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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2017	Aug. 08, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2
Trading Symbol	CAPN
Entity Registrant Name	SOLENO THERAPEUTICS INC
Entity Central Index Key	0001484565
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		47,922,838

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 7,547	$ 2,726
Accounts receivable	3	3
Restricted cash	35	35
Inventory	164	0
Prepaid expenses and other current assets	246	247
Current assets held for sale	2,323	790
Total current assets	10,318	3,801
Long-term assets
Property and equipment, net	53	54
Other intangible assets, net	19,884	0
Other assets	126	126
Long-term assets held for sale	0	1,584
Total assets	30,381	5,565
Current liabilities
Accounts payable	1,029	411
Accrued compensation and other current liabilities	879	1,050
Current liabilities held for sale	214	246
Total current liabilities	2,122	1,707
Long-term liabilities
Other long-term liabilities	1,132	62
Long-term liabilities held for sale	0	81
Total liabilities	3,693	2,130
Commitments and contingencies (Note 8)
Stockholders’ equity
Common stock, $0.001 par value, 100,000,000 shares authorized, 47,587,647 and 16,786,952 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively.	48	17
Additional paid-in-capital	131,807	101,730
Accumulated deficit	(105,167)	(98,312)
Total stockholders’ equity	26,688	3,435
Total liabilities and stockholders’ equity	30,381	5,565
Series A Warrant Liability [Member]
Long-term liabilities
Warrant liability	415	194
Series C Warrant Liability [Member]
Long-term liabilities
Warrant liability	24	86
Series B Convertible Preferred Stock [Member]
Stockholders’ equity
Preferred Stock, $.001 par value 10,000,000 shares authorized: Series B convertible preferred stock, 13,780 are designated at June 30, 2017 and December 31, 2016; 12,179 and 12,780 shares issued and outstanding at June 30, 2017 and at December 31, 2016, respectively. Liquidation value of zero.	$ 0	$ 0

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Convertible preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Convertible preferred stock, shares authorized	10,000,000	10,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	47,587,647	16,786,952
Common stock, shares outstanding	47,587,647	16,786,952
Series B Convertible Preferred Stock [Member]
Convertible preferred stock, shares designated	13,780	13,780
Convertible preferred stock, shares issued	12,179	12,780
Convertible preferred stock, shares outstanding	12,179	12,780
Convertible preferred stock, aggregate liquidation preference	$ 0	$ 0

Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Product revenue	$ 1	$ 2	$ 4	$ 2
Cost of product revenue	42	51	42	69
Gross loss	(41)	(49)	(38)	(67)
Expenses
Research and development	974	658	1,506	1,623
Sales and marketing	0	165	27	360
General and administrative	2,195	1,423	3,214	3,273
Total expenses	3,169	2,246	4,747	5,256
Operating loss	(3,210)	(2,295)	(4,785)	(5,323)
Interest and other income (expense)
Interest Income	3	0	4	0
Change in fair value of warrants liabilities income (expense)	(32)	(56)	(101)	1,095
Cease-use expense	0	0	(2)	(94)
Other expense	0	(16)	(602)	(18)
Interest and other income (expense), net	(29)	(72)	(701)	983
Net loss from continuing operations	(3,239)	(2,367)	(5,486)	(4,340)
Net loss from discontinued operations	(727)	(1,146)	(1,370)	(2,362)
Net loss	$ (3,966)	$ (3,513)	$ (6,856)	$ (6,702)
Net loss per common share from continuing operations, basic and diluted (in usd per share)	$ (0.06)	$ (0.15)	$ (0.14)	$ (0.29)
Net loss per common share from discontinued operations, basic and diluted (in usd per share)	(0.01)	(0.07)	(0.03)	(0.16)
Net loss per share common share, basic and diluted (in usd per share)	$ (0.07)	$ (0.23)	$ (0.17)	$ (0.44)
Weighted-average common shares outstanding used to calculate basic and diluted net loss per common share (in shares)	53,060,868	15,528,922	40,029,547	15,162,520

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net loss	$ (6,856)	$ (6,702)
Loss from discontinued operations	(1,370)	(2,362)
Loss from continuing operations	(5,486)	(4,340)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	570	45
Stock-based compensation expense	628	354
Loss on disposition of property & equipment	0	1
Board fees paid with common stock	113	0
Change in fair value of common stock warrants	159	(1,122)
Non-cash expense of issuing shares to Aspire Capital	602	0
Change in operating assets and liabilities:
Accounts receivable	0	(2)
Inventory	(163)	(670)
Prepaid expenses and other assets	1	12
Accounts payable	270	78
Accrued compensation and other current liabilities	(193)	(373)
Other long-term liabilities	(20)	64
Net cash used in continuing operating activities	(3,519)	(5,953)
Net cash used in discontinued operating activities	(1,428)	(2,070)
Net cash used in operating activities	(4,947)	(8,023)
Cash flows from investing activities:
Costs of Essentialis acquisition paid	(223)	0
Purchase of property and equipment	(4)	(20)
Net cash used in continuing investing activities	(227)	(20)
Net cash used in discontinued investing activities	(5)	(19)
Net cash used in investing activities	(232)	(39)
Cash flows from financing activities:
Proceeds from issuance of common stock	10,000	70
Net cash provided by continuing financing activities	10,000	5,070
Net cash provided by discontinued financing activities	0	0
Net cash provided by financing activities	10,000	5,070
Net increase (decrease) in cash and cash equivalents	4,821	(2,993)
Cash and cash equivalents, beginning of period	2,726	5,495
Cash and cash equivalents, end of period	7,547	2,502
Supplemental disclosures of noncash investing and financing information
Conversion of Series A preferred to common stock	0	2,220
Issuance of common stock in Essentialis acquisition	18,764	0
Costs of Essentialis acquisition included in accounts payable	349	0
Contingent consideration of Essentialis acquisition	1,090	0
Series A Convertible Preferred Stock [Member]
Cash flows from financing activities:
Proceeds from sale of Series A preferred convertible stock	0	5,071
Series A preferred convertible stock transaction costs paid	0	(71)
Series B Convertible Preferred Stock [Member] \| Cash Less Exercise [Member]
Supplemental disclosures of noncash investing and financing information
De-recognition of Series B warrant liability (cashless exercise)	0	593
Continuing Operations [Member]
Cash flows from financing activities:
Net increase (decrease) in cash and cash equivalents	6,254	(967)
Discontinued Operations [Member]
Cash flows from financing activities:
Net increase (decrease) in cash and cash equivalents	$ (1,433)	$ (2,026)

Description of Business	6 Months Ended
Description of Business	Jun. 30, 2017
Accounting Policies [Abstract]
Description of Business	Description of Business Soleno Therapeutics, Inc. (formerly known as Capnia, Inc.) (the “Company”) was incorporated in the State of Delaware on August 25, 1999, and is located in Redwood City, California. On May 8, 2017, the Company received stockholder approval to amend the Amended and Restate Certificate of Incorporation of the Company, to change the name of the Company to Soleno Therapeutics, Inc. On September 2, 2015, the Company established NeoForce, Inc. ("NFI"), a wholly owned subsidiary of the Company and through NFI, acquired substantially all of the assets of an unrelated privately held company NeoForce Group, Inc.("NeoForce"). NFI markets innovative pulmonary resuscitation solutions for the inpatient and ambulatory neonatal markets. The Company sold NFI in a stock transaction that was completed on July 18, 2017 (see Note 14). On April 27, 2015, the Company established Capnia UK Limited, a wholly owned foreign subsidiary in the United Kingdom. On June 2, 2017, the Company established Capnia, Inc. ("Capnia"), a wholly owned subsidiary of the Company. On March 7, 2017, the Company completed the merger with Essentialis, Inc., a Delaware corporation, or Essentialis. After the merger, the Company's primary focus is transitioning to the development and commercialization of novel therapeutics for the treatment of rare diseases. Essentialis was a privately held, clinical stage biotechnology company focused on the development of breakthrough medicines for the treatment of rare metabolic diseases where there is increased mortality and risk of cardiovascular and endocrine complications. Prior to the merger, Essentialis’s efforts were focused primarily on developing and testing product candidates that target the ATP-sensitive potassium channel, a metabolically regulated membrane protein whose modulation has the potential to impact a wide range of rare metabolic, cardiovascular, and central nervous system diseases. Essentialis has tested Diazoxide Choline Controlled Release, or DCCR, tablets as a treatment for Prader-Willi syndrome, or PWS, a complex metabolic/neurobehavioral disorder. In May of 2017 the Company had a scientific advice meeting with the FDA . The FDA supported change in hyperphagia score (without a change in weight) compared to placebo as the primary endpoint for the planned Phase III study. The dosing paradigm proposed for the Phase III study was acceptable. The FDA proposed and the Company agreed that the duration of the randomized double-blind placebo controlled study should be shorter (3-4 months). Safety information about DCCR could be obtained in a long-term, safety extension study. There was agreement on several other aspects of the study and the overall development program, and additional regulatory input is being sought on others. The Company, through its wholly owned subsidiary Capnia, continues to sell the CoSense® End-Tidal Carbon Monoxide (ETCO) Monitor, or CoSense, which measures ETCO and aids in the detection of excessive hemolysis, a condition in which red blood cells degrade rapidly. When present in neonates with jaundice, excessive hemolysis is a dangerous condition which can lead to adverse neurological outcomes. CoSense is 510(k) cleared for sale in the U.S. and received CE Mark certification for sale in the E.U. Following the merger, the Company initiated a comprehensive review of strategic alternatives for the legacy products and product candidates, CoSense® ETCO Monitor, and its portfolio of innovative pulmonary resuscitation solutions for the neonatal market. The Company may also license elements of its Sensalyze Technology Platform to other companies that have complementary development or commercial capabilities (see Note 5). The Company's current research and development efforts are primarily focused on advancing its lead candidate, DCCR tablets, for the treatment of PWS into late-stage clinical development.

Liquidity, Financial Condition and Management's Plans	6 Months Ended
Liquidity, Financial Condition and Management's Plans	Jun. 30, 2017
Accounting Policies [Abstract]
Liquidity, Financial Condition and Management's Plans	Liquidity, Going Concern and Management’s Plans The Company had a net loss of approximately $6.9 million for the six months ended June 30, 2017 and has an accumulated deficit of approximately $105.2 at June 30, 2017 from having incurred losses since its inception. The Company has approximately $6.7 million of working capital at June 30, 2017 and used approximately $3.5 million of cash in its operating activities during the six months ended June 30, 2017. The Company has financed its operations principally through issuances of debt and equity securities. On January 27, 2017, the Company entered into a Common Stock Purchase Agreement (the "2017 Aspire Purchase Agreement") with Aspire Capital Fund, LLC ("Aspire Capital"), which provides that, upon the terms and subject to the conditions and limitations set forth therein, Aspire Capital is committed to purchase up to an aggregate of $17.0 million in value of shares of our Common Stock over the 30-month term of the 2017 Aspire Purchase Agreement. The Company issued Aspire Capital 708,333 shares of Common Stock as commitment shares under the 2017 Aspire Purchase Agreement. On March 7, 2017, the Company completed the merger with Essentialis. Concurrently, the Company issued 8,333,333 shares of common stock for an investment of $8 million from the completion of the concurrent financing and issued 2,083,333 shares of common stock for an investment of $2 million from Aspire Capital. On July 18, 2017, the Company sold NFI, its wholly owned subsidiary, for $720,000 (see Note 14). The Company expects to continue incurring losses for the foreseeable future and may be required to raise additional capital to pursue its therapeutic product development initiatives. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company has been successful over the last 12 months in raising additional capital including the completed closings pursuant to the 2016 Sabby Purchase Agreement, the 2017 Aspire Purchase Agreement and the concurrent financing associated with the merger of Essentialis. Management believes that the Company will continue to have access to capital resources through possible public or private equity offerings, debt financings, corporate collaborations or other means; however, other than the 2017 Aspire Purchase Agreement, the Company has not secured any commitment for future financing at this time, nor can it provide any assurance that new financing will be available on commercially acceptable terms, if at all. If the Company is unable to secure additional capital, it may be required to curtail its development of its therapeutic product development initiative and take additional measures to reduce costs in order to conserve its cash in amounts sufficient to sustain operations and meet its obligations. These measures could cause significant delays in the Company's efforts complete its therapeutic development program, which is critical to the realization of its business plan and the future operations of the Company.

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

There have been no material changes to the significant accounting policies during the six months ended June 30, 2017 as compared to the significant accounting policies described in Note 3 of the “Notes to Consolidated Financial Statements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Below are those policies with current period updates:

Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and the applicable rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The condensed consolidated balance sheet at December 31, 2016 has been derived from the audited consolidated financial statements at that date, but does not include all disclosures, including notes, required by GAAP for complete financial statements.

The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to present fairly the Company's financial position as of June 30, 2017 and results of its operations for the three and six months ended June 30, 2017 and 2016 and cash flows for the six months ended June 30, 2017 and 2016. The interim results are not necessarily indicative of the results for any future interim period or for the entire year. Certain prior period amounts have been reclassified to conform to current period presentation. These classifications have no effect on the previously reported net loss of loss per share.

The accompanying condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the year ended December 31, 2016 included in the Company's Annual Report on Form 10-K.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates

and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and

reported amounts of expenses in the financial statements and accompanying notes. Actual results could differ from those

estimates. Key estimates included in the financial statements include the valuation of: deferred income tax assets, liability and equity instruments, stock-based compensation, acquired intangibles, contingent earn-out consideration, and allowances for accounts receivable and inventory.

Inventory

As of June 30, 2017 and December 31, 2016, the Company’s inventory from continuing operations was comprised of the following (in thousands):



	June 30, 2017		December 31, 2016
Raw materials	$	27	$	—
Work-in-process	9		—
Finished goods	128		—
Total inventory	$	164	$	—

Inventory is stated at the lower of cost or market under the first-in, first-out (FIFO) method. The Company recorded a lower of cost or net realizable value to inventory of $40 thousand from the continuing operations during the six months ended June 30, 2017.

Business Combinations

For business combinations the Company utilizes the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations. These standards require that the total cost of an acquisition be allocated to the tangible and intangible assets acquired and liabilities assumed based on their respective fair values at the date of acquisition. The allocation of the purchase price is dependent upon certain valuations and other studies. Acquisition costs are expensed as incurred.

The Company recognizes separately from goodwill the fair value of assets acquired and the liabilities assumed. Goodwill as of the acquisition date is measured as the excess of consideration transferred and the acquisition date fair values of the assets acquired and liabilities assumed. While the Company uses its best estimates and assumptions as a part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the acquisition date, the Company’s estimates are subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company may retroactively record adjustments to the fair value of the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations.

Intangible Assets

Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives, which range in term from 5 to 12 years. The useful life of the intangible asset is evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining useful life.

Common Stock Purchase Warrants and Other Derivative Financial Instruments

The Company classifies Common Stock purchase warrants and other free standing derivative financial instruments as equity if the contracts (i) require physical settlement or net-share settlement or (ii) give the Company a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement). The Company classifies any contracts that (i) require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the control of the Company), (ii) give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement), or (iii) contain reset provisions as either an asset or a liability. The Company assesses classification of its freestanding derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required. The Company determined that certain freestanding derivatives, which principally consist of Series A and Series C Warrants to purchase Common Stock, do not satisfy the criteria for classification as equity instruments due to the existence of certain cash settlement features that are not within the sole control of the Company or variable settlement provision that cause them to not be indexed to the Company’s own stock.

Recent Accounting Pronouncements

In July 2017, FASB issued ASU No. 2017-11, Earnings per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815). ASU 2017-11 consists of two parts. The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, Debt-Debt with Conversion and Other Options), including related EPS guidance (in Topic 260). The amendments in Part II of this Update re-characterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. Those amendments do not have an accounting effect. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. The Company is in the process of evaluating this ASU and adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial position and results of operations.

In May 2017, the FASB issued ASU 2017-09: Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting which clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The standard is effective beginning after December 15, 2017; early adoption is permitted. The Company is currently evaluating the effect that ASU 2017-09 will have on the Company’s consolidated financial position and results of operations.

In January 2017, the FASB issued ASU 2017-04: “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”), which removes Step 2 from the goodwill impairment test. It is effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment test performed with a measurement date after January 1, 2017. The Company is currently evaluating the effect that ASU 2017-04 will have on the Company’s consolidated financial position and results of operations.

In January 2017, the FASB issued ASU 2017-01 “Business Combinations (Topic 805): Clarifying the Definition of a Business”, which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard introduces a screen for determining when assets acquired are not a business and clarifies that a business must include, at a minimum, an input and a substantive process that contribute to an output to be considered a business. This standard is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. Early application of the amendments in ASU 2017-01 are allowed for transactions for which the acquisition date is before the effective date of the amendments, but only when the transactions have not been reported in the financial statements that have been issued. The Company early adopted ASU 2017-01 for the acquisition of Essentialis, Inc. (see Note 11).

Besides the accounting pronouncement above, there have been no other new accounting pronouncements or changes to accounting pronouncements during the six months ended June 30, 2017 as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 that are of significance or potential significance to the Company.

Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

The carrying value of the Company’s cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to the short-term nature of these items.

Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.

The fair value hierarchy defines a three-level valuation hierarchy for disclosure of fair value measurements as follows:


•	Level I Unadjusted quoted prices in active markets for identical assets or liabilities;


•	Level II Inputs other than quoted prices included within Level I that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and


•	Level III Unobservable inputs that are supported by little or no market activity for the related assets or liabilities.

The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The following table sets forth the Company’s financial instruments that were measured at fair value on recurring basis by level within the fair value hierarchy (in thousands):



	Fair Value Measurements at June 30, 2017
	Total		Level 1		Level 2		Level 3
Liabilities
Series A warrant liability	$	415	$	415	$	—	$	—
Series C warrant liability	24		—		—		24
Total liabilities	$	439	$	415	$	—	$	24

	Fair Value Measurements at December 31, 2016
	Total		Level 1		Level 2		Level 3
Liabilities
Series A warrant liability	$	194	$	194	$	—	$	—
Series C warrant liability	86		—		—		86
Total common stock warrant liability	$	280	$	194	$	—	$	86

The Series A Warrant is a registered security that trades on the open market. The fair value of the Series A Warrant liability is based on the publicly quoted trading price of the warrants which is listed on and obtained from NASDAQ. Accordingly, the fair value of Series A Warrants is a Level 1 measurement. The fair value measurements of the Series B and Series C Warrants are based on significant inputs that are unobservable and thus represent Level 3 measurements. The Company’s estimated fair value of the Series B Warrant liability is calculated using a Monte Carlo simulation. Key assumptions include the volatility of the Company’s stock, the expected warrant term, expected dividend yield and risk-free interest rates (see Note 6). The Company’s estimated fair value of the Series C Warrant liability is calculated using the Black-Scholes valuation model. Key assumptions include the volatility of the Company’s stock, the expected warrant term, expected dividend yield and risk-free interest rates (see Note 6). The Level 3 estimates are based, in part, on subjective assumptions.

The agreement to pay the annual royalty in the NeoForce acquisition resulted in the recognition of a contingent consideration, which was recognized on the acquisition date. Subsequent changes to estimates of the amount of contingent consideration to be paid will be recognized as charges or credits in the statement of operations. The fair value of the contingent consideration is based on preliminary cash flow projections, growth in expected product sales and other assumptions. Based on the assumptions, the fair value of the royalty obligation was determined to be $153 thousand at the date of acquisition and $140 thousand as of June 30, 2017. The fair value of the royalty obligation was determined by applying the income approach, using several significant unobservable inputs for projected cash flows and a discount rate of 20% commensurate with the Company's cost of capital and expectation of the revenue growth for products at their life cycle stage. These inputs are considered Level 3 inputs under the fair value measurements and disclosure guidance. The contingent consideration was classified as liabilities held for sale as of June 30, 2017 (see Note 5).

The agreement to pay the commercial milestones in the Essentials acquisition resulted in the recognition of a contingent consideration, which is recognized at the inception of the transaction, and subsequent changes to estimate of the amounts of contingent consideration to be paid will be recognized as charges or credits in the statement of operations. The fair value of the contingent consideration is based on the Company's analysis of the likelihood of the drug indication moving from phase II through approval in the Federal Drug Administration approval process and then reaching the cumulative revenue milestones. Based on the assumptions, the fair value of the milestone obligation was determined to be $1.1 million at March 7, 2017. There was no change to the fair value of the contingent consideration as of June 30, 2017. The fair value of the contingent consideration was determined by a 15.3% probability of achieving each milestone. Additionally, the Company made an assessment that the commercial milestones of $100 million and $200 million in applicable revenue could be reached in 2023 and 2025, respectively. These inputs are considered Level 3 inputs under the fair value measurements and disclosure guidance.

On January 13, 2016 the Company entered into an agreement to sublease its excess space located in Redwood City. By the end of February the Company removed all equipment, furniture and fixtures being stored in this excess space and ceased use of this space. The fair value of the cease-use liability was calculated using the remaining lease payments, offset by future sub-lease payments, offset by deferred rent amortization, and discounted to present value using our current cost of capital of 20%. These inputs are considered Level 3 inputs under the fair value measurements and disclosure guidance.

During the periods presented, the Company has not changed the manner in which it values liabilities that are measured at fair value using Level 3 inputs. The Company recognizes transfers between levels of the fair value hierarchy as of the end of the reporting period. There were no transfers within the hierarchy during the periods presented.

As of June 30, 2017 and December 31, 2016, the Company had $7.3 million and $2.6 million in money market funds.

The following table sets forth a summary of the changes in the fair value of the Company’s Level 1 and Level 3 warrants, which are treated as liabilities, as follows (dollars in thousands):



	Series A Warrant			Series C Warrant
	Number of Warrants	Liability		Number of Warrants	Liability
Balance at December 31, 2016	2,425,605	$	194	590,415	$	86
Change in value of Series A Warrants	—	221		—	—
Change in value of Series C Warrants	—	—		—	(62		)
Balance at June 30, 2017	2,425,605	$	415	590,415	$	24

- Definition

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

+ References + Details

Discontinued Operations and Assets Held for Sale

6 Months Ended

Jun. 30, 2017

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations and Assets Held for Sale

The Company explored opportunities during the second quarter of 2017 to sell the separate business representing: 1) CoSense® End-Tidal Carbon Monoxide (ETCO) Monitor, or CoSense, which measures ETCO and 2) NFI, a wholly owned subsidiary that sells innovative pulmonary resuscitation solutions for the inpatient and ambulatory neonatal markets. NFI’s primary product is the NeoPip T-piece resuscitator and related consumable, which delivers consistent pre-set inspiratory pressure and positive end-expiratory pressures. Other NFI products include temperature probes, scales, surgical tables and patient surfaces.

Under ASC 205-20-45-10, during the period in which a component meets the assets held for sale and discontinued operations criteria, an entity must present the assets and liabilities of the discontinued operation separately in the asset and liability sections of the balance sheet for the comparative reporting periods. The prior period balance sheet should be reclassified for the held for sale items.

For income statements, the current and prior periods should report the results of operations of the component in discontinued operations when comparative income statements are presented.

The components of the balance sheet accounts presented as assets and liabilities held for sale were as follows:



	June 30, 2017		December 31, 2016
Current assets
Accounts receivable	$	153	$	130
Inventory	652		660
Property & equipment, net	32		—
Goodwill	718		—
Other intangible assets	768		—
Current assets held for sale	$	2,323	$	790

Long-term assets
Property & equipment, net	$	—	$	48
Goodwill	—		$	718
Other intangible assets	—		818
Long-term assets held for sale	—		1,584

Current liabilities
Accounts payable	$	48	$	127
Accrued compensation and other current liabilities	135		119
Other long-term liabilities	31		—
Total current liabilities for sale	$	214	$	246

Long-term liabilities
Other long-term liabilities	$	—	$	81
Long-term liabilities held for sale	—		81

The components of the income statement accounts presented as Discontinued Operations were as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Product revenue	$	375		$	389		$	637		$	835
Cost of product revenue	281			377			489			820
Gross profit (loss)	94			12			148			15
Expenses
Research and development	452			669			914			1,476
Sales and marketing	93			410			180			752
General and administrative	252			87			395			176
Total expenses	797			1,166			1,489			2,404
Operating loss	(703		)	(1,154		)	(1,341		)	(2,389		)
Other income (expense)	(24		)	8			(29		)	27
Loss from discontinued operations	$	(727	)	$	(1,146	)	$	(1,370	)	$	(2,362	)

- Definition

The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Warrant Liabilities

6 Months Ended

Jun. 30, 2017

Equity [Abstract]

Warrant Liabilities

Warrants terms

The Company has issued Series A Warrants and Series C Warrants (the “Warrants”).

The Company’s Warrants contain standard anti-dilution provisions for stock dividends, stock splits, subdivisions, combinations and similar types of recapitalization events. They also contain a cashless exercise feature that provides for their net share settlement at the option of the holder in the event that there is no effective registration statement covering the continuous offer and sale of the warrants and underlying shares. The Company is required to comply with certain requirement to cause or maintain the effectiveness of a registration statement for the offer and sale of these securities. The Warrant contracts further provide for the payment of liquidated damages at an amount per month equal to 1% of the aggregate VWAP of the shares into which each Warrant is convertible into in the event that the Company is unable to maintain the effectiveness of a registration statement as described herein. The Company evaluated the registration payment arrangement stipulated in the terms of these securities and determined that it is probable that the Company will maintain an effective registration statement and has therefore not allocated any portion of the Company's cash or cash equivalents to the registration payment arrangement. The Warrants also contain a fundamental transactions provision that permits their settlement in cash at fair value at the option of the holder upon the occurrence of a change in control. Such change in control events include tender offers or hostile takeovers, which are not within the sole control of the Company as the issuer of these Warrants. Accordingly, the Warrants are considered to have a cash settlement feature that precludes their classification as equity instruments. Settlement at fair value upon the occurrence of a fundamental transaction would be computed using the Black Scholes Option Pricing Model.

Accounting Treatment

The Company accounts for the Warrants in accordance with the guidance in ASC 815 Derivatives and Hedging. As indicated above, the Company may be obligated to settle Warrants in cash in the case of a Fundamental Transaction.

The Company classified the Warrants as liabilities at their fair value and will re-measure the warrants at each balance sheet date until they are exercised or expire. Any change in the fair value is recognized as other income (expense) in the Company’s statement of operations.

Under ASC 815-40-35, the Company adopted a sequencing policy that reclassifies contracts, with the exception of stock options, from equity to assets or liabilities for those with the latest inception date first. Future issuance of securities will be evaluated as to reclassification as a liability under our sequencing policy of latest inception date first until either all of the Series B Warrants are settled or expire. The Series B Warrants expired on February 12, 2016.

Series A Warrants

The Company has issued 2,449,605 Series A Warrants to purchase shares of its Common Stock at an exercise price of $6.50 per share in connection with the unit offering offered in the Company's initial public offering ("IPO") in November 2014. The Series A Warrants are exercisable at any time prior to the expiration of the five-year term on November 12, 2019.

Upon the completion of the IPO, the Series A Warrants started trading on the NASDAQ under the symbol CAPNW, and now under the symbol SLNOW as the result of the The Company name change to Soleno Therapeutics, Inc. in May 2017. As the Series A Warrants are publicly traded, the Company uses the closing price on the measurement date to determine the fair value of these the Series A Warrants.

Since their issuance, a total of 24,000 Series A Warrants have been exercised. As of June 30, 2017, the fair value of the 2,425,605 outstanding Series A Warrants was approximately $415 thousand, and the increase of $123 thousand and $220 thousand in fair value during the three and six months ended June 30, 2017 was recorded as other expense in the statement of operations. As of June 30, 2016, the fair value of the outstanding Series A warrants was approximately $631 thousand, and the increase of $73 thousand during the three months ended June 30, 2016 and the decrease of $582 thousand in fair value during the six months ended June 30, 2016 was recorded as other income in the statement of operations.

Series C Warrants

On March 5, 2015, the Company entered into separate agreements with certain Series B Warrant holders, who agreed to exercise their Series B Warrants to purchase an aggregate of 589,510 shares of the Company’s Common Stock at an exercise price of $6.50 per share, resulting in the de-recognition of $6.7 million of Series B Warrant liability and gross proceeds to the Company of approximately $3.8 million based on the exercise price of the Series B Warrants. In connection with this exercise of the Series B Warrants, the Company issued to each investor who exercised Series B Warrants, new Series C Warrants for the number of shares of the Company’s Common Stock underlying the Series B Warrants that were exercised. Each Series C Warrant is exercisable at $6.25 per share and will expire on March 5, 2020.

In April 2015, the Company issued a tender offer to the remaining holders of Series B Warrants to induce the holders to cash exercise the outstanding Series B Warrants in exchange for new Series C Warrants with an exercise price of $6.25 per share that expire on March 5, 2020. The tender offer was extended to Series B Warrant holders under a registration statement filed with the SEC on Form S-4, which was declared effective on June 25, 2015 and expired on July 24, 2015. During July 2015, certain Series B Warrant holder(s) tendered their Series B Warrants under the tender offer, which resulted in the issuance of 905 shares of the Company's Common Stock, the issuance of 905 Series C Warrants and proceeds to the Company of $5,882.

The Series C Warrants are exercisable into 590,415 shares of the Company’s Common Stock. As of June 30, 2017, the fair value of the Series C Warrants was determined to be $24 thousand. The decline in the fair value of the Series C Warrants of $34 thousand during the three months ended June 30, 2017 and $62 thousand in the six months ended June 30, 2017 was recorded as other income in the consolidated statement of operations. As of June 30, 2016, the fair value of the Series C Warrants was determined to be $193 thousand. The decline in the fair value of the warrants of $25 thousand during the three months ended June 30, 2016 and $269 thousand in the six months ended June 30, 2016 was recorded as other income in the consolidated statement of operations.

The Company has calculated the fair value of the Series C Warrants using a Black-Scholes pricing model, which requires the input of highly subjective assumptions including the expected stock price volatility. The Company used the following inputs:



	June 30, 2017		December 31, 2016
Volatility	90	%	90	%
Expected Term (years)	2.67		3.17
Expected dividend yield	—	%	—	%
Risk-free rate	1.49	%	1.51	%

Common Stock Purchase Agreement

6 Months Ended

Jun. 30, 2017

Equity [Abstract]

Common Stock Purchase Agreement

On January 27, 2017, the Company entered into the 2017 Aspire Purchase Agreement with Aspire Capital, which provides that, upon the terms and subject to the conditions and limitations set forth therein, Aspire Capital is committed to purchase up to an aggregate of $17.0 million in value of shares of the Company's Common Stock over the 30-month term of the 2017 Aspire Purchase Agreement. The Company issued Aspire Capital 708,333 shares of Common Stock as commitment shares under the 2017 Aspire Purchase Agreement. Further, on March 7, 2017, the closing of the financing, as described in the Agreement and Plan of Merger dated December 22, 2016 (the "Merger Agreement"), the Company sold to Aspire Capital, and Aspire Capital purchased from the Company, 2,083,333 of the Company's common stock at $0.96 per share for an aggregate of $2.0 million.

Stockholders’ Equity

Convertible Preferred Stock

The Company is authorized to issue 10,000,000 shares of Preferred Stock.

The Company has issued a total of 13,780 Series B Convertible Preferred Stock under the 2016 Sabby Purchase Agreement, with a par value of $0.001 and a stated value of $1,000 per share. Under the terms of the Series B Convertible Preferred Stock, in no event shall shares of Common Stock be issued to Sabby upon conversion of the Series B Convertible Preferred Stock to the extent such issuance of shares of Common Stock would result in Sabby having ownership in excess of 4.99%. The Series B Convertible Preferred Stock do not have an expiration date and are not redeemable at the option of the holders. In connection with each close of the Series B Convertible Preferred Stock, the Company was obligated to repurchase the remaining outstanding Series A Convertible Preferred Stock at the original issuance price. In addition, the exercise price of the existing Series D Warrants originally issued in conjunction with the 2015 Sabby Purchase Agreement was reduced from $2.46 to $1.75 per share on the effective date of the 2016 Sabby Purchase Agreement.

During the six months ended June 30, 2017, Sabby converted 601 Series B Convertible Preferred stock into 601,000 shares of Common Stock. As of June 30, 2017, there were 12,179 Series B Convertible Preferred Stock outstanding.

Common Stock

The Company issued 18,916,940 shares of common stock to stockholders of Essentialis. The Company held back 913,379 shares of common stock as partial recourse to satisfy indemnification claims, and such shares will be issued to Essentialis stockholders on the 1 year anniversary of the closing of the merger. The Company is also obligated to issue an additional 4,566,948 shares of common stock to Essentialis stockholders upon the achievement of a development milestone.

The Company also issued 8,333,333 shares of common stock at $0.96 per share for an investment of $8 million from the completion of the concurrent financing and issued 2,083,333 shares of common stock at $0.96 per share for an investment of $2 million from Aspire Capital.

Stock Option Plan

The Company has adopted the 1999 Incentive Stock Plan, the 2010 Equity Incentive Plan, and the 2014 Equity Incentive Plan (together, the "Plans"). The 1999 Incentive Stock Plan expired in 2009, and the 2010 Equity Incentive Plan has been closed to new issuances. Therefore, the Company may issue options to purchase shares of common stock to employees, directors, and consultants only under the 2014 Equity Incentive Plan. Options granted under the 2014 Plan may be incentive stock options (“ISOs”) or nonqualified stock options (“NSOs”). ISOs may be granted only to Company employees and directors. NSOs may be granted to employees, directors, advisors, and consultants. The Board of Directors has the authority to determine to whom options will be granted, the number of options, the term, and the exercise price.

Options are to be granted at an exercise price not less than fair value for an ISO or 85% of fair value for an NSO. For individuals holding more than 10% of the voting rights of all classes of stock, the exercise price of an option will not be less than 110% of fair value. The vesting period is normally monthly over a period of 4 years from the vesting date. The contractual term of an option is no longer than 5 years for ISOs for which the grantee owns greater than 10% of the voting power of all classes of stock and no longer than ten years for all other options.

The compensation expense is allocated on a departmental basis, based on the classification of the option holder. No income tax benefits have been recognized in the statements of operations for stock-based compensation arrangements as of June 30, 2017 and June 30, 2016.

Stock compensation expense (in thousands) was allocated between departments as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Research & Development	$	61	$	41	$	97	$	74
Sales & Marketing	—		43		6		11
General & Administrative	382		134		525		269
Total	$	443	$	218	$	628	$	354

The fair value of each award granted was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions for the three and six months ended June 30, 2017 and 2016:



	Three Months Ended June 30,		Six Months Ended June 30,
	2017	2016	2017	2016
Expected life (years)	5.78-6.08	5.5-10	5.5-6.08	5.5-6.08
Risk-free interest rate	1.9%-2.1%	1.3%-1.7%	1.9%-2.2%	1.3%-1.8%
Volatility	69%	65% - 73%	61%-69%	65% - 76%
Dividend rate	—%	—%	—%	—%

The Black-Scholes option-pricing model requires the use of highly subjective assumptions to estimate the fair value of stock-based awards. These assumptions include:


•	Expected volatility: The estimated volatility rate based on a peer index of common stock of comparable companies in the Company's industry.

•

Expected term: The expected life of stock options represents the average of the contractual term of the options and the weighted-average vesting period, as permitted under the simplified method. The Company has elected to use the simplified method, as the Company does not have enough historical exercise experience to provide a reasonable basis upon which to estimate the expected term and the stock option grants are considered “plain vanilla” options.


•	Risk-free rate: The risk-free interest rate is based on the yields of U.S. Treasury securities with maturities similar to the expected time to liquidity.


•	Expected dividend yield: The Company has never declared or paid any cash dividends and do not presently plan to pay cash dividends in the foreseeable future. Consequently, the Company used an expected dividend yield of zero.

The following table summarizes stock option transactions for the six months ended June 30, 2017 as issued under the Plans:



	Shares Available for Grant		Number of Options Outstanding		Weighted-Average Exercise Price per Share		Weighted Average Remaining Contractual Term
	Shares Available for Grant		Number of Options Outstanding		Weighted-Average Exercise Price per Share		(in years)

Balance at January 1, 2017	958,856		2,908,430		$	3.42	8.48
Additional shares authorized	671,478		—
Amendment to plan to authorize additional shares	8,929,188		—
Options granted	(3,113,777	)	3,113,777		0.61
Options exercised	—		—
Options canceled/forfeited	108,191		(108,191	)	3.49
Balance at June 30, 2017	7,553,936		5,914,016		1.94		8.98

Options vested at June 30, 2017			2,503,001		$	2.91	8.37
Options vested and expected to vest at June 30, 2017			5,914,016		$	1.94	8.98

The weighted-average grant date fair value of employee options granted was $0.61 and $0.81 per share for the six months ended June 30, 2017 and year ended December 31, 2016, respectively. At June 30, 2017 total unrecognized employee stock-based compensation was $2.0 million, which is expected to be recognized over the weighted-average remaining vesting period of 3.0 years. As of June 30, 2017, the outstanding stock options had an intrinsic value of zero.

The fair value of an equity award granted to a non-employee generally is determined in the same manner as an equity award granted to an employee. In most cases, the fair value of the equity securities granted is more reliably determinable than the fair value of the goods or services received. Stock-based compensation related to its grant of options to non-employees has not been material to date.

2014 Employee Stock Purchase Plan

Our Board of Directors and stockholders have adopted the 2014 Employee Stock Purchase Plan, or the ESPP. The ESPP has become effective, and our Board of Directors will implement commencement of offers thereunder in its discretion. A total of 139,839 shares of our Common Stock has been made available for sale under the ESPP. In addition, our ESPP provides for annual increases in the number of shares available for issuance under the plan on the first day of each year beginning in the year following the initial date that our Board of Directors authorizes commencement, equal to the least of:


•	1.0% of the outstanding shares of our Common Stock on the first day of such year; 279,680 shares; or


•	such amount as determined by our Board of Directors.

As of June 30, 2017 there were no purchases by employees under this plan.

Series D Warrants

As part of the 2015 Sabby Purchase Agreement, the Company previously issued 2,810,812 Series D Warrants, with an exercise price of $2.46. The exercise price of 2,702,704 Series D Warrants issued to Sabby were subsequently amended to $1.75 per share and a term of five years expiring on October 15, 2020 pursuant to the 2016 Sabby Purchase Agreement. The exercise price of the remaining 108,108 Series D Warrants issued to Maxim LLC, as placement agent, was $2.46, and are exercisable beginning on April 15, 2016 and through and including October 15, 2020. The Company’s Series D Warrants contain standard anti-dilution provisions for stock dividends, stock splits, subdivisions, combinations and similar types of recapitalization events. They also contain a cashless exercise feature that provides for their net share settlement at the option of the holder in the event that there is no effective registration statement covering the continuous offer and sale of the warrants and underlying shares. The Company is required to comply with certain requirement to cause or maintain the effectiveness of a registration statement for the offer and sale of these securities. The Series D Warrant agreement further provides for the payment of liquidated damages at an amount per month equal to 1% of the aggregate VWAP of the shares into which each Series D Warrant is convertible into in the event that the Company is unable to maintain the effectiveness of a registration statement as described therein. The Company evaluated the registration payment arrangement stipulated in the terms of the 2015 Sabby Purchase Agreement and determined that it is probable that the Company will maintain an effective registration statement and has therefore not allocated any portion of the proceeds to the registration payment arrangement. The Series D Warrant agreement specifically provides that under no circumstances will the Company be required to settle any Series D Warrant exercise for cash, whether by net settlement or otherwise.

As part of the 2016 Sabby Purchase Agreement, the Company issued to Maxim LLC, as its placement agent, 120,000 Series D Warrants, with an exercise price of $1.75 and a term of five years expiring in July and September of 2021.

Accounting Treatment

The Company accounts for the Series D Warrants in accordance with the guidance in ASC 815 Derivatives and Hedging. As indicated above, the Company is not required under any circumstance to settle any Series D Warrant exercise for cash. The Company has therefore classified the value of the Series D Warrants as permanent equity.

Other Common Stock Warrants

As of June 30, 2017, the Company had 510,350 Common Stock warrants outstanding originally issued in conjunction with the 2010/2012 convertible notes, with an exercise price of $4.87 and a term of 10 years expiring in November 2024. The Company also has outstanding 9,259 Common Stock warrants issued in 2009, with an exercise price of $21.60 and a term of 10 years, expiring in January 2019 and 82,500 Common Stock warrants issued to the underwriter in our IPO, with an exercise price of 7.14 and a term of 10 years, expiring in November 2024.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Facility Leases On July 1, 2015 the Company executed a new four year non-cancelable operating lease agreement for 8,171 square feet of office space for its headquarters facility. The lease agreement provides for monthly lease payments of $23,300 beginning in September of 2015, with increases in the following three years. An additional 5,265 square feet of office space became part of the new lease agreement on March 1, 2016. The Company leases office space under a non-cancelable operating lease agreement which was set to expire in May 2015. On February 2, 2015, the Company signed an amendment to its lease agreement, extending the lease through June 2018. The amendment provides for monthly lease payments of $22,000 beginning in June 2015, with increases in the following two years. The Company subleased this facility in January 2016 and ceased use of the facility in March 2016 (See Note 4). The Company also leases approximately 2,100 square feet of office space for its operations in Ivyland, Pennsylvania under a month-to-month lease. Rent expense was $343 thousand and $325 thousand during the six months ended June 30, 2017 and 2016, respectively. Contingencies In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future, but have not yet been made. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. In connection with the acquisition of the assets of NeoForce, the Company agreed to pay the former NeoForce shareholder an annual royalty payment for a period of 36 months. The agreement to pay the annual royalty resulted in the recognition of a contingent consideration, which was recognized at the closing of the transaction, and subsequent changes to estimate of the amounts of contingent consideration to be paid will be recognized as charges or credits in the statement of operations. The fair value of the contingent consideration is based on preliminary cash flow projections, growth in expected product sales and other assumptions. Based on the assumptions, the fair value of the royalty obligation was determined to be $153 thousand at the date of acquisition and $140 thousand at June 30, 2017. The long-term portion of the royalty obligation, $29 thousand, is classified as part of other long-term liabilities while the remaining current portion is included in accrued compensation and other current liabilities. The contingent consideration was classified as liabilities held for sale as of June 30, 2017 (see Note 5). In connection with the merger with Essentialis, the Company agreed to pay Essentialis stockholders earnout payments up to a maximum of $30 million upon the achievement of certain commercial milestones associated with the sale of Essentialis’ product. The agreement to pay the commercial milestones resulted in the recognition of a contingent consideration, which was recognized at the inception of the transaction, and subsequent changes to estimate of the amounts of contingent consideration to be paid will be recognized as charges or credits in the statement of operations. The fair value of the contingent consideration is based on the Company's analysis of the likelihood of the drug indication moving from phase II through approval in the Federal Drug Administration approval process and then reaching the cumulative revenue milestones. Based on the assumptions, the fair value of the milestone obligation was determined to be $1.1 million at March 7, 2017. There was no change to the fair value of the contingent consideration as of June 30, 2017. The entire $1.1 million was classified as a long-term liability.

Stockholders' Equity

6 Months Ended

Jun. 30, 2017

Equity [Abstract]

Stockholders' Equity

Common Stock Purchase Agreement

Stockholders’ Equity

Convertible Preferred Stock

The Company is authorized to issue 10,000,000 shares of Preferred Stock.

Common Stock

Stock Option Plan

Stock compensation expense (in thousands) was allocated between departments as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Research & Development	$	61	$	41	$	97	$	74
Sales & Marketing	—		43		6		11
General & Administrative	382		134		525		269
Total	$	443	$	218	$	628	$	354



	Three Months Ended June 30,		Six Months Ended June 30,
	2017	2016	2017	2016
Expected life (years)	5.78-6.08	5.5-10	5.5-6.08	5.5-6.08
Risk-free interest rate	1.9%-2.1%	1.3%-1.7%	1.9%-2.2%	1.3%-1.8%
Volatility	69%	65% - 73%	61%-69%	65% - 76%
Dividend rate	—%	—%	—%	—%

The Black-Scholes option-pricing model requires the use of highly subjective assumptions to estimate the fair value of stock-based awards. These assumptions include:


•	Expected volatility: The estimated volatility rate based on a peer index of common stock of comparable companies in the Company's industry.

•


•	Risk-free rate: The risk-free interest rate is based on the yields of U.S. Treasury securities with maturities similar to the expected time to liquidity.


•	Expected dividend yield: The Company has never declared or paid any cash dividends and do not presently plan to pay cash dividends in the foreseeable future. Consequently, the Company used an expected dividend yield of zero.

The following table summarizes stock option transactions for the six months ended June 30, 2017 as issued under the Plans:



	Shares Available for Grant		Number of Options Outstanding		Weighted-Average Exercise Price per Share		Weighted Average Remaining Contractual Term
	Shares Available for Grant		Number of Options Outstanding		Weighted-Average Exercise Price per Share		(in years)

Balance at January 1, 2017	958,856		2,908,430		$	3.42	8.48
Additional shares authorized	671,478		—
Amendment to plan to authorize additional shares	8,929,188		—
Options granted	(3,113,777	)	3,113,777		0.61
Options exercised	—		—
Options canceled/forfeited	108,191		(108,191	)	3.49
Balance at June 30, 2017	7,553,936		5,914,016		1.94		8.98

Options vested at June 30, 2017			2,503,001		$	2.91	8.37
Options vested and expected to vest at June 30, 2017			5,914,016		$	1.94	8.98

2014 Employee Stock Purchase Plan


•	1.0% of the outstanding shares of our Common Stock on the first day of such year; 279,680 shares; or


•	such amount as determined by our Board of Directors.

As of June 30, 2017 there were no purchases by employees under this plan.

Series D Warrants

Accounting Treatment

Other Common Stock Warrants

- Definition

+ References

+ Details

Net loss per share

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

Net loss per share

Basic net loss per share is computed by dividing net loss by the weighted-average number of Common Stock actually outstanding during the period including contingent shares to be issued to Essentialis stockholders of 913,379 shares of common stock to be issued on the 1 year anniversary of the closing of the merger and 4,566,948 shares of common stock to be issued upon the achievement of a development milestone. Diluted net loss per share is computed by dividing net loss by the weighted-average number of Common Stock outstanding and dilutive potential Common Stock that would be issued upon the exercise of Common Stock warrants and options. For the three and six months ended June 30, 2017 and 2016 the effect of issuing the potential Common Stock is anti-dilutive due to the net losses in those periods and the number of shares used to compute basic and diluted earnings per share are the same in each of those periods.

The following potentially dilutive securities outstanding have been excluded from the computations of diluted weighted-average shares outstanding because such securities have an antidilutive impact due to losses reported (in Common Stock equivalent shares):



	As of June 30
	2017	2016
Series A Convertible preferred stock	—	4,505,405
Series B Convertible preferred stock	12,179,000	—
Warrants issued to 2010/2012 convertible note holders to purchase common stock	510,350	510,350
Options to purchase common stock	5,914,016	3,036,979
Warrants issued in 2009 to purchase common stock	9,259	9,259
Warrants issued to underwriter to purchase common stock	82,500	82,500
Series A Warrants to purchase common stock	2,425,605	2,425,605
Series C Warrants to purchase common stock	590,415	590,415
Series D Warrants to purchase common stock	2,930,812	2,810,812
Total	24,641,957	13,971,325

Essentialis, Inc. Acquisition

6 Months Ended

Jun. 30, 2017

Business Combinations [Abstract]

Essentialis, Inc. Acquisition

On March 7, 2017, the Company acquired Essentialis through the merger of the Company's wholly-owned subsidiary Company E Merger Sub, Inc., a Delaware corporation ("Merger Sub"), whereby Merger Sub merged into Essentialis,with Essentialis surviving the merger as a wholly owned subsidiary of the Company.

In consideration, the Company issued 18,916,940 shares of common stock to stockholders of Essentialis. The Company held back 913,379 shares of common stock as partial recourse to satisfy indemnification claims, and such shares will be issued to Essentialis stockholders on the 1 year anniversary of the closing of the merger. The Company is also obligated to issue an additional 4,566,948 shares of common stock to Essentialis stockholders upon the achievement of a development milestone. Additionally, upon the achievement of certain commercial milestones associated with the sale of Essentialis’ product in accordance with the terms of the Merger Agreement, the Company is obligated to make cash earnout payments of up to a maximum of $30 million to Essentialis stockholders.

The transaction has been accounted for as an asset acquisition under the acquisition method of accounting. The amendments in ASU 2017-01 provide a screen to determine when a set of assets and activities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set of assets and activities is not a business.

Since the acquisition was determined to be an asset acquisition, the total value of the purchase consideration will be allocated to the asset acquired. The value of the shares issued on the completion of the merger and the shares to be issued was based on the stock price of the Company on the date of completion of the merger. In addition, the trading history of the Company was reviewed to assess the reliability of the implied consideration value. The Company trades on the NASDAQ, a major U.S. stock exchange, and has significant average daily trading volume with tight intraday bid-ask spreads. These characteristics indicate Capnia’s shares are actively traded and provide a reliable indication of value. On March 7, 2017, the date of the transaction close, the Company's stock was trading at $0.77 per common share. Additionally, the average closing price of the stock in the 30 calendar days leading up to the close was also approximately $0.77. Accordingly, the identifiable intangible assets acquired are recorded at fair value based on this stock price.

The agreement to pay the commercial milestones resulted in the recognition of a contingent consideration, which is recognized at the inception of the transaction, and subsequent changes to estimate of the amounts of contingent consideration to be paid will be recognized as charges or credits in the statement of operations. The fair value of the contingent consideration is based on the Company's analysis of the likelihood of the drug indication moving from phase II through approval in the Federal Drug Administration approval process and then reaching the cumulative revenue milestones. In determining the likelihood of this occurring, the analysis relied on 2016 research published by BIO, Biomedtraker, & Amplion titles “Clinical Development Success Rates 2006-2015.” Based on management's assessment, a 15.3% probability of achieving each milestone was determined to be reasonable. Additionally, the Company anticipates that it could reach the commercial milestones of $100 million and $200 million in applicable revenue in 2023 and 2025, respectively.

The probability weighted milestone payments were discounted to determine the present value of future payments. The analysis utilized the weighted average cost of capital (WACC) discount rate. The WACC used for the first and second milestones were 30% and 21%, respectively.

The aggregate purchase price consideration was as follows:



Fair value of stock consideration	$	18,785,926
Fair value of contingent consideration	1,090,125
Total purchase price consideration	$	19,876,051

The fair value of the asset acquired is as follows:



Patents	19,876,051
Net Assets Acquired	$	19,876,051

As an asset acquisition, the Company also capitalized $573 thousand of total costs of acquiring the assets. These included legal fees of $469 thousand, printing fees of $75 thousand and accounting and other fees of $29 thousand. The total intangible asset of $20.4 million was recorded on the balance sheet and amortized over the life of the patents through June 30, 2028.

The following table presents the unaudited pro forma results of Soleno Therapeutics, Inc. (including the operations of Essentialis) for the three and six months ended June 30, 2016 and June 30, 2017 (in thousands, except per share amounts). The unaudited pro forma financial information combines the results of operations of Soleno and Essentialis as though the companies had been combined as of the beginning of each of the fiscal periods presented. The unaudited pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of fiscal 2016 or 2017.



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Pro forma total revenue	$	376		$	390		$	641		$	837
Pro forma net loss	$	(4,422	)	$	(4,150	)	$	(8,202	)	$	(7,964	)
Pro forma net loss per share - basic and diluted	$	(0.08	)	$	(0.12	)	$	(0.12	)	$	(0.18	)
Proforma weighted-average shares - basic and diluted	53,855,669			35,070,296			69,363,153			44,496,176

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Compensation Plan for Board Members	6 Months Ended
Compensation Plan for Board Members	Jun. 30, 2017
Compensation Related Costs [Abstract]
Compensation Plan for Board Members	Compensation Plan for Board Members The Compensation Committee of the Board of Directors of the Company recommended and the Board approved a new compensation plan for the payment of quarterly Board fees. Starting in the first quarter of 2017, all board fees have been paid in Common Stock of the Company. In the six months ended June 30, 2017, the Company issued 157,756 shares of Common Stock to its Board members.

- Definition

The entire disclosure for compensation costs, including compensated absences accruals, compensated absences liability, deferred compensation arrangements and income statement compensation items. Deferred compensation arrangements may include a description of an arrangement with an individual employee, which is generally an employment contract between the entity and a selected officer or key employee containing a promise by the employer to pay certain amounts at designated future dates, usually including a period after retirement, upon compliance with stipulated requirements. This type of arrangement is distinguished from broader based employee benefit plans as it is usually tailored to the employee. Disclosure also typically includes the amount of related compensation expense recognized during the reporting period, the number of shares (units) issued during the period under such arrangements, and the carrying amount as of the balance sheet date of the related liability.

+ References + Details

Shareholder Lawsuit	6 Months Ended
Shareholder Lawsuit	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Shareholder Lawsuit	Shareholder Lawsuit On February 16, 2017, a purported stockholder class action lawsuit captioned Garfield v. Capnia, Inc., et al., Case No. C17-00284, or the Lawsuit, was filed in Superior Court of the State of California, County of Contra Costa against us and certain of our officers and directors. The Lawsuit alleged, generally, that our directors breached their fiduciary duties to our stockholders by seeking to sell control of the company through an allegedly defective process, and on unfair terms. The Lawsuit also alleged that defendants failed to disclose all material facts concerning the merger with Essentialis to stockholders. The Lawsuit sought, among other things, equitable relief that would have enjoined the consummation of the merger, compensatory and/or rescissory damages, and attorneys’ fees and costs. On February 28, 2017, the Company settled the Lawsuit by making certain supplemental disclosures in a Current Report on Form 8-K filed with the SEC on February 28, 2017 in connection with the plaintiff’s agreement to voluntarily dismiss plaintiff's claims in the Lawsuit. The Company also agreed to pay $175,000 in attorney's fees. This amount was accrued as a current liability on the balance sheet as of December 31, 2016 and recorded as a general and administrative expense on the statement of operations for the year ended December 31, 2016. The stipulation of dismissal was approved by the court on April 14, 2017.

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On July 18, 2017, the Company completed the sale of stock of its 100% wholly-owned subsidiary, NFI, primarily related to the Company’s portfolio of neonatology resuscitation business pursuant to a Stock Purchase Agreement (the “Purchase Agreement”), dated as of July 18, 2017, with NeoForce Holdings, Inc. ("Holdings"), a 100% owned subsidiary of Flexicare Medical Limited, a privately held United Kingdom company, for $720,000 and adjustments for inventory and the current cash balances held at NFI. The Company will also receive the total outstanding accounts receivable and inventory held by NFI at the date of sale, as it is collected or sold, respectively. The transactions contemplated by the Purchase Agreement are a continuation of a process previously disclosed by the Company of evaluating strategic alternatives and focusing on the Company’s rare disease therapeutic business. The Purchase Agreement includes customary terms and conditions, including an adjustment to the purchase price based on inventory and accounts receivables, and provisions that require the Company to indemnify Holdings for certain losses that it incurs as a result of a breach by the Company of its representations and warranties in the Purchase Agreement and certain other matters. Proceeds from the sale are payable to the Company as follows: (1) a $720,000 payment to the Company in cash on July 18, 2017, (2) the value of outstanding accounts receivable as it is collected by NFI following July 18, 2017, payable on a monthly basis, and (3) the value of inventory as it is sold following July 18, 2017, payable on a monthly basis. The Purchase Agreement contains customary representations and warranties of each of the parties. On July 20th and 25th, 2017, the two funds managed by Sabby converted an aggregate of 200 shares of their Series B Convertible Stock into 200,000 shares of Common Stock.

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and the applicable rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The condensed consolidated balance sheet at December 31, 2016 has been derived from the audited consolidated financial statements at that date, but does not include all disclosures, including notes, required by GAAP for complete financial statements. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to present fairly the Company's financial position as of June 30, 2017 and results of its operations for the three and six months ended June 30, 2017 and 2016 and cash flows for the six months ended June 30, 2017 and 2016. The interim results are not necessarily indicative of the results for any future interim period or for the entire year. Certain prior period amounts have been reclassified to conform to current period presentation. These classifications have no effect on the previously reported net loss of loss per share. The accompanying condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the year ended December 31, 2016 included in the Company's Annual Report on Form 10-K.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and reported amounts of expenses in the financial statements and accompanying notes. Actual results could differ from those estimates. Key estimates included in the financial statements include the valuation of: deferred income tax assets, liability and equity instruments, stock-based compensation, acquired intangibles, contingent earn-out consideration, and allowances for accounts receivable and inventory.
Inventory	Inventory is stated at the lower of cost or market under the first-in, first-out (FIFO) method.
Business Combinations	Business Combinations For business combinations the Company utilizes the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations. These standards require that the total cost of an acquisition be allocated to the tangible and intangible assets acquired and liabilities assumed based on their respective fair values at the date of acquisition. The allocation of the purchase price is dependent upon certain valuations and other studies. Acquisition costs are expensed as incurred. The Company recognizes separately from goodwill the fair value of assets acquired and the liabilities assumed. Goodwill as of the acquisition date is measured as the excess of consideration transferred and the acquisition date fair values of the assets acquired and liabilities assumed. While the Company uses its best estimates and assumptions as a part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the acquisition date, the Company’s estimates are subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company may retroactively record adjustments to the fair value of the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations.
Intangible Assets	Intangible Assets Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives, which range in term from 5 to 12 years. The useful life of the intangible asset is evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining useful life.
Common Stock Purchase Warrants and Other Derivative Financial Instruments	Common Stock Purchase Warrants and Other Derivative Financial Instruments The Company classifies Common Stock purchase warrants and other free standing derivative financial instruments as equity if the contracts (i) require physical settlement or net-share settlement or (ii) give the Company a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement). The Company classifies any contracts that (i) require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the control of the Company), (ii) give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement), or (iii) contain reset provisions as either an asset or a liability. The Company assesses classification of its freestanding derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required. The Company determined that certain freestanding derivatives, which principally consist of Series A and Series C Warrants to purchase Common Stock, do not satisfy the criteria for classification as equity instruments due to the existence of certain cash settlement features that are not within the sole control of the Company or variable settlement provision that cause them to not be indexed to the Company’s own stock.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In July 2017, FASB issued ASU No. 2017-11, Earnings per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815). ASU 2017-11 consists of two parts. The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, Debt-Debt with Conversion and Other Options), including related EPS guidance (in Topic 260). The amendments in Part II of this Update re-characterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. Those amendments do not have an accounting effect. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. The Company is in the process of evaluating this ASU and adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial position and results of operations. In May 2017, the FASB issued ASU 2017-09: Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting which clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The standard is effective beginning after December 15, 2017; early adoption is permitted. The Company is currently evaluating the effect that ASU 2017-09 will have on the Company’s consolidated financial position and results of operations. In January 2017, the FASB issued ASU 2017-04: “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”), which removes Step 2 from the goodwill impairment test. It is effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment test performed with a measurement date after January 1, 2017. The Company is currently evaluating the effect that ASU 2017-04 will have on the Company’s consolidated financial position and results of operations. In January 2017, the FASB issued ASU 2017-01 “Business Combinations (Topic 805): Clarifying the Definition of a Business”, which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard introduces a screen for determining when assets acquired are not a business and clarifies that a business must include, at a minimum, an input and a substantive process that contribute to an output to be considered a business. This standard is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. Early application of the amendments in ASU 2017-01 are allowed for transactions for which the acquisition date is before the effective date of the amendments, but only when the transactions have not been reported in the financial statements that have been issued. The Company early adopted ASU 2017-01 for the acquisition of Essentialis, Inc. (see Note 11). Besides the accounting pronouncement above, there have been no other new accounting pronouncements or changes to accounting pronouncements during the six months ended June 30, 2017 as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 that are of significance or potential significance to the Company.

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Schedule of Inventory

As of June 30, 2017 and December 31, 2016, the Company’s inventory from continuing operations was comprised of the following (in thousands):



	June 30, 2017		December 31, 2016
Raw materials	$	27	$	—
Work-in-process	9		—
Finished goods	128		—
Total inventory	$	164	$	—

Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Summary of Financial Instruments Measured at Fair Value on Recurring Basis

The following table sets forth the Company’s financial instruments that were measured at fair value on recurring basis by level within the fair value hierarchy (in thousands):



	Fair Value Measurements at June 30, 2017
	Total		Level 1		Level 2		Level 3
Liabilities
Series A warrant liability	$	415	$	415	$	—	$	—
Series C warrant liability	24		—		—		24
Total liabilities	$	439	$	415	$	—	$	24

	Fair Value Measurements at December 31, 2016
	Total		Level 1		Level 2		Level 3
Liabilities
Series A warrant liability	$	194	$	194	$	—	$	—
Series C warrant liability	86		—		—		86
Total common stock warrant liability	$	280	$	194	$	—	$	86

Summary of Changes in Fair Value of Level1 and Level 3 Financial Instruments

The following table sets forth a summary of the changes in the fair value of the Company’s Level 1 and Level 3 warrants, which are treated as liabilities, as follows (dollars in thousands):



	Series A Warrant			Series C Warrant
	Number of Warrants	Liability		Number of Warrants	Liability
Balance at December 31, 2016	2,425,605	$	194	590,415	$	86
Change in value of Series A Warrants	—	221		—	—
Change in value of Series C Warrants	—	—		—	(62		)
Balance at June 30, 2017	2,425,605	$	415	590,415	$	24

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Discontinued Operations and Assets Held for Sale (Tables)

6 Months Ended

Jun. 30, 2017

Discontinued Operations and Disposal Groups [Abstract]

Components of Discontinued Operations

The components of the balance sheet accounts presented as assets and liabilities held for sale were as follows:



	June 30, 2017		December 31, 2016
Current assets
Accounts receivable	$	153	$	130
Inventory	652		660
Property & equipment, net	32		—
Goodwill	718		—
Other intangible assets	768		—
Current assets held for sale	$	2,323	$	790

Long-term assets
Property & equipment, net	$	—	$	48
Goodwill	—		$	718
Other intangible assets	—		818
Long-term assets held for sale	—		1,584

Current liabilities
Accounts payable	$	48	$	127
Accrued compensation and other current liabilities	135		119
Other long-term liabilities	31		—
Total current liabilities for sale	$	214	$	246

Long-term liabilities
Other long-term liabilities	$	—	$	81
Long-term liabilities held for sale	—		81

The components of the income statement accounts presented as Discontinued Operations were as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Product revenue	$	375		$	389		$	637		$	835
Cost of product revenue	281			377			489			820
Gross profit (loss)	94			12			148			15
Expenses
Research and development	452			669			914			1,476
Sales and marketing	93			410			180			752
General and administrative	252			87			395			176
Total expenses	797			1,166			1,489			2,404
Operating loss	(703		)	(1,154		)	(1,341		)	(2,389		)
Other income (expense)	(24		)	8			(29		)	27
Loss from discontinued operations	$	(727	)	$	(1,146	)	$	(1,370	)	$	(2,362	)

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=65878427&loc=SL51721533-107759

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4B
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1361-107760

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
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-Paragraph 7
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=64862545&loc=SL51724579-110230

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5C
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721675-107760

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
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-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721663-107760

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=64862545&loc=d3e2941-110230

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5B
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721673-107760

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
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-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721659-107760

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721677-107760

+ Details

Warrant Liabilities (Tables)

6 Months Ended

Jun. 30, 2017

Equity [Abstract]

Fair Value of Convertible Preferred Stock Warrant Liability



	June 30, 2017		December 31, 2016
Volatility	90	%	90	%
Expected Term (years)	2.67		3.17
Expected dividend yield	—	%	—	%
Risk-free rate	1.49	%	1.51	%

Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2017

Equity [Abstract]

Summary of Stock Based Compensation Expense

Stock compensation expense (in thousands) was allocated between departments as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Research & Development	$	61	$	41	$	97	$	74
Sales & Marketing	—		43		6		11
General & Administrative	382		134		525		269
Total	$	443	$	218	$	628	$	354

Schedule of Fair Value of Award Granted Using Black-Scholes Option Pricing Model



	Three Months Ended June 30,		Six Months Ended June 30,
	2017	2016	2017	2016
Expected life (years)	5.78-6.08	5.5-10	5.5-6.08	5.5-6.08
Risk-free interest rate	1.9%-2.1%	1.3%-1.7%	1.9%-2.2%	1.3%-1.8%
Volatility	69%	65% - 73%	61%-69%	65% - 76%
Dividend rate	—%	—%	—%	—%

Summary of Stock Option Transactions

The following table summarizes stock option transactions for the six months ended June 30, 2017 as issued under the Plans:



	Shares Available for Grant		Number of Options Outstanding		Weighted-Average Exercise Price per Share		Weighted Average Remaining Contractual Term
	Shares Available for Grant		Number of Options Outstanding		Weighted-Average Exercise Price per Share		(in years)

Balance at January 1, 2017	958,856		2,908,430		$	3.42	8.48
Additional shares authorized	671,478		—
Amendment to plan to authorize additional shares	8,929,188		—
Options granted	(3,113,777	)	3,113,777		0.61
Options exercised	—		—
Options canceled/forfeited	108,191		(108,191	)	3.49
Balance at June 30, 2017	7,553,936		5,914,016		1.94		8.98

Options vested at June 30, 2017			2,503,001		$	2.91	8.37
Options vested and expected to vest at June 30, 2017			5,914,016		$	1.94	8.98

Net loss per share (Tables)

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

Schedule of Potentially Dilutive Securities Outstanding Excluded from Computations of Diluted Weighted-Average Shares Outstanding



	As of June 30
	2017	2016
Series A Convertible preferred stock	—	4,505,405
Series B Convertible preferred stock	12,179,000	—
Warrants issued to 2010/2012 convertible note holders to purchase common stock	510,350	510,350
Options to purchase common stock	5,914,016	3,036,979
Warrants issued in 2009 to purchase common stock	9,259	9,259
Warrants issued to underwriter to purchase common stock	82,500	82,500
Series A Warrants to purchase common stock	2,425,605	2,425,605
Series C Warrants to purchase common stock	590,415	590,415
Series D Warrants to purchase common stock	2,930,812	2,810,812
Total	24,641,957	13,971,325

Essentialis, Inc. Acquisition (Tables)

6 Months Ended

Jun. 30, 2017

Business Combinations [Abstract]

Schedule of Purchase Price Consideration

The aggregate purchase price consideration was as follows:



Fair value of stock consideration	$	18,785,926
Fair value of contingent consideration	1,090,125
Total purchase price consideration	$	19,876,051

The fair value of the asset acquired is as follows:



Patents	19,876,051
Net Assets Acquired	$	19,876,051

Pro Forma Information

The unaudited pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of fiscal 2016 or 2017.



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Pro forma total revenue	$	376		$	390		$	641		$	837
Pro forma net loss	$	(4,422	)	$	(4,150	)	$	(8,202	)	$	(7,964	)
Pro forma net loss per share - basic and diluted	$	(0.08	)	$	(0.12	)	$	(0.12	)	$	(0.18	)
Proforma weighted-average shares - basic and diluted	53,855,669			35,070,296			69,363,153			44,496,176

Liquidity, Financial Condition and Management's Plans - Additional Information (Detail) - USD ($)				3 Months Ended		6 Months Ended
	Jul. 18, 2017	Mar. 07, 2017	Jan. 27, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Liquidity And Managements Plans [Line Items]
Net loss				$ (3,966,000)	$ (3,513,000)	$ (6,856,000)	$ (6,702,000)
Accumulated deficit				105,167,000		105,167,000		$ 98,312,000
Positive (deficit) in working capital				$ 6,700,000		6,700,000
Net cash used in continuing operating activities						(3,519,000)	(5,953,000)
Shares issued for an investment (in shares)		8,333,333
Proceeds from issuance of common stock						$ 10,000,000	$ 70,000
Aspire Capital Fund, LLC [Member]
Liquidity And Managements Plans [Line Items]
Maximum commitment under stock purchase agreement			$ 17,000,000
Agreement term			30 months
Shares issued during period (in shares)		2,083,333	708,333
Proceeds from issuance of common stock		$ 2,000,000	$ 2,000,000
Essentialis, Inc. [Member]
Liquidity And Managements Plans [Line Items]
Proceeds from issuance of common stock		$ 8,000,000
Subsequent Event [Member] \| NeoForce Holdings Inc. [Member]
Liquidity And Managements Plans [Line Items]
Proceeds from the sale of business	$ 720,000

Summary of Significant Accounting Policies - Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Raw materials	$ 27	$ 0
Work-in-process	9	0
Finished goods	128	0
Total inventory	$ 164	$ 0

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2017 USD ($)
Accounting Policies [Abstract]
Write-down of inventory	$ 40
Minimum [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Intangible assets estimated useful lives	5 years
Maximum [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Intangible assets estimated useful lives	12 years

Fair Value of Financial Instruments - Summary of Financial Instruments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016
Series A Warrant Liability [Member]
Liabilities
Warrant liability	$ 415	$ 194	$ 631
Series C Warrant Liability [Member]
Liabilities
Warrant liability	24	86	$ 193
Fair Value, Measurements, Recurring [Member]
Liabilities
Warrant liability	439	280
Fair Value, Measurements, Recurring [Member] \| Convertible preferred stock warrant liability [Member] \| Series A Warrant Liability [Member]
Liabilities
Warrant liability	415	194
Fair Value, Measurements, Recurring [Member] \| Convertible preferred stock warrant liability [Member] \| Series C Warrant Liability [Member]
Liabilities
Warrant liability	24	86
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member]
Liabilities
Warrant liability	415	194
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member] \| Convertible preferred stock warrant liability [Member] \| Series A Warrant Liability [Member]
Liabilities
Warrant liability	415	194
Fair Value, Measurements, Recurring [Member] \| Level 3 [Member]
Liabilities
Warrant liability	24	86
Fair Value, Measurements, Recurring [Member] \| Level 3 [Member] \| Convertible preferred stock warrant liability [Member] \| Series C Warrant Liability [Member]
Liabilities
Warrant liability	$ 24	$ 86

Fair Value of Financial Instruments - Summary of Changes in Fair Value of Level1 and Level 3 Financial Instruments (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2017 USD ($) shares
Series A Warrant [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at the end of period, in shares \| shares	2,425,605
Common stock warrant liability [Member] \| Series A Warrant [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at the beginning of period, in shares \| shares	2,425,605
Balance at the beginning of period	$ 194
Change in value of Warrant	$ 221
Balance at the end of period, in shares \| shares	2,425,605
Balance at end of period	$ 415
Common stock warrant liability [Member] \| Series C Warrant [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at the beginning of period, in shares \| shares	590,415
Balance at the beginning of period	$ 86
Change in value of Warrant	$ (62)
Balance at the end of period, in shares \| shares	590,415
Balance at end of period	$ 24

Fair Value of Financial Instruments - Additional Information (Details) - USD ($)				6 Months Ended	12 Months Ended
	Mar. 07, 2017	Jan. 13, 2016	Sep. 02, 2015	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration liability	$ 1,100,000
Money market funds				$ 7,300,000	$ 2,600,000
Redwood City, California [Member] \| Level 3 [Member] \| Sublease of Excess Space [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value inputs, discount rate		20.00%
Essentialis, Inc. [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration liability	$ 1,100,000
NeoForce, Inc [Member] \| NeoForce Group, Inc. [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of royalty			$ 153,000	$ 140,000	$ 153,000
Fair value inputs, discount rate				20.00%
Development Milestone [Member] \| Essentialis, Inc. [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Probability of development success rate (percent)	15.30%
Revenue milestone in 2023				$ 100,000,000
Revenue milestone in 2025				$ 200,000,000

Discontinued Operations and Assets Held for Sale - Balance Sheet Components of Discontinued Operations (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets
Current assets held for sale	$ 2,323	$ 790
Long-term assets
Long-term assets held for sale	0	1,584
Current liabilities
Total current liabilities for sale	214	246
Long-term liabilities
Long-term liabilities held for sale	0	81
CoSense and NFI [Member] \| Discontinued Operations, Held-for-sale [Member]
Current assets
Accounts receivable	153	130
Inventory	652	660
Property & equipment, net	32	0
Goodwill	718	0
Other intangible assets	768	0
Current assets held for sale	2,323	790
Long-term assets
Property & equipment, net	0	48
Goodwill	0	718
Other intangible assets	0	818
Long-term assets held for sale	0	1,584
Current liabilities
Accounts payable	48	127
Accrued compensation and other current liabilities	135	119
Other long-term liabilities	31	0
Total current liabilities for sale	214	246
Long-term liabilities
Other long-term liabilities	0	81
Long-term liabilities held for sale	$ 0	$ 81

Discontinued Operations and Assets Held for Sale - Components of Income of Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Expenses
Loss from discontinued operations	$ (727)	$ (1,146)	$ (1,370)	$ (2,362)
CoSense and NFI [Member] \| Discontinued Operations, Held-for-sale [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Product revenue	375	389	637	835
Cost of product revenue	281	377	489	820
Gross profit (loss)	94	12	148	15
Expenses
Research and development	452	669	914	1,476
Sales and marketing	93	410	180	752
General and administrative	252	87	395	176
Total expenses	797	1,166	1,489	2,404
Operating loss	(703)	(1,154)	(1,341)	(2,389)
Other income		8		27
Other expense	(24)		(29)
Loss from discontinued operations	$ (727)	$ (1,146)	$ (1,370)	$ (2,362)

Warrant Liabilities - Additional Information (Detail) - USD ($)		1 Months Ended	3 Months Ended		6 Months Ended
	Mar. 05, 2015	Jul. 31, 2015	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Apr. 30, 2015
Class of Warrant or Right [Line Items]
Aggregate VWAP (percent)					1.00%
(Increase) decrease in the fair value of warrants liabilities			$ (32,000)	$ (56,000)	$ (101,000)	$ 1,095,000
Proceeds from issuance of common stock under tender offer					$ 10,000,000	70,000
Series A Warrants to Purchase Shares of Common Stock [Member] \| IPO [Member]
Class of Warrant or Right [Line Items]
Number of common stock purchased upon issuance of warrants (in shares)			2,449,605		2,449,605
Exercise price of warrants exercised (in dollars per share)			$ 6.50		$ 6.50
Warrants term					5 years
Series A Warrant Liability [Member]
Class of Warrant or Right [Line Items]
Warrants exercised (in shares)			24,000		24,000
Warrants outstanding (in shares)			2,425,605		2,425,605
Warrant liability			$ 415,000	631,000	$ 415,000	631,000	$ 194,000
(Increase) decrease in the fair value of warrants liabilities			$ (123,000)	(73,000)	$ (220,000)	582,000
Series B Warrant Liability [Member]
Class of Warrant or Right [Line Items]
Exercise price of warrants exercised (in dollars per share)	$ 6.50
Warrants exercised (in shares)	589,510
De-recognition of warrant liability	$ 6,700,000
Gross proceeds upon exercise of warrants	$ 3,800,000
Series C Warrant Liability [Member]
Class of Warrant or Right [Line Items]
Number of common stock purchased upon issuance of warrants (in shares)			590,415		590,415
Exercise price of warrants exercised (in dollars per share)	$ 6.25							$ 6.25
Warrant liability			$ 24,000	193,000	$ 24,000	193,000	$ 86,000
(Increase) decrease in the fair value of warrants liabilities			$ (34,000)	$ 25,000	$ (62,000)	$ 269,000
Warrants cashless exercised (in shares)		905
Proceeds from issuance of common stock under tender offer		$ 5,882
Series C Warrant Liability [Member] \| Common Stock [Member]
Class of Warrant or Right [Line Items]
Issuance of shares upon cashless exercise warrants (in shares)		905

Warrant Liabilities - Fair Value of Convertible Preferred Stock Warrant Liability (Detail) - Series C Warrant [Member]	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Volatility	90.00%	90.00%
Expected Term	2 years 8 months 1 day	3 years 2 months 1 day
Expected dividend yield	0.00%	0.00%
Risk-free rate	1.49%	1.51%

Common Stock Purchase Agreement (Details) - USD ($) $ / shares in Units, $ in Thousands			6 Months Ended
	Mar. 07, 2017	Jan. 27, 2017	Jun. 30, 2017	Jun. 30, 2016
Class of Stock [Line Items]
Stock sold price per share (in dollars per share)	$ 0.96
Proceeds from issuance of common stock			$ 10,000	$ 70
Aspire Capital Fund, LLC [Member]
Class of Stock [Line Items]
Maximum commitment under stock purchase agreement		$ 17,000
Agreement term		30 months
Shares issued during period (in shares)	2,083,333	708,333
Stock sold price per share (in dollars per share)	$ 0.96
Proceeds from issuance of common stock	$ 2,000	$ 2,000

Commitments and Contingencies - Additional Information (Detail)					3 Months Ended		6 Months Ended	12 Months Ended
	Mar. 01, 2016 ft²	Sep. 02, 2015 USD ($)	Jul. 01, 2015 USD ($) ft²	Feb. 02, 2015 USD ($)	Mar. 31, 2017 USD ($)	Mar. 31, 2016 USD ($)	Jun. 30, 2017 USD ($) ft²	Dec. 31, 2016 USD ($)	Mar. 07, 2017 USD ($)
Loss Contingencies [Line Items]
Non-cancelable operating lease agreement term			4 years
Area of real estate property (in sqft) \| ft²			8,171
Future minimum commitment under non-cancelable operating lease			$ 23,300	$ 22,000
Term of increases to monthly payments			3 years	2 years
Additional area of office space for headquarters facility \| ft²	5,265
Rent expense					$ 343,000	$ 325,000
Contingent consideration liability									$ 1,100,000
Long-term contingent consideration liability									1,100,000
Ivyland, Pennsylvania [Member]
Loss Contingencies [Line Items]
Area of real estate property (in sqft) \| ft²							2,100
NeoForce Group, Inc. [Member] \| NeoForce, Inc [Member]
Loss Contingencies [Line Items]
Royalty payment period							36 months
Fair value of royalty		$ 153,000					$ 140,000	$ 153,000
Noncurrent fair value of royalty							$ 29,000
Essentialis, Inc. [Member]
Loss Contingencies [Line Items]
Contingent consideration liability									1,100,000
Earnout Payments [Member] \| Essentialis, Inc. [Member]
Loss Contingencies [Line Items]
Contingent consideration									$ 30,000,000

Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands				3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 07, 2017	Jan. 27, 2017	Jun. 29, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Jun. 28, 2016	Oct. 12, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Convertible preferred stock, shares authorized				10,000,000		10,000,000		10,000,000
Convertible preferred stock, par value (in dollars per share)				$ 0.001		$ 0.001		$ 0.001
Shares issued for acquisitions (in shares)	18,916,940
Shares issued for an investment (in shares)	8,333,333
Stock sold price per share (in dollars per share)	$ 0.96
Proceeds from issuance of common stock						$ 10,000	$ 70
Stock-based compensation expense				$ 443	$ 218	$ 628	354
Weighted average grant date fair value per option granted (in dollars per share)						$ 0.61		$ 0.81
Future stock-based compensation for unvested employee options granted and outstanding				2,000		$ 2,000
Stock options outstanding, intrinsic value				$ 0		$ 0
Liquidated damages amount percent of VWAP (percent)						1.00%
Warrants Issued in 2009 to Purchase Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price of warrants (in dollars per share)				$ 21.60		$ 21.60
Warrants outstanding (in shares)				9,259		9,259
Warrants term						10 years
Series D Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price of warrants (in dollars per share)			$ 1.75						$ 2.46
Warrants outstanding (in shares)										2,810,812
Liquidated damages amount percent of VWAP (percent)						1.00%
Warrants term			5 years
Warrants to Purchase Stock [Member] \| 2010 and 2012 Convertible Promissory Notes [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price of warrants (in dollars per share)				$ 4.87		$ 4.87
Warrants outstanding (in shares)				510,350		510,350
Warrants term						10 years
Underwriter [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price of warrants (in dollars per share)				$ 7.14		$ 7.14
Warrants outstanding (in shares)				82,500		82,500
Warrants term						10 years
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant				139,839		139,839
Percentage of outstanding stock maximum						1.00%
Additional shares authorized (in shares)						279,680
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ownership interest of voting rights of all classes of stock (percent)				10.00%		10.00%
NSO [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of fair market value						85.00%
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						4 years
Income tax benefit from stock compensation expense						$ 0	$ 0
Number of options granted (in shares)						3,113,777
Future stock-based compensation, requisite service period						3 years
Number of shares available for grant				7,553,936		7,553,936		958,856
Additional shares authorized (in shares)						671,478
Stock Options [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of fair market value						110.00%
Stock Options [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual term of option						10 years
ISOs [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual term of option						5 years
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued upon conversion (in shares)				601,000
Series B Convertible Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Convertible preferred stock, shares issued				12,179		12,179		12,780
Number of shares converted (in shares)				601
Convertible preferred stock, shares outstanding				12,179		12,179		12,780
Sabby Management, LLC [Member] \| Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ownership interest (percent)				4.99%		4.99%
2015 Sabby Purchase Agreement [Member] \| Series D Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price of warrants (in dollars per share)										$ 2.46
2016 Sabby Purchase Agreement [Member] \| Series D Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants outstanding (in shares)			2,702,704
2016 Sabby Purchase Agreement [Member] \| Series B Convertible Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Convertible preferred stock, shares issued				13,780		13,780
Convertible preferred stock, par value (in dollars per share)				$ 0.001		$ 0.001
Convertible preferred stock, stated value (in dollars per share)				$ 1,000		$ 1,000
Aspire Capital Fund, LLC [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock sold price per share (in dollars per share)	$ 0.96
Proceeds from issuance of common stock	$ 2,000	$ 2,000
Shares issued during period (in shares)	2,083,333	708,333
Maxim Group Llc [Member] \| 2016 Sabby Purchase Agreement [Member] \| Series D Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price of warrants (in dollars per share)			$ 1.75						$ 2.46
Warrants outstanding (in shares)			120,000							108,108
Warrants term			5 years
Essentialis, Inc. [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from issuance of common stock	$ 8,000
Indemnification Claims [Member] \| Essentialis, Inc. [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued for acquisitions (in shares)	913,379
Development Milestone [Member] \| Essentialis, Inc. [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued for acquisitions (in shares)	4,566,948

Stockholders' Equity - Summary of Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock compensation expense	$ 443	$ 218	$ 628	$ 354
Research & Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock compensation expense	61	41	97	74
Sales & Marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock compensation expense	0	43	6	11
General & Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock compensation expense	$ 382	$ 134	$ 525	$ 269

Stockholders' Equity - Schedule of Fair Value of Award Granted Using Black-Scholes Option Pricing Model (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility	69.00%
Dividend rate	0.00%	0.00%	0.00%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life (years)	5 years 9 months 11 days	5 years 6 months	5 years 6 months	5 years 6 months
Risk-free interest rate	1.90%	1.30%	1.90%	1.30%
Volatility		65.00%	61.00%	65.00%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life (years)	6 years 29 days	10 years	6 years 29 days	6 years 29 days
Risk-free interest rate	2.10%	1.70%	2.20%	1.80%
Volatility		73.00%	69.00%	76.00%
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend rate			0.00%

Stockholders' Equity - Summary of Stock Option Transactions (Detail) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Shares Available for Grant
Options Available, Amendment to plan to authorize additional shares	8,929,188
Stock Options [Member]
Shares Available for Grant
Options Available, Beginning balance	958,856
Options Available, Additional shares authorized	671,478
Options Available, Granted	(3,113,777)
Options Available, Exercised	0
Options Available, Canceled/Forfeited	108,191
Options Available, Ending balance	7,553,936	958,856
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Beginning balance	2,908,430
Options granted	3,113,777
Options canceled/forfeited	(108,191)
Ending balance	5,914,016	2,908,430
Weighted-Average Exercise Price per Share
Beginning balance (in dollars per share)	$ 3.42
Options granted (in dollars per share)	0.61
Options canceled/forfeited (in dollars per share)	3.49
Ending balance (in dollars per share)	$ 1.94	$ 3.42
Weighted Average Remaining Contractual Term
Options outstanding at end of period	8 years 11 months 23 days	8 years 5 months 23 days
Options vested at end of period	8 years 4 months 13 days
Options vested and expected to vest at end of period	8 years 11 months 23 days
Options vested at end of period (shares)	2,503,001
Options vested at end of period (in dollars per share)	$ 2.91
Options vested and expected to vest at end of period (shares)	5,914,016
Options vested and expected to vest at end of period (in dollars per share)	$ 1.94

Net loss per share - Schedule of Potentially Dilutive Securities Outstanding Excluded from Computations of Diluted Weighted-Average Shares Outstanding (Detail) - shares	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computations of diluted weighted-average shares outstanding	24,641,957	13,971,325
Underwriter [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computations of diluted weighted-average shares outstanding	82,500	82,500
Series A Warrants to Purchase Shares of Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computations of diluted weighted-average shares outstanding	2,425,605	2,425,605
Series C Warrant to Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computations of diluted weighted-average shares outstanding	590,415	590,415
Series D Warrant To Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computations of diluted weighted-average shares outstanding	2,930,812	2,810,812
Warrants Issued to 2010/2012 Convertible Note Holders to Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computations of diluted weighted-average shares outstanding	510,350	510,350
Options to Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computations of diluted weighted-average shares outstanding	5,914,016	3,036,979
Warrants Issued in 2009 to Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computations of diluted weighted-average shares outstanding	9,259	9,259
Series A Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computations of diluted weighted-average shares outstanding	0	4,505,405
Series B Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computations of diluted weighted-average shares outstanding	12,179,000	0
Development Milestone [Member] \| Essentialis, Inc. [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Effect of contingently issuable shares	913,379
Indemnification Claims [Member] \| Essentialis, Inc. [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Effect of contingently issuable shares	4,566,948

Essentialis, Inc. Acquisition - Additional Information (Details) - USD ($)	Mar. 07, 2017	Jun. 30, 2017
Business Acquisition [Line Items]
Share price (in usd per share)	$ 0.77
Essentialis, Inc. [Member]
Business Acquisition [Line Items]
Shares issued in acquisition (in shares)	18,916,940
Essentialis, Inc. [Member] \| Patents [Member]
Business Acquisition [Line Items]
Capitalized costs	$ 573,000
Legal fees	469,000
Printing fees	75,000
Accounting and other fees	29,000
Total intangible asset	$ 20,400,000
Essentialis, Inc. [Member] \| Indemnification Claims [Member]
Business Acquisition [Line Items]
Shares issued in acquisition (in shares)	913,379
Essentialis, Inc. [Member] \| Development Milestone [Member]
Business Acquisition [Line Items]
Shares issued in acquisition (in shares)	4,566,948
Probability of development success rate (percent)	15.30%
Revenue milestone in 2023		$ 100,000,000
Revenue milestone in 2025		$ 200,000,000
Essentialis, Inc. [Member] \| Earnout Payments [Member]
Business Acquisition [Line Items]
Contingent consideration	$ 30,000,000
Essentialis, Inc. [Member] \| Revenue Milestone One [Member]
Business Acquisition [Line Items]
WACC discount rate (percent)	30.00%
Essentialis, Inc. [Member] \| Revenue Milestone Two [Member]
Business Acquisition [Line Items]
WACC discount rate (percent)	21.00%

Essentialis, Inc. Acquisition - Purchase Price Consideration (Details) - Essentialis, Inc. [Member]	Mar. 07, 2017 USD ($)
Business Acquisition [Line Items]
Fair value of stock consideration	$ 18,785,926
Fair value of contingent consideration	1,090,125
Total purchase price consideration	19,876,051
Net Assets Acquired	19,876,051
Patents [Member]
Business Acquisition [Line Items]
Finite-lived intangible assets	$ 19,876,051

Essentialis, Inc. Acquisition - Pro Forma Information (Details) - Essentialis, Inc. [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Business Acquisition [Line Items]
Pro forma total revenue	$ 376	$ 390	$ 641	$ 837
Pro forma net loss	$ (4,422)	$ (4,150)	$ (8,202)	$ (7,964)
Pro forma net loss per share - basic and diluted (in usd per share)	$ (0.08)	$ (0.12)	$ (0.12)	$ (0.18)
Proforma weighted-average shares - basic and diluted (in shares)	53,855,669	35,070,296	69,363,153	44,496,176

Compensation Plan for Board Members (Details)	6 Months Ended
Compensation Plan for Board Members (Details)	Jun. 30, 2017 shares
Board Members [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Issuance of common stock to board members in lieu of cash payments for quarterly board fees (shares)	157,756

Shareholder Lawsuit (Details) $ in Thousands	12 Months Ended
Shareholder Lawsuit (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Garfield vs Capnia, Inc. [Member] \| Settled Litigation [Member]
Loss Contingencies [Line Items]
Professional fees	$ 175

Subsequent Events (Details)			3 Months Ended
Subsequent Events (Details)	Jul. 25, 2017 fund shares	Jul. 18, 2017 USD ($)	Jun. 30, 2017 shares
Series B Convertible Preferred Stock [Member]
Subsequent Event [Line Items]
Number of shares converted (in shares)			601
Common Stock [Member]
Subsequent Event [Line Items]
Number of shares issued upon conversion (in shares)			601,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Number of funds managed \| fund	2
Subsequent Event [Member] \| NeoForce Holdings Inc. [Member]
Subsequent Event [Line Items]
Proceeds from the sale of business \| $		$ 720,000
Subsequent Event [Member] \| Series B Convertible Preferred Stock [Member]
Subsequent Event [Line Items]
Number of shares converted (in shares)	200
Subsequent Event [Member] \| Common Stock [Member]
Subsequent Event [Line Items]
Number of shares issued upon conversion (in shares)	200,000