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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2014	Jul. 31, 2014
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2
Trading Symbol	ETRM
Entity Registrant Name	EnteroMedics Inc
Entity Central Index Key	0001371217
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		68,885,842

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 21,665,391	$ 23,297,479
Accounts receivable		17,742
Inventory	895,271	1,127,941
Prepaid expenses and other current assets	353,146	546,744
Total current assets	22,913,808	24,989,906
Property and equipment, net	491,421	577,095
Other assets	1,004,626	820,767
Total assets	24,409,855	26,387,768
Current liabilities:
Current portion of notes payable	4,000,000	4,000,000
Accounts payable	187,361	127,329
Accrued expenses	4,096,973	4,186,060
Accrued interest payable	520,673	526,672
Total current liabilities	8,805,007	8,840,061
Notes payable, less current portion (net of discounts of $67,873 and $131,670 at June 30, 2014 and December 31, 2013, respectively)	932,127	2,868,330
Total liabilities	9,737,134	11,708,391
Commitments and contingencies (note 4)
Stockholders' equity:
Common stock, $0.01 par value; 200,000,000 and 125,000,000 shares authorized at June 30, 2014 and December 31, 2013, respectively; 68,883,968 and 63,551,350 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively	688,840	635,514
Additional paid-in capital	254,170,496	239,996,934
Accumulated deficit	(240,186,615)	(225,953,071)
Total stockholders' equity	14,672,721	14,679,377
Total liabilities and stockholders' equity	$ 24,409,855	$ 26,387,768

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2014	Dec. 31, 2013
Notes payable, less current portion, discounts	$ 67,873	$ 131,670
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	125,000,000
Common stock, shares issued	68,883,968	63,551,350
Common stock, shares outstanding	68,883,968	63,551,350

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Sales	$ 0	$ 0	$ 0	$ 0
Cost of goods sold	0	0	0	0
Gross profit	0	0	0	0
Operating expenses:
Research and development	3,088,276	2,711,917	5,711,297	5,444,733
Selling, general and administrative	4,266,040	3,359,131	8,201,017	6,945,552
Total operating expenses	7,354,316	6,071,048	13,912,314	12,390,285
Operating loss	(7,354,316)	(6,071,048)	(13,912,314)	(12,390,285)
Other income (expense):
Interest income	746	1,377	1,750	3,583
Interest expense	(145,449)	(247,599)	(314,822)	(508,653)
Other, net	(2,201)	(5,326)	(8,158)	(8,730)
Net loss	$ (7,501,220)	$ (6,322,596)	$ (14,233,544)	$ (12,904,085)
Net loss per share-basic and diluted	$ (0.11)	$ (0.11)	$ (0.21)	$ (0.25)
Shares used to compute basic and diluted net loss per share	67,667,093	55,618,270	66,667,396	51,281,198

Condensed Consolidated Statements of Comprehensive Loss - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Net loss	$ (7,501,220)	$ (6,322,596)	$ (14,233,544)	$ (12,904,085)
Comprehensive loss	$ (7,501,220)	$ (6,322,596)	$ (14,233,544)	$ (12,904,085)

- Definition

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

+ References + Details

Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash flows from operating activities:
Net loss	$ (14,233,544)	$ (12,904,085)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	94,950	81,594
Stock-based compensation	3,275,062	2,846,582
Amortization of commitment fees, debt issuance costs and original issue discount	71,414	107,318
Other, net		43,980
Change in operating assets and liabilities:
Accounts receivable	17,742	(8,601)
Inventory	232,670	(87,050)
Prepaid expenses and other current assets	193,598	(35,523)
Other assets	(191,476)	27,980
Accounts payable	60,032	(127,938)
Accrued expenses	(89,087)	(173,018)
Accrued interest payable	(5,999)	3,705
Net cash used in operating activities	(10,574,638)	(10,225,056)
Cash flows from investing activities:
Purchases of property and equipment	(9,276)	(20,943)
Net cash used in investing activities	(9,276)	(20,943)
Cash flows from financing activities:
Proceeds from warrants exercised	2,240,128	9,500
Proceeds from sale of common stock and warrants for purchase of common stock	8,909,383	13,081,500
Common stock financing costs	(197,685)	(1,066,200)
Repayments on notes payable	(2,000,000)	(1,000,000)
Net cash provided by financing activities	8,951,826	11,024,800
Net (decrease) increase in cash and cash equivalents	(1,632,088)	778,801
Cash and cash equivalents:
Beginning of period	23,297,479	22,308,781
End of period	21,665,391	23,087,582
Supplemental disclosure:
Interest paid	$ 249,407	$ 397,630

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2014

Summary of Significant Accounting Policies

(1) Summary of Significant Accounting Policies

Description of Business

EnteroMedics Inc. (the Company) is developing medical devices using neuroblocking technology to treat obesity, metabolic diseases and other gastrointestinal disorders. The Company was incorporated in the state of Minnesota on December 19, 2002 and was reincorporated in Delaware on July 22, 2004. The Company is headquartered in St. Paul, Minnesota. In January 2006, the Company established EnteroMedics Europe Sárl, a wholly-owned subsidiary located in Switzerland.

Risks and Uncertainties

The Company is focused on the design and development of medical devices that use neuroblocking technology to treat obesity, metabolic diseases and other gastrointestinal disorders and currently has approvals to commercially launch the Maestro Rechargeable System in Australia, the European Economic Area and other countries that recognize the European CE Mark. The Company has devoted substantially all of its resources to recruiting personnel, developing its product technology, obtaining patents to protect its intellectual property and raising capital, and thus far has only derived revenues from its primary business activity in 2012.

The Company submitted a premarket approval (PMA) application for the Maestro Rechargeable System to the U.S. Food and Drug Administration (FDA) in June 2013 using data from a randomized, double-blind, sham-controlled, multicenter pivotal clinical trial, called the ReCharge trial, that was accepted for review and filing in July 2013. An Advisory Panel meeting was held on June 17, 2014 to review the Company’s PMA application for approval of the Maestro Rechargeable System. The Advisory Panel voted 8 to 1 “in favor” that the Maestro Rechargeable System is safe when used as designed and voted 4 to 5 “against” on the issue of a reasonable assurance of efficacy. The final vote, on whether the relative benefits outweighed the relative risk, was 6 to 2 “in favor,” with 1 abstention. The FDA is not bound by the Advisory Panel’s recommendation, but will take it into consideration while reviewing the Company’s PMA application. Assuming the FDA grants the Company approval in late 2014, the Company anticipates that it will be able to start commercializing the Maestro Rechargeable System in a controlled launch at its existing bariatric centers of excellence partners in the United States shortly thereafter.

The Company’s activities are subject to significant risk and uncertainties, including the ability to obtain additional financing and there can be no assurance that the Company will be successful in obtaining additional financing on favorable terms, or at all. If adequate funds are not available, the Company may have to delay development or commercialization of products or license to third parties the rights to commercialize products or technologies that the Company would otherwise seek to commercialize. See Note 2.

Basis of Presentation

The Company has prepared the accompanying condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. The Company’s fiscal year ends on December 31.

The accompanying condensed consolidated financial statements and notes thereto are unaudited. In the opinion of the Company’s management, these statements include all adjustments, which are of a normal recurring nature, necessary to present a fair presentation. Interim results are not necessarily indicative of results for a full year. The condensed consolidated balance sheet as of December 31, 2013 was derived from audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. The information included in this Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All intercompany transactions and accounts have been eliminated in consolidation.

Fair Value of Financial Instruments

Carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities approximate fair value due to their short maturities. The fair value of the Company’s long-term debt (including the current portion) is approximately $5.4 million as of June 30, 2014, based on the present value of estimated future cash flows using a discount rate commensurate with borrowing rates available to the Company. If measured at fair value in the condensed consolidated financial statements, long-term debt (including the current portion) would be classified as Level 2 in the fair value hierarchy.

The Company’s assets that are measured at fair value on a recurring basis are classified within Level 1 or Level 2 of the fair value hierarchy. The Company does not hold any assets that are measured at fair value using Level 3 inputs. The types of instruments the Company invests in that are valued based on quoted market prices in active markets include U.S. treasury securities. Such instruments are classified by the Company within Level 1 of the fair value hierarchy. U.S. treasuries are valued using unadjusted quoted prices for identical assets in active markets that the Company can access.

The types of instruments the Company invests in that are valued based on quoted prices in less active markets, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency include U.S. agency securities, commercial paper, U.S. corporate bonds and municipal obligations. Such instruments are classified by the Company within Level 2 of the fair value hierarchy. The Company values these types of assets using consensus pricing or a weighted average price, which is based on multiple pricing sources received from a variety of industry standard data providers (e.g. Bloomberg), security master files from large financial institutions, and other third-party sources. The multiple prices obtained are then used as inputs into a distribution-curve-based algorithm to determine the daily market price.

The Company did not hold any short-term investments as of June 30, 2014 and December 31, 2013.

Cash and Cash Equivalents

The Company considers highly liquid investments generally with maturities of 90 days or less when purchased to be cash equivalents. Cash equivalents are stated at cost, which approximates market value. The Company’s cash equivalents are primarily in money market funds and certificates of deposit. The Company deposits its cash and cash equivalents in high-quality credit institutions. Under terms of the Company’s note payable agreement (see Note 5), in the event of default, the lender has the right to enforce an account control agreement and restrict the Company’s access to their cash and investment accounts.

Inventory

The Company accounts for inventory at the lower of cost or market and records any long-term inventory as other assets in the condensed consolidated balance sheets.

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance for deferred income tax assets is recorded when it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The Company has provided a full valuation allowance against the gross deferred tax assets. The Company’s policy is to classify interest and penalties related to income taxes as income tax expense in the condensed consolidated statements of operations.

Comprehensive Loss

Comprehensive loss is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investment owners and distributions to owners. There was no difference from reported net loss for the three and six months ended June 30, 2014 and 2013.

Revenue Recognition

The Company recognizes revenue when persuasive evidence of an arrangement exists, title or risk of loss has passed, the selling price is fixed or determinable and collection is reasonably assured. The Company sells products internationally through distributors and recognizes revenue upon sale to the distributor as these sales are considered to be final and no right of return or price protection exists. Terms of sales to international distributors are generally EXW, reflecting that goods are shipped “ex works,” in which risk of loss is assumed by the distributor at the shipping point. The Company does not provide for rights of return to customers on product sales and therefore does not record a provision for returns.

Research and Development Expenses

Research and development expenses are charged to expense as incurred. Research and development expenses include, but are not limited to, product development, clinical trial expenses, including supplies, devices, explants and revisions, regulatory expenses, payroll and other personnel expenses, materials and consulting costs.

Net Loss Per Share

Basic net loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is based on the weighted-average common shares outstanding during the period plus dilutive potential common shares calculated using the treasury stock method. Such potentially dilutive shares are excluded when the effect would be to reduce a net loss per share. The Company’s potential dilutive shares, which include outstanding common stock options and warrants, have not been included in the computation of diluted net loss per share for all periods as the result would be anti-dilutive.

The following table sets forth the computation of basic and diluted net loss per share for the three and six months ended June 30, 2014 and 2013:


	Three months ended June 30,						Six months ended June 30,
	2014			2013			2014			2013
Numerator:
Net loss	$	(7,501,220	)	$	(6,322,596	)	$	(14,233,544	)	$	(12,904,085	)

Denominator for basic and diluted net loss per share:
Weighted-average common shares outstanding		67,667,093			55,618,270			66,667,396			51,281,198

Net loss per share—basic and diluted	$	(0.11	)	$	(0.11	)	$	(0.21	)	$	(0.25	)

The following table sets forth the potential shares of common stock that are not included in the calculation of diluted net loss per share because to do so would be anti-dilutive as of the end of each period presented:


	June 30,
	2014		2013
Stock options outstanding		12,391,468		11,636,494
Warrants to purchase common stock		24,224,229		25,590,555

Recently Issued Accounting Standards

In June 2014, the Financial Accounting Standards Board (FASB) issued Development Stage Entities, Topic 915 (Accounting Standards Update No. 2014-10 (ASU 2014-10)), which eliminates certain financial reporting requirements, with the objective of improving financial reporting by reducing the cost and complexity associated with the incremental reporting requirements for development stage entities. This guidance will be effective for interim and annual reporting periods beginning after December 15, 2014; however, early application is permitted for any annual reporting period or interim period for which an entity’s financial statements have not yet been issued. The Company has elected to adopt ASU 2014-10 effective with the current quarter ending June 30, 2014. Therefore, the accompanying condensed consolidated financial statements no longer present or disclose any information previously required by Topic 915.

In May 2014, FASB issued Revenue from Contracts with Customers, Topic 606 (Accounting Standards Update No. 2014-09 (ASU 2014-09)), which provides a framework for the recognition of revenue, with the objective that recognized revenues properly reflect amounts an entity is entitled to receive in exchange for goods and services. This guidance will be effective for interim and annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact of adopting ASU 2014-09 on its consolidated financial statements.

There have been no other significant changes in recent accounting pronouncements during the six months ended June 30, 2014 as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.

Liquidity and Management's Plans

6 Months Ended

Jun. 30, 2014

Liquidity and Management's Plans

(2) Liquidity and Management’s Plans

The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. As of June 30, 2014, the Company had $21.7 million of cash and cash equivalents. Assuming the Company does not receive any additional funds, it estimates that it has sufficient funds to operate into 2015 (including scheduled or potentially accelerated debt obligations). In order to fund on-going operating cash requirements beyond that point or to further accelerate and execute its business plan, including commercialization of the Maestro Rechargeable System, the Company will need to raise additional funds.

The Company has financed its activities principally from the sale of equity securities, debt financing and interest earned on investments. While the Company has been successful in the past in obtaining the necessary capital to support its operations, and has similar future plans, there is no assurance that the Company will be able to obtain additional equity capital or other financing under commercially reasonable terms and conditions, or at all. Furthermore, if the Company issues equity or debt securities to raise additional funds, existing shareholders may experience dilution and the new equity or debt securities it issues may have rights, preferences and privileges senior to those of existing stockholders. In addition, if the Company raises additional funds through collaboration, licensing or other similar arrangements, it may be necessary to relinquish valuable rights to products or proprietary technologies, or grant licenses on terms that are not favorable. If the Company cannot execute its plan to raise funds on acceptable terms, the Company will not be able to continue as a going concern, develop or enhance products, obtain the required regulatory clearances or approvals, execute the Company’s business plan, take advantage of future opportunities, or respond to competitive pressure or unanticipated customer requirements. If the Company is unable to obtain additional financing or the FDA does not approve the Maestro Rechargeable System for commercial use in the U.S., the Company may be required to reduce the scope of, delay, or eliminate some or all of, its planned research, development and commercialization activities, which could materially harm its business. Any of these events would adversely affect the Company’s ability to achieve the Company’s development and commercialization goals, which could have a material adverse effect on the Company’s business, results of operations and financial condition. The Company’s financial statements do not include any adjustments relating to the recoverability or classification of assets or the amounts of liabilities that might result from the outcome of these uncertainties.

Inventory

6 Months Ended

Jun. 30, 2014

Inventory

(3) Inventory

From inception, inventory related purchases had been used for research and development related activities and had accordingly been expensed as incurred. In December 2011, the Company began receiving Australian Register of Therapeutic Goods (ARTG) listings for components of the Maestro Rechargeable System from the Australian Therapeutic Goods Administration, with the final components being listed on the ARTG in January 2012. As a result, the Company determined certain assets were recoverable as inventory beginning in December 2011. The Company accounts for inventory at the lower of cost or market and records any long-term inventory as other assets in the condensed consolidated balance sheets. There was approximately $832,000 and $794,000 of long-term inventory, primarily consisting of raw materials, as of June 30, 2014 and December 31, 2013, respectively.

Current inventory consists of the following as of:


	June 30, 2014		December 31, 2013
Raw materials	$	418,004	$	385,565
Work-in-process		399,757		624,530
Finished goods		77,510		117,846

Inventory	$	895,271	$	1,127,941

Commitments and Contingencies

6 Months Ended

Jun. 30, 2014

Commitments and Contingencies

(4) Commitments and Contingencies

Operating Lease

The Company rents its office, warehouse and laboratory facilities under an operating lease, which expires on September 30, 2015. Total rent expense recognized for each of the three month periods ended June 30, 2014 and 2013 was $67,718, and for each of the six month periods ended June 30, 2014 and 2013 was $135,436. At June 30, 2014, future minimum payments under the lease are as follows:


Years ending December 31:
Remaining six months in 2014	$	146,409
2015		221,789

	$	368,198

The Company is exposed to product liability claims that are inherent in the testing, production, marketing and sale of medical devices. Management believes any losses that may occur from these matters are adequately covered by insurance, and the ultimate outcome of these matters will not have a material effect on the Company’s financial position or results of operations. The Company is not currently a party to any litigation and is not aware of any pending or threatened litigation that could have a material adverse effect on the Company’s business, operating results or financial condition.

The Company is evaluating its product, the Maestro System, in human clinical trials, including the EMPOWER trial and ReCharge trial. Both of these clinical trials require patients to be followed out to 60 months. The Company is required to pay for patient follow up visits only to the extent they occur. In the event a patient does not attend a follow up visit, the Company has no financial obligation. The Company is also required to pay for explants or revisions, including potential conversions of ReCharge control devices to active devices, should a patient request or be required to have one during the course of the clinical trials. The Company has no financial obligation unless an explant, revision or conversion is requested or required. Clinical trial costs are expensed as incurred.

Notes Payable

6 Months Ended

Jun. 30, 2014

Notes Payable

(5) Notes Payable

On April 16, 2012, the Company entered into a Loan and Security Agreement (the Loan Agreement) with Silicon Valley Bank (SVB) pursuant to which SVB agreed to make term loans in an aggregate principal amount of up to $20.0 million ($10.0 million of which is not available as the Company did not meet the predefined primary efficacy measures of the ReCharge trial and did not meet certain financial objectives for 2012), on the terms and conditions set forth in the Loan Agreement.

Pursuant to the Loan Agreement, a term loan was funded in the aggregate principal amount of $10.0 million on April 23, 2012. The term loan required interest only payments monthly through March 31, 2013 followed by 30 equal payments of principal in the amount of $333,333 plus accrued interest beginning on April 1, 2013 and ending on September 1, 2015, payable monthly. Amounts borrowed under the Loan Agreement bear interest at a fixed annual rate equal to 8.0%. A 5.0% final payment fee will be due on September 1, 2015. The Company may voluntarily prepay the term loan in full, but not in part, and any voluntary or mandatory prepayment is subject to applicable prepayment premiums and will also include the final payment fee. The Company was required to comply with certain financial covenants that required the Company to generate certain minimum amounts of revenue from the sale of its Maestro System and to implant certain minimum numbers of Maestro Systems during cumulative quarterly measurement periods beginning with the period ended March 31, 2013 and ending with the period ending June 30, 2015. The Company did not meet the financial covenants for the period ended March 31, 2013 and therefore entered into a First Amendment (the First Amendment) to the Loan Agreement on May 9, 2013 pursuant to which the Company and SVB agreed to new financial covenants.

The First Amendment eliminated the financial covenants that required the Company to generate certain minimum amounts of revenue from the sale of its Maestro System and to implant certain minimum numbers of Maestro Systems during cumulative quarterly measurement periods beginning with the period ended March 31, 2013 and ending with the period ending June 30, 2015. It also removed SVB’s ability to require the Company to maintain a restricted cash balance of $7.5 million in an SVB account as a result of the Company not meeting the predefined primary efficacy measures of the ReCharge trial.

The First Amendment added two new financial covenants, one of which required the Company to receive cumulative aggregate net proceeds of at least $5.0 million by November 15, 2013 and $10.0 million by April 15, 2014 from new capital transactions, both of which have been fulfilled through the use of the equity distribution agreement with Canaccord Genuity Inc. (see Note 7). The second financial covenant requires the Company to maintain a liquidity ratio (unrestricted cash divided by outstanding debt) of at least 1.25:1.00 until it receives FDA approval for the Maestro Rechargeable System at which point it will be reduced to 0.75:1.00. The First Amendment did not change the interest rate or the amortization structure. The Company will pay SVB a $187,000 success fee in the event the Company receives FDA approval for the Maestro Rechargeable System.

The Company has granted SVB a security interest in all of the Company’s assets, excluding intellectual property except with respect to all license, royalty fees and other revenues and income arising out of or relating to any of the intellectual property and all proceeds of the intellectual property. The Company also has entered into a negative pledge arrangement with SVB pursuant to which it has agreed not to encumber any of its intellectual property without SVB’s prior written consent.

Pursuant to the Loan Agreement, on April 16, 2012, the Company issued SVB a warrant to purchase 106,746 shares of common stock, exercisable for ten years from the date of grant, at an exercise price of $2.34 per share.

Scheduled debt principal payments are as follows as of June 30, 2014:


Years Ending December 31:
Remaining six months in 2014	$	2,000,000
2015		3,000,000

		5,000,000
Less: Original issue discount		(67,873	)

Notes payable, net	$	4,932,127

Stock-based Compensation

6 Months Ended

Jun. 30, 2014

Stock-based Compensation

(6) Stock-based Compensation

The fair value method of accounting for share-based payments is applied to all share-based payment awards issued to employees and where appropriate, nonemployees, unless another source of literature applies. When determining the measurement date of a nonemployee’s share-based payment award, the Company measures the stock options at fair value and remeasures such stock options to the current fair value until the performance date has been reached.

Based on the application of these standards, stock-based compensation expense for stock-based awards under the Company’s Amended and Restated 2003 Stock Incentive Plan for the three and six months ended June 30, 2014 and 2013 was allocated to operating expenses and employees and nonemployees as follows:


	Three months ended June 30,				Six months ended June 30,
	2014		2013		2014		2013
Research and development	$	414,391	$	340,750	$	796,213	$	668,590
Selling, general and administrative		1,323,293		1,160,286		2,478,849		2,177,992

Total	$	1,737,684	$	1,501,036	$	3,275,062	$	2,846,582


	Three months ended June 30,				Six months ended June 30,
	2014		2013		2014		2013
Employees	$	1,610,750	$	1,429,306	$	3,101,091	$	2,786,596
Nonemployees		126,934		71,730		173,971		59,986

Total	$	1,737,684	$	1,501,036	$	3,275,062	$	2,846,582

As of June 30, 2014, there was approximately $11.9 million of total unrecognized compensation costs, net of estimated forfeitures, related to employee unvested stock option awards granted after January 1, 2006, which are expected to be recognized over a weighted-average period of 2.35 years.

The estimated grant-date fair values of the stock options were calculated using the Black-Scholes valuation model, based on the following assumptions for the three and six months ended June 30, 2014 and 2013:


	Employees				Employees
	Three months ended June 30,				Six months ended June 30,
	2014		2013		2014		2013
Risk-free interest rates		1.84%-1.96%		0.94%-1.33%		1.84%-1.96%		0.94%-1.33%
Expected life		6.00-6.25 years		6.00-6.25 years		6.00-6.25 years		6.00-6.25 years
Expected dividends		0%		0%		0%		0%
Expected volatility		119.94%-120.70%		148.00%-149.00%		119.94%-120.70%		148.00%-149.00%


	Nonemployees				Nonemployees
	Three months ended June 30,				Six months ended June 30,
	2014		2013		2014		2013
Risk-free interest rates		0.11%-2.39%		0.36%-1.03%		0.11%-2.63%		0.29%-1.03%
Expected life		1.01-9.26 years		2.01-3.92 years		1.01-9.51 years		2.01-3.92 years
Expected dividends		0%		0%		0%		0%
Expected volatility		70.34%-137.56%		89.00%-124.00%		70.34%-139.65%		82.00%-125.00%

Option activity under the Company’s Amended and Restated 2003 Stock Incentive Plan for the six months ended June 30, 2014 was as follows:


				Outstanding Options
	Shares Available For Grant			Number of Shares			Weighted- Average Exercise Price
Balance, December 31, 2013		542,218			11,687,300		$	2.56
Shares reserved		7,500,000			—			—
Options granted		(727,500	)		727,500			1.80
Options exercised		—			—			—
Options cancelled		23,332			(23,332	)		5.95

Balance, June 30, 2014		7,338,050			12,391,468		$	2.51

Stock Sales

6 Months Ended

Jun. 30, 2014

Stock Sales

(7) Stock Sales

Equity Distribution Agreement—July 2013

On July 31, 2013, the Company entered into an equity distribution agreement with Canaccord Genuity Inc. (Canaccord) to sell shares of the Company’s common stock having aggregate gross sales proceeds of up to $20.0 million, from time to time, through an “at-the-market” equity offering program (ATM) under which Canaccord acted as the Company’s sales agent (the Canaccord ATM). The Company determined, at its sole discretion, the timing and number of shares sold under the Canaccord ATM. The Company paid Canaccord a commission for its services in acting as agent in the sale of common stock equal to 2.0% of the gross sales price per share of all shares sold through it as agent under the equity distribution agreement. During the six months ended June 30, 2014, the Company sold 4,006,222 shares under the Canaccord ATM at a weighted-average selling price of $2.22 per share for gross proceeds of approximately $8.9 million before deducting offering expenses. The equity distribution agreement with Canaccord was terminated effective June 10, 2014. As of the termination date, the Company had sold a total of 11,923,977 shares under the Canaccord ATM at a weighted-average selling price of $1.67 per share for gross proceeds of approximately $19.9 million before deducting offering expenses.

Sales Agreement—June 2014

On June 13, 2014, the Company entered into a sales agreement with Cowen and Company, LLC (Cowen) to sell shares of the Company’s common stock having aggregate gross sales proceeds of up to $25.0 million, from time to time, through an ATM under which Cowen will act as the Company’s sales agent (the Cowen ATM). The Company will determine, at its sole discretion, the timing and number of shares to be sold under the Cowen ATM. The Company will pay Cowen a commission for its services in acting as agent in the sale of common stock equal to 3.0% of the gross sales price per share of all shares sold through it as agent under the sales agreement. As of August 8, 2014, the Company has not sold any shares under this sales agreement.

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2014

Description of Business

Description of Business

Basis of Presentation

Basis of Presentation

Use of Estimates

Use of Estimates

Principles of Consolidation

Principles of Consolidation

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The Company did not hold any short-term investments as of June 30, 2014 and December 31, 2013.

Cash and Cash Equivalents

Cash and Cash Equivalents

Inventory

Inventory

The Company accounts for inventory at the lower of cost or market and records any long-term inventory as other assets in the condensed consolidated balance sheets.

Income Taxes

Income Taxes

Comprehensive Loss

Comprehensive Loss

Revenue Recognition

Revenue Recognition

Research and Development Expenses

Research and Development Expenses

Net Loss Per Share

Net Loss Per Share

The following table sets forth the computation of basic and diluted net loss per share for the three and six months ended June 30, 2014 and 2013:


	Three months ended June 30,						Six months ended June 30,
	2014			2013			2014			2013
Numerator:
Net loss	$	(7,501,220	)	$	(6,322,596	)	$	(14,233,544	)	$	(12,904,085	)

Denominator for basic and diluted net loss per share:
Weighted-average common shares outstanding		67,667,093			55,618,270			66,667,396			51,281,198

Net loss per share—basic and diluted	$	(0.11	)	$	(0.11	)	$	(0.21	)	$	(0.25	)


	June 30,
	2014		2013
Stock options outstanding		12,391,468		11,636,494
Warrants to purchase common stock		24,224,229		25,590,555

Recently Issued Accounting Standards

Recently Issued Accounting Standards

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2014

Computation of Basic and Diluted Net Loss per Share

The following table sets forth the computation of basic and diluted net loss per share for the three and six months ended June 30, 2014 and 2013:


	Three months ended June 30,						Six months ended June 30,
	2014			2013			2014			2013
Numerator:
Net loss	$	(7,501,220	)	$	(6,322,596	)	$	(14,233,544	)	$	(12,904,085	)

Denominator for basic and diluted net loss per share:
Weighted-average common shares outstanding		67,667,093			55,618,270			66,667,396			51,281,198

Net loss per share—basic and diluted	$	(0.11	)	$	(0.11	)	$	(0.21	)	$	(0.25	)

Antidilutive Securities


	June 30,
	2014		2013
Stock options outstanding		12,391,468		11,636,494
Warrants to purchase common stock		24,224,229		25,590,555

Inventory (Tables)

6 Months Ended

Jun. 30, 2014

Current Inventory

Current inventory consists of the following as of:


	June 30, 2014		December 31, 2013
Raw materials	$	418,004	$	385,565
Work-in-process		399,757		624,530
Finished goods		77,510		117,846

Inventory	$	895,271	$	1,127,941

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2014

Future Minimum Payments under Lease

At June 30, 2014, future minimum payments under the lease are as follows:


Years ending December 31:
Remaining six months in 2014	$	146,409
2015		221,789

	$	368,198

Notes Payable (Tables)

6 Months Ended

Jun. 30, 2014

Scheduled of Debt Principal Payments

Scheduled debt principal payments are as follows as of June 30, 2014:


Years Ending December 31:
Remaining six months in 2014	$	2,000,000
2015		3,000,000

		5,000,000
Less: Original issue discount		(67,873	)

Notes payable, net	$	4,932,127

Stock-based Compensation (Tables)

6 Months Ended

Jun. 30, 2014

Summary of Operating Expenses and Employee and Nonemployees


	Three months ended June 30,				Six months ended June 30,
	2014		2013		2014		2013
Research and development	$	414,391	$	340,750	$	796,213	$	668,590
Selling, general and administrative		1,323,293		1,160,286		2,478,849		2,177,992

Total	$	1,737,684	$	1,501,036	$	3,275,062	$	2,846,582


	Three months ended June 30,				Six months ended June 30,
	2014		2013		2014		2013
Employees	$	1,610,750	$	1,429,306	$	3,101,091	$	2,786,596
Nonemployees		126,934		71,730		173,971		59,986

Total	$	1,737,684	$	1,501,036	$	3,275,062	$	2,846,582

Stock Option Valuation Assumptions


	Employees				Employees
	Three months ended June 30,				Six months ended June 30,
	2014		2013		2014		2013
Risk-free interest rates		1.84%-1.96%		0.94%-1.33%		1.84%-1.96%		0.94%-1.33%
Expected life		6.00-6.25 years		6.00-6.25 years		6.00-6.25 years		6.00-6.25 years
Expected dividends		0%		0%		0%		0%
Expected volatility		119.94%-120.70%		148.00%-149.00%		119.94%-120.70%		148.00%-149.00%


	Nonemployees				Nonemployees
	Three months ended June 30,				Six months ended June 30,
	2014		2013		2014		2013
Risk-free interest rates		0.11%-2.39%		0.36%-1.03%		0.11%-2.63%		0.29%-1.03%
Expected life		1.01-9.26 years		2.01-3.92 years		1.01-9.51 years		2.01-3.92 years
Expected dividends		0%		0%		0%		0%
Expected volatility		70.34%-137.56%		89.00%-124.00%		70.34%-139.65%		82.00%-125.00%

Summary of Stock Option Activity

Option activity under the Company’s Amended and Restated 2003 Stock Incentive Plan for the six months ended June 30, 2014 was as follows:


				Outstanding Options
	Shares Available For Grant			Number of Shares			Weighted- Average Exercise Price
Balance, December 31, 2013		542,218			11,687,300		$	2.56
Shares reserved		7,500,000			—			—
Options granted		(727,500	)		727,500			1.80
Options exercised		—			—			—
Options cancelled		23,332			(23,332	)		5.95

Balance, June 30, 2014		7,338,050			12,391,468		$	2.51

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2014 USD ($)
Schedule Of Significant Accounting Policies [Line Items]
Risks and Uncertainties	The Company is focused on the design and development of medical devices that use neuroblocking technology to treat obesity, metabolic diseases and other gastrointestinal disorders and currently has approvals to commercially launch the Maestro Rechargeable System in Australia, the European Economic Area and other countries that recognize the European CE Mark. The Company has devoted substantially all of its resources to recruiting personnel, developing its product technology, obtaining patents to protect its intellectual property and raising capital, and thus far has only derived revenues from its primary business activity in 2012. The Company submitted a premarket approval (PMA) application for the Maestro Rechargeable System to the U.S. Food and Drug Administration (FDA) in June 2013 using data from a randomized, double-blind, sham-controlled, multicenter pivotal clinical trial, called the ReCharge trial, that was accepted for review and filing in July 2013. An Advisory Panel meeting was held on June 17, 2014 to review the Company’s PMA application for approval of the Maestro Rechargeable System. The Advisory Panel voted 8 to 1 “in favor” that the Maestro Rechargeable System is safe when used as designed and voted 4 to 5 “against” on the issue of a reasonable assurance of efficacy. The final vote, on whether the relative benefits outweighed the relative risk, was 6 to 2 “in favor,” with 1 abstention. The FDA is not bound by the Advisory Panel’s recommendation, but will take it into consideration while reviewing the Company’s PMA application. Assuming the FDA grants the Company approval in late 2014, the Company anticipates that it will be able to start commercializing the Maestro Rechargeable System in a controlled launch at its existing bariatric centers of excellence partners in the United States shortly thereafter. The Company’s activities are subject to significant risk and uncertainties, including the ability to obtain additional financing and there can be no assurance that the Company will be successful in obtaining additional financing on favorable terms, or at all. If adequate funds are not available, the Company may have to delay development or commercialization of products or license to third parties the rights to commercialize products or technologies that the Company would otherwise seek to commercialize. See Note 2.
Long-term debt	$ 5.4
Cash equivalents maturity period	90 days

Computation of Basic and Diluted Net Loss Per Share (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Numerator:
Net loss	$ (7,501,220)	$ (6,322,596)	$ (14,233,544)	$ (12,904,085)
Denominator for basic and diluted net loss per share:
Weighted-average common shares outstanding	67,667,093	55,618,270	66,667,396	51,281,198
Net loss per share-basic and diluted	$ (0.11)	$ (0.11)	$ (0.21)	$ (0.25)

- Definition

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

+ References + Details

Potential Shares of Common Stock Not Included in Calculation of Diluted Net Loss per Share (Detail) - shares	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Stock Option Outstanding
Anti-dilutive Securities
Anti-dilutive as of end of each period	12,391,468	11,636,494
Warrants to purchase common stock
Anti-dilutive Securities
Anti-dilutive as of end of each period	24,224,229	25,590,555

Liquidity and Management Plans - Additional Information (Detail) - USD ($)	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013	Dec. 31, 2012
Liquidity and Managements Plans [Line Items]
Cash and cash equivalents	$ 21,665,391	$ 23,297,479	$ 23,087,582	$ 22,308,781

Inventory - Additional Information (Detail) - USD ($)	Jun. 30, 2014	Dec. 31, 2013
Inventory [Line Items]
Long-term inventory	$ 832,000	$ 794,000

Current Inventory (Detail) - USD ($)	Jun. 30, 2014	Dec. 31, 2013
Inventory [Line Items]
Raw materials	$ 418,004	$ 385,565
Work-in-process	399,757	624,530
Finished goods	77,510	117,846
Inventory	$ 895,271	$ 1,127,941

Commitments and Contingencies - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Loss Contingencies [Line Items]
Operating lease agreement expiration date			Sep. 30, 2015
Total rent expense	$ 67,718	$ 67,718	$ 135,436	$ 135,436
Number of months that require patients to be followed out in clinical trials			60 months

Future Minimum Lease Payment (Detail)	Jun. 30, 2014 USD ($)
Leases Future Minimum Payments [Line Items]
Remaining six months in 2014	$ 146,409
2015	221,789
Operating Leases, Future Minimum Payments Due, Total	$ 368,198

Notes Payable - Additional Information (Detail)			6 Months Ended
Notes Payable - Additional Information (Detail)	May 09, 2013 USD ($)	Apr. 16, 2012 USD ($) $ / shares shares	Jun. 30, 2014 USD ($)	Apr. 23, 2012 USD ($) Installment
Debt Instrument [Line Items]
Principal amount of loan		$ 10,000,000		$ 10,000,000
Repayment of principal amount			$ 333,333
Loan agreement with fixed annual rate				8.00%
Final payment fee percentage			5.00%
Conditional amount to be placed in restricted account at SVB			$ 7,500,000
Silicon Valley Bank
Debt Instrument [Line Items]
Term loans, agreed sum		$ 20,000,000
Number of installments of repayment of debt \| Installment				30
Issued warrant \| shares		106,746
Time for exercising warrant		10 years
Warrants exercise price \| $ / shares		$ 2.34
Silicon Valley Bank \| First Amendment
Debt Instrument [Line Items]
Success fee percentage in the event the Company receives FDA approval for the Maestro Rechargeable System	$ 187,000
Silicon Valley Bank \| First Amendment \| November 15, 2013
Debt Instrument [Line Items]
Cumulative aggregate proceeds from new capital transactions	5,000,000
Silicon Valley Bank \| First Amendment \| April 15, 2014
Debt Instrument [Line Items]
Cumulative aggregate proceeds from new capital transactions	$ 10,000,000
Silicon Valley Bank \| First Amendment \| Until it receives FDA approval for the Maestro Rechargeable System
Debt Instrument [Line Items]
Liquidity ratio (unrestricted cash divided by outstanding debt)	1.25
Silicon Valley Bank \| First Amendment \| After FDA approval for the Maestro Rechargeable System
Debt Instrument [Line Items]
Liquidity ratio (unrestricted cash divided by outstanding debt)	0.75

Schedule of Debt Principal Payments (Detail) - USD ($)	Jun. 30, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Remaining six months in 2014	$ 2,000,000
2015	3,000,000
Notes payable, gross	5,000,000
Less: Original issue discount	(67,873)	$ (131,670)
Notes payable, net	$ 4,932,127

Stock-Based Compensation Expense for Stock-Based Awards (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	$ 1,737,684	$ 1,501,036	$ 3,275,062	$ 2,846,582
Employees
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	1,610,750	1,429,306	3,101,091	2,786,596
Nonemployees
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	126,934	71,730	173,971	59,986
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	414,391	340,750	796,213	668,590
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	$ 1,323,293	$ 1,160,286	$ 2,478,849	$ 2,177,992

Stock-Based Compensation - Additional Information (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2014 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total unrecognized compensation costs related to non-vested stock options	$ 11.9
Total unrecognized compensation costs related to non-vested stock options, weighted-average period of recognition	2 years 4 months 6 days

Estimated Grant-Date Fair Values of Stock Options (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rates, minimum	1.84%	0.94%	1.84%	0.94%
Risk-free interest rates, maximum	1.96%	1.33%	1.96%	1.33%
Expected dividends	0.00%	0.00%	0.00%	0.00%
Expected volatility, minimum	119.94%	148.00%	119.94%	148.00%
Expected volatility, maximum	120.70%	149.00%	120.70%	149.00%
Nonemployees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rates, minimum	0.11%	0.36%	0.11%	0.29%
Risk-free interest rates, maximum	2.39%	1.03%	2.63%	1.03%
Expected dividends	0.00%	0.00%	0.00%	0.00%
Expected volatility, minimum	70.34%	89.00%	70.34%	82.00%
Expected volatility, maximum	137.56%	124.00%	139.65%	125.00%
Minimum \| Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life	6 years	6 years	6 years	6 years
Minimum \| Nonemployees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life	1 year 4 days	2 years 4 days	1 year 4 days	2 years 4 days
Maximum \| Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life	6 years 3 months	6 years 3 months	6 years 3 months	6 years 3 months
Maximum \| Nonemployees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life	9 years 3 months 4 days	3 years 11 months 1 day	9 years 6 months 4 days	3 years 11 months 1 day

Stock Option Activity under Amended and Restated Stock Incentive Plan (Detail) - Stock Incentive Plan 2003	6 Months Ended
	Jun. 30, 2014 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Available For Grant, Beginning Balance	542,218
Shares Available For Grant, Shares reserved	7,500,000
Shares Available For Grant, Options granted	(727,500)
Shares Available For Grant, Options exercised
Shares Available For Grant, Options cancelled	23,332
Shares Available For Grant, Ending Balance	7,338,050
Outstanding Options, Number of Shares, Beginning Balance	11,687,300
Outstanding Options, Number of Shares, Shares reserved
Outstanding Options, Number of Shares, Options granted	727,500
Outstanding Options, Number of Shares, Options exercised
Outstanding Options, Number of Shares, Options cancelled	(23,332)
Outstanding Options, Number of Shares, Ending Balance	12,391,468
Outstanding Options, Weighted-Average Exercise Price, Beginning Balance \| $ / shares	$ 2.56
Outstanding Options, Weighted-Average Exercise Price, Shares reserved \| $ / shares
Outstanding Options, Weighted-Average Exercise Price, Options granted \| $ / shares	1.80
Outstanding Options, Weighted-Average Exercise Price, Options exercised \| $ / shares
Outstanding Options, Weighted-Average Exercise Price, Options cancelled \| $ / shares	5.95
Outstanding Options, Weighted-Average Exercise Price, Ending Balance \| $ / shares	$ 2.51

Stock Sales - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions			6 Months Ended	11 Months Ended
	Jun. 13, 2014	Jul. 31, 2013	Jun. 30, 2014	Jun. 30, 2014
Canaccord Genuity Inc
Class of Stock [Line Items]
Gross proceeds before deducting estimate offering expenses			$ 8.9	$ 19.9
Commission or discount percentage on issue of shares		2.00%
Number of shares sold			4,006,222	11,923,977
Weighted average selling price of shares sold			$ 1.67	$ 1.67
Canaccord Genuity Inc \| Maximum
Class of Stock [Line Items]
Gross proceeds before deducting estimate offering expenses		$ 20.0
Canaccord Genuity Inc \| Weighted-average selling price per share
Class of Stock [Line Items]
Weighted average selling price of shares sold			$ 2.22	$ 2.22
Cowen and Company Llc
Class of Stock [Line Items]
Commission or discount percentage on issue of shares	3.00%
Cowen and Company Llc \| Maximum
Class of Stock [Line Items]
Gross proceeds before deducting estimate offering expenses	$ 25.0