Cash, Cash Equivalents, and Marketable Securities [Text Block]

Note 2.

Cash

Cash Equivalents

and

Marketable

Investments

The Company invests its cash primarily in money market funds, commercial paper, corporate notes and bonds, municipal bonds, and debt securities issued by the U.S. government and its agencies. The Company considers all highly liquid investments, with an original maturity of three months or less at the time of purchase, to be cash equivalents. Investments with maturities of greater than three months at the time of purchase are accounted for as “available-for-sale

,” are carried at fair value with unrealized gains and losses reported as a component of stockholders’ equity, are held for use in current operations and are classified in current assets as “marketable investments

.”

The following tables summarize the components, and the unrealized gains and losses position, related to the Company’s cash, cash equivalents and marketable investments (in thousands):

September 30, 2016	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents:
Cash	$	8,540	$	—	$	—		$	8,540
Money market funds		35		—		—			35
Commercial paper		2,700		—		—			2,700
Total cash and cash equivalents		11,275		—		—			11,275

Marketable investments:
U.S. government notes		9,670		12		—			9,682
U.S. government agencies		3,912		—		—			3,912
Municipal securities		2,753		2		—			2,755
Commercial paper		7,475		3		(1	)		7,477
Corporate debt securities		11,282		4		(4	)		11,282
Total marketable investments		35,092		21		(5	)		35,108

Total cash, cash equivalents and marketable investments	$	46,367	$	21	$	(5	)	$	46,383

December 31, 2015	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents:
Cash	$	9,830	$	—	$	—		$	9,830
Money market funds		1,000		—		—			1,000
Commercial paper		38		—		—			38
Total cash and cash equivalents		10,868		—		—			10,868

Marketable investments:
U.S. government notes		7,780		1		(2	)		7,779
U.S. government agencies		12,630		3		(25	)		12,608
Municipal securities		4,344		2		—			4,346
Commercial paper		4,041		1		(2	)		4,040
Corporate debt securities		8,783		—		(17	)		8,766
Total marketable investments		37,578		7		(46	)		37,539

Total cash, cash equivalents and marketable investments	$	48,446	$	7	$	(46	)	$	48,407

As of September 30, 2016 and December 31, 2015, total gross unrealized losses were $5

,000 and $46,000, respectively, and were related to interest rate changes on available-for-sale marketable investments. The Company has concluded that it is more-likely-than-not that the securities will be held until maturity or the recovery of their cost basis. No securities were in an unrealized loss position for more than 12 months

The following table summarizes the contractual maturities of the Company’s available-for-sale securities, classified as marketable investments as of September 30, 2016 (in thousands):

	Amount
Due in less than one year	$	28,414
Due in 1 to 3 years		6,694
Total marketable investments	$	35,108

Note 3 - Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Text Block]

Note 3.

Fair Value of Financial Instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources

(observable inputs)

and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (

unobservable inputs

). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities

(Level 1)

and the lowest priority to unobservable inputs

(Level 3).

The three levels of the fair value hierarchy are described below:

●

Level 1:

Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities.

●

Level 2:

Directly or indirectly observable inputs as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument.

●

Level 3:

Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value.

As of September 30, 2016, financial assets measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy as described above were as follows (in thousands):

September 30, 2016	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	35	$	—	$	—	$	35
Commercial paper		—		2,700		—		2,700
Marketable investments:
Available-for-sale securities		—		35,108		—		35,108
Total assets at fair value	$	35	$	37,808	$	—	$	37,843

As of December 31, 2015, financial assets measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy as described above was as follows (in thousands):

December 31, 2015	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	1,000	$	—	$	—	$	1,000
Commercial paper		—		38		—		38
Marketable investments:
Available-for-sale securities		—		37,539		—		37,539
Total assets at fair value	$	1,000	$	37,577	$	—	$	38,577

The Company’s Level 2 investments include U.S. government-backed securities and corporate securities that are valued based upon observable inputs that may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including market research publications. The weighted average remaining maturity of the Company’s Level 2 investments as of September 30, 2016 is less than 1 year and all of these investments are rated by S&P and Moody’s at A or better

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.

Note 5 - Warranty

9 Months Ended

Sep. 30, 2016

Product Warranty Disclosure [Text Block]

Note 5. Warranty

The Company provides a standard one-year warranty on all systems

. For direct sales to end customers, warranty coverage provided is for labor and parts necessary to repair the systems during the warranty period. For sales to distributors, we provide a 14 to 16 month warranty for parts only. The distributor provides the labor to their end customer.

The Company has a direct field service organization in the U.S. Internationally, the Company provides direct service support through its wholly-owned subsidiaries in Australia, Belgium, Canada, France

, Hong Kong, Spain, Japan

, Switzerland and the United Kingdom. In several other countries where it does not have a direct presence, the Company provides service through a network of distributors and third-party service providers.

After the original warranty period, maintenance and support are offered on a service contract basis or on a time and materials basis. The Company provides for the estimated cost to repair or replace products under warranty at the time of sale. The following table provides the changes in the product warranty accrual for the three and nine months ended September 30, 2016 and 2015 (in thousands):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
Beginning Balance	$	2,000		$	1,254		$	1,819		$	1,167
Add: Accruals for warranties issued during the period		1,202			1,122			3,634			2,674
Less: Settlements made during the period		(1,102	)		(979	)		(3,353	)		(2,444	)
Ending Balance	$	2,100		$	1,397		$	2,100		$	1,397

Note 6 - Deferred Service Contract Revenue

9 Months Ended

Sep. 30, 2016

Deferred Revenue Disclosure [Text Block]

Note 6. Deferred Service Contract Revenue

The Company generates Service revenue from the sale of extended service contracts and from time and material services provided to customers who are not under a warranty or extended service contract. Service contract revenue is recognized on a straight-line basis over the period of the applicable contract. Service revenue, from customers whose systems are not under a service contract, is recognized as the services are provided.

The following table provides changes in the deferred service contract revenue balance for the three and nine months ended September 30, 2016 and 2015 (in thousands):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
Beginning Balance	$	10,223		$	11,546		$	10,469		$	12,949
Add: Payments received		2,517			2,331			8,825			7,383
Less: Revenue recognized		(3,447	)		(3,199	)		(10,001	)		(9,654	)
Ending Balance	$	9,293		$	10,678		$	9,293		$	10,678

Costs for extended service contracts were $1.7 million and $1.5 million for the three months ended September 30, 2016 and 2015, respectively, and $4.9 million and $4.6 million for the nine months ended September 30, 2016 and 2015, respectively.

The entire disclosure for deferred revenues at the end of the reporting period, and description and amounts of significant changes that occurred during the reporting period. Deferred revenue is a liability as of the balance sheet date related to a revenue producing activity for which revenue has not yet been recognized. Generally, an entity records deferred revenue when it receives consideration from a customer before achieving certain criteria that must be met for revenue to be recognized in conformity with GAAP.

Note 7 - Stockholders' Equity and Stock-based Compensation Expense

9 Months Ended

Sep. 30, 2016

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

Note 7. Stockholders’ Equity and Stock-based Compensation Expense

Share Repurchase Program

On February 8, 2016, the Company announced that its Board of Directors approved the expansion of its Stock Repurchase Program by $10 million, under which the Company is authorized to repurchase shares of its common stock.

In the three months ended September 3

0, 2016, the Company repurchased 176,493 shares of its common stock for approximately $1.9 million

. In the nine months ended September 3

0, 2016, the Company repurchased 455,311 shares of its common stock for approximately $4.9 million

. As of September 30, 2016, there remained an additional $5.1 million available in the Stock Repurchase Program to repurchase shares of common stock. All shares repurchased were retired and returned to authorized but unissued status.

Stock-based Compensation Expense

Stock-based compensation expense by department recognized during the three and nine months ended September 30, 2016 and 2015 were as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Cost of revenue	$	73	$	112	$	254	$	329
Sales and marketing		239		311		844		727
Research and development		131		148		416		510
General and administrative		127		473		1,138		1,421
Total stock-based compensation expense	$	570	$	1,044	$	2,652	$	2,987

Activity under the Company’s 2004 Equity Incentive Plan, as amended, is summarized as follows:

				Options Outstanding
	Shares Available for Grant			Number of Stock Options Outstanding			Weighted- Average Exercise Price
Balance, December 31, 2015		1,263,425			2,148,797		$	9.31
Options granted		(141,500	)		141,500			11.28
Stock awards granted ( 1) (2)		(925,675	)		—			—
Options exercised		—			(706,522	)		9.05
Options canceled		122,373			(122,373	)		13.19
Stock awards canceled ( 1)		493,858			—			—
Balance, September 30, 2016		812,481			1,461,402		$	9.29

(1)

The Company has a “fungible share” provision in its 2004 Equity Incentive Plan whereby for each full-value award (RSU/PSU) issued or canceled under the Plan requires the subtraction or add back of 2.12 shares from or to the Shares Available for Grant, respectively.

(2)

Included in 'Stock awards granted' of

925,675

, was

416,474

fungible shares relating to

196,450

of PSUs granted. These PSUs will result in a higher or lower number of shares of common stock that may

be released

on March 15, 201

, based on the achievement of three performance goals at targets that were pre-determined by the Board and disclosed in a Form 8-K on

February

, 201

Under the 2004 Equity Incentive Plan, as amended, the Company issued 425,838 shares and 876,387 shares of common stock during the three and nine months ended September 30, 2016

, respectively, in conjunction with stock options exercised and the vesting of RSUs and PSUs

As of September 30, 2016, there was approximately $3.4 million of unrecognized compensation expense, net of projected forfeitures, related to non-vested equity awards. The expense is expected to be recognized over the remaining weighted-average period of 1.85 years. The actual expense recorded in the future may be higher or lower based on a number of factors, including, actual forfeitures experienced and the degree of achievement of the performance goals related to the PSUs granted.

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

Note 8 - Net Loss Per Share

9 Months Ended

Sep. 30, 2016

Earnings Per Share [Text Block]

Note 8. Net

Income (

Loss

)

Per Share

Basic net income (loss) per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the year. Diluted net income (loss) per common share is the same as basic net income (loss) per common share, as the effect of the potential common stock equivalents is anti-dilutive and as such is excluded from the calculations of the diluted net loss per share.

The following numbers of shares outstanding, prior to the application of the treasury stock method, were excluded from the computation of diluted net income (loss) per common share for the periods presented because including them would have had an anti-dilutive effect (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	201 6		201 5		201 6		201 5
Options to purchase common stock		1,740		2,330		1,952		2,710
Restricted stock units		334		307		395		296
Performance stock units		64		—		81		96
Employee stock purchase plan shares		40		27		83		59
Total		2,178		2,664		2,511		3,161

Note 9 - Income Taxes	9 Months Ended
Note 9 - Income Taxes	Sep. 30, 2016
Notes to Financial Statements
Income Tax Disclosure [Text Block]	Note 9. Income Taxes The Company historically calculated the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate for the full fiscal year to “ordinary” income or loss (pretax income or loss excluding unusual or infrequently occurring discrete items) for the reporting period. When applicable, the year-to-date tax provision reflects adjustments from discrete tax items. However, for the fiscal three- and nine-month periods ended September 30, 2016, the Company used a discrete effective tax rate method to calculate the provision for income taxes. The Company determined that since small changes in estimated “ordinary” income would result in significant changes in the estimated annual effective tax rate, the historical method would not provide a reliable estimate for the fiscal three- and nine-month periods ended September 30, 2016. The Company’s income tax provision for the three and nine months ended September 3 0, 2016 and 2015 relates primarily to income taxes of the Company’s non-U.S. operations. The Company’s U.S. operation continue to be in a loss position and the Company maintains a 100% valuation allowance against its U.S. deferred tax assets. For the three and nine months ended September 3 0, 2016, the Company’s income tax provision was $61,000 and $115,000, compared to $57,000 and $160,000 for the same periods in 2015, respectively. The income tax provision includes certain discrete tax items recorded in the reporting periods . The Company utilizes the asset and liability method of accounting for income taxes, under which deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. As of September 30, 2016, and December 31, 2015, the Company had a 100% valuation allowance against its U.S. deferred tax assets. Significant management judgment is required in determining any valuation allowance recorded against deferred tax assets. In evaluating the ability to recover deferred tax assets, the Company considered available positive and negative evidence giving greater weight to its recent cumulative losses and lesser weight to its projected financial results due to the subjectivity involved in forecasting future periods. The Company also c onsidered, commensurate with its objective verifiability, the forecast of future taxable income including the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies.

Note 10 - Commitments and Contingencies	9 Months Ended
Note 10 - Commitments and Contingencies	Sep. 30, 2016
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	Note 10. Commitments and Contingencies The Company is named from time to time as a party to product liability, contractual lawsuits and other general corporate matters in the normal course of business. The Company routinely assesses the likelihood of any adverse judgments or outcomes related to legal matters and claims, as well as ranges of probable losses. A determination of the amount of the reserves required, if any, for these contingencies is made after analysis of each known issue, historical experience, whether it is more likely than not that the Company shall incur a loss, and whether the loss is estimable. The Company is not currently a party to any material legal proceedings.

Significant Accounting Policies (Policies)	9 Months Ended
Significant Accounting Policies (Policies)	Sep. 30, 2016
Accounting Policies [Abstract]
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block]	Description of Operations and Principles of Consolidation Cutera, Inc. (“Cutera” or the “Company”) is a global provider of laser and other energy-based aesthetic systems for practitioners worldwide. The Company designs, develops, manufactures, and markets laser and other energy-based product platforms for use by physicians and other qualified practitioners which enable them to offer safe and effective aesthetic treatments to their customers. The Company currently markets the following key system platforms: en lighten TM , excel HR TM , truSculpt TM , excel V TM , and xeo ® . The Company’s systems offer multiple hand pieces and applications, which allow customers to upgrade their systems. The sales of systems, system upgrades, hand pieces, hand piece refills (applicable to Titan ® and truSculpt ) and the distribution of third party manufactured skincare products are classified as “Products” revenue. In addition to Products revenue, the Company generates revenue from the sale of post-warranty service contracts, parts, detachable hand piece replacements (except for Titan and truSculpt ) and service labor for the repair and maintenance of products that are out of warranty, all of which is classified as “Service” revenue. Headquartered in Brisbane, California, the Company has wholly-owned subsidiaries that are currently operational in Australia, Belgium, Canada, France, Hong Kong, Japan , Spain , Switzerland and the United Kingdom. These subsidiaries market, sell and service the Company’s products outside of the United States. The Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All inter-company transactions and balances have been eliminated.
Unaudited Interim Financial Information [Policy Text Block]	Unaudited Interim Financial Information The interim financial information filed is unaudited. The Condensed Consolidated Financial Statements included in this report reflect all adjustments (consisting only of normal recurring adjustments) that the Company considers necessary for the fair statement of the results of operations for the interim periods covered and of the financial condition of the Company at the date of the interim balance sheet. The December 31, 2015 Condensed Consolidated Balance Sheet was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles in the United States of America (“GAAP”). The results for interim periods are not necessarily indicative of the results for the entire year or any other interim period. The Condensed Consolidated Financial Statements should be read in conjunction with the Company’s previously filed audited financial statements and the notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2015 filed with the Securities and Exchange Commission (the “SEC”) on March 15, 2016.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of interim Condensed Consolidated Financial Statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the amounts reported and disclosed in the Condensed Consolidated Financial Statements and the accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, the Company evaluates these estimates, including those related to revenue elements, warranty obligations, sales commissions, accounts receivable and sales allowances, provision for excess and obsolete inventories, fair values of marketable investments, fair values of acquired intangible assets, useful lives of intangible assets and property and equipment, fair values of performance stock units and options to purchase the Company’s stock, recoverability of deferred tax assets, legal matters and claims, and effective income tax rates, among others. Management bases these estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Improvements to Employee Share-Based Payment Accounting as part of its simplification initiative, which involves several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The changes required by this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is evaluating the impact the adoption of this standard will have on its Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, Leases . This guidance requires that lease arrangements longer than twelve months result in a lessee recognizing a lease asset and liability. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. This guidance is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. The Company is currently evaluating the impact of the updated guidance on its Consolidated Financial Statements.

Note 2 - Cash, Cash Equivalents and Marketable Investments (Tables)

9 Months Ended

Sep. 30, 2016

Unrealized Gain (Loss) on Investments [Table Text Block]

September 30, 2016	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents:
Cash	$	8,540	$	—	$	—		$	8,540
Money market funds		35		—		—			35
Commercial paper		2,700		—		—			2,700
Total cash and cash equivalents		11,275		—		—			11,275

Marketable investments:
U.S. government notes		9,670		12		—			9,682
U.S. government agencies		3,912		—		—			3,912
Municipal securities		2,753		2		—			2,755
Commercial paper		7,475		3		(1	)		7,477
Corporate debt securities		11,282		4		(4	)		11,282
Total marketable investments		35,092		21		(5	)		35,108

Total cash, cash equivalents and marketable investments	$	46,367	$	21	$	(5	)	$	46,383

December 31, 2015	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents:
Cash	$	9,830	$	—	$	—		$	9,830
Money market funds		1,000		—		—			1,000
Commercial paper		38		—		—			38
Total cash and cash equivalents		10,868		—		—			10,868

Marketable investments:
U.S. government notes		7,780		1		(2	)		7,779
U.S. government agencies		12,630		3		(25	)		12,608
Municipal securities		4,344		2		—			4,346
Commercial paper		4,041		1		(2	)		4,040
Corporate debt securities		8,783		—		(17	)		8,766
Total marketable investments		37,578		7		(46	)		37,539

Total cash, cash equivalents and marketable investments	$	48,446	$	7	$	(46	)	$	48,407

Investments Classified by Contractual Maturity Date [Table Text Block]

	Amount
Due in less than one year	$	28,414
Due in 1 to 3 years		6,694
Total marketable investments	$	35,108

Note 3 - Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]

September 30, 2016	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	35	$	—	$	—	$	35
Commercial paper		—		2,700		—		2,700
Marketable investments:
Available-for-sale securities		—		35,108		—		35,108
Total assets at fair value	$	35	$	37,808	$	—	$	37,843

December 31, 2015	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	1,000	$	—	$	—	$	1,000
Commercial paper		—		38		—		38
Marketable investments:
Available-for-sale securities		—		37,539		—		37,539
Total assets at fair value	$	1,000	$	37,577	$	—	$	38,577

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.

Note 4 - Balance Sheet Details (Tables)

9 Months Ended

Sep. 30, 2016

Schedule of Inventory, Current [Table Text Block]

	September 3 0 , 201 6		December 31, 201 5
Raw materials	$	10,889	$	7,982
Finished goods		5,589		4,096
Total	$	16,478	$	12,078

Schedule of Accrued Liabilities [Table Text Block]

	September 3 0 , 201 6		December 31, 201 5
Accrued payroll and related expenses	$	7,865	$	7,726
Warranty liability		2,100		1,819
Sales tax		1,735		1,935
Other		3,086		2,354
Total	$	14,786	$	13,834

Note 5 - Warranty (Tables)

9 Months Ended

Sep. 30, 2016

Schedule of Product Warranty Liability [Table Text Block]

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
Beginning Balance	$	2,000		$	1,254		$	1,819		$	1,167
Add: Accruals for warranties issued during the period		1,202			1,122			3,634			2,674
Less: Settlements made during the period		(1,102	)		(979	)		(3,353	)		(2,444	)
Ending Balance	$	2,100		$	1,397		$	2,100		$	1,397

Note 7 - Stockholders' Equity and Stock-based Compensation Expense (Tables)

9 Months Ended

Sep. 30, 2016