2015 Q4 Form 10-K Financial Statement

#000147929016000031 Filed on March 04, 2016

View on sec.gov

Income Statement

Concept 2015 Q4 2015 2014 Q4
Revenue $75.00K $300.0K $75.00K
YoY Change 0.0% -21.67% -75.73%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $6.910M $25.09M $4.790M
YoY Change 44.26% 31.74% 59.67%
% of Gross Profit
Research & Development $14.96M $47.53M $9.130M
YoY Change 63.86% 42.35% 46.31%
% of Gross Profit
Depreciation & Amortization $410.0K $1.995M $490.0K
YoY Change -16.33% -5.0% 0.0%
% of Gross Profit
Operating Expenses $21.86M $72.62M $13.92M
YoY Change 57.04% 38.49% 50.65%
Operating Profit -$72.32M
YoY Change 38.94%
Interest Expense -$200.0K $1.190M -$200.0K
YoY Change 0.0% -88.85% 25.0%
% of Operating Profit
Other Income/Expense, Net -$110.0K -$327.0K -$160.0K
YoY Change -31.25% 39.74% -83.84%
Pretax Income -$22.09M -$73.48M -$14.21M
YoY Change 55.45% 16.78% 40.97%
Income Tax
% Of Pretax Income
Net Earnings -$22.09M -$73.50M -$14.21M
YoY Change 55.46% 16.85% 40.95%
Net Earnings / Revenue -29458.67% -24500.0% -18949.33%
Basic Earnings Per Share -$0.83 -$3.02 -$0.60
Diluted Earnings Per Share -$0.83 -$3.02 -$0.60
COMMON SHARES
Basic Shares Outstanding 28.06M shares 24.34M shares 23.72M shares
Diluted Shares Outstanding 24.34M shares

Balance Sheet

Concept 2015 Q4 2015 2014 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $252.3M $252.3M $171.0M
YoY Change 47.54% 47.54% 4284.62%
Cash & Equivalents $201.6M $201.6M $171.0M
Short-Term Investments $50.70M $50.70M
Other Short-Term Assets $267.0K $1.500M $239.0K
YoY Change 11.72% 7.14% 246.38%
Inventory
Prepaid Expenses $1.200M $1.085M
Receivables $75.00K $200.0K $300.0K
Other Receivables $83.00K $0.00 $0.00
Total Short-Term Assets $254.0M $254.0M $172.7M
YoY Change 47.03% 47.08% 3488.1%
LONG-TERM ASSETS
Property, Plant & Equipment $19.71M $19.70M $19.27M
YoY Change 2.25% 2.07% 34.64%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $1.800M $1.800M
YoY Change
Other Assets $0.00 $400.0K $29.00K
YoY Change -100.0% -20.0% -99.04%
Total Long-Term Assets $21.86M $21.80M $19.74M
YoY Change 10.75% 10.1% 10.69%
TOTAL ASSETS
Total Short-Term Assets $254.0M $254.0M $172.7M
Total Long-Term Assets $21.86M $21.80M $19.74M
Total Assets $275.8M $275.8M $192.5M
YoY Change 43.31% 43.27% 749.94%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.657M $2.700M $3.149M
YoY Change -15.62% -12.9% -43.01%
Accrued Expenses $6.245M $5.500M $4.145M
YoY Change 50.66% 48.65% -0.38%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $3.100M $3.100M $2.900M
YoY Change 6.9% 6.9% -87.34%
Total Short-Term Liabilities $12.04M $12.00M $10.24M
YoY Change 17.59% 17.65% -78.48%
LONG-TERM LIABILITIES
Long-Term Debt $5.300M $5.300M $600.0K
YoY Change 783.33% 783.33% -84.62%
Other Long-Term Liabilities $0.00 $5.200M $5.300M
YoY Change -100.0% -1.89% 10.42%
Total Long-Term Liabilities $0.00 $10.50M $5.900M
YoY Change -100.0% 77.97% -32.18%
TOTAL LIABILITIES
Total Short-Term Liabilities $12.04M $12.00M $10.24M
Total Long-Term Liabilities $0.00 $10.50M $5.900M
Total Liabilities $22.57M $22.60M $16.10M
YoY Change 40.19% 40.37% -71.36%
SHAREHOLDERS EQUITY
Retained Earnings -$332.3M -$258.8M
YoY Change 28.39% 32.12%
Common Stock $585.6M $435.2M
YoY Change 34.56% 1035.28%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $253.3M $253.3M $176.4M
YoY Change
Total Liabilities & Shareholders Equity $275.8M $275.8M $192.5M
YoY Change 43.31% 43.27% 749.94%

Cashflow Statement

Concept 2015 Q4 2015 2014 Q4
OPERATING ACTIVITIES
Net Income -$22.09M -$73.50M -$14.21M
YoY Change 55.46% 16.85% 40.95%
Depreciation, Depletion And Amortization $410.0K $1.995M $490.0K
YoY Change -16.33% -5.0% 0.0%
Cash From Operating Activities -$16.45M -$55.67M -$9.120M
YoY Change 80.37% 1.08% -34.76%
INVESTING ACTIVITIES
Capital Expenditures -$480.0K $3.328M -$1.540M
YoY Change -68.83% -52.29% -59.58%
Acquisitions
YoY Change
Other Investing Activities $920.0K -$53.09M
YoY Change
Cash From Investing Activities $440.0K -$56.42M -$1.610M
YoY Change -127.33% 708.82% -57.63%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $10.02M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 127.1M $142.6M -5.800M
YoY Change -2290.52% -37.76% -129.31%
NET CHANGE
Cash From Operating Activities -16.45M -$55.67M -9.120M
Cash From Investing Activities 440.0K -$56.42M -1.610M
Cash From Financing Activities 127.1M $142.6M -5.800M
Net Change In Cash 111.0M $30.51M -16.53M
YoY Change -771.75% -81.74% -922.39%
FREE CASH FLOW
Cash From Operating Activities -$16.45M -$55.67M -$9.120M
Capital Expenditures -$480.0K $3.328M -$1.540M
Free Cash Flow -$15.97M -$59.00M -$7.580M
YoY Change 110.69% -4.92% -25.47%

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0 USD
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50688000 USD
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500000 USD
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0 USD
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0 USD
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1095000 USD
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0 USD
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0 USD
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26206000 USD
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0 USD
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2371000 USD
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CY2013 us-gaap Depreciation
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CY2014 us-gaap Depreciation
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CY2015 us-gaap Depreciation
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1995000 USD
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32008000 USD
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0 USD
CY2015 us-gaap Extinguishment Of Debt Amount
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0 USD
CY2013 us-gaap Fair Value Adjustment Of Warrants
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621000 USD
CY2014 us-gaap Fair Value Adjustment Of Warrants
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2151000 USD
CY2015 us-gaap Fair Value Adjustment Of Warrants
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0 USD
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0 USD
CY2014 us-gaap Financing Interest Expense
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28000 USD
CY2015 us-gaap Financing Interest Expense
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344000 USD
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2660000 USD
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4032000 USD
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0 USD
CY2013 us-gaap Gain Loss On Sale Of Property Plant Equipment
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0 USD
CY2014 us-gaap Gain Loss On Sale Of Property Plant Equipment
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0 USD
CY2015 us-gaap Gain Loss On Sale Of Property Plant Equipment
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CY2015 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
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24667000 USD
CY2013 us-gaap Gains Losses On Extinguishment Of Debt
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0 USD
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0 USD
CY2013 us-gaap Impairment Of Long Lived Assets Held For Use
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0 USD
CY2014 us-gaap Impairment Of Long Lived Assets Held For Use
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0 USD
CY2015 us-gaap Impairment Of Long Lived Assets Held For Use
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0 USD
CY2013 us-gaap Income Tax Expense Benefit Continuing Operations Discontinued Operations Extraordinary Items
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0 USD
CY2014 us-gaap Income Tax Expense Benefit Continuing Operations Discontinued Operations Extraordinary Items
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3000 USD
CY2015 us-gaap Income Tax Expense Benefit Continuing Operations Discontinued Operations Extraordinary Items
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0 USD
CY2013 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
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10522000 USD
CY2014 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
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16226000 USD
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CY2014 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
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CY2015 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
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2888000 USD
CY2014 us-gaap Income Tax Reconciliation Nondeductible Expense Amortization
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756000 USD
CY2015 us-gaap Income Tax Reconciliation Nondeductible Expense Amortization
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0 USD
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284000 USD
CY2014 us-gaap Income Tax Reconciliation Other Adjustments
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537000 USD
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607000 USD
CY2013 us-gaap Income Tax Reconciliation State And Local Income Taxes
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849000 USD
CY2014 us-gaap Income Tax Reconciliation State And Local Income Taxes
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79000 USD
CY2015 us-gaap Income Tax Reconciliation State And Local Income Taxes
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0 USD
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642000 USD
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CY2015 us-gaap Income Tax Reconciliation Tax Credits Research
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516000 USD
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3193000 USD
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CY2015 us-gaap Increase Decrease In Accounts Payable Trade
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2311000 USD
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3179000 USD
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0 USD
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2770000 USD
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1621000 USD
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CY2013 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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CY2014 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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999000 USD
CY2015 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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192000 USD
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1590000 USD
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1182000 USD
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0 USD
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CY2015 us-gaap Increase Decrease In Restricted Cash
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CY2013 us-gaap Incremental Common Shares Attributable To Call Options And Warrants
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CY2014 us-gaap Incremental Common Shares Attributable To Call Options And Warrants
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0 shares
CY2015 us-gaap Incremental Common Shares Attributable To Call Options And Warrants
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0 shares
CY2013 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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167655 shares
CY2014 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
0 shares
CY2015 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
0 shares
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15164000 USD
CY2014 us-gaap Interest Expense
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10672000 USD
CY2015 us-gaap Interest Expense
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1190000 USD
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273000 USD
CY2014 us-gaap Interest Expense Debt
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271000 USD
CY2015 us-gaap Interest Expense Debt Excluding Amortization
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802000 USD
CY2013 us-gaap Interest Paid
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1590000 USD
CY2014 us-gaap Interest Paid
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1182000 USD
CY2015 us-gaap Interest Paid
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802000 USD
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23000 USD
CY2015Q4 us-gaap Interest Payable Current
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2000 USD
CY2014 us-gaap Investment Income Nonoperating
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44000 USD
CY2015 us-gaap Investment Income Nonoperating
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231000 USD
CY2013 us-gaap Issuance Of Stock And Warrants For Services Or Claims
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0 USD
CY2014 us-gaap Issuance Of Stock And Warrants For Services Or Claims
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379000 USD
CY2015 us-gaap Issuance Of Stock And Warrants For Services Or Claims
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0 USD
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P36M
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P15Y
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16100000 USD
CY2015Q4 us-gaap Liabilities
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22570000 USD
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192469000 USD
CY2015Q4 us-gaap Liabilities And Stockholders Equity
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275822000 USD
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10236000 USD
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12037000 USD
CY2014Q4 us-gaap Long Term Investments
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0 USD
CY2015Q4 us-gaap Long Term Investments
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1751000 USD
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53991000 USD
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229091000 USD
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142592000 USD
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CY2014 us-gaap Net Cash Provided By Used In Investing Activities
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CY2015 us-gaap Net Cash Provided By Used In Investing Activities
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CY2013 us-gaap Net Cash Provided By Used In Operating Activities
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-47758000 USD
CY2014 us-gaap Net Cash Provided By Used In Operating Activities
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-55073000 USD
CY2015 us-gaap Net Cash Provided By Used In Operating Activities
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-55669000 USD
CY2013 us-gaap Net Income Loss
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CY2013 us-gaap Net Income Loss
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CY2014Q1 us-gaap Net Income Loss
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CY2014Q4 us-gaap Net Income Loss
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CY2014 us-gaap Net Income Loss
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CY2014 us-gaap Net Income Loss
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CY2015Q1 us-gaap Net Income Loss
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CY2015Q4 us-gaap Net Income Loss
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CY2015 us-gaap Net Income Loss
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CY2015 us-gaap Net Income Loss
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CY2013 us-gaap Net Income Loss Available To Common Stockholders Basic
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258000 USD
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CY2014Q4 us-gaap Net Income Loss Available To Common Stockholders Basic
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CY2014 us-gaap Net Income Loss Available To Common Stockholders Basic
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CY2015Q2 us-gaap Net Income Loss Available To Common Stockholders Basic
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CY2015Q3 us-gaap Net Income Loss Available To Common Stockholders Basic
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47529000 USD
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CY2014 us-gaap Revenues
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CY2015 us-gaap Concentration Risk Credit Risk
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:24px;text-indent:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Concentration of Credit Risk</font></div><div style="line-height:120%;padding-top:8px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Financial instruments that potentially subject the Company to a concentration of credit risk consist of short and long-term investments. Under the Company's Investment Policy, the Company limits its credit exposure by investing in highly liquid funds and debt obligations of the U.S. government and its agencies with high credit quality. The Company&#8217;s cash, cash equivalents, and investments are held in the United States of America. Such deposits may, at times, exceed federally insured limits. The Company has not experienced any losses on its deposits of cash, cash equivalents, and investments.</font></div></div>
CY2015 us-gaap Loss Contingency Disclosures
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Medicis Settlement</font></div><div style="line-height:120%;padding-top:8px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In July&#160;2009, the Company and Medicis Pharmaceutical Corporation, or Medicis, entered into a license agreement granting Medicis worldwide aesthetic and dermatological rights to the Company&#8217;s investigational, injectable botulinum toxin type A product candidate. In October 2012, the Company entered into a settlement and termination agreement with Medicis. The terms of the settlement provided for the reacquisition of the rights related to all territories of RT001 topical and RT002 injectable from Medicis and for consideration payable by the Company to Medicis of up to </font><font style="font-family:inherit;font-size:10pt;">$25.0 million</font><font style="font-family:inherit;font-size:10pt;">, comprised of (i)&#160;an upfront payment of </font><font style="font-family:inherit;font-size:10pt;">$7.0 million</font><font style="font-family:inherit;font-size:10pt;">, which was paid in 2012, (ii) a Proceeds Sharing Arrangement Payment of&#160;</font><font style="font-family:inherit;font-size:10pt;">$14.0 million</font><font style="font-family:inherit;font-size:10pt;"> due upon specified capital raising achievements by the Company, of which </font><font style="font-family:inherit;font-size:10pt;">$6.9 million</font><font style="font-family:inherit;font-size:10pt;"> was paid in 2013 and the remaining </font><font style="font-family:inherit;font-size:10pt;">$7.1 million</font><font style="font-family:inherit;font-size:10pt;"> was paid in 2014, and (iii)&#160;</font><font style="font-family:inherit;font-size:10pt;">$4.0 million</font><font style="font-family:inherit;font-size:10pt;"> to be paid upon the achievement of regulatory approval for RT001 topical or RT002 injectable by the Company, or Product Approval Payment. Medicis was subsequently acquired by Valeant Pharmaceuticals International, Inc. in December 2012.</font></div><div style="line-height:120%;padding-top:16px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company determined that the settlement provisions related to the Proceeds Sharing Arrangement Payment in (ii) above and Product Approval Payment in (iii) above were derivative instruments that require fair value accounting as a liability and periodic fair value remeasurements until settled. </font></div><div style="line-height:120%;padding-top:16px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As of December&#160;31, 2013, the Proceeds Sharing Arrangement Payment derivative was remeasured to fair value. The fair value of the Proceeds Sharing Arrangement Payment derivative as of </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2013</font><font style="font-family:inherit;font-size:10pt;"> of </font><font style="font-family:inherit;font-size:10pt;">$6.7 million</font><font style="font-family:inherit;font-size:10pt;"> was determined using an option pricing model with the following assumption: expected term of </font><font style="font-family:inherit;font-size:10pt;">0.1</font><font style="font-family:inherit;font-size:10pt;"> - </font><font style="font-family:inherit;font-size:10pt;">0.5</font><font style="font-family:inherit;font-size:10pt;">&#160;years, risk-free rate of </font><font style="font-family:inherit;font-size:10pt;">0.01%</font><font style="font-family:inherit;font-size:10pt;"> - </font><font style="font-family:inherit;font-size:10pt;">0.10%</font><font style="font-family:inherit;font-size:10pt;"> and volatility of </font><font style="font-family:inherit;font-size:10pt;">37.00%</font><font style="font-family:inherit;font-size:10pt;"> - </font><font style="font-family:inherit;font-size:10pt;">47.50%</font><font style="font-family:inherit;font-size:10pt;">. Upon the completion of our IPO, we paid </font><font style="font-family:inherit;font-size:10pt;">$7.1 million</font><font style="font-family:inherit;font-size:10pt;"> in settlement of our remaining obligation for the Proceeds Sharing Arrangement Payment. At the settlement date, the derivative liability was remeasured to the fair value of the obligation due, or </font><font style="font-family:inherit;font-size:10pt;">$7.1 million</font><font style="font-family:inherit;font-size:10pt;">, and the Company recorded </font><font style="font-family:inherit;font-size:10pt;">$0.3 million</font><font style="font-family:inherit;font-size:10pt;"> to remeasure the fair value of the derivative for the remaining obligation through the date of settlement, or February 13, 2014. </font></div><div style="line-height:120%;padding-top:16px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The fair value of the Product Approval Payment derivative as of </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2014</font><font style="font-family:inherit;font-size:10pt;"> in the amount of </font><font style="font-family:inherit;font-size:10pt;">$1.5 million</font><font style="font-family:inherit;font-size:10pt;"> was determined by updating the estimate of the timing and probability of the related approval and a discount factor assuming a term of </font><font style="font-family:inherit;font-size:10pt;">3.5</font><font style="font-family:inherit;font-size:10pt;">&#160;years, a risk-free rate of </font><font style="font-family:inherit;font-size:10pt;">1.2%</font><font style="font-family:inherit;font-size:10pt;"> and a credit risk adjustment of </font><font style="font-family:inherit;font-size:10pt;">6.5%</font><font style="font-family:inherit;font-size:10pt;">. As of </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2015</font><font style="font-family:inherit;font-size:10pt;">, the Company determined the fair value of its liability for the Product Approval Payment was </font><font style="font-family:inherit;font-size:10pt;">$1.4 million</font><font style="font-family:inherit;font-size:10pt;">, which was measured by assuming a term of </font><font style="font-family:inherit;font-size:10pt;">3.5</font><font style="font-family:inherit;font-size:10pt;">&#160;years, a risk-free rate of </font><font style="font-family:inherit;font-size:10pt;">1.4%</font><font style="font-family:inherit;font-size:10pt;"> and a credit risk adjustment of </font><font style="font-family:inherit;font-size:10pt;">9.0%</font><font style="font-family:inherit;font-size:10pt;">. The Company&#8217;s assumption for the expected term is based on an expected Biologics License Application, or BLA, approval in mid-2019. The Company did not make any payments under the Product Approval Payment during the year ended </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2015</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;padding-top:16px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As a result of the fair value measurements during the years ended </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2015</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;">2014</font><font style="font-family:inherit;font-size:10pt;">, and </font><font style="font-family:inherit;font-size:10pt;">2013</font><font style="font-family:inherit;font-size:10pt;">, the Company recognized an aggregate gain of </font><font style="font-family:inherit;font-size:10pt;">$0.1 million</font><font style="font-family:inherit;font-size:10pt;">, an aggregate loss </font><font style="font-family:inherit;font-size:10pt;">$0.3 million</font><font style="font-family:inherit;font-size:10pt;">, and an aggregate gain of </font><font style="font-family:inherit;font-size:10pt;">$0.05 million</font><font style="font-family:inherit;font-size:10pt;">, respectively.</font></div></div>
CY2015 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:24px;text-indent:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;padding-top:8px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of Consolidated Financial Statements in conformity with US&#160;GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Such management estimates include the fair value of common stock prior to the IPO, accruals, stock-based compensation, fair value of convertible preferred stock and warrants, fair value of derivatives liability, and the valuation of deferred tax assets. The Company bases its estimates on historical experience and also on assumptions that it believes are reasonable, however, actual results could significantly differ from those estimates.</font></div></div>

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