Polarityte (RGTPQ) 10-Q 12 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 08, 2019
Document And Entity Information
Entity Registrant Name	POLARITYTE, INC.
Entity Central Index Key	0001076682
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Reporting Status Current	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		26,985,630
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2019

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 27,273	$ 55,673
Short-term investments	18,675	6,162
Accounts receivable	1,593	712
Inventory	346	336
Prepaid expenses and other current assets	1,306	1,432
Total current assets	49,193	64,315
Property and equipment, net	15,662	13,736
Operating lease right-of-use assets	5,028
Intangible assets, net	778	924
Goodwill	278	278
Other assets	353	913
TOTAL ASSETS	71,292	80,166
Current liabilities:
Accounts payable and accrued expenses	10,233	6,508
Other current liabilities	2,582	316
Current portion of long-term note payable	538	529
Deferred revenue	134	170
Total current liabilities	13,487	7,523
Long-term note payable, net	247	479
Operating lease liabilities	3,358
Other long-term liabilities	1,808	131
Total liabilities	18,900	8,133
Commitments and Contingencies
STOCKHOLDERS' EQUITY:
Preferred stock - 25,000,000 shares authorized, 0 shares issued and outstanding at September 30, 2019 and December 31, 2018
Common stock - $.001 par value; 250,000,000 shares authorized; 26,932,764 and 21,447,088 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively	27	21
Additional paid-in capital	466,514	414,840
Accumulated other comprehensive income	63	36
Accumulated deficit	(414,212)	(342,864)
Total stockholders' equity	52,392	72,033
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 71,292	$ 80,166

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	26,932,764	21,447,088
Common stock, shares outstanding	26,932,764	21,447,088

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Net revenues
Total net revenues	$ 1,395	$ 725	$ 4,186	$ 1,048
Cost of sales
Total cost of sales	645	667	2,017	834
Gross profit	750	58	2,169	214
Operating costs and expenses
Research and development	2,956	4,111	13,072	12,598
General and administrative	16,044	15,135	48,299	33,998
Sales and marketing	4,988	1,618	12,922	1,618
Total operating costs and expenses	23,988	20,864	74,293	48,214
Operating loss	(23,238)	(20,806)	(72,124)	(48,000)
Other income (expenses)
Interest income, net	27	227	126	314
Other (expense) income, net	228		650
Change in fair value of derivatives				1,850
Loss on extinguishment of warrant liability				(520)
Net loss	(22,983)	(20,579)	(71,348)	(46,356)
Deemed dividend - accretion of discount on Series F preferred stock				(698)
Deemed dividend - exchange of Series F preferred stock				(7,057)
Cumulative dividends on Series F preferred stock				(191)
Net loss attributable to common stockholders	$ (22,983)	$ (20,579)	$ (71,348)	$ (54,302)
Net loss per share, basic and diluted:
Net loss	$ (0.87)	$ (0.97)	$ (2.94)	$ (2.80)
Deemed dividend - accretion of discount on Series F preferred stock				(0.04)
Deemed dividend - exchange of Series F preferred stock				(0.43)
Cumulative dividends on Series F preferred stock				(0.01)
Net loss attributable to common stockholders	$ (0.87)	$ (0.97)	$ (2.94)	$ (3.28)
Weighted average shares outstanding, basic and diluted:	26,405,307	21,154,661	24,273,774	16,535,419
Products [Member]
Net revenues
Total net revenues	$ 839	$ 197	$ 1,640	$ 389
Cost of sales
Total cost of sales	315	267	930	393
Services [Member]
Net revenues
Total net revenues	556	528	2,546	659
Cost of sales
Total cost of sales	$ 330	$ 400	$ 1,087	$ 441

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement of Comprehensive Income [Abstract]
Net loss	$ (22,983)	$ (20,579)	$ (71,348)	$ (46,356)
Other comprehensive income:
Unrealized (loss)/gain on available-for-sale securities	(16)		27
Comprehensive loss	$ (22,999)	$ (20,579)	$ (71,321)	$ (46,356)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2017	$ 109,104	$ 7	$ 157,395		$ (269,920)	$ (3,414)
Balance, shares at Dec. 31, 2017	1,656,838	7,082,836
Conversion of Series A preferred stock to common stock	$ (391)		391
Conversion of Series A preferred stock to common stock, shares	(1,602,099)	363,036
Conversion of Series B preferred stock to common stock	$ (4,020)	$ 1	4,019
Conversion of Series B preferred stock to common stock, shares	(47,689)	794,820
Conversion of Series E preferred stock to common stock	$ (104,693)	$ 7	104,686
Conversion of Series E preferred stock to common stock, shares	(7,050)	7,050,000
Exchange of Series F preferred stock and dividends to common stock		$ 1	13,060			13,061
Exchange of Series F preferred stock and dividends to common stock, shares		1,003,393
Extinguishment of warrant liability			3,045			3,045
Extinguishment of warrant liability, shares		151,871
Stock-based compensation expense			7,445			7,445
Stock-based compensation expense, shares
Deemed dividend - accretion of discount on Series F preferred stock			(698)			(698)
Cumulative dividends on Series F preferred stock			(191)			(191)
Series F preferred stock dividends paid in common stock			306			306
Series F preferred stock dividends paid in common stock, shares		11,708
Net loss					(11,777)	(11,777)
Balance at Mar. 31, 2018		$ 16	289,458		(281,697)	7,777
Balance, shares at Mar. 31, 2018		16,457,664
Balance at Dec. 31, 2017	$ 109,104	$ 7	157,395		(269,920)	(3,414)
Balance, shares at Dec. 31, 2017	1,656,838	7,082,836
Deemed dividend - accretion of discount on Series F preferred stock						(698)
Cumulative dividends on Series F preferred stock						(191)
Net loss						(46,356)
Balance at Sep. 30, 2018		$ 21	401,148		(316,276)	84,893
Balance, shares at Sep. 30, 2018		21,496,499
Balance at Mar. 31, 2018		$ 16	289,458		(281,697)	7,777
Balance, shares at Mar. 31, 2018		16,457,664
Stock-based compensation expense			8,344			8,344
Stock-based compensation expense, shares
Proceeds received from issuance of common stock, net of issuance costs		$ 4	92,672			92,676
Proceeds received from issuance of common stock, net of issuance costs, shares		4,791,819
Stock option exercises			64			64
Stock option exercises, shares		20,000
Issuance of restricted stock awards
Issuance of restricted stock awards, shares		175,887
Net loss					(14,000)	(14,000)
Balance at Jun. 30, 2018		$ 20	390,538		(295,697)	94,861
Balance, shares at Jun. 30, 2018		21,445,370
Stock-based compensation expense			10,453			10,453
Stock-based compensation expense, shares
Deemed dividend - accretion of discount on Series F preferred stock
Cumulative dividends on Series F preferred stock
Stock option exercises		$ 1	157			158
Stock option exercises, shares		43,516
Issuance of restricted stock awards
Issuance of restricted stock awards, shares		7,613
Net loss					(20,579)	(20,579)
Balance at Sep. 30, 2018		$ 21	401,148		(316,276)	84,893
Balance, shares at Sep. 30, 2018		21,496,499
Balance at Dec. 31, 2018		$ 21	414,840	36	(342,864)	72,033
Balance, shares at Dec. 31, 2018		21,447,088
Stock-based compensation expense			10,327			10,327
Stock-based compensation expense, shares
Stock option exercises		$ 1	528			529
Stock option exercises, shares		283,250
Vesting of restricted stock units
Vesting of restricted stock units, shares		100,912
Shares withheld for tax withholding			(740)			(740)
Shares withheld for tax withholding, shares		(82,011)
Other comprehensive income				17		17
Net loss					(25,573)	(25,573)
Balance at Mar. 31, 2019		$ 22	424,955	53	(368,437)	56,593
Balance, shares at Mar. 31, 2019		21,749,239
Balance at Dec. 31, 2018		$ 21	414,840	36	(342,864)	72,033
Balance, shares at Dec. 31, 2018		21,447,088
Deemed dividend - accretion of discount on Series F preferred stock
Cumulative dividends on Series F preferred stock
Net loss						(71,348)
Balance at Sep. 30, 2019		$ 27	466,514	63	(414,212)	52,392
Balance, shares at Sep. 30, 2019		26,932,764
Balance at Mar. 31, 2019		$ 22	424,955	53	(368,437)	56,593
Balance, shares at Mar. 31, 2019		21,749,239
Stock-based compensation expense			8,618			8,618
Stock-based compensation expense, shares
Proceeds received from issuance of common stock, net of issuance costs		$ 3	27,945			27,948
Proceeds received from issuance of common stock, net of issuance costs, shares		3,418,918
Stock option exercises
Stock option exercises, shares		9,167
Vesting of restricted stock units
Vesting of restricted stock units, shares		51,440
Shares withheld for tax withholding			(62)			(62)
Shares withheld for tax withholding, shares		(17,418)
Shares issued under the ESPP			35			35
Shares issued under the ESPP, shares		7,260
Other comprehensive income				26		26
Net loss					(22,792)	(22,792)
Balance at Jun. 30, 2019		$ 25	461,491	79	(391,229)	70,366
Balance, shares at Jun. 30, 2019		25,218,606
Stock-based compensation expense			5,025			5,025
Stock-based compensation expense, shares
Deemed dividend - accretion of discount on Series F preferred stock
Cumulative dividends on Series F preferred stock
Issuance of restricted stock awards		$ 2	(2)
Issuance of restricted stock awards, shares		1,590,710
Vesting of restricted stock units
Vesting of restricted stock units, shares		123,448
Other comprehensive income				(16)		(16)
Net loss					(22,983)	(22,983)
Balance at Sep. 30, 2019		$ 27	$ 466,514	$ 63	$ (414,212)	$ 52,392
Balance, shares at Sep. 30, 2019		26,932,764

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Statement of Stockholders' Equity [Abstract]
Proceeds received from issuance of common stock, net of issuance costs	$ 1,146	$ 2,782

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (71,348)	$ (46,356)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock based compensation expense	23,932	26,242
Change in fair value of derivatives		(1,850)
Depreciation and amortization	2,243	1,088
Loss on extinguishment of warrant liability		520
Amortization of intangible assets	146	83
Amortization of debt discount	40	30
Change in fair value of contingent consideration	(48)	20
Loss on disposal of property and equipment	265
Other non-cash adjustments	3
Changes in operating assets and liabilities:
Accounts receivable	(881)	(788)
Inventory	(10)	(238)
Prepaid expenses and other current assets	126	(561)
Operating lease right-of-use assets	1,214
Other assets	25	(210)
Accounts payable and accrued expenses	4,095	2,484
Other current liabilities	155
Deferred revenue	(36)	116
Operating lease liabilities	(1,142)
Other long-term liabilities	571
Net cash used in operating activities	(40,650)	(19,420)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(2,386)	(6,640)
Purchase of available-for-sale securities	(29,002)
Proceeds from maturities of available-for-sale securities	14,636
Proceeds from sale of available-for-sale securities	1,877
Acquisition of IBEX		(2,258)
Net cash used in investing activities	(14,875)	(8,898)
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from the sale of common stock	27,948	92,676
Proceeds from stock options exercised	529	222
Proceeds from ESPP purchase	35
Cash paid for tax withholdings related to net share settlement	(679)
Payment of contingent consideration liability	(109)	(30)
Principal payments on financing leases	(336)	(39)
Principal payments on term note payable	(263)
Net cash provided by financing activities	27,125	92,829
Net (decrease) increase in cash and cash equivalents	(28,400)	64,511
Cash and cash equivalents - beginning of period	55,673	12,517
Cash and cash equivalents - end of period	27,273	77,028
Supplemental schedule of non-cash investing and financing activities:
Conversion of Series A, B, E preferred stock to common stock		109,104
Exchange of Series F preferred stock for common stock		13,061
Extinguishment of warrant liability		2,525
Unpaid liability for acquisition of property and equipment	249	699
Deemed dividend - accretion of discount on Series F preferred stock		698
Cumulative dividends on Series F preferred stock		191
Series F preferred stock dividends paid in common stock		306
Reclassification of stock-based compensation expense that was previously classified as a liability to paid-in capital	38
Contingent consideration for IBEX acquisition		278
Contingent consideration earned and recorded in accounts payable		33
Note payable issued as partial consideration for IBEX acquisition		1,220
Property and equipment acquired through finance lease	2,341	141
Property and equipment acquired through financing arrangement	58
Unrealized gain on short-term investments	$ 27

Principal Business Activity and

Principal Business Activity and Basis of Presentation	9 Months Ended
	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principal Business Activity and Basis of Presentation	1. PRINCIPAL BUSINESS ACTIVITY AND BASIS OF PRESENTATION PolarityTE, Inc. and subsidiaries (the “Company”) is a commercial-stage biotechnology and regenerative biomaterials company focused on transforming the lives of patients by discovering, designing and developing a range of regenerative tissue products and biomaterials for the fields of medicine, biomedical engineering and material sciences. Change in Fiscal Year end. The accompanying interim condensed consolidated financial statements of the Company are unaudited, but in the opinion of management, reflect all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the results for the interim period. Accordingly, they do not include all information and notes required by generally accepted accounting principles for complete financial statements. The results of operations for interim periods are not necessarily indicative of results to be expected for the entire fiscal year. The balance sheet at December 31, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the two-month period ended December 31, 2018 included in the Company’s Transition Report on Form 10-KT filed with the Securities and Exchange Commission on March 18, 2019.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation. Use of estimates. Segments. Cash and cash equivalents. Investments Loss Per Share. Leases The Company has lease agreements with lease and non-lease components. As allowed under Topic 842, the Company has elected not to separate lease and non-lease components for any leases involving real estate and office equipment classes of assets and, as a result, accounts for the lease and non-lease components as a single lease component. The Company has also elected not to apply the recognition requirement of Topic 842 to leases with a term of 12 months or less for all classes of assets. Stock- Based Compensation. The fair value for options issued is estimated at the date of grant using a Black-Scholes option-pricing model. The risk-free rate is derived from the U.S. Treasury yield curve in effect at the time of the grant. The volatility factor is determined based on the Company’s historical stock prices. Forfeitures are recognized as they occur. The value of restricted stock grants is measured based on the fair market value of the Company’s common stock on the date of grant and amortized over the vesting period of, generally, six months to three years. The accounting for non-employee options and restricted stock is similar to that of employees. Stock-based compensation expense for nonemployee services has historically been subject to remeasurement at each reporting date as the underlying equity instruments vest and was recognized as an expense over the period during which services are received. Upon the adoption of ASU 2018-07, Compensation – Stock Compensation on January 1, 2019, the valuation was fixed at the implementation date and will be recognized as an expense on a straight-line basis over the remaining service period. Research and Development Expenses. Nonrefundable advance payments for goods or services that have the characteristics that will be used or rendered for future research and development activities pursuant to executory contractual arrangements with third party research organizations are deferred and recognized as an expense as the related goods are delivered or the related services are performed. Accruals for Research and Development Expenses and Clinical Trials. Revenue Recognition. In the regenerative medicine products segment, the Company records products revenues primarily from the sale of its regenerative tissue products. The Company sells its products to healthcare providers, primarily through direct sales representatives. Products revenues consists of a single performance obligation that the Company satisfies at a point in time. In general, the Company recognizes products revenues upon delivery to the customer. In the contract services segment, the Company records services revenues from the sale of its contract research services, which includes delivery of preclinical studies and other research services to unrelated third parties. Services revenues generally consist of a single performance obligation that the Company satisfies over time using an input method based on costs incurred to date relative to the total costs expected to be required to satisfy the performance obligation. The Company believes that this method provides a faithful depiction of the transfer of services over the term of the performance obligation based on the remaining services needed to satisfy the obligation. This requires the Company to make reasonable estimates of the extent of progress toward completion of the contract. As a result, unbilled receivables and deferred revenue are recognized based on payment timing and work completed. Generally, a portion of the payment is due upfront and the remainder upon completion of the study, with most studies completing in less than a year. As of September 30, 2019 and December 31, 2018, the Company had unbilled receivables of $222,000 and $157,000 and deferred revenue of $134,000 and $170,000, respectively. The unbilled receivables balance is included in consolidated accounts receivable. Revenues of $170,000 were recognized during the nine months ended September 30, 2019 that were included in the deferred revenue balance at the beginning of the period. Costs to obtain the contract are incurred for products revenues as they are shipped and are expensed as incurred. Recent Accounting Pronouncements In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) Recently Adopted Accounting Pronouncements On January 1, 2019 the Company adopted ASU 2016-02, Leases (ASC 842) We elected the package of practical expedients permitted under the transition guidance, which allowed us to carryforward our historical lease classification, our assessment on whether a contract was or contains a lease, and our initial direct costs for any leases that existed prior to January 1, 2019. The impact of the adoption of ASC 842 on the accompanying Condensed Consolidated Balance Sheet as of January 1, 2019 was as follows (in thousands): December 31, 2018 Adjustments Due to the Adoption of ASC 842 January 1, 2019 Operating lease right-of-use assets $ – $ 5,305 $ 5,305 Liabilities: Accounts payable and accrued expenses $ 6,508 $ (75 ) $ 6,433 Other current liabilities 316 1,432 1,748 Operating lease liabilities – 3,948 3,948 The adjustments due to the adoption of ASC 842 related to the recognition of operating lease right-of-use assets and operating lease liabilities for the existing operating leases. A cumulative-effect adjustment to beginning accumulated deficit was not required. In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-based Payment Accounting

Liquidity

Liquidity	9 Months Ended
	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Liquidity	3. LIQUIDITY The Company has experienced recurring losses and cash outflows from operating activities. Since inception through September 30, 2019, the Company has an accumulated deficit of $414.2 million. As of September 30, 2019, the Company had cash and cash equivalents and short-term investments of $45.9 million. On April 10, 2019, the Company completed an underwritten offering providing for the issuance and sale of 3,418,918 shares of the Company’s common stock, par value $0.001 per share, at an offering price of $8.51 per share, for net proceeds of approximately $27.9 million, after deducting offering expenses payable by the Company. Based upon the current status of the Company’s product development and commercialization plans, the Company believes that its existing cash, cash equivalents and short-term investments will be adequate to satisfy its capital needs for at least the next 12 months from the date of filing. The Company anticipates needing substantial additional financing to continue clinical deployment and commercialization of its lead product SkinTE, development of its other product candidates, and scaling the manufacturing capacity for its products and product candidates and prepare for commercial readiness. However, the Company will continue to pursue fundraising opportunities when available, but such financing may not be available in the future on terms favorable to the Company, if at all. If adequate financing is not available, the Company may be required to delay, reduce the scope of, or eliminate one or more of its product development programs. The Company may also implement additional spending reductions. The Company plans to meet its capital requirements primarily through issuances of equity securities, debt financing, revenue from product sales and future collaborations. Failure to generate revenue or raise additional capital would adversely affect the Company’s ability to achieve its intended business objectives.

Fair Value

Fair Value	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value	4. FAIR VALUE In accordance with ASC 820, Fair Value Measurements and Disclosures ● Level 1: Observable inputs such as quoted prices in active markets for identical instruments. This methodology applies to our Level 1 investments, which are composed of money market funds. ● Level 2: Quoted prices for similar instruments that are directly or indirectly observable in the market. This methodology applies to our Level 2 investments, which are composed of corporate debt securities, commercial paper, and U.S. government debt securities. ● Level 3: Significant unobservable inputs supported by little or no market activity. Financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, for which determination of fair value requires significant judgment or estimation. This methodology applies to our Level 3 financial instruments, which are composed of contingent consideration. Financial instruments measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. There were no transfers within the hierarchy for any of the periods presented. In connection with the offering of Units in September 2017 (see Note 10), the Company issued Series F Preferred Shares and warrants to purchase an aggregate of 322,727 shares of common stock. The Series F Preferred Shares contained an embedded conversion feature that was not clearly and closely related to the identified host instrument and, as such, was recognized as a derivative liability measured at fair value. The Company classified these derivatives on the consolidated balance sheet as a current liability. The warrants were exercisable at $30.00 per share and had a two year expiration. The warrants were liabilities pursuant to ASC 815. The warrant agreement provided for an adjustment to the number of common shares issuable under the warrant or adjustment to the exercise price, including but not limited to, if: (a) the Company issues shares of common stock as a dividend or distribution to holders of its common stock; (b) the Company subdivides or combines its common stock (i.e., stock split); or (c) the Company issues new securities for consideration less than the exercise price. Under ASC 815, warrants that provide for down-round exercise price protection are recognized as derivative liabilities. As discussed in Note 10, both the warrants and the Series F Preferred Shares were exchanged for common stock on March 6, 2018. The fair value of the bifurcated embedded conversion feature was estimated to be approximately $7.2 million at March 5, 2018, as calculated using the Monte Carlo simulation with the following assumptions: Series F March 5, 2018 Stock price $ 20.05 Exercise price $ 27.50 Risk-free rate 2.2 % Volatility 88.2 % Term 1.5 The fair value of the warrant liability was estimated to be approximately $2.5 million at March 5, 2018 as calculated using the Monte Carlo simulation with the following assumptions: Warrant Liability March 5, 2018 Stock price $ 20.05 Exercise price $ 30.00 Risk-free rate 2.2 % Volatility 88.2 % Term 1.5 The following table sets forth the changes in the estimated fair value for our Level 3 classified derivative liabilities (in thousands): 2017 Series F Preferred Stock – Warrant Liability 2017 Series F Preferred Stock – Embedded Derivative Total Warrant and Derivative Liability Fair value – December 31, 2017 $ 3,388 $ 8,150 $ 11,538 Change in fair value (863 ) (987 ) (1,850 ) Exchange / conversion to common shares (2,525 ) (7,163 ) (9,688 ) Fair value – September 30, 2018 $ – $ – $ – The following table sets forth the fair value of the Company’s financial assets and liabilities measured on a recurring basis by level within the fair value hierarchy as of September 30, 2019 and December 31, 2018 (in thousands): Fair Value Measurement as of September 30, 2019 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 7 $ – $ – $ 7 Commercial paper – 12,053 – 12,053 Corporate debt securities – 13,995 – 13,995 U.S. government debt securities – 4,632 – 4,632 Total $ 7 $ 30,680 $ – $ 30,687 Liabilities: Contingent consideration $ – $ – $ 135 $ 135 Total $ – $ – $ 135 $ 135 Fair Value Measurement as of December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 7 $ – $ – $ 7 Commercial paper – 21,392 – 21,392 Corporate debt securities – 5,448 – 5,448 U.S. government debt securities – 3,226 – 3,226 Total $ 7 $ 30,066 $ – $ 30,073 Liabilities: Contingent consideration $ – $ – $ 261 $ 261 Total $ – $ – $ 261 $ 261 In May 2018, the Company purchased the assets of a preclinical research sciences business and related real estate from Ibex Group, L.L.C., a Utah limited liability company, and Ibex Preclinical Research, Inc., a Utah corporation (collectively, “IBEX”). The aggregate purchase price was $3.8 million, of which $2.3 million was paid at closing and the balance satisfied by a promissory note payable to IBEX with an initial fair value of $1.2 million and contingent consideration with an initial fair value of $0.3 million. The contingent consideration represents the estimated fair value of future payments due to the Seller of IBEX based on IBEX’s revenue generated from studies quoted prior to but completed after the transaction. Contingent consideration was initially recognized at fair value as purchase consideration and is subsequently remeasured at fair value through earnings. The initial fair value of the contingent consideration was based on the present value of estimated future cash flows using a 20% discount rate. The contingent consideration is the payment of 15% of the actual revenues received for work on any study initiated within 18 months following the closing of the purchase on the basis of certain specific customer prospects that received service proposals prior to the closing, provided that the total payments will not exceed $650,000. Adjustments to the fair value of the contingent consideration liability is included in general and administrative expense in the accompanying consolidated statements of operations. The following table sets forth the changes in the estimated fair value of our contingent consideration liability (in thousands) which is included in other current liabilities: Contingent Consideration Fair value – December 31, 2018 $ 261 Change in fair value (48 ) Earned and paid (78 ) Fair value – September 30, 2019 $ 135

Cash Equivalents and Available

Cash Equivalents and Available for Sale Marketable Securities	9 Months Ended
	Sep. 30, 2019
Cash and Cash Equivalents [Abstract]
Cash Equivalents and Available for Sale Marketable Securities	5. CASH EQUIVALENTS AND AVAILABLE FOR SALE MARKETABLE SECURITIES Cash equivalents and available-for-sale marketable securities consisted of the following as of September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 Amortized Unrealized Unrealized Market Value Cash equivalents: Money market funds $ 7 $ – $ – $ 7 Commercial paper 10,037 32 – 10,069 U.S. government debt securities 1,930 6 – 1,936 Total cash equivalents (1) 11,974 38 – 12,012 Short-term investments: Commercial paper 1,980 4 – 1,984 U.S. government debt securities 2,686 10 – 2,696 Corporate debt securities 13,984 11 – 13,995 Total short-term investments 18,650 25 – 18,675 Total $ 30,624 $ 63 $ – $ 30,687 (1) Included in cash and cash equivalents in the Company’s consolidated balance sheet as of September 30, 2019 in addition to $15.3 million of cash. December 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Market Value Cash equivalents: Money market funds $ 7 $ – $ – $ 7 Commercial paper 20,648 30 – 20,678 U.S. government debt securities 3,224 2 – 3,226 Total cash equivalents (1) 23,879 32 – 23,911 Short-term investments: Commercial paper 714 – – 714 Corporate debt securities 5,444 5 (1 ) 5,448 Total short-term investments 6,158 5 (1 ) 6,162 Total $ 30,037 $ 37 $ (1 ) $ 30,073 (1) Included in cash and cash equivalents in the Company’s consolidated balance sheet as of December 31, 2018 in addition to $31.8 million of cash. All investments in debt securities held as of September 30, 2019 and December 31, 2018 had maturities of less than one year. For the three and nine months ended September 30, 2019, the Company recognized net realized gains on available-for-sale securities and cash equivalents of $0.1 million and $0.4 million, respectively.

Property and Equipment, Net

Property and Equipment, Net	9 Months Ended
	Sep. 30, 2019
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	6. PROPERTY AND EQUIPMENT, NET The following table presents the components of property and equipment, net (in thousands): September 30, 2019 December 31, 2018 Machinery and equipment $ 11,814 $ 8,276 Land and buildings 2,000 2,000 Computers and software 1,173 1,372 Leasehold improvements 2,272 1,230 Construction in progress 1,903 2,402 Furniture and equipment 470 614 Total property and equipment, gross 19,632 15,894 Accumulated depreciation (3,970 ) (2,158 ) Total property and equipment, net $ 15,662 $ 13,736 Depreciation and amortization expense for property and equipment, including assets acquired under financing leases for the three and nine months ended September 30, 2019 and 2018 was as follows (in thousands): For the three months ended For the nine months ended September 30, September 30, 2019 2018 2019 2018 General and administrative expense $ 407 $ 80 $ 1,171 $ 89 Research and development expense 390 336 1,072 999 Total depreciation and amortization expense $ 797 $ 416 $ 2,243 $ 1,088 For the three and nine months ended September 30, 2019, the Company recognized a loss on disposal of property and equipment of $265,000.

Leases

Leases	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Leases	7. LEASES The Company leases facilities and certain equipment under noncancelable leases that expire at various dates through November 2024. These leases require monthly lease payments that may be subject to annual increases throughout the lease term. Certain of these leases may include options to extend or terminate the lease at the election of the Company. These optional periods have not been considered in the determination of the right-of-use-assets or lease liabilities associated with these leases as the Company did not consider it reasonably certain it would exercise the options. In April 2019, the Company entered into an operating lease to obtain 6,307 square feet of manufacturing, laboratory, and office space. The lease expires April 2024 and requires monthly lease payments subject to annual increases. During the nine months ended September 30, 2019, the Company also increased office space under an existing lease, which requires additional monthly lease payments. As of September 30, 2019, the maturities of our operating and finance lease liabilities were as follows (in thousands): Operating leases Finance leases 2019 (excluding the nine months ended September 30, 2019) $ 551 $ 149 2020 2,114 597 2021 1,730 594 2022 1,345 329 2023 132 253 Thereafter 87 43 Total lease payments 5,959 1,965 Less: Imputed interest (787 ) (310 ) Total $ 5,172 $ 1,655 Supplemental balance sheet information related to leases was as follows (in thousands): Finance leases As of Finance lease right-of-use assets included within property and equipment, net $ 2,112 Current finance lease liabilities included within other current liabilities $ 456 Non-current finance lease liabilities included within other long-term liabilities 1,199 Total $ 1,655 Operating leases As of Current operating lease liabilities included within other current liabilities $ 1,814 Operating lease liabilities – non current 3,358 Total $ 5,172 The components of lease expense were as follows (in thousands): Three months ended September 30, 2019 Nine months ended September 30, 2019 Operating lease costs included within operating costs and expenses $ 556 $ 1,617 Finance lease costs: Amortization of right of use assets $ 171 $ 479 Interest on lease liabilities 42 109 Total $ 213 $ 588 Supplemental cash flow information related to leases was as follows (in thousands): Nine months ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash out flows from operating leases $ 1,550 Operating cash out flows from finance leases 109 Financing cash out flows from finance leases 336 Lease liabilities arising from obtaining right-of-use assets: Finance leases $ 1,828 Lease payments made in prior period reclassified to property and equipment 535 Remeasurement of finance lease liability due to lease modification (22 ) Operating leases 936 As of September 30, 2019, the weighted average remaining operating lease term is 3.0 years and the weighted average discount rate used to determine the operating lease liability was 9.82%. The weighted average remaining finance lease term is 3.6 years and the weighted average discount rate used to determine the finance lease liability was 9.70%.

Accounts Payable and Accrued Ex

Accounts Payable and Accrued Expenses and Other Current Liabilities	9 Months Ended
	Sep. 30, 2019
Payables and Accruals [Abstract]
Accounts Payable and Accrued Expenses and Other Current Liabilities	8. ACCOUNTS PAYABLE AND ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES The following table presents the major components of accounts payable and accrued expenses (in thousands): September 30, 2019 December 31, 2018 Accounts payable $ 3,716 $ 2,918 Salaries and other compensation 1,263 1,280 Legal and accounting 1,905 640 Accrued severance 2,519 – Other accruals 830 1,670 Total accounts payable and accrued expenses $ 10,233 $ 6,508 Salaries and other compensation include accrued payroll expense, accrued bonus, and estimated employer 401(k) plan contributions. Accrued severance includes $2.3 million for accrued compensation due to Dr. Denver Lough, a former officer and director, under a settlement terms agreement dated August 21, 2019. The remaining amount due of $0.6 million is included in other long-term liabilities. Other current liabilities are comprised of the current portion of operating lease liabilities and finance lease liabilities, contingent consideration, and short-term debt. The short-term debt had a balance of $0.2 million as of September 30, 2019, while the other components are disclosed in the footnotes above.

Long Term Note Payable

Long Term Note Payable	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Long Term Note Payable	9. LONG TERM NOTE PAYABLE In connection with the IBEX Acquisition in May 2018, the Company issued a promissory note payable to the Seller with an initial fair value of $1.2 million. The promissory note has a principal balance of $1.3 million and bears interest at a rate of 3.5% interest per annum. Principal and interest are payable in five equal installments that began on November 3, 2018 and continuing on each six-month anniversary thereafter (“Payment Date”). The promissory note may be prepaid by the Company at any time and becomes due and payable at the earlier of the maturity date of November 3, 2020 or upon an event of default, which includes failure to pay any installment on each Payment Date, breach of any negative covenants, insolvency or bankruptcy. Upon the occurrence of an event of default, the promissory note will bear an accelerated interest rate of 7% per annum from the date of the event of default. The Company initially recognized the promissory note at its fair value, using an estimated market rate of interest for the Company, which was higher than the promissory note’s stated rate. The result of imputing a market rate of interest resulted in an initial discount to the principal balance of approximately $113,000, which is being amortized to interest expense over the term of the promissory note using the effective interest method. The unamortized debt discount was approximately $28,000 and $68,000 at September 30, 2019 and December 31, 2018, respectively. Amortization of debt discount of $12,000 and $40,000 was included in interest income, net for the three and nine months ended September 30, 2019.

Preferred Shares and Common Sha

Preferred Shares and Common Shares	9 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Preferred Shares and Common Shares	10. PREFERRED SHARES AND COMMON SHARES Exchange of 100% of Outstanding Series F Preferred Stock Shares and Warrants On September 20, 2017, the Company sold an aggregate of $17,750,000 worth of units of the Company’s securities (the “Units”) to accredited investors at a purchase price of $2,750 per Unit. Each Unit consisted of (i) one share of the Company’s newly authorized 6% Series F Convertible Preferred Stock, par value $0.001 per share (the “Series F Preferred Shares”), convertible into one hundred (100) shares of the Company’s common stock, and (ii) a two-year warrant to purchase up to 322,727 shares of the Company’s common stock, at an exercise price of $30.00 per share. The Series F Preferred Shares were convertible into shares of the Company’s common stock based on a conversion calculation equal to the stated value of the Series F Preferred Shares, plus all accrued and unpaid dividends, if any, on such Series F Preferred Shares, as of such date of determination, divided by the conversion price. The stated value of each Series F Preferred Share was $2,750 and the initial conversion price was $27.50 per share, each subject to adjustment for stock splits, stock dividends, recapitalizations, combinations, subdivisions or other similar events. On the two-year anniversary of the initial issuance date, any Series F Preferred Shares outstanding and not otherwise already converted, would, at the option of the holder, either (i) automatically convert into common stock of the Company at the conversion price then in effect or (ii) be repaid by the Company based on the stated value of such outstanding Series F Preferred Shares. The warrants issued in connection with the Series F Preferred Shares were determined to be liabilities pursuant to ASC 815. The warrant agreement provided for an adjustment to the number of common shares issuable under the warrant or adjustment to the exercise price, including but not limited to, if: (a) the Company issued shares of common stock as a dividend or distribution to holders of its common stock; (b) the Company subdivided or combined its common stock (i.e., stock split); or (c) the Company issues new securities for consideration less than the exercise price. Prior to the adoption of ASU 2017-11, warrants that provide for down-round exercise price protection were recognized as derivative liabilities. The conversion feature within the Series F Preferred Shares was determined to not be clearly and closely related to the identified host instrument and, as such, was recognized as a derivative liability measured at fair value pursuant to ASC 815. The initial fair value of the warrants and bifurcated embedded conversion feature, estimated to be approximately $4.3 million and $9.3 million, respectively, was deducted from the gross proceeds of the Unit offering to arrive at the initial discounted carrying value of the Series F Preferred Shares. The resulting discount to the aggregate stated value of the Series F Preferred Shares of approximately $13.6 million was recognized as accretion using the effective interest method similar to preferred stock dividends, over the two-year period prior to optional redemption by the holders. On March 6, 2018, the Company entered into separate exchange agreements (the “Exchange Agreements”) with holders (each a “Holder”, and collectively the “Holders”) of 100% of the Company’s outstanding Series F Preferred Shares, and the Company’s warrants to purchase shares of the Company’s common stock issued in connection with the Series F Preferred Shares (such “Warrants” and Series F Preferred Shares collectively referred to as the “Exchange Securities”) to exchange the Exchange Securities and unpaid dividends on the Series F Preferred Shares for common stock (the “Exchange”). The Exchange resulted in the following issuances: (A) all outstanding Series F Preferred Shares were converted into 972,070 shares of restricted common stock at an effective conversion price of $18.26 per share of common stock (the closing price of Common Stock on the NASDAQ Capital Market on February 26, 2018); (B) the right to receive 6% dividends underlying Series F Preferred Shares was terminated in exchange for 31,321 shares of restricted common stock; (C) 322,727 Warrants to purchase common stock were exchanged for 151,871 shares of restricted common stock; and (D) the Holders of the Warrants relinquished any and all other rights pursuant to the Warrants, including exercise price adjustments. As part of the Exchange, the Holders also relinquished all other rights related to the issuance of the Exchange Securities, the respective governing agreements and certificates of designation, including any related dividends, adjustment of conversion and exercise price, and repayment option. The existing registration rights agreement with the holders of the Series F Preferred Shares was also terminated and the holders of the Series F Preferred Shares waived the obligation of the Company to register the common shares issuable upon conversion of Series F Preferred Shares or upon exercise of the warrants, and waived any damages, penalties and defaults related to the Company failing to file or have declared effective a registration statement covering those shares. The exchange of all outstanding Series F Preferred Shares, and the holders’ right to receive 6% dividends, for common stock of the Company was recognized as follows: Fair market value of 1,003,393 shares of common stock issued at $20.05 (Company’s closing stock price on March 5, 2018) in exchange for Series F Preferred Shares and accrued dividends $ 20,117,990 Carrying value of Series F Preferred Shares at March 5, 2018, including dividends (5,898,274 ) Carrying value of bifurcated conversion option at March 5, 2018 (7,162,587 ) Deemed dividend on Series F Preferred Shares exchange $ 7,057,129 As the Warrants were classified as a liability, the exchange of the Warrants for common shares was recognized as a liability extinguishment. As of March 5, 2018, the fair market value of the 151,871 common shares issued in the Exchange was $3,045,034 and the fair value of the common stock warrant liability was $2,525,567 resulting in a loss on extinguishment of warrant liability of $519,467 during the nine months ended September 30, 2018. The Company recognized accretion of the discount to the stated value of the Series F Preferred Shares of approximately $698,000 during the nine months ended September 30, 2018, as a reduction of additional paid-in capital and an increase in the carrying value of the Series F Preferred Shares. The accretion is presented in the Statement of Operations as a deemed dividend, increasing net loss to arrive at net loss attributable to common stockholders. Preferred Stock Conversion and Elimination On February 6, 2018, 15,756 shares of Series B Convertible Preferred Stock (“Series B Preferred Shares”) were converted into 262,606 shares of common stock. On March 6, 2018, the Company received conversion notices (in accordance with original terms) from holders of 100% of the outstanding shares of Series A Convertible Preferred Stock (the “Series A Preferred Shares”), Series B Preferred Shares and Series E Convertible Preferred Stock (the “Series E Preferred Shares”) and issued an aggregate of 7,945,250 shares of common stock to such holders. The shares of Series E Preferred Stock were held by Dr. Denver Lough, the Company’s former Chief Executive Officer. On March 6, 2018, the Company entered into a new registration rights agreement (the “Lough Registration Rights Agreement”) with Dr. Lough, pursuant to which the Company agreed to file a registration statement to register the resale of 7,050,000 shares of common stock issued upon conversion of the Series E Preferred Shares within six months, to cause such registration statement to be declared effective by the Securities and Exchange Commission as promptly as possible following its filing. On March 14, 2019, the Company’s registration obligation was waived, and the Lough Registration Rights Agreement amended to provide that Dr. Lough may demand registration by written request to the Company. Dr. Lough demanded registration of his 7,050,000 common shares in August 2019, and pursuant to that demand a registration statement on Form S-3 was filed with the Securities and Exchange Commission in October 2019. Once the registration statement is effective, the Company is obligated to keep it effective until the earlier of the date all the registered shares have been sold pursuant to the registration statement or the date one year from the date the registration statement is first effective. On March 7, 2018, the Company filed a Certificate of Elimination with the Secretary of State of the State of Delaware terminating the Company’s Series A, Series B, Series C, Series D, Series E and Series F Preferred Stock. As a result, the Company has 25,000,000 shares of authorized and unissued preferred stock as of September 30, 2019 with no designation as to series. There was no convertible preferred stock outstanding as of September 30, 2019 and December 31, 2018.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2019
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	11. STOCK-BASED COMPENSATION For the three and nine months ended September 30, 2019 and 2018, the Company recorded stock-based compensation expense related to stock options, restricted stock awards, and the employee stock purchase plan as follows (in thousands): For the three months ended For the nine months ended September 30, September 30, 2019 2018 2019 2018 General and administrative expense $ 4,822 $ 10,118 $ 20,751 $ 22,925 Research and development expense (164 ) 335 2,401 3,317 Sales and marketing expense 367 – 780 – Total stock-based compensation expense $ 5,025 $ 10,453 $ 23,932 $ 26,242 Incentive Compensation Plans 2019 Plan On October 5, 2018, the Company’s Board of Directors (the “Board”) approved the Company’s 2019 Equity Incentive Plan (the “2019 Plan”). The 2019 Plan provides for the grant of incentive stock options, nonqualified stock options, restricted stock, restricted stock units, stock appreciation rights and other types of stock-based awards to the Company’s employees, officers, directors and consultants. The Compensation Committee of the Board will administer the 2019 Plan, including determining which eligible participants will receive awards, the number of shares of common stock subject to the awards and the terms and conditions of such awards. Up to 3,000,000 shares of common stock are issuable pursuant to awards under the 2019 Plan. Unless earlier terminated by the Board, the 2019 Plan shall terminate at the close of business on October 5, 2028. As of September 30, 2019, the Company had approximately 290,875 shares available for future issuances under the 2019 Plan. 2017 Plan On December 1, 2016, the Company’s Board of Directors (the “Board”) approved the Company’s 2017 Equity Incentive Plan (the “2017 Plan”). The purpose of the 2017 Plan is to promote the success of the Company and to increase stockholder value by providing an additional means through the grant of awards to attract, motivate, retain and reward selected employees, consultants and other eligible persons. The 2017 Plan provides for the grant of incentive stock options, nonqualified stock options, restricted stock, restricted stock units, stock appreciation rights and other types of stock-based awards to the Company’s employees, officers, directors and consultants. The Compensation Committee of the Board will administer the 2017 Plan, including determining which eligible participants will receive awards, the number of shares of common stock subject to the awards and the terms and conditions of such awards. Up to 7,300,000 (increased from 3,450,000 in October 2017) shares of common stock are issuable pursuant to awards under the 2017 Plan. Unless earlier terminated by the Board, the 2017 Plan shall terminate at the close of business on December 1, 2026. As of September 30, 2019, the Company had approximately 379,641 shares available for future issuances under the 2017 Plan. Stock Options A summary of the Company’s employee and non-employee stock option activity for the nine months ended September 30, 2019 is presented below: Number of shares Weighted-Average Exercise Price Outstanding – December 31, 2018 6,499,885 $ 14.02 Granted 818,403 $ 13.75 Exercised (1) (292,417 ) $ 4.31 Forfeited (668,842 ) $ 20.50 Outstanding – September 30, 2019 6,357,029 $ 13.91 Options exercisable – September 30, 2019 4,815,831 $ 12.69 Weighted-average grant date fair value of options granted during the nine months ended September 30, 2019 $ 9.84 (1) The number of exercised options includes shares withheld on behalf of employees to satisfy minimum statutory tax withholding requirements. Restricted Stock A summary of the Company’s employee and non-employee restricted-stock activity for the nine months ended September 30, 2019 is presented below: Number of shares Weighted-Average Unvested - December 31, 2018 651,110 $ 23.65 Granted 1,919,675 $ 5.03 Vested (1) (415,290 ) $ 20.84 Forfeited (128,395 ) $ 22.44 Unvested – September 30, 2019 2,027,100 $ 7.64 (1) The number of vested restricted stock units includes shares that were withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements. Employee Stock Purchase Plan (ESPP) In May 2018, the Company adopted the Employee Stock Purchase Plan (“ESPP”). The Company has initially reserved 500,000 shares of common stock for purchase under the ESPP. The initial offering period began January 1, 2019 and ended on June 30, 2019 with the first purchase date. Subsequent offering periods will automatically commence on each January 1 and July 1 and will have a duration of six months ending with a purchase date June 30 and December 31 of each year. On each purchase date, ESPP participants will purchase shares of common stock at a price per share equal to 85% of the lesser of (1) the fair market value per share of the common stock on the offering date or (2) the fair market value of the common stock on the purchase date. Total stock-based compensation related to the ESPP for the three and nine months ended September 30, 2019 was $14,000 and $33,000, respectively. A total of 7,260 shares of common stock were purchased pursuant to the ESPP during the nine months ended September 30, 2019 for total proceeds of $35,000.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	12. INCOME TAXES The Company has evaluated its income tax positions and determined that no material uncertain tax positions existed at September 30, 2019. The Company does not expect a significant change in its unrecognized tax benefits within the next twelve months. As of September 30, 2019 and December 31, 2018, the Company maintained a valuation allowance to fully offset its net deferred tax assets primarily attributable to operations in the United States, as the realization of such assets was not considered more likely than not. The Company files income tax returns in the U.S. Federal and various state and local jurisdictions.

Loss Per Share

Loss Per Share	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Loss Per Share	13. LOSS PER SHARE The following outstanding potentially dilutive shares have been excluded from the calculation of diluted net loss per share for the periods presented due to their anti-dilutive effect: As of September 30, 2019 2018 Stock options 6,357,029 6,125,628 Restricted stock 2,027,100 685,730 Shares committed under ESPP 15,235 –

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	14. COMMITMENTS AND CONTINGENCIES Contingencies On June 26, 2018, a class action complaint alleging violations of the Federal securities laws was filed in the United States District Court, District of Utah, by Jose Moreno against the Company and two directors of the Company, Case No. 2:18-cv-00510-JNP (the “Moreno Complaint”). On July 6, 2018, a similar complaint was filed in the same court against the same defendants by Yedid Lawi, Case No. 2:18-cv-00541-PMW (the “Lawi Complaint”). Both the Moreno Complaint and Lawi Complaint allege that the defendants made or were responsible for, disseminating information to the public through reports filed with the Securities and Exchange Commission and other channels that contained material misstatements or omissions in violation of Sections 10 and 20(a) of the Exchange Act and Rule 10b-5 adopted thereunder. Specifically, both complaints allege that the defendants misrepresented the status of one of the Company’s patent applications while touting the unique nature of the Company’s technology and its effectiveness. Plaintiffs are seeking damages suffered by them and the class consisting of the persons who acquired the publicly-traded securities of the Company between March 31, 2017, and June 22, 2018. Plaintiffs have filed motions to consolidate and for appointment as lead plaintiff. On November 28, 2018, the Court consolidated the Moreno and Lawi cases under the caption In re PolarityTE, Inc. Securities Litigation (the “Consolidated Securities Litigation”), and requested the appointment of the plaintiff in Lawi as the lead plaintiff. On January 16, 2019, the Court granted the motion of Yedid Lawi for appointment as lead plaintiff, and on February 1, 2019, the Court granted the lead plaintiff’s motion for approval of lead counsel and liaison counsel. The Court ordered that the lead plaintiff file and serve a consolidated complaint no later than 60 days after February 1, 2019, the defendants shall have 60 days after filing and service of the consolidated complaint to answer or otherwise respond, and the lead plaintiff must file a motion for class certification within 90 days of service of the consolidated complaint. The Lead Plaintiff filed a consolidated complaint on April 2, 2019 and asserted essentially the same violations of Federal securities laws recited in the original complaints. The Company believes the allegations in the consolidated complaint are without merit, and intends to defend the litigation, vigorously. The Company filed a motion to dismiss the consolidated complaint on June 3, 2019. Plaintiffs’ opposition to the Company’s motion to dismiss was filed on August 2, 2019, and the Company filed a reply to the opposition on September 13, 2019. A hearing on the Company’s motion to dismiss is scheduled for November 19, 2019. At this early stage of the proceedings the Company is unable to make any prediction regarding the outcome of the litigation. In the ordinary course of business, we may become involved in lawsuits, claims, investigations, proceedings, and threats of litigation relating to intellectual property, commercial arrangements, regulatory compliance, and other matters. Except as noted above, at September 30, 2019, we were not party to any legal or arbitration proceedings that may have significant effects on our financial position or results of operations. We are not a party to any material proceedings in which any director, member of senior management or affiliate of ours is either a party adverse to us or our subsidiaries or has a material interest adverse to us or our subsidiaries. Commitments The Company has entered into employment agreements with key executives that contain severance terms and change of control provisions.

Certain Relationships and Relat

Certain Relationships and Related Transactions	9 Months Ended
	Sep. 30, 2019
Related Party Transactions [Abstract]
Certain Relationships and Related Transactions	15. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS On August 21, 2019, the Company and Dr. Denver Lough, a principal shareholder and former officer and director, signed a settlement terms agreement that provides, in part, that the Company pay to Dr. Lough $1,500,000 in cash on October 1, 2019 and an additional $1,500,000 in cash in equal monthly installments beginning November 1, 2019 and ending April 1, 2021. In addition, the Company agreed to award to Dr. Lough 200,000 restricted stock units that vest in 18 equal monthly installments beginning October 1, 2019. In October 2018, the Company entered into an office lease covering approximately 7,250 square feet of rental space in the building located at 40 West 57 th The Company is using 1,648 square feet, and Cohen LLC is using approximately 4,584 square feet as of September 30, 2019. The monthly lease payment for 6,232 square feet is $31,160. Of this amount $22,920 is allocated pro rata to Cohen LLC based on square footage occupied. Additional lease charges for operating expenses and taxes are allocated under the sublease based on the ratio of rent paid by the Company and Cohen LLC to total rent. Once the space is fully occupied, the Company will reduce the overall annual lease rate for the Cohen LLC space to $58.60 per square foot. The Company recognized $69,000 and $195,000 of sublease income related to this agreement for the three and nine months ended September 30, 2019, respectively. The sublease income is included in other income, net in the statement of operations. As of September 30, 2019 and December 31, 2018, there was $17,000 and $0 due from the related party under this agreement.

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Segment Reporting	16. SEGMENT REPORTING The Company’s current operations involve products and services which are managed separately. Accordingly, it operates in two segments: 1) regenerative medicine and 2) contract services. During the three months ended September 30, 2019, the Company’s CODM changed the reporting of segment net income and loss to allocate additional noncash expenses from the regenerative medicine segment to the contract services segment. For the three months ended September 30, 2019 and 2018, this resulted in reallocation of noncash expense of $0.4 million and $0.2 million, respectively. For the nine months ended September 30, 2019 and 2018, this resulted in reallocation of noncash expense of $1.4 million and $0.3 million, respectively. The change is reflected in the three and nine months ended September 30, 2019 and 2018 net loss amounts presented below. Certain information concerning our segments for the three and nine months ended September 30, 2019 and 2018 is presented in the following table (in thousands): For the three months ended For the nine months ended September 30, September 30, 2019 2018 2019 2018 Net revenues: Reportable segments: Regenerative medicine $ 839 $ 197 $ 1,640 $ 389 Contract services 556 528 2,546 659 Total net revenues $ 1,395 $ 725 $ 4,186 $ 1,048 Net (loss) income: Reportable segments: Regenerative medicine $ (22,466 ) $ (20,332 ) $ (70,247 ) $ (45,845 ) Contract services (517 ) (247 ) (1,101 ) (511 ) Total net loss $ (22,983 ) $ (20,579 ) $ (71,348 ) $ (46,356 )

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	17. SUBSEQUENT EVENTS Pursuant to the demand made by Dr. Denver Lough under his Registration Rights Agreement in August 2019, the Company filed a registration statement on Form S-3 with the Securities and Exchange Commission on October 21, 2019 to register 7,050,000 shares of common stock held by Dr. Lough, which was declared effective November 1, 2019.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation.
Use of Estimates	Use of estimates.
Segments	Segments.
Cash and Cash Equivalents	Cash and cash equivalents.
Investments	Investments
Loss Per Share	Loss Per Share.
Leases	Leases The Company has lease agreements with lease and non-lease components. As allowed under Topic 842, the Company has elected not to separate lease and non-lease components for any leases involving real estate and office equipment classes of assets and, as a result, accounts for the lease and non-lease components as a single lease component. The Company has also elected not to apply the recognition requirement of Topic 842 to leases with a term of 12 months or less for all classes of assets.
Stock- Based Compensation	Stock- Based Compensation. The fair value for options issued is estimated at the date of grant using a Black-Scholes option-pricing model. The risk-free rate is derived from the U.S. Treasury yield curve in effect at the time of the grant. The volatility factor is determined based on the Company’s historical stock prices. Forfeitures are recognized as they occur. The value of restricted stock grants is measured based on the fair market value of the Company’s common stock on the date of grant and amortized over the vesting period of, generally, six months to three years. The accounting for non-employee options and restricted stock is similar to that of employees. Stock-based compensation expense for nonemployee services has historically been subject to remeasurement at each reporting date as the underlying equity instruments vest and was recognized as an expense over the period during which services are received. Upon the adoption of ASU 2018-07, Compensation – Stock Compensation on January 1, 2019, the valuation was fixed at the implementation date and will be recognized as an expense on a straight-line basis over the remaining service period.
Research and Development Expenses	Research and Development Expenses. Nonrefundable advance payments for goods or services that have the characteristics that will be used or rendered for future research and development activities pursuant to executory contractual arrangements with third party research organizations are deferred and recognized as an expense as the related goods are delivered or the related services are performed.
Accruals for Research and Development Expenses and Clinical Trials	Accruals for Research and Development Expenses and Clinical Trials.
Revenue Recognition	Revenue Recognition. In the regenerative medicine products segment, the Company records products revenues primarily from the sale of its regenerative tissue products. The Company sells its products to healthcare providers, primarily through direct sales representatives. Products revenues consists of a single performance obligation that the Company satisfies at a point in time. In general, the Company recognizes products revenues upon delivery to the customer. In the contract services segment, the Company records services revenues from the sale of its contract research services, which includes delivery of preclinical studies and other research services to unrelated third parties. Services revenues generally consist of a single performance obligation that the Company satisfies over time using an input method based on costs incurred to date relative to the total costs expected to be required to satisfy the performance obligation. The Company believes that this method provides a faithful depiction of the transfer of services over the term of the performance obligation based on the remaining services needed to satisfy the obligation. This requires the Company to make reasonable estimates of the extent of progress toward completion of the contract. As a result, unbilled receivables and deferred revenue are recognized based on payment timing and work completed. Generally, a portion of the payment is due upfront and the remainder upon completion of the study, with most studies completing in less than a year. As of September 30, 2019 and December 31, 2018, the Company had unbilled receivables of $222,000 and $157,000 and deferred revenue of $134,000 and $170,000, respectively. The unbilled receivables balance is included in consolidated accounts receivable. Revenues of $170,000 were recognized during the nine months ended September 30, 2019 that were included in the deferred revenue balance at the beginning of the period. Costs to obtain the contract are incurred for products revenues as they are shipped and are expensed as incurred.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326)
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements On January 1, 2019 the Company adopted ASU 2016-02, Leases (ASC 842) We elected the package of practical expedients permitted under the transition guidance, which allowed us to carryforward our historical lease classification, our assessment on whether a contract was or contains a lease, and our initial direct costs for any leases that existed prior to January 1, 2019. The impact of the adoption of ASC 842 on the accompanying Condensed Consolidated Balance Sheet as of January 1, 2019 was as follows (in thousands): December 31, 2018 Adjustments Due to the Adoption of ASC 842 January 1, 2019 Operating lease right-of-use assets $ – $ 5,305 $ 5,305 Liabilities: Accounts payable and accrued expenses $ 6,508 $ (75 ) $ 6,433 Other current liabilities 316 1,432 1,748 Operating lease liabilities – 3,948 3,948 The adjustments due to the adoption of ASC 842 related to the recognition of operating lease right-of-use assets and operating lease liabilities for the existing operating leases. A cumulative-effect adjustment to beginning accumulated deficit was not required. In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-based Payment Accounting

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Schedule of Adoption of Accounting Pronouncements on Accompanying Condensed Consolidated Balance Sheet	The impact of the adoption of ASC 842 on the accompanying Condensed Consolidated Balance Sheet as of January 1, 2019 was as follows (in thousands): December 31, 2018 Adjustments Due to the Adoption of ASC 842 January 1, 2019 Operating lease right-of-use assets $ – $ 5,305 $ 5,305 Liabilities: Accounts payable and accrued expenses $ 6,508 $ (75 ) $ 6,433 Other current liabilities 316 1,432 1,748 Operating lease liabilities – 3,948 3,948

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Schedule of Fair Value Assumptions of Warrants and Embedded Conversion Feature	The fair value of the bifurcated embedded conversion feature was estimated to be approximately $7.2 million at March 5, 2018, as calculated using the Monte Carlo simulation with the following assumptions: Series F March 5, 2018 Stock price $ 20.05 Exercise price $ 27.50 Risk-free rate 2.2 % Volatility 88.2 % Term 1.5 The fair value of the warrant liability was estimated to be approximately $2.5 million at March 5, 2018 as calculated using the Monte Carlo simulation with the following assumptions: Warrant Liability March 5, 2018 Stock price $ 20.05 Exercise price $ 30.00 Risk-free rate 2.2 % Volatility 88.2 % Term 1.5
Schedule of Changes in Estimated Fair Value for Level 3 Classified Derivative Warrant Liability	The following table sets forth the changes in the estimated fair value for our Level 3 classified derivative liabilities (in thousands): 2017 Series F Preferred Stock – Warrant Liability 2017 Series F Preferred Stock – Embedded Derivative Total Warrant and Derivative Liability Fair value – December 31, 2017 $ 3,388 $ 8,150 $ 11,538 Change in fair value (863 ) (987 ) (1,850 ) Exchange / conversion to common shares (2,525 ) (7,163 ) (9,688 ) Fair value – September 30, 2018 $ – $ – $ –
Schedule of Fair Value of Financial Instruments Measured on Recurring Basis	The following table sets forth the fair value of the Company’s financial assets and liabilities measured on a recurring basis by level within the fair value hierarchy as of September 30, 2019 and December 31, 2018 (in thousands): Fair Value Measurement as of September 30, 2019 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 7 $ – $ – $ 7 Commercial paper – 12,053 – 12,053 Corporate debt securities – 13,995 – 13,995 U.S. government debt securities – 4,632 – 4,632 Total $ 7 $ 30,680 $ – $ 30,687 Liabilities: Contingent consideration $ – $ – $ 135 $ 135 Total $ – $ – $ 135 $ 135 Fair Value Measurement as of December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 7 $ – $ – $ 7 Commercial paper – 21,392 – 21,392 Corporate debt securities – 5,448 – 5,448 U.S. government debt securities – 3,226 – 3,226 Total $ 7 $ 30,066 $ – $ 30,073 Liabilities: Contingent consideration $ – $ – $ 261 $ 261 Total $ – $ – $ 261 $ 261
Schedule of Changes in Estimated Fair Value for Level 3 Classified Contingent Consideration	The following table sets forth the changes in the estimated fair value of our contingent consideration liability (in thousands) which is included in other current liabilities: Contingent Consideration Fair value – December 31, 2018 $ 261 Change in fair value (48 ) Earned and paid (78 ) Fair value – September 30, 2019 $ 135

Cash Equivalents and Availabl_2

Cash Equivalents and Available for Sale Marketable Securities (Tables)	9 Months Ended
	Sep. 30, 2019
Cash and Cash Equivalents [Abstract]
Schedule of Cash Equivalents and Available-for-sale Marketable Securities	Cash equivalents and available-for-sale marketable securities consisted of the following as of September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 Amortized Unrealized Unrealized Market Value Cash equivalents: Money market funds $ 7 $ – $ – $ 7 Commercial paper 10,037 32 – 10,069 U.S. government debt securities 1,930 6 – 1,936 Total cash equivalents (1) 11,974 38 – 12,012 Short-term investments: Commercial paper 1,980 4 – 1,984 U.S. government debt securities 2,686 10 – 2,696 Corporate debt securities 13,984 11 – 13,995 Total short-term investments 18,650 25 – 18,675 Total $ 30,624 $ 63 $ – $ 30,687 (1) Included in cash and cash equivalents in the Company’s consolidated balance sheet as of September 30, 2019 in addition to $15.3 million of cash. December 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Market Value Cash equivalents: Money market funds $ 7 $ – $ – $ 7 Commercial paper 20,648 30 – 20,678 U.S. government debt securities 3,224 2 – 3,226 Total cash equivalents (1) 23,879 32 – 23,911 Short-term investments: Commercial paper 714 – – 714 Corporate debt securities 5,444 5 (1 ) 5,448 Total short-term investments 6,158 5 (1 ) 6,162 Total $ 30,037 $ 37 $ (1 ) $ 30,073 (1) Included in cash and cash equivalents in the Company’s consolidated balance sheet as of December 31, 2018 in addition to $31.8 million of cash.

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	9 Months Ended
	Sep. 30, 2019
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment, Net	The following table presents the components of property and equipment, net (in thousands): September 30, 2019 December 31, 2018 Machinery and equipment $ 11,814 $ 8,276 Land and buildings 2,000 2,000 Computers and software 1,173 1,372 Leasehold improvements 2,272 1,230 Construction in progress 1,903 2,402 Furniture and equipment 470 614 Total property and equipment, gross 19,632 15,894 Accumulated depreciation (3,970 ) (2,158 ) Total property and equipment, net $ 15,662 $ 13,736
Schedule of Depreciation Expense	Depreciation and amortization expense for property and equipment, including assets acquired under financing leases for the three and nine months ended September 30, 2019 and 2018 was as follows (in thousands): For the three months ended For the nine months ended September 30, September 30, 2019 2018 2019 2018 General and administrative expense $ 407 $ 80 $ 1,171 $ 89 Research and development expense 390 336 1,072 999 Total depreciation and amortization expense $ 797 $ 416 $ 2,243 $ 1,088

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Schedule of Operating and Finance Lease Liabilities	As of September 30, 2019, the maturities of our operating and finance lease liabilities were as follows (in thousands): Operating leases Finance leases 2019 (excluding the nine months ended September 30, 2019) $ 551 $ 149 2020 2,114 597 2021 1,730 594 2022 1,345 329 2023 132 253 Thereafter 87 43 Total lease payments 5,959 1,965 Less: Imputed interest (787 ) (310 ) Total $ 5,172 $ 1,655
Shcedule of Supplemental Balance Sheet Information Related to Finance and Operating Leases	Supplemental balance sheet information related to leases was as follows (in thousands): Finance leases As of Finance lease right-of-use assets included within property and equipment, net $ 2,112 Current finance lease liabilities included within other current liabilities $ 456 Non-current finance lease liabilities included within other long-term liabilities 1,199 Total $ 1,655 Operating leases As of Current operating lease liabilities included within other current liabilities $ 1,814 Operating lease liabilities – non current 3,358 Total $ 5,172
Summary of Components of Lease Expense	The components of lease expense were as follows (in thousands): Three months ended September 30, 2019 Nine months ended September 30, 2019 Operating lease costs included within operating costs and expenses $ 556 $ 1,617 Finance lease costs: Amortization of right of use assets $ 171 $ 479 Interest on lease liabilities 42 109 Total $ 213 $ 588
Schedule of Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to leases was as follows (in thousands): Nine months ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash out flows from operating leases $ 1,550 Operating cash out flows from finance leases 109 Financing cash out flows from finance leases 336 Lease liabilities arising from obtaining right-of-use assets: Finance leases $ 1,828 Lease payments made in prior period reclassified to property and equipment 535 Remeasurement of finance lease liability due to lease modification (22 ) Operating leases 936

Accounts Payable and Accrued _2

Accounts Payable and Accrued Expenses and Other Current Liabilities (Tables)	9 Months Ended
	Sep. 30, 2019
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Expenses	The following table presents the major components of accounts payable and accrued expenses (in thousands): September 30, 2019 December 31, 2018 Accounts payable $ 3,716 $ 2,918 Salaries and other compensation 1,263 1,280 Legal and accounting 1,905 640 Accrued severance 2,519 – Other accruals 830 1,670 Total accounts payable and accrued expenses $ 10,233 $ 6,508

Preferred Shares and Common S_2

Preferred Shares and Common Shares (Tables)	9 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Schedule of Deemed Dividend on Preferred Shares Exchange	The exchange of all outstanding Series F Preferred Shares, and the holders’ right to receive 6% dividends, for common stock of the Company was recognized as follows: Fair market value of 1,003,393 shares of common stock issued at $20.05 (Company’s closing stock price on March 5, 2018) in exchange for Series F Preferred Shares and accrued dividends $ 20,117,990 Carrying value of Series F Preferred Shares at March 5, 2018, including dividends (5,898,274 ) Carrying value of bifurcated conversion option at March 5, 2018 (7,162,587 ) Deemed dividend on Series F Preferred Shares exchange $ 7,057,129

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2019
Share-based Payment Arrangement [Abstract]
Schedule of Share-based Compensation Related to Restricted Stock Awards and Stock Options	For the three and nine months ended September 30, 2019 and 2018, the Company recorded stock-based compensation expense related to stock options, restricted stock awards, and the employee stock purchase plan as follows (in thousands): For the three months ended For the nine months ended September 30, September 30, 2019 2018 2019 2018 General and administrative expense $ 4,822 $ 10,118 $ 20,751 $ 22,925 Research and development expense (164 ) 335 2,401 3,317 Sales and marketing expense 367 – 780 – Total stock-based compensation expense $ 5,025 $ 10,453 $ 23,932 $ 26,242
Schedule of Share-based Compensation, Stock Options, Activity	A summary of the Company’s employee and non-employee stock option activity for the nine months ended September 30, 2019 is presented below: Number of shares Weighted-Average Exercise Price Outstanding – December 31, 2018 6,499,885 $ 14.02 Granted 818,403 $ 13.75 Exercised (1) (292,417 ) $ 4.31 Forfeited (668,842 ) $ 20.50 Outstanding – September 30, 2019 6,357,029 $ 13.91 Options exercisable – September 30, 2019 4,815,831 $ 12.69 Weighted-average grant date fair value of options granted during the nine months ended September 30, 2019 $ 9.84 (1) The number of exercised options includes shares withheld on behalf of employees to satisfy minimum statutory tax withholding requirements.
Schedule of Share-based Compensation, Restricted Stock Activity	A summary of the Company’s employee and non-employee restricted-stock activity for the nine months ended September 30, 2019 is presented below: Number of shares Weighted-Average Unvested - December 31, 2018 651,110 $ 23.65 Granted 1,919,675 $ 5.03 Vested (1) (415,290 ) $ 20.84 Forfeited (128,395 ) $ 22.44 Unvested – September 30, 2019 2,027,100 $ 7.64 (1) The number of vested restricted stock units includes shares that were withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements.

Loss Per Share (Tables)

Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Schedule of Anti-dilutive Potential Shares Outstanding Activity	The following outstanding potentially dilutive shares have been excluded from the calculation of diluted net loss per share for the periods presented due to their anti-dilutive effect: As of September 30, 2019 2018 Stock options 6,357,029 6,125,628 Restricted stock 2,027,100 685,730 Shares committed under ESPP 15,235 –

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Schedule of Segment Information	Certain information concerning our segments for the three and nine months ended September 30, 2019 and 2018 is presented in the following table (in thousands): For the three months ended For the nine months ended September 30, September 30, 2019 2018 2019 2018 Net revenues: Reportable segments: Regenerative medicine $ 839 $ 197 $ 1,640 $ 389 Contract services 556 528 2,546 659 Total net revenues $ 1,395 $ 725 $ 4,186 $ 1,048 Net (loss) income: Reportable segments: Regenerative medicine $ (22,466 ) $ (20,332 ) $ (70,247 ) $ (45,845 ) Contract services (517 ) (247 ) (1,101 ) (511 ) Total net loss $ (22,983 ) $ (20,579 ) $ (71,348 ) $ (46,356 )

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details Narrative) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)Segment	Dec. 31, 2018USD ($)
Accounting Policies [Abstract]
Number of operating segments | Segment	2
Unbilled receivables	$ 222	$ 157
Deferred revenue	134	$ 170
Recognized revenue	$ 170

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Adoption of Accounting Pronouncements on Accompanying Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 02, 2019	Dec. 31, 2018
Operating lease right-of-use assets	$ 5,028	$ 5,305
Accounts payable and accrued expenses	10,233	6,433	6,508
Other current liabilities	2,582	1,748	316
Operating lease liabilities	$ 3,358	3,948
Adjustments Due to the Adoption of ASC 842 [Member]
Operating lease right-of-use assets		5,305
Accounts payable and accrued expenses		(75)
Other current liabilities		1,432
Operating lease liabilities		$ 3,948

Liquidity (Details Narrative)

Liquidity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Apr. 10, 2018	Sep. 30, 2019	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit		$ (414,212)	$ (342,864)
Cash and cash equivalents and short-term investments		$ 45,900
Public offering share value	3,418,918
Common stock, par value	$ 0.001	$ 0.001	$ 0.001
Public offering price per share	$ 8.51
Proceeds for public offering	$ 27,900

Fair Value (Details Narrative)

Fair Value (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended
	May 31, 2018	Mar. 05, 2018	Sep. 30, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Number of warrant to purchase shares of common stock			322,727
Warrant exercisable price per share			$ 30
Warrants terms			2 years
Embedded conversion feature		$ 7,200
Fair value of warrant liability		$ 2,500
IBEX [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Payments to acquire assets	$ 3,800
Payments to acquire assets, cash paid	2,300
Purchase of assets, equity interests issued	1,200
Purchase of assets, contingent consideration	$ 300
Estimated future cash flows using, discount rate	20.00%
Contingent consideration payment percentage of actual revenues received	15.00%
Contingent consideration payment of actual revenues received	$ 650

Fair Value - Schedule of Fair V

Fair Value - Schedule of Fair Value Assumptions of Warrants and Embedded Conversion Feature (Details)	Mar. 05, 2018$ / shares	Sep. 30, 2017
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrant liability fair value assumptions, measurement input, term		2 years
Monte Carlo Simulation [Member] | Stock Price [Member] | Warrant Liability [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrant liability fair value assumptions, measurement input	20.05
Monte Carlo Simulation [Member] | Exercise Price [Member] | Warrant Liability [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrant liability fair value assumptions, measurement input	30
Monte Carlo Simulation [Member] | Risk Free Rate [Member] | Warrant Liability [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrant liability fair value assumptions, measurement input	2.2
Monte Carlo Simulation [Member] | Volatility [Member] | Warrant Liability [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrant liability fair value assumptions, measurement input	88.2
Monte Carlo Simulation [Member] | Term [Member] | Warrant Liability [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrant liability fair value assumptions, measurement input, term	1 year 6 months
Series F Conversion Feature [Member] | Monte Carlo Simulation [Member] | Stock Price [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Embedded conversion feature fair value assumptions, measurement input	20.05
Series F Conversion Feature [Member] | Monte Carlo Simulation [Member] | Exercise Price [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Embedded conversion feature fair value assumptions, measurement input	27.50
Series F Conversion Feature [Member] | Monte Carlo Simulation [Member] | Risk Free Rate [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Embedded conversion feature fair value assumptions, measurement input	2.2
Series F Conversion Feature [Member] | Monte Carlo Simulation [Member] | Volatility [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Embedded conversion feature fair value assumptions, measurement input	88.2
Series F Conversion Feature [Member] | Monte Carlo Simulation [Member] | Term [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Embedded conversion feature fair value assumptions, measurement input, term	1 year 6 months

Fair Value - Schedule of Change

Fair Value - Schedule of Changes in Estimated Fair Value for Level 3 Classified Derivative Warrant Liability (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value at the beginning of period	$ 261	$ 11,538
Change in fair value	(48)	(1,850)
Exchange / conversion to common shares		(9,688)
Fair value at the end of period	$ 135
2017 Series F Preferred Stock Warrant Liability [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value at the beginning of period		3,388
Change in fair value		(863)
Exchange / conversion to common shares		(2,525)
Fair value at the end of period
2017 Series F Preferred Stock Embedded Derivative [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value at the beginning of period		8,150
Change in fair value		(987)
Exchange / conversion to common shares		(7,163)
Fair value at the end of period

Fair Value - Schedule of Fair_2

Fair Value - Schedule of Fair Value of Financial Instruments Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Money market funds	$ 7	$ 7
Commercial paper	12,053	21,392
Corporate debt securities	13,995	5,448
U.S. government debt securities	4,632	3,226
Total	30,687	30,073
Contingent consideration	135	261
Total	135	261
Level 1 [Member]
Money market funds	7	7
Commercial paper
Corporate debt securities
U.S. government debt securities
Total	7	7
Contingent consideration
Total
Level 2 [Member]
Money market funds
Commercial paper	12,053	21,392
Corporate debt securities	13,995	5,448
U.S. government debt securities	4,632	3,226
Total	30,680	30,066
Contingent consideration
Total
Level 3 [Member]
Money market funds
Commercial paper
Corporate debt securities
U.S. government debt securities
Total
Contingent consideration	135	261
Total	$ 135	$ 261

Fair Value - Schedule of Chan_2

Fair Value - Schedule of Changes in Estimated Fair Value for Level 3 Classified Contingent Consideration (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Fair value at the beginning of period	$ 261	$ 11,538
Change in fair value	(48)	(1,850)
Earned and paid	(78)
Fair value at the end of period	$ 135

Cash Equivalents and Availabl_3

Cash Equivalents and Available for Sale Marketable Securities (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Dec. 31, 2018
Debt securities, held-to-maturity, description		Maturities of less than one year.	Maturities of less than one year.
Realized gains on available-for-sale securities	$ 400	$ 100
Cash Equivalents [Member]
Realized gains on available-for-sale securities	$ 400	$ 100

Cash Equivalents and Availabl_4

Cash Equivalents and Available for Sale Marketable Securities - Schedule of Cash Equivalents and Available-for-sale Marketable Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2019		Dec. 31, 2018
Cash and Cash Equivalents [Line Items]
Money market funds	$ 7		$ 7
Commercial paper	10,069		20,678
U.S. government debt securities	4,632		3,226
Total cash equivalents	12,012	[1]	23,911	[2]
Commercial paper	1,984		714
U.S. government debt securities	2,696
Corporate debt securities	13,995		5,448
Total short-term investments	18,675		6,162
Total	30,687		30,073
Amortized Cost [Member]
Cash and Cash Equivalents [Line Items]
Money market funds	7		7
Commercial paper	10,037		20,648
U.S. government debt securities	1,930		3,224
Total cash equivalents	11,974	[1]	23,879	[2]
Commercial paper	1,980		714
U.S. government debt securities	2,686
Corporate debt securities	13,984		5,444
Total short-term investments	18,650		6,158
Total	30,624		30,037
Unrealized Gains [Member]
Cash and Cash Equivalents [Line Items]
Money market funds
Commercial paper	32		30
U.S. government debt securities	6		2
Total cash equivalents	38	[1]	32	[2]
Commercial paper	4
U.S. government debt securities	10
Corporate debt securities	11		5
Total short-term investments	25		5
Total	63		37
Unrealized Losses [Member]
Cash and Cash Equivalents [Line Items]
Money market funds
Commercial paper
U.S. government debt securities
Total cash equivalents		[1]		[2]
Commercial paper
U.S. government debt securities
Corporate debt securities			(1)
Total short-term investments			(1)
Total			$ (1)
[1]	Included in cash and cash equivalents in the Company's consolidated balance sheet as of September 30, 2019 in addition to $15.3 million of cash.
[2]	Included in cash and cash equivalents in the Company's consolidated balance sheet as of December 31, 2018 in addition to $31.8 million of cash.

Cash Equivalents and Availabl_5

Cash Equivalents and Available for Sale Marketable Securities - Schedule of Cash Equivalents and Available-for-sale Marketable Securities (Details) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Money market funds	$ 7	$ 7
Cash and Cash Equivalents [Member]
Money market funds	$ 15,300	$ 31,800

Property and Equipment, Net (De

Property and Equipment, Net (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Property, Plant and Equipment [Abstract]
Loss on disposal of property and equipment	$ 265

Property and Equipment, Net - S

Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Machinery and equipment	$ 11,814	$ 8,276
Land and buildings	2,000	2,000
Computers and software	1,173	1,372
Leasehold improvements	2,272	1,230
Construction in progress	1,903	2,402
Furniture and equipment	470	614
Total property and equipment, gross	19,632	15,894
Accumulated depreciation	(3,970)	(2,158)
Total property and equipment, net	$ 15,662	$ 13,736

Property and Equipment, Net -_2

Property and Equipment, Net - Schedule of Depreciation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Property, Plant and Equipment [Line Items]
General and administrative expense	$ 16,044	$ 15,135	$ 48,299	$ 33,998
Research and development expense	2,956	4,111	13,072	12,598
Total depreciation and amortization expense			2,243	1,088
Depreciation [Member]
Property, Plant and Equipment [Line Items]
General and administrative expense	407	80	1,171	89
Research and development expense	390	336	1,072	999
Total depreciation and amortization expense	$ 797	$ 416	$ 2,243	$ 1,088

Leases (Details Narrative)

Leases (Details Narrative) - ft²	9 Months Ended
	Sep. 30, 2019	Apr. 30, 2019
Leases [Abstract]
Leases facilities, description	The Company leases facilities and certain equipment under noncancelable leases that expire at various dates through November 2024. These leases require monthly lease payments that may be subject to annual increases throughout the lease term. Certain of these leases may include options to extend or terminate the lease at the election of the Company.
Operating lease area optain		6,307
Operating lease expiration date	Apr. 30, 2024
Weighted average remaining operating lease term, operating lease	3 years
Weighted average discount rate, operating lease	9.82%
Weighted average remaining operating lease term, finance lease	3 years 7 months 6 days
Weighted average discount rate, finance lease	9.70%

Leases - Schedule of Operating

Leases - Schedule of Operating and Finance Lease Liabilities (Details) $ in Thousands	Sep. 30, 2019USD ($)
Leases [Abstract]
2019 (excluding the nine months ended September 30, 2019)	$ 551
2020	2,114
2021	1,730
2022	1,345
2023	132
Thereafter	87
Total lease payments	5,959
Less: Imputed interest	(787)
Total	5,172
2019 (excluding the nine months ended September 30, 2019)	149
2020	597
2021	594
2022	329
2023	253
Thereafter	43
Total lease payments	1,965
Less: Imputed interest	(310)
Total	$ 1,655

Leases - Shcedule of Supplement

Leases - Shcedule of Supplemental Balance Sheet Information Related to Finance and Operating Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 02, 2019	Dec. 31, 2018
Leases [Abstract]
Finance lease right-of-use assets included within property and equipment, net	$ 2,112
Current finance lease liabilities included within other current liabilities	456
Non-current finance lease liabilities included within other long-term liabilities	1,199
Total	1,655
Current operating lease liabilities included within other current liabilities	1,814
Operating lease liabilities - non current	3,358	$ 3,948
Total	$ 5,172

Leases - Summary of Components

Leases - Summary of Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Leases [Abstract]
Operating lease costs included within operating costs and expenses	$ 556	$ 1,617
Amortization of right of use assets	171	479
Interest on lease liabilities	42	109
Total	$ 213	$ 588

Leases - Schedule of Supplement

Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Leases [Abstract]
Operating cash out flows from operating leases	$ 1,550
Operating cash out flows from finance leases	109
Financing cash out flows from finance leases	336
Finance leases	1,828
Lease payments made in prior period reclassified to property and equipment	535
Remeasurement of finance lease liability due to lease modification	(22)
Operating leases	$ 936

Accounts Payable and Accrued _3

Accounts Payable and Accrued Expenses and Other Current Liabilities (Details Narrative) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Other long-term liabilities	$ 1,808	$ 131
Short term debt	200
Dr. Denver Lough [Member]
Accrued compensation	2,300
Other long-term liabilities	$ 600

Accounts Payable and Accrued _4

Accounts Payable and Accrued Expenses and Other Current Liabilities - Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 02, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Accounts payable	$ 3,716		$ 2,918
Salaries and other compensation	1,263		1,280
Legal and accounting	1,905		640
Accrued severance	2,519
Other accruals	830		1,670
Total accounts payable and accrued expenses	$ 10,233	$ 6,433	$ 6,508

Long Term Note Payable (Details

Long Term Note Payable (Details Narrative) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	9 Months Ended
	May 31, 2018	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Debt Instrument [Line Items]
Unamortized debt discount		$ 28	$ 28		$ 68
Amortization of debt discount		$ 12	40	$ 30
Promissory Note [Member]
Debt Instrument [Line Items]
Promissory note payable	$ 1,300
Interest rate	3.50%
Maturity date	Nov. 3, 2020
Accelerated interest rate	7.00%
Interest expenses			$ 113
Ibex Group, L.L.C [Member] | Promissory Note [Member]
Debt Instrument [Line Items]
Initial fair value of liabilities	$ 1,200

Preferred Shares and Common S_3

Preferred Shares and Common Shares (Details Narrative) - USD ($)	Mar. 14, 2019	Mar. 06, 2018	Mar. 05, 2018	Feb. 06, 2018	Sep. 20, 2017	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Apr. 10, 2018	Sep. 30, 2017
Class of Stock [Line Items]
Sale of stock price, per share									$ 8.51
Warrant term										2 years
Warrant exercise price per share										$ 30
Fair value of warrants			$ 2,525,567
Conversion of stock shares issued, value			$ 3,045,034
Preferred stock, shares authorized						25,000,000		25,000,000
Convertible preferred stock, shares outstanding						0		0
Warrant Liability [Member]
Class of Stock [Line Items]
Gain/loss on extinguishment of warrant liability							$ 519,467
6% Series F Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, stated value per share						$ 2,750
Preferred stock initial conversion price, per share						$ 27.50
6% Series F Convertible Preferred Stock [Member] | Accredited Investors [Member]
Class of Stock [Line Items]
Sales of stock amount					$ 17,750,000
Sale of stock price, per share					$ 2,750
Preferred stock, stated value per share					$ 0.001
Conversion of stock shares converted					100
Warrant term					2 years
Warrants to purchase shares of common stock					322,727
Warrant exercise price per share					$ 30
Series F Preferred Stock [Member]
Class of Stock [Line Items]
Warrants to purchase shares of common stock		322,727
Description on certificate of designation						On the two-year anniversary of the initial issuance date, any Series F Preferred Shares outstanding and not otherwise already converted, would, at the option of the holder, either (i) automatically convert into common stock of the Company at the conversion price then in effect or (ii) be repaid by the Company based on the stated value of such outstanding Series F Preferred Shares.
Fair value of warrants						$ 4,300,000
Bifurcated embedded conversion feature						9,300,000
Preferred stock dividends						$ 13,600,000
Beneficially ownership percentage		100.00%
Preferred stock reduction in additional paid in capital							$ 698,000
Series F Preferred Stock [Member] | Restricted Stock [Member]
Class of Stock [Line Items]
Conversion of stock shares converted		972,070
Conversion price, per share		$ 18.26
Preferred stock dividend percentage		6.00%
Conversion of preferred stock into common stock, number shares issued		31,321
Series F Preferred Stock [Member] | Restricted Stock [Member] | Warrant [Member]
Class of Stock [Line Items]
Conversion of preferred stock into common stock, number shares issued		151,871
Series B Preferred Shares [Member]
Class of Stock [Line Items]
Conversion of stock shares converted				15,756
Beneficially ownership percentage		100.00%
Conversion of preferred stock into common stock, number shares issued		7,945,250		262,606
Series A Preferred Shares [Member]
Class of Stock [Line Items]
Beneficially ownership percentage		100.00%
Conversion of preferred stock into common stock, number shares issued		7,945,250
Series E Preferred Shares [Member]
Class of Stock [Line Items]
Beneficially ownership percentage		100.00%
Series E Preferred Shares [Member]
Class of Stock [Line Items]
Conversion of preferred stock into common stock, number shares issued		7,945,250
Series E Preferred Shares [Member] | Lough Registration Rights Agreement [Member]
Class of Stock [Line Items]
Conversion of preferred stock into common stock, number shares issued		7,050,000
Stock registration, description	On March 14, 2019, the Company's registration obligation was waived, and the Lough Registration Rights Agreement amended to provide that Dr. Lough may demand registration by written request to the Company. Dr. Lough demanded registration of his 7,050,000 common shares in August 2019, and pursuant to that demand a registration statement on Form S-3 was filed with the Securities and Exchange Commission in October 2019. Once the registration statement is effective, the Company is obligated to keep it effective until the earlier of the date all the registered shares have been sold pursuant to the registration statement or the date one year from the date the registration statement is first effective.

Preferred Shares and Common S_4

Preferred Shares and Common Shares - Schedule of Deemed Dividend on Preferred Shares Exchange (Details)	9 Months Ended
	Sep. 30, 2019USD ($)
Equity [Abstract]
Fair market value of 1,003,393 shares of common stock issued at $20.05 (Company's closing stock price on March 5, 2018) in exchange for Series F Preferred Shares and accrued dividends	$ 20,117,990
Carrying value of Series F Preferred Shares at March 5, 2018, including dividends	(5,898,274)
Carrying value of bifurcated conversion option at March 5, 2018	(7,162,587)
Deemed dividend on Series F Preferred Shares exchange	$ 7,057,129

Preferred Shares and Common S_5

Preferred Shares and Common Shares - Schedule of Deemed Dividend on Preferred Shares Exchange (Details) (Parenthetical) - Series F Preferred Stock [Member]	Mar. 05, 2018$ / sharesshares
Fair market value of common stock issued, shares | shares	1,003,393
Common stock price per share | $ / shares	$ 20.05

Stock-Based Compensation (Detai

Stock-Based Compensation (Details Narrative) - USD ($) $ in Thousands	Oct. 05, 2018	Dec. 01, 2017	May 31, 2018	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2019	Sep. 30, 2018	Oct. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation						$ 23,932	$ 26,242
Number of stock issued under ESPP, value					$ 35
2019 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation terminate date	Oct. 5, 2028
Number of share available for future issuance				290,875		290,875
2019 Equity Incentive Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock issuable	3,000,000
2017 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock issuable								3,450,000
Stock based compensation terminate date		Dec. 1, 2026
Number of share available for future issuance				379,641		379,641
2017 Equity Incentive Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock issuable		7,300,000
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares reserved			500,000
Common stock purchase price percentage			85.00%
Stock based compensation				$ 14		$ 33
Number of stock issued under ESPP						7,260
Number of stock issued under ESPP, value						$ 35

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Share-based Compensation Related to Restricted Stock Awards and Stock Options (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
General and administrative expense	$ 16,044	$ 15,135	$ 48,299	$ 33,998
Research and development expense	2,956	4,111	13,072	12,598
Sales and marketing expense	4,988	1,618	12,922	1,618
Total stock-based compensation expense			23,932	26,242
Stock Options, Restricted Stock Awards and Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
General and administrative expense	4,822	10,118	20,751	22,925
Research and development expense	(164)	335	2,401	3,317
Sales and marketing expense	367		780
Total stock-based compensation expense	$ 5,025	$ 10,453	$ 23,932	$ 26,242

Stock-Based Compensation - Sc_2

Stock-Based Compensation - Schedule of Share-based Compensation, Stock Options, Activity (Details) - Employee Stock Option [Member]	9 Months Ended
	Sep. 30, 2019$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Outstanding at beginning of period | shares	6,499,885
Number of Shares, Granted | shares	818,403
Number of Shares, Exercised | shares	(292,417)	[1]
Number of Shares, Forfeited | shares	(668,842)
Number of Shares, Outstanding at end of period | shares	6,357,029
Number of Shares, Options exercisable | shares	4,815,831
Weighted Average Exercise Price, Outstanding at beginning of year	$ 14.02
Weighted Average Exercise Price, Granted	13.75
Weighted Average Exercise Price, Exercised	4.31	[1]
Weighted Average Exercise Price, Forfeited	20.50
Weighted Average Exercise Price, Outstanding at end of year	13.91
Weighted Average Exercise Price, Options exercisable	12.69
Weighted-average fair value of options granted during the period	$ 9.84
[1]	The number of exercised options includes shares withheld on behalf of employees to satisfy minimum statutory tax withholding requirements.

Stock-Based Compensation - Sc_3

Stock-Based Compensation - Schedule of Share-based Compensation, Restricted Stock Activity (Details) - Restricted Stock and Restricted Stock Units [Member]	9 Months Ended
	Sep. 30, 2019$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Unvested at beginning of period | shares	651,110
Number of Shares, Granted | shares	1,919,675
Number of Shares, Vested | shares	(415,290)	[1]
Number of Shares, Forfeited | shares	(128,395)
Number of Shares, Unvested at end of period | shares	2,027,100
Weighted-Average Grant-Date Fair Value Unvested at beginning of period | $ / shares	$ 23.65
Weighted-Average Grant-Date Fair Value, Granted | $ / shares	5.03
Weighted-Average Grant-Date Fair Value, Vested | $ / shares	20.84	[1]
Weighted-Average Grant-Date Fair Value, Forfeited | $ / shares	22.44
Weighted-Average Grant-Date Fair Value, Unvested at end of period | $ / shares	$ 7.64
[1]	The number of vested restricted stock units includes shares that were withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements.

Loss Per Share - Schedule of An

Loss Per Share - Schedule of Anti-dilutive Potential Shares Outstanding Activity (Details) - shares	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares	6,357,029	6,125,628
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares	2,027,100	685,730
Employee Stock Purchase Plan [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares	15,235

Certain Relationships and Rel_2

Certain Relationships and Related Transactions (Details Narrative)	Aug. 21, 2019	Oct. 31, 2018USD ($)a	Sep. 30, 2019USD ($)aft²	Sep. 30, 2019USD ($)aft²	Oct. 02, 2019USD ($)	Dec. 31, 2018USD ($)
Related Party Transaction [Line Items]
Lease rental square feet | a			6,232	6,232
Annual lease rate				$ 31,160
Sublease income			$ 69,000	195,000
Due from related party			$ 17,000	$ 17,000		$ 0
Cohen LLC [Member]
Related Party Transaction [Line Items]
Lease rental square feet | a			4,584	4,584
Annual lease rate				$ 22,920
Parent Company [Member]
Related Party Transaction [Line Items]
Lease rental square feet | ft²			1,648	1,648
Office Lease [Member]
Related Party Transaction [Line Items]
Lease rental square feet | a		7,250
Lease term		3 years
Annual lease rate		$ 60
Operating leases, description		Initially the Company will occupy and pay for only 3,275 square feet of space, and the Company is not obligated under the lease to pay for the remaining 3,975 square feet covered by the lease unless we elect to occupy that additional space.
Settlement Terms Agreement [Member] | Dr. Denver Lough [Member]
Related Party Transaction [Line Items]
Related party transaction, description	On August 21, 2019, the Company and Dr. Denver Lough, a principal shareholder and former officer and director, signed a settlement terms agreement that provides, in part, that the Company pay to Dr. Lough $1,500,000 in cash on October 1, 2019 and an additional $1,500,000 in cash in equal monthly installments beginning November 1, 2019 and ending April 1, 2021. In addition, the Company agreed to award to Dr. Lough 200,000 restricted stock units that vest in 18 equal monthly installments beginning October 1, 2019.
Settlement Terms Agreement [Member] | Dr. Denver Lough [Member] | Subsequent Event [Member]
Related Party Transaction [Line Items]
Due to related party					$ 1,500,000
Settlement Terms Agreement [Member] | Dr. Denver Lough [Member] | Subsequent Event [Member] | Equal Monthly Installments Beginning November 1, 2019 and Ending April 1, 2021 [Member]
Related Party Transaction [Line Items]
Due to related party					$ 1,500,000

Segment Reporting (Details Narr

Segment Reporting (Details Narrative) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)Segment	Sep. 30, 2018USD ($)
Segment Reporting [Abstract]
Number of operating segment | Segment			2
Noncash expense | $	$ 400	$ 200	$ 1,400	$ 300

Segment Reporting - Schedule of

Segment Reporting - Schedule of Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting Information [Line Items]
Total net revenues	$ 1,395			$ 725			$ 4,186	$ 1,048
Total net loss	(22,983)	$ (22,792)	$ (25,573)	(20,579)	$ (14,000)	$ (11,777)	(71,348)	(46,356)
Regenerative Medicine [Member]
Segment Reporting Information [Line Items]
Total net revenues	839			197			1,640	389
Total net loss	(22,466)			(20,332)			(70,247)	(45,845)
Contract Services [Member]
Segment Reporting Information [Line Items]
Total net revenues	556			528			2,546	659
Total net loss	$ (517)			$ (247)			$ (1,101)	$ (511)

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - Subsequent Event [Member] - Registration Statement [Member]	Oct. 21, 2019shares
Subsequent Event [Line Items]
Registration statement, description	Pursuant to the demand made by Dr. Denver Lough under his Registration Rights Agreement in August 2019, the Company filed a registration statement on Form S-3 with the Securities and Exchange Commission on October 21, 2019 to register 7,050,000 shares of common stock held by Dr. Lough, which was declared effective November 1, 2019.
Dr. Denver Lough [Member]
Subsequent Event [Line Items]
Common stock registered	7,050,000