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Organization and Capitalization

1.	Organization and Capitalization

TransEnterix, Inc. (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 allows for three-dimensional (3-D) high definition vision technology. The Company previously 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 manufactured multiple instruments that can be deployed using the SPIDER System, and which are being adapted for use with the SurgiBot System. The Company has discontinued sales of the SPIDER System as of December 31, 2014.

On September 3, 2013, TransEnterix Surgical, Inc., a Delaware corporation formerly known as TransEnterix, Inc. (“TransEnterix Surgical”) and SafeStitch Medical, Inc., a Delaware corporation (“SafeStitch”) 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.

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, and to authorize 25,000,000 shares of preferred stock, par value $0.01 per share. The Company’s Board of Directors has the authority to fix the designations, powers, preferences and relative participating, optional and other special rights of shares of any series of preferred stock designated by them, and the qualifications, limitations or restrictions of such preferred stock.

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.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2014

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 $135.9 million, including a net loss of $37.7 million for the year ended December 31, 2014, 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 and/or cease operations.

Consolidation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, 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, TransEnterix Surgical and SafeStitch, 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.

Reverse 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, restricted stock units, 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.

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 December 31, 2014 and 2013, respectively.

The Company’s investments at December 31, 2013 consisted of corporate bonds and were 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 expense, net. 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. The Company held no investments as of December 31, 2014 as it sold all its investment securities during 2014. There were no gross realized gains or losses for the years ended December 31, 2014 and 2013. There have been no unrealized gains or losses reclassified to accumulated other comprehensive income (loss).

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, 2014 and 2013, 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, 2014 and 2013.

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 74% of the Company’s net accounts receivable at December 31, 2014 and one customer who constituted 61% of the Company’s net accounts receivable at December 31, 2013. The Company had two customers who accounted for 37% and 10% of sales in 2014 and one customer who accounted for 37% of sales in 2013.

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. The Company records reserves, when necessary, to reduce the carrying value of inventory to its 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, 2014 or 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 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, 2014 or 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.

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 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:


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. 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 as a consequence of the Merger, the preferred stock warrant liability was reclassified into additional paid-in capital.

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 stock options and restricted stock units. Compensation expense for stock-based compensation was $1,840,000 and $941,000 for the years ended December 31, 2014 and 2013, 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 loss is equal to its net loss for all periods presented.

Impact of Recently Issued Accounting Standards

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 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 revenue 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.

In June 2014, the FASB issued ASU 2014-12 – Compensation – Stock Compensation: Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved after the Requisite Service Period, which provides explicit guidance for the accounting treatment for these types of awards. The ASU requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. This update is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. The Company does not expect this ASU will have a material impact on its consolidated financial statements.

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). The amendments in ASU 2014-15 are intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. Under U.S. GAAP, financial statements are prepared under the presumption that the reporting organization will continue to operate as a going concern, except in limited circumstances. The going concern basis of accounting is critical to financial reporting because it establishes the fundamental basis for measuring and classifying assets and liabilities. Currently, U.S. GAAP lacks guidance about management’s responsibility to evaluate whether there is substantial doubt about the organization’s ability to continue as a going concern or to provide related footnote disclosures. This ASU provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. This update is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company does not expect this ASU will have a material impact on its consolidated financial statements.

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

12 Months Ended

Dec. 31, 2014

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
	2014		2013
	(In thousands)

Cash	$	1,511	$	930
Money market		33,255		9,084

Total cash and cash equivalents	$	34,766	$	10,014


Corporate bonds	$	—	$	6,191

Total short-term investments	$	—	$	6,191


Total restricted cash	$	250	$	375


Total	$	35,016	$	16,580

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.

Fair Value

12 Months Ended

Dec. 31, 2014

Fair Value Disclosures [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 measured at fair value on a recurring basis as of December 31, 2014 and 2013, 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, 2014
	(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, 2014
Assets measured at fair value
Cash and Cash Equivalents	$	34,766	$	—	$	—	$	34,766
Restricted Cash		250		—		—		250


Total Assets measured at fair value	$	35,016	$	—	$	—	$	35,016


	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

The change in the fair value of the Level 3 preferred stock warrant liability is summarized below:


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

Fair value at end of year	$	—

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.

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.

Investments, Debt and Equity Securities [Abstract]

Investments

12 Months Ended

Dec. 31, 2014

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

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 held no investments at December 31, 2014 as it sold all its investment securities during 2014. There were no realized gains or losses for the years ended December 31, 2014 and 2013.

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

Accounts Receivable, Net

12 Months Ended

Dec. 31, 2014

Receivables [Abstract]

Accounts Receivable, Net

6.	Accounts Receivable, Net

The following table presents the components of accounts receivable:


	December 31,			December 31,
	2014			2013
	(In thousands)
Gross accounts receivable	$	221		$	220
Allowance for uncollectible accounts		(88	)		(32	)

Total accounts receivable, net	$	133		$	188

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.

Property, Plant and Equipment [Abstract]

Inventories

12 Months Ended

Dec. 31, 2014

Inventory Disclosure [Abstract]

Inventories

7.	Inventories

The following table presents the components of inventories:


	December 31,			December 31,
	2014			2013
	(In thousands)

Finished goods	$	358		$	896
Reserve for excess and obsolete inventory		(358	)		(195	)

Total inventories	$	—		$	701

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. During 2014, the Company discontinued the sale of the SPIDER System. As a result, the inventory balance was fully reserved at December 31, 2014, as we increased the reserve for excess and obsolete inventory by approximately $163,000.

Property and Equipment

12 Months Ended

Dec. 31, 2014

Property and Equipment

8.	Property and Equipment

Property and equipment consisted of the following:


	December 31,			December 31,
	2014			2013
	(In thousands)
Machinery and manufacturing equipment	$	3,797		$	2,453
Computer equipment		1,710			1,327
Furniture		358			287
Leasehold improvements		1,405			1,249


Total property and equipment		7,270			5,316
Accumulated depreciation and amortization		(4,150	)		(3,452	)


Property and equipment, net	$	3,120		$	1,864

Depreciation expense was $810,000 and $983,000, for the years ended December 31, 2014 and 2013, respectively.

During the year ended December 31, 2013, an impairment charge of $450,000 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, 2014

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,
	2014			2013
	(In thousands)
Patents	$	5,000		$	5,000
Accumulated amortization		(2,759	)		(2,259	)


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

Amortization expense was $500,000 for the years ended December 31, 2014 and 2013. At December 31, 2014, the estimated amortization expense for each of the four succeeding years is approximately $500,000 per year, with a final year of estimated amortization expense of $241,000. The remaining amortization period is 4.5 years. The patent expiration dates begin in 2027.

Debt Issuance Costs

12 Months Ended

Dec. 31, 2014

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Debt Issuance Costs

10.

Debt Issuance Costs

In connection with the issuance of notes payable, TransEnterix Surgical incurred debt acquisition costs of $183,000. 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 $38,000 and $65,000 for the years ended December 31, 2014 and 2013, respectively.

In January 2012, TransEnterix Surgical recorded $63,000 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. Amortization expense for the debt issuance costs was $15,000 and $16,000 for the years ended December 31, 2014 and 2013, respectively.

In December 2012, TransEnterix Surgical recorded $65,000 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. Amortization expense for the debt issuance costs was $16,000 and $22,000 for the years ended December 31, 2014 and 2013, respectively.

Total amortization expense related to issuance of warrants was $31,000 and $38,000 for the years ended December 31, 2014 and 2013, respectively. Total accumulated amortization for the warrant issuance costs was $80,000 and $49,000 at December 31, 2014 and 2013, respectively. Debt issuance costs, net of amortization, are recorded within other assets on the consolidated balance sheets.

Income Taxes

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Income Taxes

11.

Income Taxes

No income tax expense or benefit has been recorded for the years ended December 31, 2014 or December 31, 2013. 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):


	2014			2013
Current deferred tax assets:
Inventory reserves	$	537		$	71
Accrued expenses		373			331
Deferred rent		17			14
Allowance for uncollectible accounts receivable		32			12
Valuation allowance		(959	)		(428	)


Net current deferred tax asset		—			—

Noncurrent deferred tax assets:
Stock-based compensation		1,154			1,170
Contribution carryforward		2			2
Research credit carryforward		3,200			2,307
Fixed assets		278			235
Capitalized start up costs		4,233			4,676
Net operating loss carryforwards		51,145			38,286

		60,012			46,676
Valuation allowance		(60,009	)		(46,672	)


Net noncurrent deferred tax asset		3			4

Noncurrent deferred tax liability
Purchase accounting intangibles		(3	)		(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, 2014 and 2013, 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 $13.9 million from the prior year. At December 31, 2014, the Company had federal and state net operating loss tax carryforwards of approximately $140.6 million and $98.1 million, respectively. These net operating loss carryforwards expire in various amounts starting in 2027 and 2018, respectively. The Company’s federal and state net operating loss carryforwards include approximately $0.4 million of excess tax benefits related to deductions from the exercise of stock options. The tax benefit of these deductions has not been recognized in deferred tax assets. If utilized, the benefits from these deductions will be recorded as adjustments to additional paid-in capital. At December 31, 2014, the Company had federal research credit carryforwards in the amount of $3.2 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.

The Company has evaluated its tax positions to consider whether it has any unrecognized tax benefits. As of December 31, 2014, the Company had gross unrecognized tax benefits of approximately $0.6 million. As of December 31, 2013, the Company had not recorded any amounts associated with unrecognized tax benefits. Of the total, none would reduce the Company’s effective tax rate if recognized. The Company does not anticipate a significant change in total unrecognized tax benefits or the Company’s effective tax rate due to the settlement of audits or the expiration of statutes of limitations within the next twelve months. Furthermore, the Company does not expect any cash settlement with the taxing authorities as a result of these unrecognized tax benefits as the Company has sufficient unutilized carryforward attributes to offset the tax impact of these adjustments.

The following is a tabular reconciliation of the Company’s change in gross unrecognized tax positions (in thousands):


Balance at December 31, 2013	$	—
Gross increases related to current period		606
Gross decreases related to current period		—

Balance at December 31, 2014	$	606

The Company recognizes interest and penalties related to uncertain tax positions in the provision for income taxes. As of December 31, 2014, the Company had no accrued interest or penalties 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 2011, although carryforward attributes that were generated prior to 2011 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:


	2014						2013
	Amount			Percent of Pretax Earnings			Amount			Percent of Pretax Earnings
United States federal tax statutory rate	$	(12,801	)		34.0	%	$	(9,642	)		34.0	%
State taxes (net of deferred benefit)		(786	)		2.0	%		(662	)		2.3	%
Non-deductible expenses		253			(0.7	)%		1,556			(5.5	)%
Research & Development Credits		(1,532	)		4.1	%		—			0.0	%
Change in unrecognized tax benefits		606			(1.6	)%		—			0.0	%
Change in valuation allowance		13,868			(36.8	)%		20,733			(73.1	)%
Adjustment for valuation allowance recorded as part of purchase accounting		—			0.0	%		(11,785	)		41.6	%

Other, net		392			(1.0	)%		(200	)		0.7	%


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

Related-Person Transactions

12 Months Ended

Dec. 31, 2014

Related-Person Transactions

12.

Related-Person Transactions

Synecor, LLC and its shareholders and officers collectively owned approximately 9% and 12% of the Company’s common stock at December 31, 2014 and 2013, respectively. Various research and development services were purchased from Synecor LLC and its wholly owned subsidiary Synchrony Labs LLC and totaled approximately $66,000 and $90,000 for the years ended December 31, 2014 and 2013, respectively.

The Company’s director, Dr. Hsiao, and a former director, Dr. Frost, are 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 Tiger Media, Inc. (“Tiger Media”) (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 Tiger Media and as the Chief Legal Officer of each of NIMS and Tiger X. Additionally, the Company’s former Chief Financial Officer, until October 2, 2013, also served as the Chief Financial Officer and supervised the accounting staff of NIMS under a Board-approved cost sharing arrangement whereby the 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, 2014 and 2013 of approximately $125,000 and $55,000, respectively, 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 $24,000 and $14,000 as of December 31, 2014 and 2013, respectively, and are included in other current assets.

SafeStitch entered into a month to month lease for office space in Miami, Florida with a company controlled by Dr. Frost. The Company recorded approximately $89,000 and $48,000 of rent expense related to the Miami lease for the years ended December 31, 2014 and 2013, respectively. The Company terminated the SafeStitch lease effective August 15, 2014.

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.

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

12 Months Ended

Dec. 31, 2014

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 1,000,000 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 1,000,000 shares of common stock to 4,940,000 shares of common stock, (b) increase the per-person award limitations for options or stock appreciation rights from 200,000 to 1,000,000 shares and for restricted stock, deferred stock, performance shares and/or other stock-based awards from 100,000 to 500,000 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. 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 80,000 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 1,110,053. In 2011, the 2006 Plan was amended to increase the total options pool to 3,378,189. 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, 2014 and 2013, the Company recognized $1,840,000 and $941,000, respectively, of stock-based compensation expense, including stock options and restricted stock units. During 2014, the Company granted options with performance-based features. As of December 31, 2014, the Company determined that achievement of the pre-defined corporate performance goals was not probable and no expense was recognized during the year.

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,	2014	2013
Expected dividend yield	0%	0%
Expected volatility	46%-63%	62%-63%
Risk-free interest rate	1.60% - 2.30%	1.64% - 1.98%
Expected life (in years)	5.2 – 7.0	5.7 – 6.1

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-Merton 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 prior to the Merger in 2013.

The following table summarizes the Company’s stock option activity, including grants to non-employees, for the years ended December 31, 2014 and 2013:


	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)
Options outstanding at December 31, 2012		2,584,554		$	0.40		8.70
Options assumed through merger with SafeStitch		709,550			3.75
Granted		603,139			2.20
Forfeited		(6,129	)		0.40
Exercised		(68,227	)		0.80

Options outstanding at December 31, 2013		3,822,887		$	1.30		7.95
Granted		2,422,309			5.40
Forfeited		(670,065	)		3.95
Exercised		(151,390	)		0.49

Options outstanding at December 31, 2014		5,423,741		$	2.82		7.79

The following table summarizes information about stock options outstanding at December 31, 2014:


	Number of Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)
Exercisable at December 31, 2014		2,721,164	$	1.47		6.65
Vested or expected to vest at December 31, 2014		4,864,038	$	2.38		7.63

The aggregate intrinsic value of stock options outstanding, exercisable, and vested or expected to vest at December 31, 2014 was approximately $6.2 million, $4.8 million, and $6.2 million, respectively. This amount is before applicable income taxes and represents the closing market price of the Company’s common stock at December 31, 2014 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:


	Number of Shares			Weighted-Average Fair Value
Unvested options at December 31, 2012		1,707,536		$	0.40
Unvested options assumed through merger with SafeStitch		223,200			2.45
Granted		603,139			0.95
Vested		(711,818	)		1.25
Forfeited		(5,490	)		0.20

Unvested options at December 31, 2013		1,816,566		$	1.10
Granted		2,422,309			2.87
Vested		(993,888	)		1.04
Forfeited		(542,410	)		2.25

Unvested options at December 31, 2014		2,702,577		$	2.33

The Company granted 2,422,309 and 603,139 options to employees and non-employees during the years ended December 31, 2014 and 2013, respectively, with a weighted-average grant date fair value of $2.87 and $0.95, respectively. The total intrinsic value of options exercised during 2014 and 2013 was approximately $996,000 and $348,000, respectively.

The total fair value of options vested during 2014 and 2013 was approximately $1,054,000 and $880,000, respectively. As of December 31, 2014, the Company had future employee stock-based compensation expense of approximately $3,818,000 related to unvested share awards, which is expected to be recognized over an estimated weighted-average period of 2.9 years.

Restricted Stock Units

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [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 years ended December 31, 2014 and 2013:


	Number of Restricted Stock Units Outstanding		Weighted Average Grant Date Fair Value
Unvested, December 31, 2012		—		—
Granted		210,000	$	7.19
Vested		—		—

Unvested, December 31, 2013		210,000	$	7.19
Granted		—	$	—
Vested		70,000		—

Unvested, December 31, 2014		140,000	$	7.19

As of December 31, 2014 and 2013, the Company recorded approximately $503,000 and $121,000, respectively, in compensation expense for the RSUs. As of December 31, 2014, the unrecognized stock-based compensation expense related to unvested RSUs was approximately $0.9 million, which is expected to be recognized over a weighted average period of approximately 1.75 years. The weighted average grant date fair value of the RSUs granted in 2013 was $7.19. No restricted stock units were granted in 2014.

Warrants

12 Months Ended

Dec. 31, 2014

Text Block [Abstract]

Warrants

15.

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. Among the 2013 PIPE Investors purchasing shares were related parties who purchased 1.28 million shares and received 640,000 warrants. There were approximately 1.2 million warrants outstanding that were assumed as of the Merger. During the years ended December 31, 2014 and 2013, 10,000 and 54,000, respectively of these warrants were exercised.

On January 17, 2012, TransEnterix Surgical entered into the Original Loan Agreement (the “Original Loan Agreement”) with Silicon Valley Bank and Oxford Finance LLC. (collectively, the “Lenders”). Pursuant to such agreement, TransEnterix Surgical issued preferred stock warrants to the Lenders on January 17, 2012 and December 21, 2012, respectively, to purchase shares of TransEnterix Surgical preferred stock. The preferred stock warrants 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 2013 consolidated statement 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 279,588 shares of common stock, with an exercise price of $1.45. During the year ended December 31, 2013, 139,794 of these warrants were exercised in a cashless transaction for 112,766 shares of common stock. None of these warrants were exercised during the year ended December 31, 2014.

On September 26, 2014, the Company entered into an amended and restated loan and security agreement (the “Amended and Restated Loan Agreement”) with the Lenders. In connection with the Amended and Restated Loan Agreement and the first tranche borrowings, the Company issued 38,325 common stock warrants to the Lenders to purchase shares of the Company’s common stock, with an exercise price of $4.015 per share. Additional common stock warrants will be issued if additional tranche Term Loans are made under the Amended and Restated Loan Agreement. The warrants expire seven years from their respective issue date. The Company concluded that the warrants are considered equity instruments. The warrants were recognized at the relative fair value on the issuance date as a debt discount and will be amortized using the effective interest method from issuance to the maturity of the term loans. None of these warrants were exercised during the year ended December 31, 2014.


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

Outstanding at December 31, 2012		279,588		$	1.45		9.1	$	0.45

Granted		—			—		—		—
Warrants assumed in merger with SafeStitch		1,199,600			1.65		4.3		1.15
Exercised		(193,794	)		1.45		—		5.25
Expired/cancelled		—			—		—		—


Outstanding at December 31, 2013		1,285,394		$	1.45		4.7	$	1.75
Granted		38,325			4.02		6.7		1.41
Exercised		(10,000	)		1.65		—		—


Outstanding at December 31, 2014		1,313,719		$	1.70		3.9	$	1.75

The aggregate intrinsic value of the common stock warrants in the above table was $1.6 million and $8.7 million at December 31, 2014 and 2013, 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 applicable stock as of the respective dates.

Notes Payable

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Notes Payable

16.

Notes Payable

On January 17, 2012, TransEnterix Surgical entered into a loan and security agreement with Silicon Valley Bank and Oxford Finance LLC. The terms of the Original Loan Agreement provided 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 Original Loan Agreement, and agreed to amendments to the Original Loan Agreement, dated as of September 3, 2013 and October 31, 2013, respectively, The Original Loan Agreement had a maturity date of January 1, 2016 and a fixed interest rate of 8.75%. As of September 26, 2014, the outstanding principal amount of the Original Loan Agreement was $5,604,000.

On September 26, 2014, the Company entered into the Amended and Restated Loan Agreement with the Lenders. Under the Amended and Restated Loan Agreement, the Lenders have agreed to make certain term loans (the “Term Loans”) in an aggregate principal amount of up to $25,000,000. The first tranche increased the Company’s borrowings at September 26, 2014 from $5,604,000 to $10,000,000. Two additional tranches are to be made available as follows. The second tranche of $5,000,000 will be available at any time prior to one year after the closing date when the Company files a 510(k) application for its SurgiBot System, and completes an offering of its equity securities at or above $35 million. The third tranche of $10,000,000, will be made available to the Company at any time prior to two years after the closing date upon recognition of at least $10,000,000 of trailing six-month revenues from the SurgiBot System and SurgiBot-related products. The Company is entitled to make interest-only payments for 12 months from the closing date, which interest-only period is extended to 18 months if the Company receives 510(k) clearance for its SurgiBot System at any time before October 31, 2015. The maturity date of the Term Loans is April 1, 2018 without the interest-only extension and October 1, 2018 with the interest-only extension.

As of December 31, 2014 future principal payments under the Company’s notes payable agreements are as follows:


Years ending December 31, (In thousands)
2015	$	610
2016		3,824
2017		4,122
2018		1,444


Total	$	10,000

The Term Loans bear interest at a fixed rate equal to 7.50% per annum, subject to adjustment at funding for subsequent tranches on an increase in LIBOR above a designated rate. The Term Loans will be required to be prepaid if the Term Loans are accelerated following an event of default. In addition, the Company is permitted to prepay the Term Loans 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 loans, or prepayment of Term Loans, the Company is required to make a final payment equal to 5.45% of the original principal amount of each Term Loan without the interest-only extension or 6.75% with the interest-only extension (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, and the Lenders’ expenses and all other obligations that are due and payable to the Lenders.

In connection with the entry into the Amended and Restated Loan Agreement, the Company became obligated to make a payment equal to the accrued portion of the 3.33% final payment fee due under the Original Loan Agreement plus a facility fee payment of $75,000. In addition, in connection with the first tranche borrowings, the Company issued warrants to the Lenders to purchase shares of the Company’s common stock. Additional warrants will be issued if additional tranche Term Loans are made under the Amended and Restated Loan Agreement. The warrants expire seven years from their respective issue date.

The Amended and Restated Loan Agreement is secured by a security interest in all assets of the Company and its current and future subsidiaries, including a security interest in intellectual property proceeds, but excluding a current security interest in intellectual property. The Amended and Restated Loan Agreement contains customary representations (tested on a continual basis) and covenants 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; undergo a change in control; add or change business locations; and engage in businesses that are not related to its existing business.

In accordance with ASC 470-50 Debt – Modifications and Extinguishments, it was determined that the debt refinancing was considered to be a debt modification. Accordingly, the Company recorded approximately $129,000 of debt discount, consisting of the $75,000 facility fee and the relative fair value of warrants on the issue date of $54,000. Additionally, approximately $30,000 of legal fees were recorded as deferred financing costs. The debt discount and deferred financing costs will be amortized over the life of the new debt agreement using the effective interest method into Interest expense, net.

In conjunction with the Original Loan Agreement, TransEnterix Surgical issued the Lenders warrants to purchase 1,397,939 shares of the TransEnterix Surgical’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, 2014

Earnings 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, 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.

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


	December 31,
	2014		2013
Stock options		5,423,741		3,822,887
Stock warrants		1,313,719		1,285,394
Nonvested restricted stock units		140,000		210,000

Total		6,877,460		5,318,281

Stockholders' Equity

12 Months Ended

Dec. 31, 2014

Stockholders' Equity

20.

Stockholders’ Equity

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.

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, 2014 and 2013.

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 $0 and $40,000 for the years ended December 31, 2014 and 2013, 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.

Public Offering of Common Stock [Member]

Stockholders' Equity

18.

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 $10.0 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 $52.4 million, net of issuance costs of $4.0 million. The common stock was offered and sold pursuant to the Shelf Registration Statement (the “April 2014 Shelf Registration Statement”), which was declared effective on April 2, 2014. The April 2014 Shelf Registration Statement allowed the Company to raise up to $100.0 million through the sale of debt securities, common stock, preferred stock, warrants, or any combination thereof.

Closing of Merger and Financing Transaction

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.

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+ Details

Closing of Merger and Financing Transaction

12 Months Ended

Dec. 31, 2014

Business Combinations [Abstract]

19.

Closing of Merger and Financing Transaction

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”), on September 3, 2013, the Company consummated the Merger in which a wholly owned subsidiary of SafeStitch merged with TransEnterix Surgical. 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 Original Loan Agreement. The Bridge Notes were converted into Series B Preferred Stock of the Company 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 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 or TransEnterix Surgical. Under 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. 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, entered 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. 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 (1)	$	(0.85	)	$	(0.65	)

(1)	Adjusted for 1:5 reverse stock split on March 31, 2014.

Agreement with Creighton University

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).

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+ Details

Agreement with Creighton University

12 Months Ended

Dec. 31, 2014

Text Block [Abstract]

21.

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, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

22.

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. Rent expense was approximately $424,000 and $360,000 for the years ended December 31, 2014 and 2013, respectively. The Company’s approximate future minimum payments for its operating lease obligations that have initial or remaining noncancelable terms in excess of one year are as follow:


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


Total	$	2,026

In 2013, TransEnterix Surgical leased a manufacturing facility under a one-year lease from a third party. Rent expense under this lease was $55,000 for the years ended December 31, 2013. SafeStitch leases various office space on a month to month basis. Rent expense under these leases was $89,000 and $55,000 for the years ended December 31, 2014 and 2013, respectively, including $89,000 and $48,000 to a company controlled by a shareholder for the years ended December 31, 2014 and 2013, respectively.

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 21). 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. No royalties were incurred during the years ended December 31, 2014 and 2013.

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 $1,000,000 to Microline in milestone fees. Actual payment of such milestone fees is substantially uncertain and is 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.

The Company has placed orders with various suppliers for the purchase of certain tooling, supplies and contract engineering and research services. Each of these orders has a duration or expected completion within the next twelve months.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2014

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

Going Concern

Consolidation

Use of Estimates

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.

Reverse Stock Split

Reverse Stock Split

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

Accounts Receivable

Accounts Receivable

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Concentrations 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

Risk and Uncertainties

Risk and Uncertainties

Property and Equipment

Property and Equipment

Property and equipment consists primarily of 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:


Machinery and manufacturing equipment		5 years

Computer equipment		3 years

Furniture		5 years

Leasehold improvements		Lesser of lease term or 3 to 10 years

Intellectual Property

Intellectual Property

Long-Lived Assets

Long-Lived Assets

Preferred Stock Warrant Liability

Preferred Stock Warrant Liability

Revenue Recognition

Revenue Recognition

Cost of Goods 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)

Impact of Recently Issued Accounting Standards

Impact of Recently Issued Accounting Standards

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2014

Summary of Estimated Lives of Assets

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


Machinery and manufacturing equipment		5 years

Computer equipment		3 years

Furniture		5 years

Leasehold improvements		Lesser of lease term or 3 to 10 years

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

12 Months Ended

Dec. 31, 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:


	December 31
	2014		2013
	(In thousands)

Cash	$	1,511	$	930
Money market		33,255		9,084

Total cash and cash equivalents	$	34,766	$	10,014


Corporate bonds	$	—	$	6,191

Total short-term investments	$	—	$	6,191


Total restricted cash	$	250	$	375


Total	$	35,016	$	16,580

Fair Value (Tables)

12 Months Ended

Dec. 31, 2014

Summary of Assets Measured at Fair Value on Recurring Basis


	December 31, 2014
	(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, 2014
Assets measured at fair value
Cash and Cash Equivalents	$	34,766	$	—	$	—	$	34,766
Restricted Cash		250		—		—		250


Total Assets measured at fair value	$	35,016	$	—	$	—	$	35,016


	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

Fair Value, Inputs, Level 3 [Member]

Summary of Preferred Stock Warrant Liability

The change in the fair value of the Level 3 preferred stock warrant liability is summarized below:


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

Fair value at end of year	$	—

Investments (Tables)

12 Months Ended

Dec. 31, 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

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.

Summary of Accounts Receivable

Accounts Receivable, Net (Tables)

12 Months Ended

Dec. 31, 2014

Receivables [Abstract]

The following table presents the components of accounts receivable:


	December 31,			December 31,
	2014			2013
	(In thousands)
Gross accounts receivable	$	221		$	220
Allowance for uncollectible accounts		(88	)		(32	)

Total accounts receivable, net	$	133		$	188

Inventories (Tables)

12 Months Ended

Dec. 31, 2014

Inventory Disclosure [Abstract]

Schedule of Inventory

The following table presents the components of inventories:


	December 31,			December 31,
	2014			2013
	(In thousands)

Finished goods	$	358		$	896
Reserve for excess and obsolete inventory		(358	)		(195	)

Total inventories	$	—		$	701

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Summary of Property and Equipment

Property and equipment consisted of the following:


	December 31,			December 31,
	2014			2013
	(In thousands)
Machinery and manufacturing equipment	$	3,797		$	2,453
Computer equipment		1,710			1,327
Furniture		358			287
Leasehold improvements		1,405			1,249


Total property and equipment		7,270			5,316
Accumulated depreciation and amortization		(4,150	)		(3,452	)


Property and equipment, net	$	3,120		$	1,864

Intellectual Property (Tables)

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Intellectual Property

Intellectual Property consisted of the following:


	December 31,			December 31,
	2014			2013
	(In thousands)
Patents	$	5,000		$	5,000
Accumulated amortization		(2,759	)		(2,259	)


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

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [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):


	2014			2013
Current deferred tax assets:
Inventory reserves	$	537		$	71
Accrued expenses		373			331
Deferred rent		17			14
Allowance for uncollectible accounts receivable		32			12
Valuation allowance		(959	)		(428	)


Net current deferred tax asset		—			—

Noncurrent deferred tax assets:
Stock-based compensation		1,154			1,170
Contribution carryforward		2			2
Research credit carryforward		3,200			2,307
Fixed assets		278			235
Capitalized start up costs		4,233			4,676
Net operating loss carryforwards		51,145			38,286

		60,012			46,676
Valuation allowance		(60,009	)		(46,672	)


Net noncurrent deferred tax asset		3			4

Noncurrent deferred tax liability
Purchase accounting intangibles		(3	)		(4	)


Net deferred tax asset (liability)	$	—		$	—

Summary of Change in Gross Unrecognized Tax Positions

The following is a tabular reconciliation of the Company’s change in gross unrecognized tax positions (in thousands):


Balance at December 31, 2013	$	—
Gross increases related to current period		606
Gross decreases related to current period		—

Balance at December 31, 2014	$	606

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:


	2014						2013
	Amount			Percent of Pretax Earnings			Amount			Percent of Pretax Earnings
United States federal tax statutory rate	$	(12,801	)		34.0	%	$	(9,642	)		34.0	%
State taxes (net of deferred benefit)		(786	)		2.0	%		(662	)		2.3	%
Non-deductible expenses		253			(0.7	)%		1,556			(5.5	)%
Research & Development Credits		(1,532	)		4.1	%		—			0.0	%
Change in unrecognized tax benefits		606			(1.6	)%		—			0.0	%
Change in valuation allowance		13,868			(36.8	)%		20,733			(73.1	)%
Adjustment for valuation allowance recorded as part of purchase accounting		—			0.0	%		(11,785	)		41.6	%

Other, net		392			(1.0	)%		(200	)		0.7	%


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

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [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,	2014	2013
Expected dividend yield	0%	0%
Expected volatility	46%-63%	62%-63%
Risk-free interest rate	1.60% - 2.30%	1.64% - 1.98%
Expected life (in years)	5.2 – 7.0	5.7 – 6.1

Schedule 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, 2014 and 2013:


	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)
Options outstanding at December 31, 2012		2,584,554		$	0.40		8.70
Options assumed through merger with SafeStitch		709,550			3.75
Granted		603,139			2.20
Forfeited		(6,129	)		0.40
Exercised		(68,227	)		0.80

Options outstanding at December 31, 2013		3,822,887		$	1.30		7.95
Granted		2,422,309			5.40
Forfeited		(670,065	)		3.95
Exercised		(151,390	)		0.49

Options outstanding at December 31, 2014		5,423,741		$	2.82		7.79

Schedule of Stock Options Outstanding

The following table summarizes information about stock options outstanding at December 31, 2014:


	Number of Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)
Exercisable at December 31, 2014		2,721,164	$	1.47		6.65
Vested or expected to vest at December 31, 2014		4,864,038	$	2.38		7.63

Schedule of Unvested Stock Option Activity

The following table summarizes the unvested stock option activity:


	Number of Shares			Weighted-Average Fair Value
Unvested options at December 31, 2012		1,707,536		$	0.40
Unvested options assumed through merger with SafeStitch		223,200			2.45
Granted		603,139			0.95
Vested		(711,818	)		1.25
Forfeited		(5,490	)		0.20

Unvested options at December 31, 2013		1,816,566		$	1.10
Granted		2,422,309			2.87
Vested		(993,888	)		1.04
Forfeited		(542,410	)		2.25

Unvested options at December 31, 2014		2,702,577		$	2.33

Restricted Stock Units (Tables)

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Restricted Stock Unit Activity

The following is a summary of the RSU activity for the years ended December 31, 2014 and 2013:


	Number of Restricted Stock Units Outstanding		Weighted Average Grant Date Fair Value
Unvested, December 31, 2012		—		—
Granted		210,000	$	7.19
Vested		—		—

Unvested, December 31, 2013		210,000	$	7.19
Granted		—	$	—
Vested		70,000		—

Unvested, December 31, 2014		140,000	$	7.19

Warrants (Tables)

12 Months Ended

Dec. 31, 2014

Text Block [Abstract]

Summary of Warrant Activity

The warrants were recognized at the relative fair value on the issuance date as a debt discount and will be amortized using the effective interest method from issuance to the maturity of the term loans. None of these warrants were exercised during the year ended December 31, 2014.


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

Outstanding at December 31, 2012		279,588		$	1.45		9.1	$	0.45

Granted		—			—		—		—
Warrants assumed in merger with SafeStitch		1,199,600			1.65		4.3		1.15
Exercised		(193,794	)		1.45		—		5.25
Expired/cancelled		—			—		—		—


Outstanding at December 31, 2013		1,285,394		$	1.45		4.7	$	1.75
Granted		38,325			4.02		6.7		1.41
Exercised		(10,000	)		1.65		—		—


Outstanding at December 31, 2014		1,313,719		$	1.70		3.9	$	1.75

Notes Payable (Tables)

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Summary of Notes Payable Agreements

As of December 31, 2014 future principal payments under the Company’s notes payable agreements are as follows:


Years ending December 31, (In thousands)
2015	$	610
2016		3,824
2017		4,122
2018		1,444


Total	$	10,000

Basic and Diluted Net Loss per Share (Tables)

12 Months Ended

Dec. 31, 2014

Earnings 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,
	2014		2013
Stock options		5,423,741		3,822,887
Stock warrants		1,313,719		1,285,394
Nonvested restricted stock units		140,000		210,000

Total		6,877,460		5,318,281

Closing of Merger and Financing Transaction (Tables)

12 Months Ended

Dec. 31, 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

Summary of Business Acquisition, ProForma 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 (1)	$	(0.85	)	$	(0.65	)

(1)	Adjusted for 1:5 reverse stock split on March 31, 2014.

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 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 that have initial or remaining noncancelable terms in excess of one year are as follow:


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


Total	$	2,026

Organization and Capitalization - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2014 Segment shares	Dec. 31, 2013 shares	Dec. 06, 2013 $ / shares shares	Dec. 31, 2012 shares	Dec. 31, 2011 shares	Dec. 31, 2009 shares	Dec. 31, 2007 shares	Dec. 27, 2007 shares	Jul. 12, 2006 shares
Organization and Capitalization [Line Items]
Common stock, shares authorized	750,000,000	750,000,000		130,322,900	126,863,000	38,635,550	14,416,250		11,533,000
Preferred stock, shares authorized			25,000,000	65,693,245	62,693,245	21,734,402		6,500,000
Preferred stock, per share \| $ / shares			$ 0.01
Number of business segments \| Segment	1
Minimum [Member]
Organization and Capitalization [Line Items]
Common stock, shares authorized			225,000,000
Maximum [Member]
Organization and Capitalization [Line Items]
Common stock, shares authorized			750,000,000

Summary of Significant Accounting Policies - Additional Information (Detail)		3 Months Ended	12 Months Ended
	Sep. 03, 2013 $ / shares shares	Mar. 31, 2014 $ / shares shares	Dec. 31, 2014 USD ($) $ / shares shares	Dec. 31, 2013 USD ($) $ / shares shares	Mar. 30, 2014 shares	Dec. 06, 2013 $ / shares	Dec. 31, 2012 $ / shares shares
Accounting Policies [Line Items]
Retained Earnings (Accumulated Deficit)			$ 135,900,000
Net Income Loss Attributable To Parent			$ (37,652,000)	$ (28,358,000)
Reverse stock split, ratio	1.1533	0.2
Common stock, shares issued \| shares		48,855,255	63,182,806	48,841,417	244,276,923		5,391,095
Common stock, shares outstanding \| shares		48,855,255	63,182,806	48,841,417	244,276,923
Common stock, par value (in dollars per share) \| $ / shares		$ 0.001	$ 0.001	$ 0.001		$ 0.001	$ 0.001
Total restricted cash			$ 250,000	$ 375,000
Investments			0
Gross realized gains or losses			0	0
Unrealized gains or losses			0
Impairment charges			0	0
Allocated share based compensation expense			$ 0
Patents [Member]
Accounting Policies [Line Items]
Amortization period			10 years
Stock Options [Member]
Accounting Policies [Line Items]
Allocated share based compensation expense			$ 1,840,000	$ 941,000
Maximum [Member]
Accounting Policies [Line Items]
Amortization period			10 years
Accounts Receivable [Member] \| Customer One [Member]
Accounting Policies [Line Items]
Concentration Risk Percentage			74.00%	61.00%
Sales [Member] \| Customer One [Member]
Accounting Policies [Line Items]
Concentration Risk Percentage			10.00%	37.00%
Sales [Member] \| Customer Two [Member]
Accounting Policies [Line Items]
Concentration Risk Percentage			37.00%
Merger Agreement [Member]
Accounting Policies [Line Items]
Exchange ratio	1.1533
Common stock, shares outstanding \| shares	12,350,000
Common stock, par value (in dollars per share) \| $ / shares	$ 0.001
Amortization period	5 years

Summary of Significant Accounting Policies - Summary of Estimated Lives of Assets (Detail)	12 Months Ended
	Dec. 31, 2014
Machinery and Manufacturing Equipment [Member]
Change in Accounting Estimate [Line Items]
Property, plant and equipment, useful life	5 years
Computer Equipment [Member]
Change in Accounting Estimate [Line Items]
Property, plant and equipment, useful life	3 years
Furniture [Member]
Change in Accounting Estimate [Line Items]
Property, plant and equipment, useful life	5 years
Minimum [Member] \| Leasehold Improvements [Member]
Change in Accounting Estimate [Line Items]
Property, plant and equipment, useful life	3 years
Maximum [Member] \| Leasehold Improvements [Member]
Change in Accounting Estimate [Line Items]
Property, plant and equipment, useful life	10 years

Cash, Cash Equivalents, Restricted Cash, and Short-term Investments - Summary of Cash, Cash Equivalents, Restricted Cash, and Short-term Investments (Detail) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Cash and Cash Equivalents [Abstract]
Cash	$ 1,511	$ 930
Money market	33,255	9,084
Total cash and cash equivalents	34,766	10,014	$ 8,896
Corporate bonds		6,191
Total short-term investments		6,191
Total restricted cash	250	375
Total	$ 35,016	$ 16,580

Fair Value - Summary of Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Assets measured at fair value
Cash and cash equivalents	$ 34,766	$ 10,014	$ 8,896
Restricted cash	250	375
Short term investments		6,191
Total	35,016	16,580
Fair Value, Inputs, Level 1 [Member]
Assets measured at fair value
Cash and cash equivalents	34,766	10,014
Restricted cash	250	375
Total	$ 35,016	10,389
Fair Value, Inputs, Level 2 [Member]
Assets measured at fair value
Short term investments		6,191
Total		$ 6,191

Fair Value - Summary of Preferred Stock Warrant Liability (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2013 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in fair value recorded in other expense	$ 1,800
Reclassification to additional paid-in capital upon the Merger	(1,909)
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
Issuances	0
Change in fair value recorded in other expense	1,800
Reclassification to additional paid-in capital upon the Merger	(1,909)
Fair value at end of year	$ 0

Investments - Schedule of Investment Securities (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2013 USD ($)
Investments, Debt and Equity Securities [Abstract]
Amortized Cost	$ 6,191
Unrealized Gain	0
Unrealized (Loss)	0
Fair Value	$ 6,191

Investments - Additional Information (Detail) - USD ($)	12 Months Ended
Investments - Additional Information (Detail) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Investments, Debt and Equity Securities [Abstract]
Realized gains or losses	$ 0	$ 0
Investments	$ 0

Accounts Receivable, Net - Summary of Accounts Receivable (Detail) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Receivables [Abstract]
Gross accounts receivable	$ 221	$ 220
Allowance for uncollectible accounts	(88)	(32)
Total accounts receivable, net	$ 133	$ 188

Inventories - Schedule of Inventory (Detail) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Inventory Disclosure [Abstract]
Finished goods	$ 358	$ 896
Reserve for excess and obsolete inventory	$ (358)	(195)
Total inventories		$ 701

Inventories - Additional Information (Detail) - Inventory Valuation and Obsolescence [Member] - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
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)	$ 163,000	803,000
Valuation allowances and reserves, deductions		$ 718,000

Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	$ 7,270	$ 5,316
Accumulated depreciation and amortization	(4,150)	(3,452)
Property and equipment, net	3,120	1,864
Machinery and Manufacturing Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	3,797	2,453
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	1,710	1,327
Furniture [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	358	287
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	$ 1,405	$ 1,249

Property and Equipment - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Abstract]
Depreciation	$ 810,000	$ 983,000
Impairment of long-lived assets held-for-use		$ 450,000

Intellectual Property - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2009
Intellectual Property [Line Items]
Amortization of intangible assets	$ 500,000	$ 500,000
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, final year	$ 241,000
Finite-Lived intangible assets, remaining amortization period	4 years 6 months
Patents [Member]
Intellectual Property [Line Items]
Patent purchased amount	$ 5,000,000	$ 5,000,000	$ 5,000,000

Intellectual Property - Summary of Intellectual Property (Detail) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2009
Intellectual Property [Line Items]
Intellectual property, net	$ 2,241	$ 2,741
Patents [Member]
Intellectual Property [Line Items]
Patents	5,000	5,000	$ 5,000
Accumulated amortization	(2,759)	(2,259)
Intellectual property, net	$ 2,241	$ 2,741

Debt Issuance Costs - Additional Information (Detail) - USD ($)	1 Months Ended		12 Months Ended
	Dec. 31, 2012	Jan. 31, 2012	Dec. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Debt acquisition costs, notes payable			$ 183,000
Amortization of financing costs			38,000	$ 65,000
Convertible Preferred Stock [Member]
Debt Instrument [Line Items]
Amortization of financing costs			31,000	38,000
Accumulated amortization, deferred finance costs			80,000	49,000
Stock Warrants [Member] \| Promissory Note 1 [Member]
Debt Instrument [Line Items]
Amortization of financing costs			$ 15,000
Debt instrument, term			4 years
Stock Warrants [Member] \| Promissory Note 2 [Member]
Debt Instrument [Line Items]
Amortization of financing costs				16,000
Stock Warrants [Member] \| Promissory Note 3 [Member]
Debt Instrument [Line Items]
Amortization of financing costs			$ 16,000
Debt instrument, term			3 years
Stock Warrants [Member] \| Promissory Note 4 [Member]
Debt Instrument [Line Items]
Amortization of financing costs				$ 22,000
Stock Warrants [Member] \| Convertible Preferred Stock [Member]
Debt Instrument [Line Items]
Debt issuance cost	$ 65,000	$ 63,000

Income Taxes - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Income Tax Contingency [Line Items]
Income tax expense benefit	$ 0	$ 0
Valuation allowance, deferred tax asset, change in amount	13,900,000
Unrecognized tax benefits	606,000	$ 0
Accrued interest or penalties related to uncertain tax positions	$ 0
Statutory income tax rate	34.00%	34.00%
Domestic Tax Authority [Member]
Income Tax Contingency [Line Items]
Operating loss carry forwards	$ 140,600,000
Excess tax benefits related to deductions from the exercise of stock options	400,000
State and Local Jurisdiction [Member]
Income Tax Contingency [Line Items]
Operating loss carry forwards	98,100,000
Excess tax benefits related to deductions from the exercise of stock options	400,000
Research Tax Credit Carryforward [Member]
Income Tax Contingency [Line Items]
Tax credit carry forward, amount	$ 3,200,000
Tax credit carry forward expiration period	2027
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	2018

Income Taxes - Summary of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Current deferred tax assets:
Inventory reserves	$ 537	$ 71
Accrued expenses	373	331
Deferred rent	17	14
Allowance for uncollectible accounts receivable	32	12
Valuation allowance	(959)	(428)
Net current deferred tax asset	0	0
Noncurrent deferred tax assets:
Stock-based compensation	1,154	1,170
Contribution carryforward	2	2
Research credit carryforward	3,200	2,307
Fixed assets	278	235
Capitalized start up costs	4,233	4,676
Net operating loss carryforwards	51,145	38,286
Deferred Tax Assets, Gross	60,012	46,676
Valuation allowance	(60,009)	(46,672)
Net noncurrent deferred tax asset	3	4
Noncurrent deferred tax liability
Purchase accounting intangibles	(3)	(4)
Net deferred tax asset (liability)	$ 0	$ 0

Income Taxes - Summary of Change in Gross Unrecognized Tax Positions (Detail)	12 Months Ended
	Dec. 31, 2014 USD ($)
Income Tax Disclosure [Abstract]
Beginning balance	$ 0
Gross increases related to current period	606,000
Gross decreases related to current period	0
Ending balance	$ 606,000

Income Taxes - Summary of Provision for Income Taxes (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
United States federal tax statutory rate, Amount	$ (12,801)	$ (9,642)
State taxes (net of deferred benefit), Amount	(786)	(662)
Non-deductible expenses, Amount	253	1,556
Research & Development Credits, Amount	(1,532)
Change in unrecognized tax benefits, Amount	606
Change in valuation allowance, Amount	13,868	20,733
Adjustment for valuation allowance recorded as part of purchase accounting, Amount	0	(11,785)
Other, net, Amount	392	(200)
Provision for income taxes, Amount	$ 0	$ 0
United States federal tax statutory rate, Percent of Pretax Earnings	34.00%	34.00%
State taxes (net of deferred benefit), Percent of Pretax Earnings	2.00%	2.30%
Non-deductible expenses, Percent of Pretax Earnings	(0.70%)	(5.50%)
Research & Development Credits, Percent of Pretax Earnings	4.10%	0.00%
Change in unrecognized tax benefits, Percent of Pretax Earnings	(1.60%)	0.00%
Change in valuation allowance, Percent of Pretax Earnings	(36.80%)	(73.10%)
Adjustment for valuation allowance recorded as part of purchase accounting, Percent of Pretax Earnings	0.00%	41.60%
Other, net, Percent of Pretax Earnings	(1.00%)	0.70%
Provision for income taxes, Percent of Pretax Earnings	0.00%	0.00%

Related-Person Transactions - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction	$ 125,000	$ 55,000
Accounts Receivable, Related Parties, Current	24,000	14,000
Synecor, LLC [Member]
Related Party Transaction [Line Items]
Payments to Acquire in Process Research and Development	66,000	90,000
Miami Lease Agreement [Member]
Related Party Transaction [Line Items]
Accrued Rent, Current	$ 89,000	$ 48,000
Officer [Member] \| Synecor, LLC [Member] \| Common Stock [Member]
Related Party Transaction [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	9.00%	12.00%

Stock-Based Compensation - Additional Information (Detail)		3 Months Ended	12 Months Ended
	Sep. 03, 2013	Mar. 31, 2014	Dec. 31, 2014 USD ($) $ / shares shares	Dec. 31, 2013 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]
Stockholders equity note, stock split, conversion ratio	1.1533	0.2
Share-based compensation arrangement by share-based payment award, options, grants in period, gross \| shares			2,422,309	603,139
Share-based compensation			$ 1,840,000	$ 941,000
Share based compensation, expense recognized			0
Share-based compensation arrangement by share-based payment award, options, outstanding, intrinsic value			6,200,000
Share-based compensation arrangement by share-based payment award, options, exercisable, intrinsic value			4,800,000
Share-based compensation arrangement by share-based payment award, options, vested and expected to vest, outstanding, aggregate intrinsic value			6,200,000
Share-based compensation arrangement by share-based payment award, options, vested in period, fair value			1,054,000	$ 880,000
Employee service share-based compensation, nonvested awards, Compensation cost not yet recognized, total			$ 3,818,000
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition			2 years 10 months 24 days
Merger Agreement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stockholders equity note, stock split, conversion ratio	1.1533
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			2,422,309	603,139
Share-based compensation arrangement by share-based payment award, options, grants in period, weighted average grant date fair value \| $ / shares			$ 2.87	$ 0.95
Share-based compensation arrangement by share-based payment award, options, exercises in period, intrinsic value			$ 996,000	$ 348,000
June 19, 2012 Amendment [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, capital shares reserved for future issuance \| shares								1,000,000
October 29, 2013 Amendment [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, capital shares reserved for future issuance \| shares							4,940,000
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			80,000		3,378,189	1,110,053
Stock appreciation rights maximum term			10 years
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			500,000	100,000
Incentive Compensation Plan 2007 [Member] \| Stock Appreciation Rights (SARs) [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			1,000,000	200,000

Stock-Based Compensation - Summary of Share Based Fair Value Assumptions (Detail)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield	0.00%	0.00%
Expected volatility, Minimum	46.00%	62.00%
Expected volatility, Maximum	63.00%	63.00%
Risk-free interest rate , Minimum	1.60%	1.64%
Risk-free interest rate , Maximum	2.30%	1.98%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of share based compensation of fair value assumptions	5 years 2 months 12 days	5 years 8 months 12 days
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of share based compensation of fair value assumptions	7 years	6 years 1 month 6 days

Stock-Based Compensation - Schedule of Stock Option Activity (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Share Based Compensation Stock Options Activity [Abstract]
Number of Shares, Outstanding, Beginning balance	3,822,887	2,584,554
Number of Shares, Options assumed through merger with SafeStitch		709,550
Number of Shares, Granted	2,422,309	603,139
Number of Shares, Forfeited	(670,065)	(6,129)
Number of Shares, Exercised	(151,390)	(68,227)
Number of Shares, Outstanding, Ending balance	5,423,741	3,822,887	2,584,554
Weighted Average Exercise Price, Outstanding	$ 1.30	$ 0.40
Weighted Average Exercise Price, Options assumed through merger with SafeStitch		3.75
Weighted Average Exercise Price, Granted	5.40	2.20
Weighted Average Exercise Price, Forfeited	3.95	0.40
Weighted Average Exercise Price, Exercised	0.49	0.80
Weighted Average Exercise Price, Outstanding	$ 2.82	$ 1.30	$ 0.40
Weighted-Average Remaining Contractual Term (Years)	7 years 9 months 15 days	7 years 11 months 12 days	8 years 8 months 12 days

Stock-Based Compensation - Schedule of Stock Options Outstanding (Detail)	12 Months Ended
	Dec. 31, 2014 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Number of Shares, Exercisable \| shares	2,721,164
Vested or expected to vest, Number of Shares \| shares	4,864,038
Exercisable, Weighted-Average Exercise Price \| $ / shares	$ 1.47
Vested or expected to vest, Weighted-Average Exercise Price \| $ / shares	$ 2.38
Weighted-Average Remaining Contractual Term, Exercisable	6 years 7 months 24 days
Weighted-Average Remaining Contractual Term, Vested or expected to vest	7 years 7 months 17 days

Stock-Based Compensation - Schedule of Unvested Stock Option Activity (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Granted	2,422,309	603,139
Unvested Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Beginning balance	1,816,566	1,707,536
Number of Shares, Unvested options assumed through merger with SafeStitch		223,200
Number of Shares, Granted	2,422,309	603,139
Number of Shares, Vested	(993,888)	(711,818)
Number of Shares, Forfeited	(542,410)	(5,490)
Number of Shares, Ending balance	2,702,577	1,816,566
Weighted-Average Fair Value, Beginning balance	$ 1.10	$ 0.40
Weighted-Average Fair Value, Unvested options assumed through merger with SafeStitch		2.45
Weighted-Average Fair Value, Granted	2.87	0.95
Weighted-Average Fair Value, Vested	1.04	1.25
Weighted-Average Fair Value, Forfeited	2.25	0.20
Weighted-Average Fair Value, Ending balance	$ 2.33	$ 1.10

Restricted Stock Units - Summary of Restricted Stock Unit Activity (Detail) - Nonvested Restricted Stock Units [Member] - $ / shares	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning balance	210,000
Number of Restricted Stock Units Outstanding, Granted	0	210,000
Number of Restricted Stock Units Outstanding, Vested	70,000
Ending balance	140,000	210,000
Weighted Average Grant Date Fair Value, Unvested	$ 7.19
Weighted Average Grant Date Fair Value, Granted		$ 7.19
Weighted Average Grant Date Fair Value, Vested	0	0
Weighted Average Grant Date Fair Value, Unvested	$ 7.19	$ 7.19

Restricted Stock Units - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
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 10 months 24 days
Nonvested Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation liability, Current, total	$ 503,000	$ 121,000
Employee service share-based compensation, nonvested awards, compensation not yet recognized, share-based awards other than options	$ 900,000
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition	1 year 9 months
Share based compensation arrangement by share based payment award non option equity instruments grants in period weighted average grant date fair value		$ 7.19
Restricted stock units granted	0	210,000

Warrants - Additional Information (Detail) $ / shares in Units, $ in Millions				12 Months Ended
	Sep. 26, 2014 $ / shares shares	Mar. 22, 2013 USD ($) Investor $ / shares shares	Jan. 17, 2012 USD ($) $ / shares shares	Dec. 31, 2014 USD ($) shares	Dec. 31, 2013 USD ($) 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
Warrant, expiration period				7 years
Warrants outstanding								1,200,000
Stock Purchase Agreement 2013 [Member] \| 2013 PIPE investors [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
Merger Agreement [Member]
Class of Warrant or Right [Line Items]
Exchange ratio								1.1533
Amended and Restated Loan Agreement [Member]
Class of Warrant or Right [Line Items]
Warrants, exercise price \| $ / shares	$ 4.015
Warrant, expiration period				7 years
Warrants exercised				0
Common stock warrants issued	38,325
Related Parties [Member] \| Stock Purchase Agreement 2013 [Member] \| 2013 PIPE investors [Member]
Class of Warrant or Right [Line Items]
Stock issued, shares		1,280,000
Warrants to purchase common shares		640,000
Warrants exercised				10,000	54,000
Silicon Valley Bank and Oxford Finance LLC [Member]
Class of Warrant or Right [Line Items]
Warrants to purchase common shares			279,588
Warrants, exercise price \| $ / shares			$ 1.45
Warrant, expiration period			10 years
Warrants exercised				0	139,794
Other expense \| $			$ 1.8
Stock issued due to exercise of options					112,766
Warrants Not Settleable in Cash [Member]
Class of Warrant or Right [Line Items]
Share-based compensation arrangement by share-based payment award, Equity instruments other than options, aggregate intrinsic value, outstanding \| $				$ 1.6	$ 8.7

Warrants - Summary of Warrant Activity (Detail) - Warrants Not Settleable in Cash [Member] - $ / shares	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Class of Warrant or Right [Line Items]
Beginning balance	1,285,394	279,588
Weighted Average Fair Value, Granted	$ 1.41
Weighted Average Remaining Contractual Life, Warrants assumed in merger with SafeStitch		4 years 3 months 18 days
Number of Warrants, Granted	38,325
Number of Warrants, Warrants assumed in merger with SafeStitch		1,199,600
Number of Warrants, Exercised	(10,000)	(193,794)
Number of Warrants, Expired/cancelled		0
Ending balance	1,313,719	1,285,394	279,588
Weighted Average Exercise Price, Outstanding	$ 1.45	$ 1.45
Weighted Average Exercise Price, Granted	4.02
Weighted Average Exercise Price, Warrants assumed in merger with SafeStitch		1.65
Weighted Average Exercise Price, Exercised	1.65	1.45
Weighted Average Exercise Price, Outstanding	1.70	1.45	$ 1.45
Weighted Average Fair Value, Outstanding	$ 1.75	0.45
Weighted Average Remaining Contractual Life, Granted	6 years 8 months 12 days
Weighted Average Fair Value, Warrants assumed in merger with SafeStitch		1.15
Weighted Average Fair Value, Exercised		$ 5.25
Weighted Average Remaining Contractual Life, Outstanding	3 years 10 months 24 days	4 years 8 months 12 days	9 years 1 month 6 days
Weighted Average Fair Value, Outstanding	$ 1.75	$ 1.75	$ 0.45

Notes Payable - Additional Information (Detail)			3 Months Ended	12 Months Ended
Notes Payable - Additional Information (Detail)	Sep. 26, 2014 USD ($)	Sep. 03, 2013	Mar. 31, 2014	Dec. 31, 2014 USD ($) $ / shares shares
Debt Instrument [Line Items]
Debt instrument, facility fee amount				$ 75,000
Warrants expire in years				7 years
Approximated Amount of debt discount				$ 129,000
Fair value of warrants on the issue date				54,000
Debt instrument, legal fees				$ 30,000
Stockholders equity note, stock split, conversion ratio		1.1533	0.2
Warrants expiration date				January 16, 2022
Amended and Restated Loan Agreement [Member]
Debt Instrument [Line Items]
Term loan aggregate principal amount	$ 25,000,000
Period of interest description				The Company is entitled to make interest-only payments for 12 months, which interest-only period is extended to 18 months if the Company receives 510(k) clearance for its SurgiBot System at any time before October 31, 2015
Debt instrument, accrued interest percentage				3.33%
Debt instrument, facility fee amount				$ 75,000
Warrants expire in years				7 years
Amended and Restated Loan Agreement [Member] \| Surgi Bot [Member]
Debt Instrument [Line Items]
Trailing six-month revenues recognition	10,000,000
Amended and Restated Loan Agreement [Member] \| First Tranche [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Amount of borrowing under agreement	5,604,000
Amended and Restated Loan Agreement [Member] \| First Tranche [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Amount of borrowing under agreement	10,000,000
Amended and Restated Loan Agreement [Member] \| Second Tranche [Member]
Debt Instrument [Line Items]
Amount of borrowing under agreement	$ 5,000,000
Borrowing agreement expiration date	1 year
Amended and Restated Loan Agreement [Member] \| Second Tranche [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Amount of equity securities offering				$ 35,000,000
Amended and Restated Loan Agreement [Member] \| Third Tranche [Member]
Debt Instrument [Line Items]
Borrowing agreement expiration date	2 years
Amended and Restated Loan Agreement [Member] \| Third Tranche [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Amount of borrowing under agreement	$ 10,000,000
Amended and Restated Loan Agreement [Member] \| Without Interest Only Extension [Member]
Debt Instrument [Line Items]
Maturity date of the term loans	Apr. 01, 2018
Amended and Restated Loan Agreement [Member] \| With Interest Only Extension [Member]
Debt Instrument [Line Items]
Maturity date of the term loans	Oct. 01, 2018
Libor [Member]
Debt Instrument [Line Items]
Term loan fixed interest rate				7.50%
Loan and Security Agreement [Member]
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
Term loan fixed interest rate				8.75%
Outstanding principal amount of the original loan agreement	$ 5,604,000
Notice period for repayment of term loan				10 days
Debt instrument, basis spread on variable rate				5.00%
Class of warrant or right, number of securities called by warrants or rights \| shares				1,397,939
Warrant exercise price \| $ / shares				$ 0.29
Loan and Security Agreement [Member] \| Without Interest Only Extension [Member]
Debt Instrument [Line Items]
Final payment fee percentage				5.45%
Loan and Security Agreement [Member] \| With Interest Only Extension [Member]
Debt Instrument [Line Items]
Final payment fee percentage				6.75%
Loan and Security Agreement [Member] \| Term A Loan [Member]
Debt Instrument [Line Items]
Issuance of promissory note as part of merger transaction				$ 4,000,000
Loan and Security Agreement [Member] \| Term B Loan [Member]
Debt Instrument [Line Items]
Issuance of promissory note as part of merger transaction				$ 6,000,000

Notes Payable - Summary of Notes Payable Agreements (Detail) - Notes Payable, Other Payables [Member] $ in Thousands	Dec. 31, 2014 USD ($)
Debt Instrument [Line Items]
2015	$ 610
2016	3,824
2017	4,122
2018	1,444
Total	$ 10,000

Basic and Diluted Net Loss per Share - Summary of Potential Common Shares (Detail) - shares	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	6,877,460	5,318,281
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	5,423,741	3,822,887
Stock Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,313,719	1,285,394
Nonvested Restricted Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	140,000	210,000

Public Offering of Common Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Apr. 30, 2014	Dec. 31, 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	52,400	$ 52,433
Issuance costs of Issuance of common shares	4,000
Aggregate maximum value of designated securities to be sold	$ 100,000

Closing of Merger and Financing Transaction - Additional Information (Detail)			12 Months Ended
	Sep. 17, 2013 USD ($) shares	Sep. 03, 2013 USD ($) $ / shares shares	Dec. 31, 2014 USD ($) $ / shares	Mar. 31, 2014 $ / shares	Dec. 31, 2013 USD ($) $ / shares	Dec. 06, 2013 $ / shares	Jul. 31, 2013 USD ($)	Dec. 31, 2012 $ / shares
Business Acquisition [Line Items]
Common Stock, Par or Stated Value Per Share \| $ / shares			$ 0.001	$ 0.001	$ 0.001	$ 0.001		$ 0.001
Preferred stock, par value (in dollars per share) \| $ / shares						$ 0.01
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 \| $			$ 2,241,000		$ 2,741,000
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		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%
Private Placement [Member] \| Series B Convertible Preferred Stock [Member]
Business Acquisition [Line Items]
Preferred stock, par value (in dollars per share) \| $ / shares		$ 0.001

Closing of Merger and Financing Transaction - Schedule of Purchase Price (Detail) - USD ($) $ / shares in Units, $ in Thousands	Sep. 03, 2013	Dec. 31, 2014	Mar. 31, 2014	Mar. 30, 2014	Dec. 31, 2013
Business Acquisition [Line Items]
Common shares outstanding at the date of Merger		63,182,806	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	Dec. 31, 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

Closing of Merger and Financing Transaction - Summary of Business Acquisition, ProForma Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Business Acquisition [Line Items]
Revenues	$ 401	$ 1,431
Net loss	$ (37,652)	(28,358)
Pro Forma Results [Member]
Business Acquisition [Line Items]
Revenues		1,456	$ 2,150
Net loss		$ (30,420)	$ (22,149)
Earnings per share		$ (0.85)	$ (0.65)

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