Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 7-May-15 | |
Document Information [Line Items] | ||
Entity Registrant Name | NUO THERAPEUTICS, INC. | |
Entity Central Index Key | 1091596 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | NUOT | |
Entity Common Stock, Shares Outstanding | 125,680,100 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $11,818,891 | $15,946,425 |
Short-term investments, restricted | 53,391 | 53,391 |
Accounts and other receivable, net | 2,122,994 | 1,889,327 |
Inventory, net | 1,045,621 | 556,620 |
Prepaid expenses and other current assets | 2,490,764 | 2,338,990 |
Deferred costs, current portion | 1,091,387 | 1,091,387 |
Total current assets | 18,623,048 | 21,876,140 |
Property and equipment, net | 999,089 | 925,171 |
Intangible assets, net | 28,670,676 | 28,747,770 |
Goodwill | 1,128,517 | 1,128,517 |
Deferred costs and other assets | 3,317,963 | 3,547,007 |
Total assets | 52,739,293 | 56,224,605 |
Current liabilities | ||
Accounts payable | 2,026,992 | 1,877,736 |
Accrued expenses | 6,533,094 | 6,218,224 |
Deferred revenues, current portion | 402,377 | 402,377 |
Total current liabilities | 8,962,463 | 8,498,337 |
Deferred revenues | 938,880 | 1,039,475 |
Convertible debt, net of debt discount | 421,250 | 325,553 |
Derivative liabilities | 21,480,943 | 29,846,821 |
Other liabilities | 526,812 | 546,867 |
Total liabilities | 32,330,348 | 40,257,053 |
Commitments and contingencies (See Note 8) | ||
Conditionally redeemable common stock (909,091 issued and outstanding) | 500,000 | 500,000 |
Stockholders' equity | ||
Common stock; $.0001 par value, authorized 425,000,000 shares; 2015 issued and outstanding - 125,680,100 shares; 2014 issued and outstanding - 125,680,100 shares | 12,477 | 12,477 |
Common stock issuable | 392,950 | 392,950 |
Additional paid-in capital | 125,508,365 | 125,173,973 |
Accumulated deficit | -106,004,847 | -110,111,848 |
Total stockholders' equity | 19,908,945 | 15,467,552 |
Total liabilities and stockholders' equity | $52,739,293 | $56,224,605 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Temporary equity, shares issued | 909,091 | 909,091 |
Temporary equity, shares outstanding | 909,091 | 909,091 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, authorized | 425,000,000 | 425,000,000 |
Common stock, issued | 125,680,100 | 125,680,100 |
Common stock, outstanding | 125,680,100 | 125,680,100 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Revenues | ||
Product sales | $1,305,765 | $1,423,218 |
License fees | 3,100,595 | 100,594 |
Royalties | 430,767 | 322,117 |
Total revenues | 4,837,127 | 1,845,929 |
Cost of revenues | ||
Costs of sales | 1,281,151 | 1,408,821 |
Costs of license fees | 1,500,000 | 0 |
Costs of royalties | 44,186 | 44,244 |
Total costs of revenues | 2,825,337 | 1,453,065 |
Gross profit | 2,011,790 | 392,864 |
Operating expenses | ||
Sales and marketing | 1,822,097 | 1,477,689 |
Research and development | 734,490 | 1,433,599 |
General and administrative | 2,825,972 | 2,131,736 |
Total operating expenses | 5,382,559 | 5,043,024 |
Loss from operations | -3,370,769 | -4,650,160 |
Other income (expense) | ||
Interest, net | -866,958 | -1,179,170 |
Change in fair value of derivative liabilities | 8,365,878 | 201,062 |
Other | -16,279 | 0 |
Total other income (expense) | 7,482,641 | -978,108 |
Income (loss) before provision for income taxes | 4,111,872 | -5,628,268 |
Income tax provision | 4,871 | 4,645 |
Net income (loss) | $4,107,001 | ($5,632,913) |
Basic and diluted earnings (loss) per share — | ||
Basic (in dollars per share) | $0.02 | ($0.05) |
Diluted (in dollars per share) | $0.02 | ($0.05) |
Weighted average shares outstanding — | ||
Basic (in shares) | 125,951,100 | 111,222,841 |
Diluted (in shares) | 125,951,100 | 111,222,841 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $4,107,001 | ($5,632,913) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Bad debt expense | 35,047 | 13,433 |
Increase in allowance for inventory obsolesence | 13,240 | 0 |
Depreciation and amortization | 168,993 | 217,673 |
Stock-based compensation | 334,392 | 178,000 |
Change in fair value of derivative liabilities | -8,365,878 | -201,062 |
Non-cash interest expense: | ||
Amortization of deferred costs | 272,847 | 576,047 |
Amortization of debt discount | 95,697 | 73,634 |
Deferred income tax provision | 4,871 | 4,645 |
Change in operating assets and liabilities, net of those acquired: | ||
Accounts and other receivable | -268,714 | 1,542,059 |
Inventory | -502,241 | 379,974 |
Prepaid expenses and other current assets | -151,774 | -721,280 |
Other assets | -43,803 | 0 |
Accounts payable | 149,256 | 422 |
Accrued expenses | 314,870 | -78,554 |
Deferred revenues | -100,595 | -371,575 |
Other liabilities | -24,926 | 108,798 |
Net cash used in operating activities | -3,961,717 | -3,910,699 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Property and equipment acquisitions | -165,817 | -75,733 |
Net cash used in investing activities | -165,817 | -75,733 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of debt, net | 0 | 8,788,168 |
Proceeds from issuance of common stock, net | 0 | 3,666,260 |
Repayment of note payable | 0 | -4,101,143 |
Net cash provided by financing activities | 0 | 8,353,285 |
Net increase (decrease) in cash | -4,127,534 | 4,366,853 |
Cash, beginning of period | 15,946,425 | 3,286,713 |
Cash, end of period | $11,818,891 | $7,653,566 |
Business_and_Summary_of_Signif
Business and Summary of Significant Accounting Principles | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||
Nature of Operations [Text Block] | Note 1 — Business and Summary of Significant Accounting Principles | ||||||||
Description of Business | |||||||||
Nuo Therapeutics, Inc. (“Nuo Therapeutics,” the “Company,” “we,” “us,” or “our”) is a biomedical company marketing products within the U.S. and internationally. We commercialize innovative cell-based technologies that harness the regenerative capacity of the human body to trigger natural healing. The use of autologous biological therapies for tissue repair and regeneration is part of a transformative clinical strategy designed to improve long term recovery in complex chronic conditions with significant unmet medical needs. Growth drivers in the U.S. include Medicare coverage for the treatment of chronic wounds under a National Coverage Determination when registry data is collected under Coverage with Evidence Development (“CED”), and a worldwide distribution and licensing agreement that allows our partner to promote the Angel® System for all uses other than wound care. | |||||||||
Our current commercial offerings consist of point of care technologies for the safe and efficient separation of autologous blood and bone marrow to produce platelet based therapies or cell concentrates. We currently have two distinct platelet rich plasma (“PRP”) devices, the Aurix™ System for wound care and the Angel concentrated Platelet Rich Plasma (“cPRP”) System used primarily in the orthopedic and cardiovascular markets. During the first quarter of 2015, approximately 90% of our product sales were generated in the United States where we sell our products through direct sales representatives and distributors. Beginning in 2013, Arthrex, Inc. (“Arthrex”) became our exclusive distributor for Angel. | |||||||||
Since our inception, we have financed our operations by raising debt, issuing equity and equity-linked instruments, executing licensing arrangements, and to a lesser extent by generating royalties and product revenues. We have incurred, and continue to incur, recurring losses and negative cash flows. In 2014, we raised $35 million from the issuance of convertible debt and warrants and $2.0 million from the sale of common stock and warrants. We used approximately $6.2 million of the proceeds from these transactions to retire outstanding debt and accrued interest in 2014, and we converted approximately $3.1 million of previously outstanding convertible debt and interest into common stock. | |||||||||
At March 31, 2015 we had total debt outstanding of $36.5 million including accrued interest, and we had cash and cash equivalents on hand of $11.8 million. Our operations are subject to certain risks and uncertainties including, among others, current and potential competitors with greater resources, dependence on significant customers, lack of operating history and uncertainty of future profitability and possible fluctuations in financial results. The accompanying unaudited interim condensed consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities in the ordinary course of business. The propriety of using the going-concern basis is dependent upon, among other things, the achievement of future profitable operations, the ability to generate sufficient cash from operations, and potential other funding sources, including cash on hand, to meet our obligations as they become due. We believe that our current resources, expected revenue from current products, royalty revenue and license fees will be adequate to maintain our operations through at least the end of 2015. Accordingly, management believes the going-concern basis is appropriate for the accompanying condensed consolidated financial statements. | |||||||||
Basis of Presentation | |||||||||
The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In our opinion, the accompanying unaudited interim condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, which are necessary to present fairly our financial position, results of operations and cash flows. The condensed consolidated balance sheet at December 31, 2014, has been derived from audited financial statements of that date. The interim condensed consolidated results of operations are not necessarily indicative of the results that may occur for the full fiscal year. Certain information and footnote disclosure normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to instructions, rules and regulations prescribed by the United States Securities and Exchange Commission, or the SEC. We believe that the disclosures provided herein are adequate to make the information presented not misleading when these unaudited interim condensed consolidated financial statements are read in conjunction with the audited financial statements and notes previously distributed in our annual report on Form 10-K for the year ended December 31, 2014. Certain prior period information has been reclassified to conform to the current period presentation. | |||||||||
Principles of Consolidation | |||||||||
The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned and controlled subsidiary. All significant inter-company accounts and transactions are eliminated in consolidation. | |||||||||
Use of Estimates | |||||||||
The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. In the accompanying unaudited condensed consolidated financial statements, estimates are used for, but not limited to, stock-based compensation, allowance for doubtful accounts, valuation of derivative liabilities and contingent consideration, contingent liabilities, fair value of long-lived assets, deferred taxes and valuation allowance, and the depreciable lives of fixed assets (including intangible assets and goodwill). Actual results could differ from those estimates. | |||||||||
Cash Equivalents | |||||||||
We consider all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. Pursuant to the terms of the Deerfield Facility Agreement (See Note 4 - Debt and Derivative Liabilities for additional details), we are required to maintain a compensating cash balance of $5,000,000 in deposit accounts subject to control agreements in favor of the lenders. Approximately $11,319,691 and $15,486,000 held in financial institutions was in excess of FDIC insurance at March 31, 2015 and December 31, 2014, respectively. | |||||||||
Credit Concentration | |||||||||
Our accounts receivables balance at March 31, 2015 was primarily from Arthrex (72%). In addition, Arthrex accounted for 90% and 89% of total products sales in the quarters ended March 31, 2015 and 2014, respectively. No other single customer accounted for more than 5% of total product sales. | |||||||||
We use single suppliers for several components of the Angel and Aurix product lines. We outsource the manufacturing of various products, including component parts for Angel, to contract manufacturers. While we believe these manufacturers to demonstrate competency, reliability and stability, there is no assurance that one or more of them will not experience an interruption or inability to provide us with the products needed to satisfy customer demand. Additionally, while most of the components of Aurix are generally readily available on the open market, a reagent, bovine thrombin, is available exclusively through Pfizer, with whom we have an established vendor relationship. | |||||||||
Accounts Receivables | |||||||||
We generate accounts receivables from the sale of our products. We provide for an allowance against receivables for estimated losses that may result from a customer’s inability or unwillingness to pay. The allowance for doubtful accounts is estimated primarily based upon historical write-off percentages, known problem accounts, and current economic conditions. Accounts are written off against the allowance for doubtful accounts when we determine that amounts are not collectable. Recoveries of previously written-off accounts are recorded when collected. At March 31, 2015 and December 31, 2014, we maintained an allowance for doubtful accounts of $67,516 and $32,000, respectively. | |||||||||
Inventory | |||||||||
Our inventory is produced by third party manufacturers and consists primarily of finished goods. Inventory cost is determined on a first-in, first-out basis and is stated at the lower of cost or net realizable value. We maintain an inventory of kits, reagents, and other disposables that have shelf-lives that generally range from 18 months to five years. In order to meet the anticipated disposable product requirements of our customers, among other reasons, we purchased a certain inventory item at a price which is significantly higher than the previous purchase price for this item. Management is currently exploring alternative supply arrangements and strategies to reduce these costs. | |||||||||
We provide for an allowance against inventory for estimated losses that may result in excess and obsolete inventory (i.e. from the expiration of products). Our allowance for expired inventory is estimated based upon the inventory’s remaining shelf-life and our anticipated ability to sell such inventory, which is estimated using historical usage and future forecasts, within its remaining shelf life. At March 31, 2015 and December 31, 2014, the Company maintained an allowance for expired and excess and obsolete inventory of $103,240 and $90,000, respectively. Expired products are segregated and used for demonstration purposes only; the Company records the associated expense for this reserve to costs of products sales in the condensed consolidated statement of operations. | |||||||||
Property and Equipment | |||||||||
Property and equipment is stated at cost less accumulated depreciation and is depreciated, using the straight-line method, over its estimated useful life ranging from two to five years for all assets except for furniture, lab, and manufacturing equipment which is depreciated over seven and ten years, respectively. Leasehold improvements are stated at cost less accumulated depreciation and is amortized, using the straight-line method, over the lesser of the expected lease term or its estimated useful life ranging from three to six years; amortization of leasehold improvements is included in depreciation expense. Maintenance and repairs are charged to operations as incurred. When assets are disposed of, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in other income (expense). | |||||||||
Centrifuges may be sold, leased, or placed at no charge with customers. Depreciation expense for centrifuges that are available for sale, leased, or placed at no charge with customers are charged to costs of product sales. Depreciation expense for centrifuges used for sales and marketing and other internal purposes are charged to general and administrative expenses. | |||||||||
Property and equipment is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. Recoverability measurement and estimating of undiscounted cash flows is done at the lowest possible level for which we can identify assets. If such assets are considered to be impaired, impairment is recognized as the amount by which the carrying amount of assets exceeds the fair value of the assets. | |||||||||
Intangible Assets and Goodwill | |||||||||
Intangible assets were acquired as part of our acquisitions of the Angel business and Aldagen, and consist of definite-lived and indefinite-lived intangible assets, including goodwill. | |||||||||
Definite-lived intangible assets | |||||||||
Our definite-lived intangible assets include trademarks, technology (including patents) and customer relationships, and are amortized over their useful lives and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If any indicators were present, we test for recoverability by comparing the carrying amount of the asset to the net undiscounted cash flows expected to be generated from the asset. If those net undiscounted cash flows do not exceed the carrying amount (i. e., the asset is not recoverable), we would perform the next step, which is to determine the fair value of the asset and record an impairment loss, if any. We periodically reevaluate the useful lives for these intangible assets to determine whether events and circumstances warrant a revision in their remaining useful lives. There were no triggering events identified during the three months ended March 31, 2015 and 2014 that would suggest an impairment test may be needed. We recognized an impairment charge related to our trademarks of $1.0 million in the second quarter of 2014. | |||||||||
Indefinite-lived intangible assets | |||||||||
We evaluate our indefinite-lived intangible asset, consisting solely of in-process research and development (“IPR&D”) acquired in the Aldagen acquisition, for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable, and at least on an annual basis on October 1 of each year, by comparing the fair value of the asset with its carrying amount. If the carrying amount of the intangible asset exceeds its fair value, we would recognize an impairment loss in the amount of that excess. There were no triggering events identified during the three months ended March 31, 2015 and 2014 that would suggest an impairment test may be needed. We recognized an impairment charge related to our IPR&D of $3.7 million in the second quarter of 2014. | |||||||||
Goodwill | |||||||||
Goodwill represents the purchase price of acquisitions in excess of the amounts assigned to acquired tangible or intangible assets and assumed liabilities. Goodwill is tax deductible in all relevant jurisdictions. As a result of our acquisition of Aldagen in February 2012, we recorded goodwill of approximately $422,000. Prior to the acquisition of Aldagen, we had goodwill of approximately $707,000 as a result of the acquisition of the Angel business in April 2010. | |||||||||
We conduct an impairment test of goodwill on an annual basis as of October 1 of each year, and will also conduct tests if events occur or circumstances change that would, more likely than not, reduce the Company’s fair value below its net equity value. The Company conducted an impairment test of our Goodwill as of October 1, 2014, and concluded that Goodwill was not impaired. | |||||||||
Exit Activities | |||||||||
In May 2014, we announced preliminary efficacy and safety results of our RECOVER-Stroke Phase 2 clinical trial in patients with neurological damage arising from ischemic stroke and treated with ALD-401. Observed improvements in the primary endpoint (mean modified Rankin Score or mRS) of the trial were not clinically or statistically significant. In light of this outcome, we discontinued further funding of the ALD-401 development program, decided to close our facilities in Durham, NC, and terminated certain employees, and recognized approximately $695,000 of expenses in 2014 associated with the exit activities; approximately $386,899 remains accrued and unpaid as of March 31, 2015. The accrued loss will be amortized over the life of the lease against future rental payments made and sublet income payments received. | |||||||||
Conditionally Redeemable Common Stock | |||||||||
The Maryland Venture Fund (“MVF,” part of Maryland Department of Business and Economic Development) has an investment in our common stock, and can require us to repurchase the common stock, at MVF’s option, upon certain events outside of our control. MVF’s common stock is classified as contingently redeemable common shares in the accompanying unaudited condensed consolidated balance sheets. | |||||||||
Revenue Recognition | |||||||||
We recognize revenue when the four basic criteria for recognition are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services rendered; (3) consideration is fixed or determinable; and (4) collectability is reasonably assured. | |||||||||
Sales of products | |||||||||
We provide for the sale of its products, including disposable processing sets and supplies to customers. Revenue from the sale of products is recognized upon shipment of products to the customers. We do not maintain a reserve for returned products as in the past those returns have not been material and are not expected to be material in the future. | |||||||||
Usage or leasing of blood separation equipment | |||||||||
As a result of the acquisition of the Angel business, we acquired various multiple element revenue arrangements that combined the (i) usage or leasing of blood separation processing equipment, (ii) maintenance of processing equipment, and (iii) purchase of disposable processing sets and supplies. We assigned these multiple element revenue arrangements to Arthrex in 2013 and no longer recognize revenue under these arrangements. | |||||||||
Percentage-based fees on licensee sales of covered products, including those sold by Arthrex, are generally recorded as products are sold by licensees and are reflected as royalties in the condensed consolidated statements of operations. Direct costs associated with product sales and royalty revenues are recorded at the time that revenue is recognized. | |||||||||
Deferred revenue at March 31, 2015 consists of prepaid licensing revenue of $1,341,257 from the licensing of Angel centrifuges, which is being recognized on a straight-line basis over the five-year term of the agreement. Revenue of $100,595 related to the prepaid license was recognized during both the three months ended March 31, 2015 and 2014. In 2013, a medical device excise tax came into effect that required manufacturers to pay tax of 2.3% on the sale of certain medical devices; we report the medical device excise tax on a gross basis, recognizing the tax as both revenue and costs of sales. | |||||||||
License Fees | |||||||||
The Company’s license agreement with Rohto (See Note 2 – Distribution and License Arrangements for additional details) contains multiple elements that include the delivered license and other ancillary performance obligations, such as maintaining its intellectual property and providing regulatory support and training to Rohto. The Company has determined that the ancillary performance obligations are perfunctory and incidental and are expected to be minimal and infrequent. Accordingly, the Company has combined the ancillary performance obligations with the delivered license and is recognizing revenue as a single unit of accounting following revenue recognition guidance applicable to the license. Because the license is delivered, the Company recognized the entire $3.0 million license fee as revenue for the three months ended March 31, 2015. Other elements contained in the license agreement, such as fees and royalties related to the supply and future sale of the product, are contingent and will be recognized as revenue when earned. | |||||||||
Segments and Geographic Information | |||||||||
We operate in one business segment. Approximately 10% and 28% of our product sales were generated outside of the United States for the quarters ended March 31, 2015 and 2014, respectively. | |||||||||
Research and Development Expenses | |||||||||
Research and development costs are expensed as incurred; advance payments are deferred and expensed as performance occurs. Research and development costs include salaries and wages and related benefits, including stock-based compensation expense, clinical trials, CED costs, related material and supplies, contract services and other outside services. | |||||||||
Stock-Based Compensation | |||||||||
The Company awards stock options, restricted stock or equity instruments to employees, directors, consultants, and other service providers under its 2002 Long-Term Incentive Plan or 2013 Equity Incentive Plan (collectively, the “Plans”). The Company also issues stock purchase warrants to service providers outside of the Plans. | |||||||||
Stock-based compensation cost for employee and non-employee director stock options is determined at the grant date using an option pricing model and stock-based compensation cost for restricted stock is based on the closing market price of the stock at the grant date. The value of the award that is ultimately expected to vest is recognized as expense on a straight-line basis over the employee's requisite service period. Stock-based compensation for awards granted to non-employees is periodically remeasured as the underlying equity awards vest. We recognize an expense for such awards throughout the performance period as the services are provided by the non-employees, based on the fair value of these options and warrants at each reporting period. We recognize the estimated fair value of stock-based awards and classify the expense where the underlying salaries or other related costs are classified. | |||||||||
Valuation of stock awards requires management to make assumptions and to apply judgment to determine the fair value of the awards. The fair value of equity-based compensation awards is estimated on the accounting grant date using the Black-Scholes-Merton option-pricing formula. Various assumptions used in this model for grants in the quarters ended March 31, 2015 and 2014 are summarized in the following table. Changes in these assumptions can affect the fair value estimates. | |||||||||
2015 | 2014 | ||||||||
Risk free rate | 1.6 | % | 1.6 | % | |||||
Expected years until exercise | 6.3 | 6.3 | |||||||
Expected stock volatility | 115-117 | % | 126 | % | |||||
Dividend yield | -- | -- | |||||||
For stock options, expected volatilities are based on historical volatility of the Company’s stock. Company data was used to estimate option exercises and employee terminations within the valuation model for the period ending March 31, 2015 and the year ended December 31, 2014, whereas peer company data was used in 2013 and prior periods. Expected years until exercise represents the period of time that options are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The Company estimated that the dividend rate on its common stock will be zero. | |||||||||
Income Taxes | |||||||||
We account for income taxes using the asset and liability approach, which requires the recognition of future tax benefits or liabilities on the temporary differences between the financial reporting and tax bases of our assets and liabilities. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized. We also recognize a tax benefit from uncertain tax positions only if it is “more likely than not” that the position is sustainable based on its technical merits. Our policy is to recognize interest and penalties on uncertain tax positions as a component of income tax expense. | |||||||||
Income tax expense was $4,871 and $4,645 during the three months ended March 31, 2015 and 2014, respectively relating exclusively to the generation of a deferred tax liability associated with the tax amortization of goodwill, which is included as a component of other long-term liabilities on our condensed consolidated balance sheets. | |||||||||
Basic and Diluted Earnings (Loss) per Share | |||||||||
Basic earnings (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of shares of common stock outstanding during the period. | |||||||||
For periods of net income, and when the effects are not anti-dilutive, diluted earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of shares outstanding plus the impact of all potential dilutive common shares, consisting primarily of common stock options and stock purchase warrants using the treasury stock method, and convertible debt using the if-converted method. The total number of anti-dilutive shares, common stock options, warrants exercisable for common stock, and convertible debt, which have been excluded from the computation of diluted earnings (loss) per share, was 201,809,265 for the quarter ended March 31, 2015. | |||||||||
For periods of net loss, diluted loss per share is calculated similarly to basic loss per share because the impact of all dilutive potential common shares is anti-dilutive. The total number of anti-dilutive shares, common stock options, warrants exercisable for common stock, and convertible debt, which have been excluded from the computation of diluted earnings (loss) per share, was 99,654,298 for the quarter ended March 31, 2014. | |||||||||
Earnings per share for the three months ended March 31, 2015 and 2014 are calculated for basic and diluted earnings per share as follows: | |||||||||
Three months ended March 31, | |||||||||
2015 | 2014 | ||||||||
Net income (loss) | $ | 4,107,001 | $ | -5,632,913 | |||||
Net income allocated to participating securities | -1,777,865 | - | |||||||
Numerator for basic income (loss) per share | $ | 2,329,136 | $ | -5,632,913 | |||||
Incremental allocation of net income to participating securities | - | - | |||||||
Numerator adjustments for potential dilutive securities | - | - | |||||||
Numerator for diluted income per share | $ | 2,329,136 | $ | -5,632,913 | |||||
Denominator for basic income (loss) per share weighted average outstanding common shares | 125,951,100 | 111,222,841 | |||||||
Dilutive effect of stock options | - | - | |||||||
Dilutive effect of warrants | - | - | |||||||
Dilutive effect of convertible debt | - | - | |||||||
Denominator for diluted income per share | 125,951,100 | 111,222,841 | |||||||
Recent Accounting Pronouncements | |||||||||
ASU No. 2015-03, “Interest – Imputation of Interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs.” The amendments in this update require the debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. The amendments in this update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal periods. Early adoption of the amendments in this update is permitted for financial statements that have not been previously issued. The Company intends to adopt this requirement in 2016, and currently anticipates that the impact of adoption will solely be a reclassification of its deferred financing costs from asset classification to contra-liability classification. | |||||||||
Distribution_and_Licensing_Arr
Distribution and Licensing Arrangements | 3 Months Ended |
Mar. 31, 2015 | |
Distributors And License Agreement [Abstract] | |
Arthrex Distributor and License Agreement [Text Block] | Note 2 – Distribution and Licensing Arrangements |
Distribution and License Agreement with Arthrex | |
In 2013, we entered into a Distributor and License Agreement (the “Arthrex Agreement”) with Arthrex. The term of the Arthrex Agreement is five years, automatically renewable for an additional three-year period unless Arthrex gives the Company a termination notice at least one year in advance of the end of the initial five-year period. Under the terms of the Arthrex Agreement, Arthrex obtained the exclusive rights to sell, distribute, and service the Company’s Angel Concentrated Platelet System and ActivAt (“Products”), throughout the world, for all uses other than chronic wound care. In connection with execution of the Arthrex Agreement, Arthrex paid the Company a nonrefundable upfront payment of $5 million. In addition, Arthrex will pay royalties to the Company based upon volume of the Products sold. Arthrex’s rights to sell, distribute and service the Products is not exclusive in the non-surgical dermal and non-surgical aesthetics markets. | |
During 2015 and 2014, we devoted substantial resources to improving our Angel product to satisfy new regulatory requirements. In 2014, we recognized a charge to earnings of $600,000 for estimated refurbishment and design improvement costs for Angel products already in circulation. Although we believe that we have completed all the necessary design modifications to the Angel products, we cannot be sure that we will not continue to experience additional costs in the future. As of March 31, 2015, $582,000 remains in accrued expenses related to the Angel product improvement costs. | |
Distribution and License Agreement with Rohto | |
In September 2009, we entered into a license and distribution agreement with Millennia Holdings, Inc. (“Millennia”) for the Company’s Aurix System in Japan. Since then, Millennia has been collecting and publishing clinical data for regulatory purposes and expanding the utilization of Aurix throughout their network. The diabetic population in Japan is estimated to be approximately seven million adults. Millennia has assisted the Company in securing a partner to address widespread distribution in Japan. | |
In January 2015 we granted to Rohto Pharmaceutical Co., Ltd. (“Rohto”) a royalty bearing, nontransferable, exclusive license, with limited right to sublicense, to use certain of the Company’s intellectual property for the development, import, use, manufacturing, marketing, sale and distribution for all wound care and topical dermatology applications of the Aurix system and related intellectual property and know-how in human and veterinary medicine in Japan in exchange for an upfront payment from Rohto of $3.0 million. The agreement also contemplates additional royalty payments based on the net sales of Aurix in Japan and an additional future cash payment in the event specific milestones are met. In connection with and effective as of the entering into the Rohto Agreement, we amended the Licensing and Distribution Agreement with Millennia to terminate it and allow us to transfer the exclusivity rights from Millennia to Rohto. In connection with this amendment we paid a one-time, non-refundable fee of $1.5 million to Millennia upon our receipt of the $3.0 million upfront payment from Rohto, and we may be required to pay certain future royalty payments to Millennia based upon net sales in Japan. Rohto has assumed all responsibility for securing the marketing authorization in Japan, while we will provide relevant product information, as well as clinical and other data, to support Rohto’s efforts. | |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | Note 3 – Goodwill and Other Intangible Assets | |||||||
Goodwill represents the purchase price of acquisitions in excess of the amounts assigned to acquired tangible or intangible assets and assumed liabilities. Amounts allocated to goodwill are tax deductible in all relevant jurisdictions. As a result of our acquisition of Aldagen, we recorded goodwill of approximately $422,000; previously, we had goodwill of approximately $707,000 as a result of the acquisition of the Angel business. There were no changes to our recorded goodwill in the quarters ended March 31, 2015 and 2014. | ||||||||
Our other intangible assets consist of trademarks, technology (including patents), customer relationships, and the IPR&D. These assets are a result of the Angel Business and Aldagen acquisitions. The carrying value of our intangible assets, and the associated amortization, were as follows: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Trademarks | $ | 1,047,000 | $ | 1,047,000 | ||||
Technology | 2,355,000 | 2,355,000 | ||||||
Customer relationships | 708,000 | 708,000 | ||||||
In-process research and development | 25,926,000 | 25,926,000 | ||||||
Total | $ | 30,036,000 | $ | 30,036,000 | ||||
Less accumulated amortization | -1,365,324 | -1,288,230 | ||||||
$ | 28,670,676 | $ | 28,747,770 | |||||
As a result of our discontinuance of ALD-401 in the second quarter of 2014, we performed an assessment of our Aldagen related trademarks and IPR&D as of June 30, 2014 and determined these assets were impaired. There was no additional impairment recognized since then. Amortization expense associated with our definite-lived intangible assets of $39,250 and $39,249 was recorded to costs of royalties and $37,844 and $52,333 was recorded to general and administrative expenses for the three months ended March 31, 2015 and 2014, respectively. Amortization expense for the remainder of 2015 is expected to be $231,282. | ||||||||
Debt_and_Derivative_Liabilitie
Debt and Derivative Liabilities | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Note 4 – Debt and Derivative Liabilities |
Outstanding Debt as of March 31, 2015 | |
In 2014, we entered into a senior secured convertible credit facility (the "Deerfield Facility Agreement") with Deerfield Management Company, L.P. (“Deerfield”). Outstanding amounts under the facility are due in full on March 31, 2019. The facility is structured as a purchase of senior secured convertible notes (the “Notes”), which bear interest at a rate of 5.75% per annum, payable quarterly in arrears in cash or, at our election, registered shares of common stock; provided, that during the five quarters ending September 30, 2015, we have the option of having all or any portion of accrued interest added to the outstanding principal balance. We elected to have all portions of accrued interest added to the principal balance until September 30, 2015, beginning with interest due for the third quarter of 2014. | |
Deerfield has the right to convert the principal amount of the Notes into shares of our common stock (“Conversion Shares”) at a per share price equal to $0.52. In addition, we granted to Deerfield the option to require the Company to redeem up to 33.33% of the total amount drawn under the facility, together with any accrued and unpaid interest thereon, on each of the second, third, and fourth anniversaries of the closing with the option right triggered upon the Company’s net revenues failing to be equal to or in excess of certain quarterly milestone amounts. We will require substantially higher sales to satisfy these quarterly milestones. We also granted Deerfield the option to require us to apply 35% of the proceeds received by us in equity-raising transaction(s) to redeem outstanding principal and interest of the Notes, provided that the first $10 million so raised by us will be exempt from this put option. | |
Under the terms of the facility, we also issued stock purchase warrants to purchase up to 97,614,999 shares of our common stock at an initial exercise price of $0.52 per share (subject to adjustments). | |
We entered into a security agreement which provides, among other things, that our obligations under the Notes will be secured by a first priority security interest, subject to customary permitted liens, on all our assets. We also entered into a Registration Rights Agreement pursuant to which we filed a registration statement to register the resale of the Conversion Shares and the shares underlying the stock purchase warrants. | |
As a result of certain non-standard anti-dilution provisions and cash settlement features, we classify the detachable stock purchase warrants and the conversion option embedded in the Notes as derivative liabilities. The derivative liabilities were recorded initially at their estimated fair value and as a result, we recognized a total debt discount on the convertible notes of $34.8 million. We are amortizing the debt discount over the term of the Notes using the effective interest method. In addition, we re-measure the warrants and the conversion option to fair value at each balance sheet date. Certain debt issuance costs, in the form of warrants and fees, were recorded as deferred debt issuance costs and are being amortized to interest expense on a straight-line basis through the maturity date (we determined that the straight-line method of amortization did not yield a materially different amortization schedule from the effective interest method). The issuance costs include a yield enhancement fee, for which we issued 2,709,677 shares of the Company’s commons stock, with a fixed value of approximately $1.1 million. | |
Debt Repaid, Retired or otherwise Extinguished in 2014 | |
JP Nevada Trust 12% Note | |
In April 2011, we borrowed $2.1 million pursuant to a secured promissory note with an original maturity of May 20, 2016. The note accrued interest at a rate of 12% per annum, and required interest-only payments each quarter commencing September 30, 2011, with the then outstanding principal due on the maturity date. The note was secured by our Angel assets. In connection with the issuance of the secured promissory note, we issued the lender a warrant to purchase up to 1,000,000 shares at an exercise price of $0.50 per share, with variable vesting provisions. Our payment obligations with respect to $1.4 million under the note were guaranteed by certain insiders, affiliates, and shareholders. In connection with this guarantee, we issued the guarantors warrants to purchase an aggregate of up to 1,500,000 shares, on a pro rata basis based on the amount of the guarantee, at an exercise price of $0.50 per share with variable vesting provisions. The warrants issued to the lender and the guarantors were valued at approximately $546,000, were recorded as deferred debt issuance costs, and were being amortized to interest expense on a straight-line basis over the guarantee period (we determined that the straight-line method of amortization did not yield a materially different amortization schedule from the effective interest method). | |
On March 31, 2014 in connection with the Deerfield Notes, JP Nevada Trust agreed to subordinate its security interest in the note. In consideration, we issued to the holder a five-year warrant to purchase 750,000 shares of our common stock at an exercise price of $0.52 per share. The warrants were valued at approximately $14,000 and were classified as derivative liabilities. The $2.1 million note with JP Nevada Trust was repaid in full in June 2014 and the warrants expired pursuant to their terms upon repayment of the debt. The corresponding deferred debt issuance costs of $298,000 were charged to interest expense in the second quarter of 2014. | |
JMJ 4% Convertible Notes | |
In July 2011, we issued $1.3 million of our 4% Convertible Notes (the “July 4% Convertible Notes”) to JMJ Financial. The July 4% Convertible Notes were scheduled to mature on May 23, 2016 and included a one-time interest charge of 4% due on maturity. The July 4% Convertible Notes (plus accrued interest) converted at the option of the holder, in whole or in part and from time to time, into shares of our common stock at a conversion rate equal to (i) the lesser of $0.80 per share or (ii) 80% of the average of the three lowest closing prices of our common stock for the previous 20 trading days prior to conversion (subject to a “floor” price of $0.25 per share). In April 2014, the remaining balance of the face amount of the July 4% Convertible Notes and accrued interest were converted into approximately 347,000 shares of common stock at a conversion price of $0.41 per share. | |
Mid-Cap Financial Term Loan | |
In February 2013, we entered into a Credit and Security Agreement (the “Credit Agreement”) with Mid-Cap Financial (“MidCap”) that provided for aggregate term loan commitments of $7.5 million, subsequently modified to $4.5 million. On March 31, 2014, we repaid the term loan in its entirety along with approximately $330,000 in early payment penalties and fees. The balance of the unamortized debt discount of approximately $381,000 and deferred fees of approximately $142,000 were charged to interest expense in the first quarter of 2014. | |
In connection with term loan, we issued the lender a seven-year warrant to purchase 1,079,137 shares of the Company’s Common stock at the warrant exercise price of $0.70 per share. The exercise price and the number of shares issuable upon exercise of the warrant is subject to standard anti-dilution adjustments and contains a cashless exercise provision. The warrants issued to the lender were valued at approximately $568,000, were recorded as a debt discount, and were being amortized to interest expense over the term of the loan (we determined that the straight-line method of amortization did not yield a materially different amortization schedule from the effective interest method). The warrants are classified in equity. | |
December 2013 Convertible Bridge Note | |
In November 2013, we executed agreements with certain investors for the subsequent issuance of 10% subordinated convertible notes (“10% Subordinated Convertible Notes”) and stock purchase warrants, for gross proceeds of up to $3 million. We received $2.25 million of the expected gross proceeds in December 2013 and we received $0.75 million of the gross proceeds in February 2014. | |
On March 31, 2014 the holders of the December 2013 convertible bridge notes (except for one holder), agreed to convert their outstanding notes pursuant to its terms, converting into 5,981,859 shares of common stock. The Company repaid, in its entirety, the portion of the debt excluded from the conversion (including interest and prepayment penalties) pursuant to its terms, for a total cash payment of approximately $339,000. The unamortized balance of the related debt discount, deferred fees, and derivative liability for the embedded conversion feature, were reclassified to additional paid-in capital. | |
The conversion option embedded in the 10% Subordinated Convertible Notes and related warrants issued to the investors was accounted for as a derivative liability and was recorded at its fair value of $2.25 million, resulting in a debt discount of $2.25 million. The debt discount was amortized as additional interest expense using the interest rate method through the maturity date. The embedded conversion option and the warrants were recorded at fair value and marked to market at each period, with the resulting change in fair value reflected as “change in fair value of derivative liabilities” in the accompanying condensed consolidated statements of operations. | |
In connection with the issuance of the Notes, we also agreed to issue to the investors in the offering five-year warrants to purchase shares of our common stock in the amount equal to 75% of the number of shares into which the Notes may be converted at an exercise price equal to 125% of the Market Price (as defined in the agreement). The Warrants also contain non-standard anti-dilution adjustments and contain certain net settlement features. Warrants issued to the placement agent were value at approximately $69,000, were recorded as deferred debt issuance costs, and are being amortized to interest expense on a straight-line basis through the maturity date (we determined that the straight-line method of amortization did not yield a materially different amortization schedule from the effective interest method). As a result of the scheduled expiration of non-standard anti-dilution clauses contained within the investors and placement agent warrants, the warrants were reclassified to equity at their fair value on June 9, 2014. | |
Equity_and_StockBased_Compensa
Equity and Stock-Based Compensation | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||
Stockholders Equity Note Disclosure [Text Block] | Note 5 – Equity and Stock-Based Compensation | |||||||||||||
Common Stock | ||||||||||||||
Our common stock has a par value of $.0001 per share. On June 9, 2014, the Company’s shareholders approved an amendment to the Company’s Certificate of Incorporation to increase the number of authorized shares of all classes of capital stock from 215,000,000 shares to 440,000,000 shares, and the authorized number of common stock from 200,000,000 shares to 425,000,000 shares. Common stock is subordinate to Series A, B, C, and D Convertible Preferred stock. Each share of common stock represents the right to one vote, and common stockholders are entitled to receive dividends as may be declared by the Board of Directors. No dividends were declared or paid on our common stock in 2015 and 2014. | ||||||||||||||
2014 Private Placement | ||||||||||||||
In March 2014 we raised $2.0 million from the private placement of 3,846,154 shares of common stock (at a price of $0.52 per share) and five-year stock purchase warrants to purchase 2,884,615 shares of common stock at $0.52 per share. As a result of certain non-standard anti-dilution provisions and cash settlement features contained in the warrants, we classified the detachable stock purchase warrants as derivative liabilities, initially at their estimated relative fair value of approximately $1.1 million. We re-measure the warrants to fair value at each balance sheet date. Issuance costs, in the form of warrants and fees, were valued at approximately $136,000 and were recorded to additional paid-in-capital. | ||||||||||||||
2014 Issuance to Deerfield | ||||||||||||||
In June 2014, we issued 2,709,677 shares of our common stock (with a value of $1.1 million) to Deerfield in satisfaction of certain transaction fees. | ||||||||||||||
2014 Issuance to former Aldagen Shareholders | ||||||||||||||
In November 2014, we amended and settled our contingent consideration obligations from our 2012 acquisition of Aldagen by issuing 1,270,000 shares of our common stock. | ||||||||||||||
2014 and 2013 Issuances to Lincoln Park | ||||||||||||||
In February 2013, we entered into a purchase agreement and a registration rights agreement with Lincoln Park Capital Fund, LLC (“Lincoln Park”). Under the terms and subject to the conditions of the agreements, the Company has the right to sell to and Lincoln Park is obligated to purchase up to $15 million in shares of the Company’s common stock, subject to certain limitations, from time to time, over the 30-month period commencing on the date that a registration statement is declared effective by the SEC. The Company may direct Lincoln Park every other business day, at its sole discretion and subject to certain conditions, to purchase up to 150,000 shares of common stock in regular purchases, increasing to amounts of up to 200,000 shares depending upon the closing sale price of the common stock. In addition, the Company may direct Lincoln Park to purchase additional amounts as accelerated purchases if on the date of a regular purchase the closing sale price of the common stock is not below $1.00 per share. The purchase price of shares of common stock related to the future funding will be based on the prevailing market prices of such shares at the time of sales (or over a period of up to 12 business days leading up to such time), but in no event will shares be sold under this arrangement on a day the common stock closing price is less than the floor price of $0.45 per share, subject to adjustment. The Company’s sales of shares of common stock under the agreements are limited to no more than the number of shares that would result in the beneficial ownership by Lincoln Park and its affiliates, at any single point in time, of more than 9.99% of the then outstanding shares of the common stock. | ||||||||||||||
No shares were issued to Lincoln Park during the three month period ended March 31, 2015. To date, we have issued 5,250,000 shares to Lincoln Park (raising approximately $2.4 million in gross proceeds) with up to 4,750,000 shares or $12.6 million in shares still available for issuance under this arrangement. In addition to those shares, the Company issued to Lincoln Park 375,000 shares of common stock, and is required to issue up to 375,000 additional shares of common stock, in satisfaction of certain transaction fees. To date we have issued 59,126 shares of common stock in satisfaction of those certain transaction fees. This arrangement expires January 17, 2016. | ||||||||||||||
Maryland Venture Fund Shares | ||||||||||||||
In connection with a 2013 offering, the Company and the MVF executed an agreement which requires the Company to repurchase MVF’s investment, at MVF’s option, upon certain events outside of the Company’s control. The common stock issued to MVF in this offering is classified as “contingently redeemable common shares” in the accompanying condensed consolidated balance sheets. | ||||||||||||||
Stock Purchase Warrants | ||||||||||||||
The Company had the following stock purchase warrants outstanding at March 31, 2015: | ||||||||||||||
Outstanding | ||||||||||||||
3/31/15 | Exercise Price | Expiration | Classification | |||||||||||
1,295,138 | $ | 0.54 | 15-Apr | Equity | ||||||||||
100,000 | $ | 0.37 | 15-Oct | Equity | ||||||||||
1,488,839 | $ | 0.6 | 16-Apr | Equity | ||||||||||
916,665 | $ | 0.5 | 16-Apr | Equity | ||||||||||
20,000 | $ | 0.4 | 16-Jun | Equity | ||||||||||
136,364 | $ | 0.66 | 18-Feb | Equity | ||||||||||
6,363,638 | $ | 0.75 | 18-Feb | Equity | ||||||||||
5,047,461 | $ | 0.65 | 18-Dec | Equity | ||||||||||
232,964 | $ | 0.65 | 18-Dec | Equity | ||||||||||
2,884,615 | $ | 0.52 | 19-Mar | Liability | ||||||||||
1,474,615 | $ | 0.52 | 19-Mar | Liability | ||||||||||
3,525,000 | $ | 0.52 | 19-Jun | Liability | ||||||||||
1,079,137 | $ | 0.7 | 20-Feb | Equity | ||||||||||
250,000 | $ | 0.7 | 20-Feb | Equity | ||||||||||
25,115,384 | $ | 0.52 | 21-Mar | Liability | ||||||||||
67,500,000 | $ | 0.52 | 21-Jun | Liability | ||||||||||
117,429,820 | ||||||||||||||
Certain of the above warrants were issued to consultants in exchange for services provided (see “Stock-Based Compensation” below). | ||||||||||||||
Stock -Based Compensation | ||||||||||||||
The Company’s 2002 Long Term Incentive Plan (“LTIP”) and 2013 Equity Incentive Plan (“EIP” and, together with the LTIP, the “Plans”) permit the awards of stock options, stock appreciation rights, restricted stock, phantom stock, performance units, dividend equivalents and other stock-based awards to employees, directors and consultants. We are authorized to issue up to 10,500,000 shares of common stock under the LTIP and up to 18,000,000 shares under the EIP (as approved by our shareholders on June 9, 2014). At March 31, 2015, 13,843,740 shares were available to be issued under the Plans. | ||||||||||||||
To date, the Company has only issued stock options under the Plans. Stock option terms are determined by the Board of Directors for each option grant, and generally vest immediately upon grant or over a period of time ranging up to four years, are exercisable in whole or installments, and expire no longer than ten years from the date of grant. A summary of stock option activity under the Plans as of March 31, 2015, and changes during 2015, is presented below: | ||||||||||||||
Stock Options | Shares | Weighted-Average Exercise Price | Weighted-Average Remaining | Aggregate Intrinsic Value | ||||||||||
Contractual Term | ||||||||||||||
Outstanding at January 1, 2015 | 14,205,625 | $ | 0.8 | 7.2 | $ | 2,000 | ||||||||
Granted | 346,400 | $ | 0.33 | |||||||||||
Exercised | 0 | -- | ||||||||||||
Forfeited or expired | -427,567 | $ | 0.57 | |||||||||||
Outstanding at March 31, 2015 | 14,124,458 | $ | 0.79 | 7 | $ | 0 | ||||||||
Exercisable at March 31, 2015 | 7,660,888 | $ | 1.02 | 5.2 | $ | 0 | ||||||||
The weighted-average grant-date fair value of stock options granted under the Plans during 2015 was $0.33. We granted 346,400 stock options during 2015 with an estimated fair value of approximately $99,000. No stock options were exercised during 2015. As of March 31, 2015, there was approximately $2.1 million of total unrecognized compensation cost related to non-vested stock options, and that cost is expected to be recognized over a weighted-average period of 2.7 years. | ||||||||||||||
Additionally, the Company has issued certain stock purchase warrants in exchange for the performance of services, not covered by the Plans. A summary of service provider warrant activity as of March 31, 2015 and changes during 2015, is presented below: | ||||||||||||||
Warrants to Service Providers | Shares | Weighted-Average Exercise Price | Weighted-Average Remaining | Aggregate Intrinsic Value | ||||||||||
Contractual Term | ||||||||||||||
Outstanding at January 1, 2015 | 1,481,364 | $ | 1.2 | 1.3 | $ | 0 | ||||||||
Granted | 0 | -- | ||||||||||||
Exercised | 0 | -- | ||||||||||||
Forfeited or expired | -975,000 | $ | 1.5 | |||||||||||
Outstanding at March 31, 2015 | 506,364 | $ | 0.61 | 3.4 | $ | 0 | ||||||||
Exercisable at March 31, 2015 | 501,364 | $ | 0.61 | 3.4 | $ | 0 | ||||||||
There were no such warrants granted in 2015, and there were no exercises in 2015. | ||||||||||||||
The Company recorded stock-based compensation expense in the three months ended March 31, 2015 and 2014 as follows: | ||||||||||||||
Three Months Ended March 31 | ||||||||||||||
Stock-Based Expense | 2015 | 2014 | ||||||||||||
Included in Statements of Operations caption as follows: | ||||||||||||||
Sales and marketing | $ | 57,401 | $ | 9,967 | ||||||||||
Research and development | 21,896 | 374 | ||||||||||||
General and administrative | 255,095 | 167,659 | ||||||||||||
$ | 334,392 | $ | 178,000 | |||||||||||
Fair_Value_Measurements_and_Di
Fair Value Measurements and Disclosures | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Disclosures [Text Block] | Note 6 – Fair Value Measurements and Disclosures | ||||||||||||||||
Financial Instruments Carried at Cost | |||||||||||||||||
Short-term financial instruments in our condensed consolidated balance, including accounts receivables, accounts payable and accrued expenses, are carried at cost which approximates fair value, due to their short-term nature. The face value of our long-term convertible debt approximates its fair value. | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Our condensed consolidated balance sheets include various financial instruments that are carried at fair value. Fair value is the price that would be received from the sale of an asset or paid to transfer a liability assuming an orderly transaction in the most advantageous market at the measurement date. U.S. GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of observability of inputs used in measuring fair value. These tiers include: | |||||||||||||||||
· | Level 1, defined as observable inputs such as quoted prices in active markets for identical assets; | ||||||||||||||||
· | Level 2, defined as observable inputs other than Level I prices such as quoted prices for similar assets; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and | ||||||||||||||||
· | Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. | ||||||||||||||||
An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. At each reporting period, we perform a detailed analysis of our assets and liabilities that are measured at fair value. All assets and liabilities for which the fair value measurement is based on significant unobservable inputs or instruments which trade infrequently and therefore have little or no price transparency are classified as Level 3. | |||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||||||||||||||||
We have segregated our financial assets and liabilities that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the table below. The inputs used in measuring the fair value of cash and short-term investments are considered to be Level 1 in accordance with the three-tier fair value hierarchy. The fair market values are based on period-end statements supplied by the various banks and brokers that held the majority of our funds. | |||||||||||||||||
We account for our derivative financial instruments, consisting solely of certain stock purchase warrants that contain non-standard anti-dilutions provisions and/or cash settlement features, and certain conversion options embedded in our convertible instruments, at fair value using level 3 inputs. We determine the fair value of these derivative liabilities using the Black-Scholes option pricing model when appropriate, and in certain circumstances using binomial lattice models or other accepted valuation practices. | |||||||||||||||||
When determining the fair value of our financial assets and liabilities using the Black-Scholes option pricing model, we are required to use various estimates and unobservable inputs, including, among other things, contractual terms of the instruments, expected volatility of our stock price, expected dividends, and the risk-free interest rate. Changes in any of the assumptions related to the unobservable inputs identified above may change the fair value of the instrument. Increases in expected term, anticipated volatility and expected dividends generally result in increases in fair value, while decreases in the unobservable inputs generally result in decreases in fair value. When determining the fair value of our financial assets and liabilities using binomial lattice models or other accepted valuation practices, we also are required to use various estimates and unobservable inputs, including in addition to those listed above, the probability of certain events. | |||||||||||||||||
The following table represents the fair value hierarchy for our financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014: | |||||||||||||||||
As of March 31, 2015 | |||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | |||||||||||||||||
Investment in money market funds | $ | 11,099,242 | $ | - | $ | - | $ | 11,099,242 | |||||||||
Total investment in money market funds | $ | 11,099,242 | $ | - | $ | - | $ | 11,099,242 | |||||||||
Liabilities | |||||||||||||||||
Embedded conversion options | $ | - | $ | - | $ | 5,740,238 | $ | 5,740,238 | |||||||||
Stock purchase warrants | - | - | 15,740,705 | 15,740,705 | |||||||||||||
Total derivative liabilities | $ | - | $ | - | $ | 21,480,943 | $ | 21,480,943 | |||||||||
As of December 31, 2014 | |||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | |||||||||||||||||
Investment in money market funds | $ | 15,736,350 | $ | - | $ | - | $ | 15,736,350 | |||||||||
Total investment in money market funds | $ | 15,736,350 | $ | - | $ | - | $ | 15,736,350 | |||||||||
Liabilities | |||||||||||||||||
Embedded conversion options | $ | - | $ | - | $ | 4,362,225 | $ | 4,362,225 | |||||||||
Stock purchase warrants | - | - | 25,484,596 | 25,484,596 | |||||||||||||
Total derivative liabilities | $ | - | $ | - | $ | 29,846,821 | $ | 29,846,821 | |||||||||
The Level 1 assets measured at fair value in the above table are classified as cash and cash equivalents and the Level 3 liabilities measured at fair value in the above table are classified as derivative liabilities in the accompanying condensed consolidated balance sheets. All gains and losses arising from changes in the fair value of derivative instruments are classified as the changes in the fair value of derivative instruments in the accompanying condensed consolidated statements of operations. | |||||||||||||||||
During the quarters ended March 31, 2015 and 2014 we did not have any transfers between Level 1, Level 2, or Level 3 assets or liabilities. The following tables set forth a summary of changes in the fair value of Level 3 liabilities measured at fair value on a recurring basis for the quarters ended March 31, 2015 and 2014: | |||||||||||||||||
Description | Balance at | Established in | Effect of Conversion to Common | Change in | Balance at | ||||||||||||
December 31, | 2015 | Stock | Fair Value | March 31, | |||||||||||||
2014 | 2015 | ||||||||||||||||
Derivative liabilities: | |||||||||||||||||
Embedded conversion options | $ | 4,362,225 | $ | - | $ | - | $ | 1,378,013 | $ | 5,740,238 | |||||||
Stock purchase warrants | 25,484,596 | - | - | -9,743,891 | 15,740,705 | ||||||||||||
Description | Balance at | Established in | Effect of Conversion to Common | Change in | Balance at | ||||||||||||
December 31, | 2014 | Stock | Fair Value | March 31, | |||||||||||||
2013 | 2014 | ||||||||||||||||
Derivative liabilities: | |||||||||||||||||
Embedded conversion options | $ | 1,515,540 | $ | 3,567,834 | $ | -1,860,779 | $ | -228,735 | $ | 2,993,860 | |||||||
Stock purchase warrants | 1,733,055 | 7,681,189 | - | 27,673 | 9,441,917 | ||||||||||||
We have no financial assets and liabilities measured at fair value on a non-recurring basis. | |||||||||||||||||
Non-Financial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | |||||||||||||||||
Property and equipment, intangible assets and goodwill are measured at fair value on a non-recurring basis (upon impairment). We did not recognize any impairment during the quarters ended March 31, 2015 and 2014. We have no non-financial assets and liabilities measured at fair value on a recurring basis. | |||||||||||||||||
Supplemental_Cash_Flow_Disclos
Supplemental Cash Flow Disclosures | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||
Cash Flow, Supplemental Disclosures [Text Block] | Note 7 – Supplemental Cash Flow Disclosures | |||||||
Non-cash investing and financing activity for three months ended March 31, 2015 and 2014 include: | ||||||||
2015 | 2014 | |||||||
Conversion of convertible debt to common stock | $ | -- | $ | 2,936,423 | ||||
Reclassification of the unamortized balance of debt discount and derivative liability, related to the extinguishment and conversion of the subordinated convertible debt, to additional paid-in capital | -- | 2,860,627 | ||||||
Derivative liability created from conversion option embedded in Deerfield convertible credit facility | -- | 3,567,835 | ||||||
Warrants issued in connection with convertible debt and equity facility | -- | 7,681,188 | ||||||
We did not pay any cash for interest in the three months ended March 31, 2015. Cash paid for interest was $514,598 in the three months ended March 31, 2014. There were no income taxes paid in 2015 and 2014. | ||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 8 – Commitments and Contingencies |
Under the Company’s plan of reorganization upon emergence from bankruptcy in July 2002, the Series A Preferred stock and the dividends accrued thereon that existed prior to emergence from bankruptcy were to be exchanged into one share of new common stock for every five shares of Series A Preferred stock held as of the date of emergence from bankruptcy. This exchange was contingent on the Company’s attaining aggregate gross revenues for four consecutive quarters of at least $10,000,000 and if met would result in the issuance of 325,000 shares of the Company’s common stock. The Company reached such aggregate revenue levels as of the end of the quarter ended June 30, 2012. As of March 31, 2015, 271,000 shares of common stock remain issuable pursuant to the plan of reorganization. | |
In connection with the Deerfield Facility Agreement, we entered into a Registration Rights Agreement (the “RRA”) with Deerfield and agreed to register, among other things, shares of our common stock issuable upon conversion and exercise of convertible notes and related common stock warrants. In accordance with the RRA, we are obligated to file and maintain an effective registration statement until (i) the date when all shares underlying the convertible notes and related warrants (and any other securities issued or issuable with respect to in exchange for such shares) have been sold or (ii) at any time following the six month anniversary of the date of issuance, all warrant shares issuable upon exercise of the warrants should be eligible for immediate resale pursuant to Rule 144 under the Securities Act. | |
In conjunction with its U.S. Food and Drug Administration (“FDA”) clearance, we agreed to conduct a post-market surveillance study to further analyze the safety profile of bovine thrombin as used in the Aurix (formerly AutoloGelTM) System. This study was estimated to cost between $500,000 and $700,000 over a period of several years, which began in the third quarter of 2008. As of March 31, 2015, approximately $368,000 had been incurred. Since the inception of this study, we have enrolled 120 patients, noting no adverse events. Based on the additional positive safety data, we have suspended further enrollment in this study pending further discussion with the FDA. | |
Our primary office and warehouse facilities are located in Gaithersburg, Maryland, and comprise approximately 12,000 square feet. The facilities fall under two leases with monthly rent, including our share of certain annual operating costs and taxes, at approximately $13,000 and $4,000 per month, respectively, with each lease expiring in September 2019. In addition, we lease a 2,076 square foot facility in Nashville, Tennessee, which is being utilized as a commercial operations. The lease is approximately $4,000 per month excluding our shares of annual operating expenses and expires April 30, 2018. We also lease a 16,300 square foot facility located in Durham, North Carolina. This facility falls under one lease with monthly rent, including our share of certain annual operating costs and taxes, at approximately $20,000 per month with the lease expiring December 31, 2018. As a result of our discontinuance of the ALD-401 clinical trial, the Company ceased use of the facility in Durham, North Carolina on July 31, 2014 and sublet the facility beginning August 1, 2014. The sublease rent is approximately $13,000 per month and expires December 31, 2018. | |
In July 2009, in satisfaction of a Maryland law pertaining to Wholesale Distributor Permits, we established a Letter of Credit, in the amount of $50,000, naming the Maryland Board of Pharmacy as the beneficiary. This Letter of Credit serves as security for the performance by us of our obligations under applicable Maryland law and is collateralized by a Certificate of Deposit maintained at a commercial bank. | |
The Company and the MVF agreed to execute a certain Stock Repurchase Agreement which requires us to repurchase the MVF’s investment, at MVF’s option, upon certain events outside of our control; provided, however, that in the event that, at the time of either such event our securities are listed on a national securities exchange, the foregoing repurchase will not be triggered. | |
Business_and_Summary_of_Signif1
Business and Summary of Significant Accounting Principles (Policies) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Policy Text Block] | Description of Business | ||||||||
Nuo Therapeutics, Inc. (“Nuo Therapeutics,” the “Company,” “we,” “us,” or “our”) is a biomedical company marketing products within the U.S. and internationally. We commercialize innovative cell-based technologies that harness the regenerative capacity of the human body to trigger natural healing. The use of autologous biological therapies for tissue repair and regeneration is part of a transformative clinical strategy designed to improve long term recovery in complex chronic conditions with significant unmet medical needs. Growth drivers in the U.S. include Medicare coverage for the treatment of chronic wounds under a National Coverage Determination when registry data is collected under Coverage with Evidence Development (“CED”), and a worldwide distribution and licensing agreement that allows our partner to promote the Angel® System for all uses other than wound care. | |||||||||
Our current commercial offerings consist of point of care technologies for the safe and efficient separation of autologous blood and bone marrow to produce platelet based therapies or cell concentrates. We currently have two distinct platelet rich plasma (“PRP”) devices, the Aurix™ System for wound care and the Angel concentrated Platelet Rich Plasma (“cPRP”) System used primarily in the orthopedic and cardiovascular markets. During the first quarter of 2015, approximately 90% of our product sales were generated in the United States where we sell our products through direct sales representatives and distributors. Beginning in 2013, Arthrex, Inc. (“Arthrex”) became our exclusive distributor for Angel. | |||||||||
Since our inception, we have financed our operations by raising debt, issuing equity and equity-linked instruments, executing licensing arrangements, and to a lesser extent by generating royalties and product revenues. We have incurred, and continue to incur, recurring losses and negative cash flows. In 2014, we raised $35 million from the issuance of convertible debt and warrants and $2.0 million from the sale of common stock and warrants. We used approximately $6.2 million of the proceeds from these transactions to retire outstanding debt and accrued interest in 2014, and we converted approximately $3.1 million of previously outstanding convertible debt and interest into common stock. | |||||||||
At March 31, 2015 we had total debt outstanding of $36.5 million including accrued interest, and we had cash and cash equivalents on hand of $11.8 million. Our operations are subject to certain risks and uncertainties including, among others, current and potential competitors with greater resources, dependence on significant customers, lack of operating history and uncertainty of future profitability and possible fluctuations in financial results. The accompanying unaudited interim condensed consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities in the ordinary course of business. The propriety of using the going-concern basis is dependent upon, among other things, the achievement of future profitable operations, the ability to generate sufficient cash from operations, and potential other funding sources, including cash on hand, to meet our obligations as they become due. We believe that our current resources, expected revenue from current products, royalty revenue and license fees will be adequate to maintain our operations through at least the end of 2015. Accordingly, management believes the going-concern basis is appropriate for the accompanying condensed consolidated financial statements. | |||||||||
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation | ||||||||
The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In our opinion, the accompanying unaudited interim condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, which are necessary to present fairly our financial position, results of operations and cash flows. The condensed consolidated balance sheet at December 31, 2014, has been derived from audited financial statements of that date. The interim condensed consolidated results of operations are not necessarily indicative of the results that may occur for the full fiscal year. Certain information and footnote disclosure normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to instructions, rules and regulations prescribed by the United States Securities and Exchange Commission, or the SEC. We believe that the disclosures provided herein are adequate to make the information presented not misleading when these unaudited interim condensed consolidated financial statements are read in conjunction with the audited financial statements and notes previously distributed in our annual report on Form 10-K for the year ended December 31, 2014. Certain prior period information has been reclassified to conform to the current period presentation. | |||||||||
Consolidation, Policy [Policy Text Block] | Principles of Consolidation | ||||||||
The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned and controlled subsidiary. All significant inter-company accounts and transactions are eliminated in consolidation. | |||||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates | ||||||||
The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. In the accompanying unaudited condensed consolidated financial statements, estimates are used for, but not limited to, stock-based compensation, allowance for doubtful accounts, valuation of derivative liabilities and contingent consideration, contingent liabilities, fair value of long-lived assets, deferred taxes and valuation allowance, and the depreciable lives of fixed assets (including intangible assets and goodwill). Actual results could differ from those estimates. | |||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash Equivalents | ||||||||
We consider all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. Pursuant to the terms of the Deerfield Facility Agreement (See Note 4 - Debt and Derivative Liabilities for additional details), we are required to maintain a compensating cash balance of $5,000,000 in deposit accounts subject to control agreements in favor of the lenders. Approximately $11,319,691 and $15,486,000 held in financial institutions was in excess of FDIC insurance at March 31, 2015 and December 31, 2014, respectively. | |||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Credit Concentration | ||||||||
Our accounts receivables balance at March 31, 2015 was primarily from Arthrex (72%). In addition, Arthrex accounted for 90% and 89% of total products sales in the quarters ended March 31, 2015 and 2014, respectively. No other single customer accounted for more than 5% of total product sales. | |||||||||
We use single suppliers for several components of the Angel and Aurix product lines. We outsource the manufacturing of various products, including component parts for Angel, to contract manufacturers. While we believe these manufacturers to demonstrate competency, reliability and stability, there is no assurance that one or more of them will not experience an interruption or inability to provide us with the products needed to satisfy customer demand. Additionally, while most of the components of Aurix are generally readily available on the open market, a reagent, bovine thrombin, is available exclusively through Pfizer, with whom we have an established vendor relationship. | |||||||||
Receivables, Policy [Policy Text Block] | Accounts Receivables | ||||||||
We generate accounts receivables from the sale of our products. We provide for an allowance against receivables for estimated losses that may result from a customer’s inability or unwillingness to pay. The allowance for doubtful accounts is estimated primarily based upon historical write-off percentages, known problem accounts, and current economic conditions. Accounts are written off against the allowance for doubtful accounts when we determine that amounts are not collectable. Recoveries of previously written-off accounts are recorded when collected. At March 31, 2015 and December 31, 2014, we maintained an allowance for doubtful accounts of $67,516 and $32,000, respectively. | |||||||||
Inventory, Policy [Policy Text Block] | Inventory | ||||||||
Our inventory is produced by third party manufacturers and consists primarily of finished goods. Inventory cost is determined on a first-in, first-out basis and is stated at the lower of cost or net realizable value. We maintain an inventory of kits, reagents, and other disposables that have shelf-lives that generally range from 18 months to five years. In order to meet the anticipated disposable product requirements of our customers, among other reasons, we purchased a certain inventory item at a price which is significantly higher than the previous purchase price for this item. Management is currently exploring alternative supply arrangements and strategies to reduce these costs. | |||||||||
We provide for an allowance against inventory for estimated losses that may result in excess and obsolete inventory (i.e. from the expiration of products). Our allowance for expired inventory is estimated based upon the inventory’s remaining shelf-life and our anticipated ability to sell such inventory, which is estimated using historical usage and future forecasts, within its remaining shelf life. At March 31, 2015 and December 31, 2014, the Company maintained an allowance for expired and excess and obsolete inventory of $103,240 and $90,000, respectively. Expired products are segregated and used for demonstration purposes only; the Company records the associated expense for this reserve to costs of products sales in the condensed consolidated statement of operations. | |||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment | ||||||||
Property and equipment is stated at cost less accumulated depreciation and is depreciated, using the straight-line method, over its estimated useful life ranging from two to five years for all assets except for furniture, lab, and manufacturing equipment which is depreciated over seven and ten years, respectively. Leasehold improvements are stated at cost less accumulated depreciation and is amortized, using the straight-line method, over the lesser of the expected lease term or its estimated useful life ranging from three to six years; amortization of leasehold improvements is included in depreciation expense. Maintenance and repairs are charged to operations as incurred. When assets are disposed of, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in other income (expense). | |||||||||
Centrifuges may be sold, leased, or placed at no charge with customers. Depreciation expense for centrifuges that are available for sale, leased, or placed at no charge with customers are charged to costs of product sales. Depreciation expense for centrifuges used for sales and marketing and other internal purposes are charged to general and administrative expenses. | |||||||||
Property and equipment is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. Recoverability measurement and estimating of undiscounted cash flows is done at the lowest possible level for which we can identify assets. If such assets are considered to be impaired, impairment is recognized as the amount by which the carrying amount of assets exceeds the fair value of the assets. | |||||||||
Goodwill and Intangible Assets, Policy [Policy Text Block] | Intangible Assets and Goodwill | ||||||||
Intangible assets were acquired as part of our acquisitions of the Angel business and Aldagen, and consist of definite-lived and indefinite-lived intangible assets, including goodwill. | |||||||||
Definite-lived intangible assets | |||||||||
Our definite-lived intangible assets include trademarks, technology (including patents) and customer relationships, and are amortized over their useful lives and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If any indicators were present, we test for recoverability by comparing the carrying amount of the asset to the net undiscounted cash flows expected to be generated from the asset. If those net undiscounted cash flows do not exceed the carrying amount (i. e., the asset is not recoverable), we would perform the next step, which is to determine the fair value of the asset and record an impairment loss, if any. We periodically reevaluate the useful lives for these intangible assets to determine whether events and circumstances warrant a revision in their remaining useful lives. There were no triggering events identified during the three months ended March 31, 2015 and 2014 that would suggest an impairment test may be needed. We recognized an impairment charge related to our trademarks of $1.0 million in the second quarter of 2014. | |||||||||
Indefinite-lived intangible assets | |||||||||
We evaluate our indefinite-lived intangible asset, consisting solely of in-process research and development (“IPR&D”) acquired in the Aldagen acquisition, for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable, and at least on an annual basis on October 1 of each year, by comparing the fair value of the asset with its carrying amount. If the carrying amount of the intangible asset exceeds its fair value, we would recognize an impairment loss in the amount of that excess. There were no triggering events identified during the three months ended March 31, 2015 and 2014 that would suggest an impairment test may be needed. We recognized an impairment charge related to our IPR&D of $3.7 million in the second quarter of 2014. | |||||||||
Goodwill | |||||||||
Goodwill represents the purchase price of acquisitions in excess of the amounts assigned to acquired tangible or intangible assets and assumed liabilities. Goodwill is tax deductible in all relevant jurisdictions. As a result of our acquisition of Aldagen in February 2012, we recorded goodwill of approximately $422,000. Prior to the acquisition of Aldagen, we had goodwill of approximately $707,000 as a result of the acquisition of the Angel business in April 2010. | |||||||||
We conduct an impairment test of goodwill on an annual basis as of October 1 of each year, and will also conduct tests if events occur or circumstances change that would, more likely than not, reduce the Company’s fair value below its net equity value. The Company conducted an impairment test of our Goodwill as of October 1, 2014, and concluded that Goodwill was not impaired. | |||||||||
Exit Activities [Policy Text Block] | Exit Activities | ||||||||
In May 2014, we announced preliminary efficacy and safety results of our RECOVER-Stroke Phase 2 clinical trial in patients with neurological damage arising from ischemic stroke and treated with ALD-401. Observed improvements in the primary endpoint (mean modified Rankin Score or mRS) of the trial were not clinically or statistically significant. In light of this outcome, we discontinued further funding of the ALD-401 development program, decided to close our facilities in Durham, NC, and terminated certain employees, and recognized approximately $695,000 of expenses in 2014 associated with the exit activities; approximately $386,899 remains accrued and unpaid as of March 31, 2015. The accrued loss will be amortized over the life of the lease against future rental payments made and sublet income payments received. | |||||||||
Conditionally Redeemable Common Stock, Policy [Policy Text Block] | Conditionally Redeemable Common Stock | ||||||||
The Maryland Venture Fund (“MVF,” part of Maryland Department of Business and Economic Development) has an investment in our common stock, and can require us to repurchase the common stock, at MVF’s option, upon certain events outside of our control. MVF’s common stock is classified as contingently redeemable common shares in the accompanying unaudited condensed consolidated balance sheets. | |||||||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition | ||||||||
We recognize revenue when the four basic criteria for recognition are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services rendered; (3) consideration is fixed or determinable; and (4) collectability is reasonably assured. | |||||||||
Sales of products | |||||||||
We provide for the sale of its products, including disposable processing sets and supplies to customers. Revenue from the sale of products is recognized upon shipment of products to the customers. We do not maintain a reserve for returned products as in the past those returns have not been material and are not expected to be material in the future. | |||||||||
Usage or leasing of blood separation equipment | |||||||||
As a result of the acquisition of the Angel business, we acquired various multiple element revenue arrangements that combined the (i) usage or leasing of blood separation processing equipment, (ii) maintenance of processing equipment, and (iii) purchase of disposable processing sets and supplies. We assigned these multiple element revenue arrangements to Arthrex in 2013 and no longer recognize revenue under these arrangements. | |||||||||
Percentage-based fees on licensee sales of covered products, including those sold by Arthrex, are generally recorded as products are sold by licensees and are reflected as royalties in the condensed consolidated statements of operations. Direct costs associated with product sales and royalty revenues are recorded at the time that revenue is recognized. | |||||||||
Deferred revenue at March 31, 2015 consists of prepaid licensing revenue of $1,341,257 from the licensing of Angel centrifuges, which is being recognized on a straight-line basis over the five-year term of the agreement. Revenue of $100,595 related to the prepaid license was recognized during both the three months ended March 31, 2015 and 2014. In 2013, a medical device excise tax came into effect that required manufacturers to pay tax of 2.3% on the sale of certain medical devices; we report the medical device excise tax on a gross basis, recognizing the tax as both revenue and costs of sales. | |||||||||
License Fees | |||||||||
The Company’s license agreement with Rohto (See Note 2 – Distribution and License Arrangements for additional details) contains multiple elements that include the delivered license and other ancillary performance obligations, such as maintaining its intellectual property and providing regulatory support and training to Rohto. The Company has determined that the ancillary performance obligations are perfunctory and incidental and are expected to be minimal and infrequent. Accordingly, the Company has combined the ancillary performance obligations with the delivered license and is recognizing revenue as a single unit of accounting following revenue recognition guidance applicable to the license. Because the license is delivered, the Company recognized the entire $3.0 million license fee as revenue for the three months ended March 31, 2015. Other elements contained in the license agreement, such as fees and royalties related to the supply and future sale of the product, are contingent and will be recognized as revenue when earned. | |||||||||
Segment Reporting, Policy [Policy Text Block] | Segments and Geographic Information | ||||||||
We operate in one business segment. Approximately 10% and 28% of our product sales were generated outside of the United States for the quarters ended March 31, 2015 and 2014, respectively. | |||||||||
Research and Development Expense, Policy [Policy Text Block] | Research and Development Expenses | ||||||||
Research and development costs are expensed as incurred; advance payments are deferred and expensed as performance occurs. Research and development costs include salaries and wages and related benefits, including stock-based compensation expense, clinical trials, CED costs, related material and supplies, contract services and other outside services. | |||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation | ||||||||
The Company awards stock options, restricted stock or equity instruments to employees, directors, consultants, and other service providers under its 2002 Long-Term Incentive Plan or 2013 Equity Incentive Plan (collectively, the “Plans”). The Company also issues stock purchase warrants to service providers outside of the Plans. | |||||||||
Stock-based compensation cost for employee and non-employee director stock options is determined at the grant date using an option pricing model and stock-based compensation cost for restricted stock is based on the closing market price of the stock at the grant date. The value of the award that is ultimately expected to vest is recognized as expense on a straight-line basis over the employee's requisite service period. Stock-based compensation for awards granted to non-employees is periodically remeasured as the underlying equity awards vest. We recognize an expense for such awards throughout the performance period as the services are provided by the non-employees, based on the fair value of these options and warrants at each reporting period. We recognize the estimated fair value of stock-based awards and classify the expense where the underlying salaries or other related costs are classified. | |||||||||
Valuation of stock awards requires management to make assumptions and to apply judgment to determine the fair value of the awards. The fair value of equity-based compensation awards is estimated on the accounting grant date using the Black-Scholes-Merton option-pricing formula. Various assumptions used in this model for grants in the quarters ended March 31, 2015 and 2014 are summarized in the following table. Changes in these assumptions can affect the fair value estimates. | |||||||||
2015 | 2014 | ||||||||
Risk free rate | 1.6 | % | 1.6 | % | |||||
Expected years until exercise | 6.3 | 6.3 | |||||||
Expected stock volatility | 115-117 | % | 126 | % | |||||
Dividend yield | -- | -- | |||||||
For stock options, expected volatilities are based on historical volatility of the Company’s stock. Company data was used to estimate option exercises and employee terminations within the valuation model for the period ending March 31, 2015 and the year ended December 31, 2014, whereas peer company data was used in 2013 and prior periods. Expected years until exercise represents the period of time that options are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The Company estimated that the dividend rate on its common stock will be zero. | |||||||||
Income Tax, Policy [Policy Text Block] | Income Taxes | ||||||||
We account for income taxes using the asset and liability approach, which requires the recognition of future tax benefits or liabilities on the temporary differences between the financial reporting and tax bases of our assets and liabilities. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized. We also recognize a tax benefit from uncertain tax positions only if it is “more likely than not” that the position is sustainable based on its technical merits. Our policy is to recognize interest and penalties on uncertain tax positions as a component of income tax expense. | |||||||||
Income tax expense was $4,871 and $4,645 during the three months ended March 31, 2015 and 2014, respectively relating exclusively to the generation of a deferred tax liability associated with the tax amortization of goodwill, which is included as a component of other long-term liabilities on our condensed consolidated balance sheets. | |||||||||
Earnings Per Share, Policy [Policy Text Block] | Basic and Diluted Earnings (Loss) per Share | ||||||||
Basic earnings (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of shares of common stock outstanding during the period. | |||||||||
For periods of net income, and when the effects are not anti-dilutive, diluted earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of shares outstanding plus the impact of all potential dilutive common shares, consisting primarily of common stock options and stock purchase warrants using the treasury stock method, and convertible debt using the if-converted method. The total number of anti-dilutive shares, common stock options, warrants exercisable for common stock, and convertible debt, which have been excluded from the computation of diluted earnings (loss) per share, was 201,809,265 for the quarter ended March 31, 2015. | |||||||||
For periods of net loss, diluted loss per share is calculated similarly to basic loss per share because the impact of all dilutive potential common shares is anti-dilutive. The total number of anti-dilutive shares, common stock options, warrants exercisable for common stock, and convertible debt, which have been excluded from the computation of diluted earnings (loss) per share, was 99,654,298 for the quarter ended March 31, 2014. | |||||||||
Earnings per share for the three months ended March 31, 2015 and 2014 are calculated for basic and diluted earnings per share as follows: | |||||||||
Three months ended March 31, | |||||||||
2015 | 2014 | ||||||||
Net income (loss) | $ | 4,107,001 | $ | -5,632,913 | |||||
Net income allocated to participating securities | -1,777,865 | - | |||||||
Numerator for basic income (loss) per share | $ | 2,329,136 | $ | -5,632,913 | |||||
Incremental allocation of net income to participating securities | - | - | |||||||
Numerator adjustments for potential dilutive securities | - | - | |||||||
Numerator for diluted income per share | $ | 2,329,136 | $ | -5,632,913 | |||||
Denominator for basic income (loss) per share weighted average outstanding common shares | 125,951,100 | 111,222,841 | |||||||
Dilutive effect of stock options | - | - | |||||||
Dilutive effect of warrants | - | - | |||||||
Dilutive effect of convertible debt | - | - | |||||||
Denominator for diluted income per share | 125,951,100 | 111,222,841 | |||||||
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements | ||||||||
ASU No. 2015-03, “Interest – Imputation of Interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs.” The amendments in this update require the debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. The amendments in this update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal periods. Early adoption of the amendments in this update is permitted for financial statements that have not been previously issued. The Company intends to adopt this requirement in 2016, and currently anticipates that the impact of adoption will solely be a reclassification of its deferred financing costs from asset classification to contra-liability classification. | |||||||||
Business_and_Summary_of_Signif2
Business and Summary of Significant Accounting Principles (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The fair value of equity-based compensation awards is estimated on the accounting grant date using the Black-Scholes-Merton option-pricing formula. Various assumptions used in this model for grants in the quarters ended March 31, 2015 and 2014 are summarized in the following table. Changes in these assumptions can affect the fair value estimates. | ||||||||
2015 | 2014 | ||||||||
Risk free rate | 1.6 | % | 1.6 | % | |||||
Expected years until exercise | 6.3 | 6.3 | |||||||
Expected stock volatility | 115-117 | % | 126 | % | |||||
Dividend yield | -- | -- | |||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Earnings per share for the three months ended March 31, 2015 and 2014 are calculated for basic and diluted earnings per share as follows: | ||||||||
Three months ended March 31, | |||||||||
2015 | 2014 | ||||||||
Net income (loss) | $ | 4,107,001 | $ | -5,632,913 | |||||
Net income allocated to participating securities | -1,777,865 | - | |||||||
Numerator for basic income (loss) per share | $ | 2,329,136 | $ | -5,632,913 | |||||
Incremental allocation of net income to participating securities | - | - | |||||||
Numerator adjustments for potential dilutive securities | - | - | |||||||
Numerator for diluted income per share | $ | 2,329,136 | $ | -5,632,913 | |||||
Denominator for basic income (loss) per share weighted average outstanding common shares | 125,951,100 | 111,222,841 | |||||||
Dilutive effect of stock options | - | - | |||||||
Dilutive effect of warrants | - | - | |||||||
Dilutive effect of convertible debt | - | - | |||||||
Denominator for diluted income per share | 125,951,100 | 111,222,841 | |||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Schedule Of Intangible Assets [Table Text Block] | The carrying value of our intangible assets, and the associated amortization, were as follows: | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Trademarks | $ | 1,047,000 | $ | 1,047,000 | ||||
Technology | 2,355,000 | 2,355,000 | ||||||
Customer relationships | 708,000 | 708,000 | ||||||
In-process research and development | 25,926,000 | 25,926,000 | ||||||
Total | $ | 30,036,000 | $ | 30,036,000 | ||||
Less accumulated amortization | -1,365,324 | -1,288,230 | ||||||
$ | 28,670,676 | $ | 28,747,770 | |||||
Equity_and_StockBased_Compensa1
Equity and Stock-Based Compensation (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | The Company had the following stock purchase warrants outstanding at March 31, 2015: | |||||||||||||
Outstanding | ||||||||||||||
3/31/15 | Exercise Price | Expiration | Classification | |||||||||||
1,295,138 | $ | 0.54 | 15-Apr | Equity | ||||||||||
100,000 | $ | 0.37 | 15-Oct | Equity | ||||||||||
1,488,839 | $ | 0.6 | 16-Apr | Equity | ||||||||||
916,665 | $ | 0.5 | 16-Apr | Equity | ||||||||||
20,000 | $ | 0.4 | 16-Jun | Equity | ||||||||||
136,364 | $ | 0.66 | 18-Feb | Equity | ||||||||||
6,363,638 | $ | 0.75 | 18-Feb | Equity | ||||||||||
5,047,461 | $ | 0.65 | 18-Dec | Equity | ||||||||||
232,964 | $ | 0.65 | 18-Dec | Equity | ||||||||||
2,884,615 | $ | 0.52 | 19-Mar | Liability | ||||||||||
1,474,615 | $ | 0.52 | 19-Mar | Liability | ||||||||||
3,525,000 | $ | 0.52 | 19-Jun | Liability | ||||||||||
1,079,137 | $ | 0.7 | 20-Feb | Equity | ||||||||||
250,000 | $ | 0.7 | 20-Feb | Equity | ||||||||||
25,115,384 | $ | 0.52 | 21-Mar | Liability | ||||||||||
67,500,000 | $ | 0.52 | 21-Jun | Liability | ||||||||||
117,429,820 | ||||||||||||||
Schedule Of Warrant Activity [Table Text Block] | A summary of service provider warrant activity as of March 31, 2015 and changes during 2015, is presented below: | |||||||||||||
Warrants to Service Providers | Shares | Weighted-Average Exercise Price | Weighted-Average Remaining | Aggregate Intrinsic Value | ||||||||||
Contractual Term | ||||||||||||||
Outstanding at January 1, 2015 | 1,481,364 | $ | 1.2 | 1.3 | $ | 0 | ||||||||
Granted | 0 | -- | ||||||||||||
Exercised | 0 | -- | ||||||||||||
Forfeited or expired | -975,000 | $ | 1.5 | |||||||||||
Outstanding at March 31, 2015 | 506,364 | $ | 0.61 | 3.4 | $ | 0 | ||||||||
Exercisable at March 31, 2015 | 501,364 | $ | 0.61 | 3.4 | $ | 0 | ||||||||
Schedule Of Share Based Compensation Expense [Table Text Block] | The Company recorded stock-based compensation expense in the three months ended March 31, 2015 and 2014 as follows: | |||||||||||||
Three Months Ended March 31 | ||||||||||||||
Stock-Based Expense | 2015 | 2014 | ||||||||||||
Included in Statements of Operations caption as follows: | ||||||||||||||
Sales and marketing | $ | 57,401 | $ | 9,967 | ||||||||||
Research and development | 21,896 | 374 | ||||||||||||
General and administrative | 255,095 | 167,659 | ||||||||||||
$ | 334,392 | $ | 178,000 | |||||||||||
Incentive Plan [Member] | ||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of stock option activity under the Plans as of March 31, 2015, and changes during 2015, is presented below: | |||||||||||||
Stock Options | Shares | Weighted-Average Exercise Price | Weighted-Average Remaining | Aggregate Intrinsic Value | ||||||||||
Contractual Term | ||||||||||||||
Outstanding at January 1, 2015 | 14,205,625 | $ | 0.8 | 7.2 | $ | 2,000 | ||||||||
Granted | 346,400 | $ | 0.33 | |||||||||||
Exercised | 0 | -- | ||||||||||||
Forfeited or expired | -427,567 | $ | 0.57 | |||||||||||
Outstanding at March 31, 2015 | 14,124,458 | $ | 0.79 | 7 | $ | 0 | ||||||||
Exercisable at March 31, 2015 | 7,660,888 | $ | 1.02 | 5.2 | $ | 0 | ||||||||
Fair_Value_Measurements_and_Di1
Fair Value Measurements and Disclosures (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Schedule Of Financial Assets And Liabilities At Fair Value [Table Text Block] | The following table represents the fair value hierarchy for our financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014: | ||||||||||||||||
As of March 31, 2015 | |||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | |||||||||||||||||
Investment in money market funds | $ | 11,099,242 | $ | - | $ | - | $ | 11,099,242 | |||||||||
Total investment in money market funds | $ | 11,099,242 | $ | - | $ | - | $ | 11,099,242 | |||||||||
Liabilities | |||||||||||||||||
Embedded conversion options | $ | - | $ | - | $ | 5,740,238 | $ | 5,740,238 | |||||||||
Stock purchase warrants | - | - | 15,740,705 | 15,740,705 | |||||||||||||
Total derivative liabilities | $ | - | $ | - | $ | 21,480,943 | $ | 21,480,943 | |||||||||
As of December 31, 2014 | |||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | |||||||||||||||||
Investment in money market funds | $ | 15,736,350 | $ | - | $ | - | $ | 15,736,350 | |||||||||
Total investment in money market funds | $ | 15,736,350 | $ | - | $ | - | $ | 15,736,350 | |||||||||
Liabilities | |||||||||||||||||
Embedded conversion options | $ | - | $ | - | $ | 4,362,225 | $ | 4,362,225 | |||||||||
Stock purchase warrants | - | - | 25,484,596 | 25,484,596 | |||||||||||||
Total derivative liabilities | $ | - | $ | - | $ | 29,846,821 | $ | 29,846,821 | |||||||||
Fair Value, Measurement Inputs, Disclosure [Table Text Block] | The following tables set forth a summary of changes in the fair value of Level 3 liabilities measured at fair value on a recurring basis for the quarters ended March 31, 2015 and 2014: | ||||||||||||||||
Description | Balance at | Established in | Effect of Conversion to Common | Change in | Balance at | ||||||||||||
December 31, | 2015 | Stock | Fair Value | March 31, | |||||||||||||
2014 | 2015 | ||||||||||||||||
Derivative liabilities: | |||||||||||||||||
Embedded conversion options | $ | 4,362,225 | $ | - | $ | - | $ | 1,378,013 | $ | 5,740,238 | |||||||
Stock purchase warrants | 25,484,596 | - | - | -9,743,891 | 15,740,705 | ||||||||||||
Description | Balance at | Established in | Effect of Conversion to Common | Change in | Balance at | ||||||||||||
December 31, | 2014 | Stock | Fair Value | March 31, | |||||||||||||
2013 | 2014 | ||||||||||||||||
Derivative liabilities: | |||||||||||||||||
Embedded conversion options | $ | 1,515,540 | $ | 3,567,834 | $ | -1,860,779 | $ | -228,735 | $ | 2,993,860 | |||||||
Stock purchase warrants | 1,733,055 | 7,681,189 | - | 27,673 | 9,441,917 | ||||||||||||
Supplemental_Cash_Flow_Disclos1
Supplemental Cash Flow Disclosures (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Non-cash investing and financing activity for three months ended March 31, 2015 and 2014 include: | |||||||
2015 | 2014 | |||||||
Conversion of convertible debt to common stock | $ | -- | $ | 2,936,423 | ||||
Reclassification of the unamortized balance of debt discount and derivative liability, related to the extinguishment and conversion of the subordinated convertible debt, to additional paid-in capital | -- | 2,860,627 | ||||||
Derivative liability created from conversion option embedded in Deerfield convertible credit facility | -- | 3,567,835 | ||||||
Warrants issued in connection with convertible debt and equity facility | -- | 7,681,188 | ||||||
Business_and_Summary_of_Signif3
Business and Summary of Significant Accounting Principles (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk free rate | 1.60% | 1.60% |
Expected years until exercise | 6 years 3 months 18 days | 6 years 3 months 18 days |
Expected stock volatility, Minimum | 115.00% | |
Expected stock volatility, Maximum | 117.00% | |
Expected stock volatility | 126.00% | |
Dividend yield | 0.00% | 0.00% |
Business_and_Summary_of_Signif4
Business and Summary of Significant Accounting Principles (Details 1) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Net income (loss) | $4,107,001 | ($5,632,913) |
Net income allocated to participating securities | -1,777,865 | 0 |
Numerator for basic income (loss) per share | 2,329,136 | -5,632,913 |
Incremental allocation of net income to participating securities | 0 | 0 |
Numerator adjustments for potential dilutive securities | 0 | 0 |
Numerator for diluted income per share | $2,329,136 | ($5,632,913) |
Denominator for basic income (loss) per share weighted average outstanding common shares | 125,951,100 | 111,222,841 |
Dilutive effect of stock options | 0 | 0 |
Dilutive effect of warrants | 0 | 0 |
Dilutive effect of convertible debt | 0 | 0 |
Denominator for diluted income per share | 125,951,100 | 111,222,841 |
Business_and_Summary_of_Signif5
Business and Summary of Significant Accounting Principles (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | |
Concentration Risk, Percentage | 5.00% | |||
Allowance for Doubtful Accounts Receivable | $67,516 | $32,000 | ||
Income Tax Expense (Benefit) | 4,871 | 4,645 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 201,809,265 | 99,654,298 | ||
Convertible Debt | 36,500,000 | |||
Proceeds from Convertible Debt | 35,000,000 | |||
Proceeds From Issuance Of Common Stock And Warrants | 2,000,000 | |||
Debt Conversion, Converted Instrument, Amount | 0 | 2,936,423 | ||
Deferred Licensing Revenue | 100,595 | 100,595 | ||
Medical Device Excise Tax Percentage | 2.30% | |||
Minimum Cash Balance | 5,000,000 | |||
Inventory Valuation Reserves | 103,240 | 90,000 | ||
Cash and Cash Equivalents, at Carrying Value | 11,818,891 | 15,946,425 | ||
Restructuring Charges | 695,000 | |||
Business Exit Costs | 386,899 | |||
Impairment of Intangible Assets, Finite-lived | 1,000,000 | |||
Repayments of Debt | 6,200,000 | |||
In Process Research and Development [Member] | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 3,700,000 | |||
Minimum [Member] | ||||
Property, Plant and Equipment, Useful Life | 2 years | |||
Maximum [Member] | ||||
Property, Plant and Equipment, Useful Life | 5 years | |||
Furniture Lab And Manufacturing Equipment [Member] | Minimum [Member] | ||||
Property, Plant and Equipment, Useful Life | 7 years | |||
Furniture Lab And Manufacturing Equipment [Member] | Maximum [Member] | ||||
Property, Plant and Equipment, Useful Life | 10 years | |||
Leasehold Improvements [Member] | Minimum [Member] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Leasehold Improvements [Member] | Maximum [Member] | ||||
Property, Plant and Equipment, Useful Life | 6 years | |||
Convertible Debt Facility [Member] | ||||
Debt Conversion, Converted Instrument, Amount | 3,100,000 | |||
Federal Deposit Insurance Corporation [Member] | ||||
Cash, Uninsured Amount | 11,319,691 | 15,486,000 | ||
Arthrex [Member] | Accounts Receivable [Member] | ||||
Concentration Risk, Percentage | 72.00% | |||
Arthrex [Member] | Sales Revenue, Net [Member] | ||||
Concentration Risk, Percentage | 90.00% | 89.00% | ||
Aldagen Inc [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 422,000 | |||
Angel [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 707,000 | |||
Deferred Licensing Revenue | $1,341,257 | |||
United States [Member] | ||||
Percentage Of Product Sales | 90.00% | |||
Non United States [Member] | ||||
Percentage Of Product Sales | 10.00% | 28.00% |
Distribution_and_Licensing_Arr1
Distribution and Licensing Arrangements (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Jan. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2013 | |
Arthrex [Member] | ||||
Arthrex Distributor And License Agreement [Line Items] | ||||
Retainage Deposit | $5,000,000 | |||
Product Warranty Expense | 600,000 | |||
Other Accrued Liabilities | 582,000 | |||
Millennia Holdings, Inc [Member] | ||||
Arthrex Distributor And License Agreement [Line Items] | ||||
Payments for Terminated Licenses | 1,500,000 | |||
Rohto Pharmaceutical Co., Ltd [Member] | ||||
Arthrex Distributor And License Agreement [Line Items] | ||||
Proceeds from License Fees Received | $3,000,000 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Total | $30,036,000 | $30,036,000 |
Less accumulated amortization | -1,365,324 | -1,288,230 |
Intangible assets, net | 28,670,676 | 28,747,770 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Finite-Lived Intangible Assets, Gross | 1,047,000 | 1,047,000 |
Technology [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Finite-Lived Intangible Assets, Gross | 2,355,000 | 2,355,000 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Finite-Lived Intangible Assets, Gross | 708,000 | 708,000 |
In-process research and development [Member] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $25,926,000 | $25,926,000 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Details Textual) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Goodwill and Other Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $231,282 | ||
Goodwill | 1,128,517 | 1,128,517 | |
Aldagen [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Goodwill | 422,000 | ||
Angel [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Goodwill | 707,000 | ||
General and Administrative Expense [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | 37,844 | 52,333 | |
Royalty Expense [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $39,250 | $39,249 |
Debt_and_Derivative_Liabilitie1
Debt and Derivative Liabilities (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | |||||||
Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Feb. 28, 2014 | Dec. 31, 2013 | Nov. 30, 2013 | Apr. 30, 2011 | Jul. 31, 2011 | Apr. 30, 2014 | Feb. 28, 2013 | |
Debt Conversion [Line Items] | |||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.52 | ||||||||||
Proceeds from Convertible Debt | $35,000,000 | ||||||||||
Debt Discount Convertible Debt | 34,800,000 | ||||||||||
Common Stock [Member] | |||||||||||
Debt Conversion [Line Items] | |||||||||||
Stock Issued During Period, Shares, Other | 2,709,677 | 2,709,677 | |||||||||
Deerfield Facility Agreement [Member] | |||||||||||
Debt Conversion [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | ||||||||||
Debt Instrument, Maturity Date | 31-Mar-19 | ||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 97,614,999 | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.52 | ||||||||||
Equity Raising Transaction Proceeds Percentage Applied For Redemption | 35.00% | ||||||||||
Put Options Amount Exempt | 10,000,000 | ||||||||||
Debt Instrument, Redemption Price, Percentage | 33.33% | ||||||||||
Subordinated Convertible Notes [Member] | |||||||||||
Debt Conversion [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ||||||||||
Proceeds from Convertible Debt | 750,000 | 2,250,000 | 3,000,000 | ||||||||
Debt Discount Convertible Debt | 2,250,000 | ||||||||||
Derivative Liability | 2,250,000 | ||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 5,981,859 | ||||||||||
Percentage In Number Of Shares | 75.00% | ||||||||||
Exercise Price On Market Price | 125.00% | ||||||||||
Repayments of Convertible Debt | 339,000 | ||||||||||
Debt Issuance Cost | 69,000 | ||||||||||
JP Nevada Trust 12% Note [Member] | |||||||||||
Debt Conversion [Line Items] | |||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 750,000 | 1,000,000 | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.52 | $0.50 | |||||||||
Related Party Guaranteed Obligations | 1,400,000 | ||||||||||
Debt Issuance Cost | 298,000 | 546,000 | |||||||||
JP Nevada Trust 12% Note [Member] | Warrant [Member] | |||||||||||
Debt Conversion [Line Items] | |||||||||||
Derivative Liability | 14,000 | ||||||||||
JP Nevada Trust 12% Note [Member] | Promissory Note [Member] | |||||||||||
Debt Conversion [Line Items] | |||||||||||
Secured Debt | 2,100,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | ||||||||||
Debt Instrument, Maturity Date | 20-May-16 | ||||||||||
JP Nevada Trust 12% Note [Member] | Guarantee [Member] | |||||||||||
Debt Conversion [Line Items] | |||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,500,000 | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.50 | ||||||||||
Midcap Financial LlC [Member] | |||||||||||
Debt Conversion [Line Items] | |||||||||||
Secured Debt | 4,500,000 | ||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,079,137 | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.70 | ||||||||||
Term Loan Commitments | 7,500,000 | ||||||||||
Debt Discount Convertible Debt | 381,000 | 568,000 | |||||||||
Payments of Debt Extinguishment Costs | 330,000 | ||||||||||
Deferred Issuance Costs | 142,000 | ||||||||||
July Four Percent Convertible Notes [Member] | |||||||||||
Debt Conversion [Line Items] | |||||||||||
Secured Debt | $1,300,000 | ||||||||||
Debt Instrument, Convertible, Terms Of Conversion Feature | The July 4% Convertible Notes were scheduled to mature on May 23, 2016 and included a one-time interest charge of 4% due on maturity. The July 4% Convertible Notes (plus accrued interest) converted at the option of the holder, in whole or in part and from time to time, into shares of our common stock at a conversion rate equal to (i) the lesser of $0.80 per share or (ii) 80% of the average of the three lowest closing prices of our common stock for the previous 20 trading days prior to conversion (subject to a floor price of $0.25 per share). | ||||||||||
July Four Percent Convertible Notes [Member] | Common Stock [Member] | |||||||||||
Debt Conversion [Line Items] | |||||||||||
Debt Instrument, Convertible, Conversion Price | $0.41 | ||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 347,000 |
Equity_and_StockBased_Compensa2
Equity and Stock-Based Compensation (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | ||
Class of Warrant or Right, Outstanding | 117,429,820 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.52 | |
Stock Purchase Warrants [Member] | ||
Class of Warrant or Right, Outstanding | 1,295,138 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.54 | |
Warrant Expiration Date | 15-Apr | |
Class of Warrant or Right, Title of Security Warrants or Rights Outstanding | Equity | |
Stock Purchase Warrants One [Member] | ||
Class of Warrant or Right, Outstanding | 100,000 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.37 | |
Warrant Expiration Date | 15-Oct | |
Class of Warrant or Right, Title of Security Warrants or Rights Outstanding | Equity | |
Stock Purchase Warrants Two [Member] | ||
Class of Warrant or Right, Outstanding | 1,488,839 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.60 | |
Warrant Expiration Date | 16-Apr | |
Class of Warrant or Right, Title of Security Warrants or Rights Outstanding | Equity | |
Stock Purchase Warrants Three [Member] | ||
Class of Warrant or Right, Outstanding | 916,665 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.50 | |
Warrant Expiration Date | 16-Apr | |
Class of Warrant or Right, Title of Security Warrants or Rights Outstanding | Equity | |
Stock Purchase Warrants Four [Member] | ||
Class of Warrant or Right, Outstanding | 20,000 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.40 | |
Warrant Expiration Date | 16-Jun | |
Class of Warrant or Right, Title of Security Warrants or Rights Outstanding | Equity | |
Stock Purchase Warrants Five [Member] | ||
Class of Warrant or Right, Outstanding | 136,364 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.66 | |
Warrant Expiration Date | 18-Feb | |
Class of Warrant or Right, Title of Security Warrants or Rights Outstanding | Equity | |
Stock Purchase Warrants Six [Member] | ||
Class of Warrant or Right, Outstanding | 6,363,638 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.75 | |
Warrant Expiration Date | 18-Feb | |
Class of Warrant or Right, Title of Security Warrants or Rights Outstanding | Equity | |
Stock Purchase Warrants Seven [Member] | ||
Class of Warrant or Right, Outstanding | 5,047,461 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.65 | |
Warrant Expiration Date | 18-Dec | |
Class of Warrant or Right, Title of Security Warrants or Rights Outstanding | Equity | [1] |
Stock Purchase Warrants Eight [Member] | ||
Class of Warrant or Right, Outstanding | 232,964 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.65 | |
Warrant Expiration Date | 18-Dec | |
Class of Warrant or Right, Title of Security Warrants or Rights Outstanding | Equity | |
Stock Purchase Warrants Nine [Member] | ||
Class of Warrant or Right, Outstanding | 2,884,615 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.52 | |
Warrant Expiration Date | 19-Mar | |
Class of Warrant or Right, Title of Security Warrants or Rights Outstanding | Liability | |
Stock Purchase Warrants Ten [Member] | ||
Class of Warrant or Right, Outstanding | 1,474,615 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.52 | |
Warrant Expiration Date | 19-Mar | |
Class of Warrant or Right, Title of Security Warrants or Rights Outstanding | Liability | |
Stock Purchase Warrants Eleven [Member] | ||
Class of Warrant or Right, Outstanding | 3,525,000 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.52 | |
Warrant Expiration Date | 19-Jun | |
Class of Warrant or Right, Title of Security Warrants or Rights Outstanding | Liability | |
Stock Purchase Warrants Twelve [Member] | ||
Class of Warrant or Right, Outstanding | 1,079,137 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.70 | |
Warrant Expiration Date | 20-Feb | |
Class of Warrant or Right, Title of Security Warrants or Rights Outstanding | Equity | |
Stock Purchase Warrants Thirteen [Member] | ||
Class of Warrant or Right, Outstanding | 250,000 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.70 | |
Warrant Expiration Date | 20-Feb | |
Class of Warrant or Right, Title of Security Warrants or Rights Outstanding | Equity | |
Stock Purchase Warrants Fourteen [Member] | ||
Class of Warrant or Right, Outstanding | 25,115,384 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.52 | |
Warrant Expiration Date | 21-Mar | |
Class of Warrant or Right, Title of Security Warrants or Rights Outstanding | Liability | |
Stock Purchase Warrants Fifteen [Member] | ||
Class of Warrant or Right, Outstanding | 67,500,000 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.52 | |
Warrant Expiration Date | 21-Jun | |
Class of Warrant or Right, Title of Security Warrants or Rights Outstanding | Liability | |
[1] | These warrants were reclassified to additional paid-in capital as a result of the expiration of non-standard anti-dilution clauses contained within the warrants. |
Equity_and_StockBased_Compensa3
Equity and Stock-Based Compensation (Details 1) (Long Term Incentive Plan [Member], Equity Incentive Plan [Member], USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Long Term Incentive Plan [Member] | Equity Incentive Plan [Member] | ||
Outstanding at January 1, 2015 | 14,205,625 | |
Granted - Shares | 346,400 | |
Exercised - Shares | 0 | |
Forfeited or expired - Shares | -427,567 | |
Outstanding at March 31, 2015 | 14,124,458 | 14,205,625 |
Exercisable at March 31, 2015 | 7,660,888 | |
Outstanding Opening Balance - Weighted-Average Exercise Price | $0.80 | |
Granted - Weighted - Average Exercise Price | $0.33 | |
Exercised - Weighted-Average Exercise Price | $0 | |
Forfeited or expired - Weighted - Average Exercise Price | $0.57 | |
Outstanding Ending Balance - Weighted-Average Exercise Price | $0.79 | $0.80 |
Options Exercisable - Weighted - Average Exercise Price | $1.02 | |
Options Outstanding - Weighted Average Remaining Contractual Term | 7 years | 7 years 2 months 12 days |
Exercisable - Weighted-Average Remaining Contractual Term | 5 years 2 months 12 days | |
Outstanding - Aggregate Intrinsic Value | $0 | $2,000 |
Exercisable - Aggregate Intrinsic Value | $0 |
Equity_and_StockBased_Compensa4
Equity and Stock-Based Compensation (Details 2) (Warrant [Member], Performance Shares [Member], USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Warrant [Member] | Performance Shares [Member] | ||
Outstanding at January 1, 2015 - Shares | 1,481,364 | |
Granted - Shares | 0 | |
Exercised - Shares | 0 | |
Forfeited or expired - Shares | -975,000 | |
Outstanding at March 31, 2015 -Shares | 506,364 | 1,481,364 |
Exercisable at March 31, 2015 - Shares | 501,364 | |
Weighted-Average Exercise Price, Outstanding, Beginning | $1.20 | |
Granted - Weighted - Average Exercise Price | $0 | |
Exercised - Weighted - Average Exercise Price | $0 | |
Forfeited or expired - Weighted - Average Exercise Price | $1.50 | |
Weighted-Average Exercise Price, Outstanding, Ending | $0.61 | $1.20 |
Exercisable - Weighted - Average Exercise Price | $0.61 | |
Outstanding - Weighted-Average Remaining Contractual Term | 3 years 4 months 24 days | 1 year 3 months 18 days |
Exercisable - Weighted-Average Remaining Contractual Term | 3 years 4 months 24 days | |
Outstanding - Aggregate Intrinsic Value | $0 | $0 |
Exercisable - Aggregate Intrinsic Value | $0 |
Equity_and_StockBased_Compensa5
Equity and Stock-Based Compensation (Details 3) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation | $334,392 | $178,000 |
Sales and marketing [Member] | ||
Share-based Compensation | 57,401 | 9,967 |
Research and development [Member] | ||
Share-based Compensation | 21,896 | 374 |
General and administrative [Member] | ||
Share-based Compensation | $255,095 | $167,659 |
Equity_and_StockBased_Compensa6
Equity and Stock-Based Compensation (Details Textual) (USD $) | 3 Months Ended | 1 Months Ended | 26 Months Ended | 1 Months Ended | 12 Months Ended | |||||
Mar. 31, 2015 | Mar. 31, 2014 | Feb. 28, 2013 | Mar. 31, 2015 | Nov. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | Jun. 09, 2014 | Jun. 08, 2014 | Apr. 30, 2011 | |
Schedule of Equity Method Investments [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 13,843,740 | 13,843,740 | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 8 months 12 days | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.52 | $0.52 | ||||||||
Common Stock, Par or Stated Value Per Share | $0.00 | $0.00 | 0.0001 | |||||||
Common Stock, Shares Authorized | 425,000,000 | 425,000,000 | 425,000,000 | 200,000,000 | ||||||
Authorized Shares, Common And Preferred | 440,000,000 | 440,000,000 | 215,000,000 | |||||||
Proceeds From Issuance Of Common Stock | $0 | $3,666,260 | ||||||||
Stock Granted, Value, Share-based Compensation, Gross | 99,000 | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 2,100,000 | 2,100,000 | ||||||||
Long Term and Equity Incentive Plan [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 10,500,000 | 10,500,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $0.33 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 346,400 | |||||||||
March 2014 Equity Offering [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Proceeds from Issuance of Private Placement | 2,000,000 | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 2,884,615 | 2,884,615 | ||||||||
Stock Issued During Period, Shares, New Issues | 3,846,154 | |||||||||
Payments of Stock Issuance Costs | 136,000 | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.52 | $0.52 | $0.52 | |||||||
Equity Incentive Plan [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 18,000,000 | 18,000,000 | ||||||||
Lincoln Park [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Common Stock Capital Shares Reserved For Future Issuance Value | 15,000,000 | |||||||||
Shares Issuable Under Purchase Agreements | 150,000 | |||||||||
Increase In Shares Issuable Under Purchase Agreements | 200,000 | |||||||||
Minimum Closing Sale Price Per Share | $1 | |||||||||
Shares Issued In Private Placement Maximum Percentage | 9.99% | |||||||||
Stock Issued During Period, Shares, New Issues | 5,250,000 | |||||||||
Additional Shares Issued Or To Be Issued | 375,000 | |||||||||
Additional Shares To Be Issued Related To Transaction Fee | 375,000 | |||||||||
Additional Shares Issued Related To Transaction Fee | 59,126 | |||||||||
Proceeds From Issuance Of Common Stock | 2,400,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | 17-Jan-16 | |||||||||
Number Of Shares Available To Issue | 4,750,000 | |||||||||
Value Of Shares Available To Issue | 12,600,000 | |||||||||
Condition for Purchase by Accredited Investor Minimum Share Price | 0.45 | |||||||||
Jp Nevada Trust Note [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 750,000 | 1,000,000 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.52 | $0.50 | ||||||||
Aldagen [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Stock Issued During Period, Shares, Other | 1,270,000 | |||||||||
Common Stock [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Stock Issued During Period, Shares, Other | 2,709,677 | 2,709,677 | ||||||||
Stock Issued During Period, Value, Other | $1,100,000 |
Fair_Value_Measurements_and_Di2
Fair Value Measurements and Disclosures (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment in money market funds | $11,099,242 | $15,736,350 |
Total investment in money market funds | 11,099,242 | 15,736,350 |
Embedded conversion options | 5,740,238 | 4,362,225 |
Stock purchase warrants | 15,740,705 | 25,484,596 |
Total derivative liabilities | 21,480,943 | 29,846,821 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment in money market funds | 11,099,242 | 15,736,350 |
Total investment in money market funds | 11,099,242 | 15,736,350 |
Embedded conversion options | 0 | 0 |
Stock purchase warrants | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment in money market funds | 0 | 0 |
Total investment in money market funds | 0 | 0 |
Embedded conversion options | 0 | 0 |
Stock purchase warrants | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment in money market funds | 0 | 0 |
Total investment in money market funds | 0 | 0 |
Embedded conversion options | 5,740,238 | 4,362,225 |
Stock purchase warrants | 15,740,705 | 25,484,596 |
Total derivative liabilities | $21,480,943 | $29,846,821 |
Fair_Value_Measurements_and_Di3
Fair Value Measurements and Disclosures (Details 1) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Stock purchase warrants [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Balance | $25,484,596 | $1,733,055 |
Established | 0 | 7,681,189 |
Effect of Conversion to Common Stock | 0 | 0 |
Change in Fair Value | -9,743,891 | 27,673 |
Balance | 15,740,705 | 9,441,917 |
Embedded conversion options [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Balance | 4,362,225 | 1,515,540 |
Established | 0 | 3,567,834 |
Effect of Conversion to Common Stock | 0 | -1,860,779 |
Change in Fair Value | 1,378,013 | -228,735 |
Balance | $5,740,238 | $2,993,860 |
Supplemental_Cash_Flow_Disclos2
Supplemental Cash Flow Disclosures (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Conversion of convertible debt to common stock | $0 | $2,936,423 |
Reclassification of the unamortized balance of debt discount and derivative liability, related to the extinguishment and conversion of the subordinated convertible debt, to additional paid-in capital | 0 | 2,860,627 |
Derivative liability created from conversion option embedded in Deerfield convertible credit facility | $0 | $3,567,835 |
Warrants issued in connection with convertible debt and equity facility | 0 | 7,681,188 |
Supplemental_Cash_Flow_Disclos3
Supplemental Cash Flow Disclosures (Details Textual) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Interest Paid | $514,598 | |
Income Taxes Paid | $0 | $0 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details Textual) (USD $) | 3 Months Ended | |||
Jun. 30, 2012 | Mar. 31, 2015 | Sep. 30, 2008 | Jul. 31, 2009 | |
acre | ||||
Commitments and Contingencies [Line Items] | ||||
Research And Development | 368,000 | |||
Revenue, Net | 10,000,000 | |||
Common Stock, Shares to be Issued | 325,000 | |||
Common Stock Shares Issuable | 271,000 | |||
December 31, 2018 [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Operating Leases, Future Minimum Payments Due | 13,000 | |||
Maryland [Member] | Letter of Credit [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Debt Instrument, Face Amount | 50,000 | |||
Gaithersburg, Maryland [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Operating Leases, Area | 12,000 | |||
Durham, North Carolina [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Operating Leases, Area | 16,300 | |||
Durham, North Carolina [Member] | December 31, 2018 [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Operating Leases, Future Minimum Payments Due | 20,000 | |||
Nashville, Tennessee facility lease [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Operating Leases, Future Minimum Payments Due | 4,000 | |||
Operating Leases, Area | 2,076 | |||
Gaithersburg, Maryland (Lease Facility 1) [Member] | September 2019 [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Operating Leases, Future Minimum Payments Due | 13,000 | |||
Gaithersburg, Maryland (Lease Facility 2) [Member] | September 2019 [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Operating Leases, Future Minimum Payments Due | 4,000 | |||
Minimum [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Estimated Research Development Cost | 500,000 | |||
Maximum [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Estimated Research Development Cost | $700,000 |