for preferred stock \| shares			2
Share Price \| $ / shares			$ 4.00
Proceeds from issuance of Series B preferred stock \| $		$ 28,200
Conversion of Stock, Shares Issued \| shares	15,139,406
Merger Agreement [Member]
Organization and Capitalization [Line Items]
Exchange ratio			1.1533
Common Stock, Par or Stated Value Per Share \| $ / shares			$ 0.001
Business Acquisition, Share Price \| $ / shares			$ 1.08
Shares issued as Merger consideration \| shares			21,109,949
Cash payment in Merger \| $			$ 293

Summary of Significant Accounting Policies - Additional Information (Detail)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2014 $ / shares shares	Jun. 30, 2014 USD ($) $ / shares shares	Dec. 31, 2013 USD ($) $ / shares shares	Mar. 30, 2014 shares	Sep. 03, 2013
Accounting Policies [Line Items]
Reverse stock split, ratio	0.2	0.0
Common stock, shares issued	48,855,255	62,975,255	48,841,417	244,276,923
Common stock, shares outstanding	48,855,255	62,975,255	48,841,417	244,276,923
Common stock, par value (in dollars per share) \| $ / shares	$ 0.001	$ 0.001	$ 0.001
Amortization period		10 years
Impairment charges \| $		$ 0	$ 0
Merger Agreement [Member]
Accounting Policies [Line Items]
Exchange ratio					1.1533

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2013
Income Tax Disclosure [Abstract]
Estimated annual effective tax rate	0.00%	0.00%
Effective tax rate		0.00%	0.00%
Unrecognized tax benefits	$ 0	$ 0

Cash and Cash Equivalents, Restricted Cash and Short-Term Investments - Additional Information (Detail) - USD ($) $ in Thousands	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013
Cash And Cash Equivalents [Abstract]
Total restricted cash	$ 250	$ 375	$ 375

Cash and Cash Equivalents, Restricted Cash and Short-Term Investments - Summary of Cash, Cash Equivalents, Restricted Cash, and Short-Term Investments (Detail) - USD ($) $ in Thousands	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013	Dec. 31, 2012
Cash And Cash Equivalents [Abstract]
Cash	$ 1,642	$ 930
Money market	50,924	9,084
Total cash and cash equivalents	52,566	10,014	$ 2,210	$ 8,896
Corporate bonds	0	6,191
Total short-term investments	0	6,191
Total restricted cash	250	375	$ 375
Total	$ 52,816	$ 16,580

Fair Value - Summary of Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013
Assets measured at fair value
Cash and cash equivalents	$ 52,566	$ 10,014
Restricted cash	250	375	$ 375
Short term investments		6,191
Total	52,816	16,580
Fair Value, Inputs, Level 1 [Member]
Assets measured at fair value
Cash and cash equivalents	52,566	10,014
Restricted cash	250	375
Total	$ 52,816	10,389
Fair Value, Inputs, Level 2 [Member]
Assets measured at fair value
Short term investments		6,191
Total		$ 6,191

Investments - Schedule of Investment Securities (Detail) - Corporate Bonds [Member] $ in Thousands	Dec. 31, 2013 USD ($)
Investments [Line Items]
Amortized Cost	$ 6,191
Fair Value	$ 6,191

Investments - Additional Information (Detail) - USD ($) $ in Thousands	Jun. 30, 2014	Dec. 31, 2013
Investments Debt And Equity Securities [Abstract]
Short term investments	$ 0	$ 6,191

Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands	Jun. 30, 2014	Dec. 31, 2013
Inventory Disclosure [Abstract]
Finished goods	$ 749	$ 896
Reserve for excess and obsolete inventory	(311)	(195)
Total inventories	$ 438	$ 701

Goodwill and Intangible Assets - Schedule of Goodwill and Intangible Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2014	Dec. 31, 2013
Intangible Assets By Major Class [Line Items]
Goodwill	$ 93,842	$ 93,842
Intangible assets	8	10
Amortization of intangible assets	(2,511)	(2,259)
Total intangible assets	2,499	2,751
Intellectual Property [Member]
Intangible Assets By Major Class [Line Items]
Intangible assets	5,000	5,000
Trade Names [Member]
Intangible Assets By Major Class [Line Items]
Intangible assets	$ 10	$ 10

Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands	Jun. 30, 2014	Dec. 31, 2013
Accrued Liabilities Current [Abstract]
Bonus	$ 388	$ 519
Vacation	348	219
Interest	214	62
Severance	204
Consulting	186	102
Legal and professional fees	159	99
Vendors	176	182
Other	231	223
Total accrued expenses	$ 1,906	$ 1,406

Notes Payable - Additional Information (Detail) - Loan and Security Agreement [Member]	6 Months Ended
	Jun. 30, 2014 USD ($)
Debt Instrument [Line Items]
Note issuance date	Jan. 17, 2012
Issuance of promissory note as part of merger transaction	$ 10,000,000
Maturity date	Jan. 01, 2016
Fixed interest rate	8.75%
Term A Loan [Member]
Debt Instrument [Line Items]
Issuance of promissory note as part of merger transaction	$ 4,000,000
Term B Loan [Member]
Debt Instrument [Line Items]
Issuance of promissory note as part of merger transaction	$ 6,000,000

Notes Payable - Schedule of Long-term Debt (Detail) - USD ($) $ in Thousands	Jun. 30, 2014	Dec. 31, 2013
Debt Disclosure [Abstract]
Total long-term debt	$ 6,584
Less: Current portion of long-term debt	4,052	$ 3,879
Total long-term debt, net of current portion	$ 2,532	$ 4,602

Warrants - Additional Information (Detail) $ / shares in Units, $ in Millions			6 Months Ended	12 Months Ended
	Mar. 22, 2013 USD ($) Investor $ / shares shares	Jan. 17, 2012 USD ($) shares	Jun. 30, 2014 shares	Dec. 31, 2013 shares	Apr. 30, 2014 $ / shares	Apr. 14, 2014 $ / shares	Sep. 03, 2013 shares
Class of Warrant or Right [Line Items]
Stock issued, price per share \| $ / shares					$ 4.00	$ 4.00
Warrants outstanding							1,200,000
Silicon Valley Bank and Oxford Finance LLC [Member]
Class of Warrant or Right [Line Items]
Warrants to purchase common shares		279,586
Warrant, expiration period		10 years
Warrants exercised			0	139,793
Other expense \| $		$ 1.8
Stock issued due to exercise of options				112,766
Merger Agreement [Member]
Class of Warrant or Right [Line Items]
Exchange ratio							1.1533
2013 PIPE investors [Member] \| Stock Purchase Agreement 2013 [Member]
Class of Warrant or Right [Line Items]
Number of investors \| Investor	17
Stock issued, shares	2,420,000
Stock issued, price per share \| $ / shares	$ 1.25
Proceeds from PIPE \| $	$ 3.0
Warrants to purchase common shares	1,209,600
Warrants, exercise price \| $ / shares	$ 1.65
Warrant, expiration period	5 years
2013 PIPE investors [Member] \| Stock Purchase Agreement 2013 [Member] \| Related Parties [Member]
Class of Warrant or Right [Line Items]
Warrants exercised			10,000	54,000

Closing of Merger and Financing Transaction - Additional Information (Detail)			6 Months Ended
	Sep. 17, 2013 USD ($) shares	Sep. 03, 2013 USD ($) $ / shares shares	Jun. 30, 2014 USD ($) $ / shares	Mar. 31, 2014 $ / shares	Dec. 31, 2013 USD ($) $ / shares	Jul. 31, 2013 USD ($)
Business Acquisition [Line Items]
Common Stock, Par or Stated Value Per Share \| $ / shares			$ 0.001	$ 0.001	$ 0.001
Percentage of stock acquired			93.00%
Merger agreement, Description			The Lock-up and Voting Agreements provide that such persons may sell, transfer or convey: (i) up to 50% of their respective Covered Securities during the period commencing on the one-year anniversary of the Closing Date and ending on the eighteen-month anniversary of the Closing Date; and (ii) up to an aggregate of 75% of their respective Covered Securities during the period commencing on the eighteen-month anniversary of the Closing Date and ending on the two-year anniversary of the Closing Date.
Goodwill			$ 93,842,000		$ 93,842,000
Intangible assets			$ 2,491,000		$ 2,741,000
Amortization period			10 years
Series B Convertible Preferred Stock [Member]
Business Acquisition [Line Items]
Preferred stock, par value (in dollars per share) \| $ / shares		$ 0.01
Shares to be purchased \| shares	25,000	7,544,704.4
Number of common stock shares issuable for preferred stock \| shares		2
Share Price \| $ / shares		$ 4.00
Shares issued and sold \| shares	25,000
Gross proceeds from Securities Purchase Agreement	$ 100,000
Ending On Eighteen Month Anniversary [Member]
Business Acquisition [Line Items]
Percentage of covered securities			50.00%
Ending On Two Year Anniversary [Member]
Business Acquisition [Line Items]
Percentage of covered securities			75.00%
Merger Agreement [Member]
Business Acquisition [Line Items]
Exchange ratio		1.1533
Common Stock, Par or Stated Value Per Share \| $ / shares		$ 0.001
Business Acquisition, Share Price \| $ / shares		$ 1.08
Shares issued as Merger consideration \| shares		21,109,949
Cash payment in Merger		$ 293,000
Goodwill		93,842,000
Intangible assets		$ 10,000
Amortization period		5 years
Merger Agreement [Member] \| Bridge Notes [Member]
Business Acquisition [Line Items]
Debt instrument, face amount						$ 2,000,000
Stated interest per annum						8.00%

Closing of Merger and Financing Transaction - Schedule of Purchase Price (Detail) - USD ($) $ / shares in Units, $ in Thousands	Sep. 03, 2013	Jun. 30, 2014	Mar. 31, 2014	Mar. 30, 2014	Dec. 31, 2013
Business Acquisition [Line Items]
Common shares outstanding at the date of merger		62,975,255	48,855,255	244,276,923	48,841,417
Merger Agreement [Member]
Business Acquisition [Line Items]
Common shares outstanding at the date of merger	12,350,000
Closing price per share	$ 7.60
Equity consideration	$ 93,858
Cash consideration	293
Total purchase price	$ 94,151

Closing of Merger and Financing Transaction - Schedule of Allocation of Purchase Price to Net Assets Acquired (Detail) - USD ($) $ in Thousands	Jun. 30, 2014	Dec. 31, 2013	Sep. 03, 2013
Business Acquisition [Line Items]
Goodwill	$ 93,842	$ 93,842
Merger Agreement [Member]
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
Total assets acquired			94,793
Accounts payable and other liabilities			642
Total purchase price			$ 94,151

Public Offering of Common Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	6 Months Ended
	Apr. 30, 2014	Jun. 30, 2014	Apr. 14, 2014
Equity [Abstract]
Common stock to be sold, shares			12,500,000
Public offering price	$ 4.00		$ 4.00
Expected aggregate gross proceeds			$ 50,000
Value of stock to be purchased by existing stockholders			$ 10,000
Over-allotment option, shares to be issued to underwriters			1,875,000
Shares issued from option exercise by underwriters	1,610,000
Additional proceeds from exercise of option by underwriters	$ 6,400
Proceeds from the issuance of common shares	52,506	$ 52,506
Issuance costs of Issuance of common shares	3,900
Aggregate maximum value of designated securities to be sold	$ 100,000

Commitments and Contingencies - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2014 USD ($)
Microline [Member]
Operating Leased Assets [Line Items]
Amount due in milestone fees for contract development	$ 1,400,000
Corporate offices [Member]
Operating Leased Assets [Line Items]
Lease expiration date	Jun. 30, 2018
Operating lease agreement period	5 years
Operating lease amended extension period	3 years 2 months
Operating lease, renew option period	3 years
Warehouse [Member]
Operating Leased Assets [Line Items]
Operating lease agreement period	4 years 4 months
Operating lease additional renewed period	6 years

Commitments and Contingencies - Summary of Future Minimum Payments and Operating Lease Obligations (Detail) $ in Thousands	Jun. 30, 2014 USD ($)
Commitments And Contingencies Disclosure [Abstract]
2014	$ 498
2015	452
2016	592
2017	609
2018	373
Operating Leases, Future Minimum Payments Due, Total	$ 2,524