Plus Therapeutics (PSTV) 10-Q 10 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 15, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	CYTORI THERAPEUTICS, INC.
Entity Central Index Key	1,095,981
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		13,333,310
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016

CONSOLIDATED CONDENSED BALANCE

CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 9,358,000	$ 14,338,000
Accounts receivable, net of reserves of $795,000 and of $797,000 in 2016 and 2015, respectively	829,000	1,052,000
Inventories, net	4,462,000	4,298,000
Other current assets	1,866,000	1,555,000
Total current assets	16,515,000	21,243,000
Property and equipment, net	1,523,000	1,631,000
Restricted cash and cash equivalents	350,000	350,000
Other assets	1,682,000	1,521,000
Intangibles, net	8,923,000	9,031,000
Goodwill	3,922,000	3,922,000
Total assets	32,915,000	37,698,000
Current liabilities:
Accounts payable and accrued expenses	6,693,000	6,687,000
Current portion of long-term obligations, net of discount	1,724,000	0
Joint venture purchase obligation	1,267,000	1,750,000
Total current liabilities	9,684,000	8,437,000
Deferred revenues	101,000	105,000
Long-term deferred rent and other	189,000	269,000
Long-term obligations, net of discount, less current portion	15,198,000	16,681,000
Total liabilities	$ 25,172,000	$ 25,492,000
Commitments and contingencies
Stockholders' equity:
Series A 3.6% convertible preferred stock, $0.001 par value; 5,000,000 shares authorized; 13,500 shares issued; no shares outstanding in 2016 and 2015	$ 0	$ 0
Common stock, $0.001 par value; 75,000,000 shares authorized; 13,310,740 and 13,003,893 shares issued and outstanding in 2016 and 2015, respectively	13,000	13,000
Additional paid-in capital	369,339,000	368,214,000
Accumulated other comprehensive income	747,000	996,000
Accumulated deficit	(362,356,000)	(357,017,000)
Total stockholders' equity	7,743,000	12,206,000
Total liabilities and stockholders' equity	$ 32,915,000	$ 37,698,000

CONSOLIDATED CONDENSED BALANCE3

CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Accounts receivable, reserves	$ 795,000	$ 797,000
Stockholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	75,000,000	290,000,000
Common stock, shares issued (in shares)	13,310,740	13,003,893
Common stock, shares outstanding (in shares)	13,310,740	13,003,893
Series A Preferred Stock [Member]
Stockholders' equity:
Convertible preferred stock	3.60%	3.60%
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	13,500	13,500
Preferred stock, shares outstanding (in shares)	0	0

CONSOLIDATED CONDENSED STATEMEN

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) [Abstract]
Product revenues	$ 1,333,000	$ 902,000
Cost of product revenues	567,000	598,000
Gross profit	766,000	304,000
Development revenues:
Government contracts and other	1,585,000	1,444,000
Operating expenses:
Research and development	4,127,000	3,963,000
Sales and marketing	1,035,000	839,000
General and administrative	2,286,000	2,499,000
Change in fair value of warrants	0	15,444,000
Total operating expenses	7,448,000	22,745,000
Operating loss	(5,097,000)	(20,997,000)
Other income (expense):
Interest income	2,000	1,000
Interest expense	(657,000)	(1,072,000)
Other income, net	413,000	110,000
Total other expense	(242,000)	(961,000)
Net loss	(5,339,000)	(21,958,000)
Beneficial conversion feature for convertible preferred stock	0	(661,000)
Net loss allocable to common stock holders	$ (5,339,000)	$ (22,619,000)
Basic and diluted net loss per share allocable to common stockholders (in dollars per share)	$ (0.41)	$ (3.19)
Basic and diluted weighted average shares used in calculating net loss per share allocable to common stockholders (in shares)	13,086,376	7,080,590
Comprehensive loss:
Net loss	$ (5,339,000)	$ (21,958,000)
Other comprehensive (loss) income - foreign currency translation adjustments	(249,000)	36,000
Comprehensive loss	$ (5,588,000)	$ (21,922,000)

CONSOLIDATED CONDENSED STATEME5

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net loss	$ (5,339,000)	$ (21,958,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	291,000	213,000
Amortization of deferred financing costs and debt discount	232,000	257,000
Joint venture acquisition obligation accretion	17,000	203,000
Change in fair value of warrants	0	15,444,000
Stock-based compensation expense	317,000	459,000
Loss on asset disposal	2,000	0
Increases (decreases) in cash caused by changes in operating assets and liabilities:
Accounts receivable	155,000	546,000
Inventories	(206,000)	100,000
Other current assets	(408,000)	(470,000)
Other assets	(211,000)	68,000
Accounts payable and accrued expenses	176,000	138,000
Deferred revenues	(4,000)	21,000
Long-term deferred rent	(80,000)	(51,000)
Net cash used in operating activities	(5,058,000)	(5,030,000)
Cash flows from investing activities:
Purchases of property and equipment	(69,000)	(187,000)
Net cash used in investing activities	(69,000)	(187,000)
Cash flows from financing activities:
Joint venture purchase payments	(500,000)	(123,000)
Proceeds from sale of common stock, net	562,000	3,974,000
Dividends paid on preferred stock	0	(72,000)
Net cash provided by financing activities	62,000	3,779,000
Effect of exchange rate changes on cash and cash equivalents	85,000	15,000
Net decrease in cash and cash equivalents	(4,980,000)	(1,423,000)
Cash and cash equivalents at beginning of period	14,338,000	14,622,000
Cash and cash equivalents at end of period	9,358,000	13,199,000
Cash paid during period for:
Interest	400,000	612,000
Supplemental schedule of non-cash investing and financing activities:
Conversion of preferred stock into common stock	0	10,000
Declared dividend related to preferred stock	$ 0	$ 3,000

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2016
Basis of Presentation [Abstract]
Basis of Presentation	1. Basis of Presentation Our accompanying unaudited consolidated condensed financial statements as of March 31, 2016 and for the three months ended March 31, 2016 and 2015 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. Our consolidated condensed balance sheet at March 31, 2016 has been derived from the audited financial statements at December 31, 2015, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the financial position and results of operations of Cytori Therapeutics, Inc., and our subsidiaries (the “Company”) have been included. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. These financial statements should be read in conjunction with the Consolidated Financial Statements and notes therein included in our annual report on Form 10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission on March 11, 2016. On May 10, 2016, following stockholder and Board approval, an amendment (the “Amendment”) to the Company’s amended and restated certificate of incorporation, as amended, was filed and declared effective, which Amendment (i) effectuated a one-for-fifteen (1:15) reverse stock split of the Company’s (ii) outstanding common stock, and (iii) common stock reserved for issuance upon exercise of outstanding warrants and options decreased the total number of authorized shares of common stock of the Company from 290 million to 75 million (The “1;15 Reverse Stock Split”). Upon effectiveness of the 1:15 Reverse Stock Split, the number of shares of the Company’s common stock (x) issued and outstanding decreased from approximately 200 million shares (as of March 31, 2016) to approximately 13 million shares; (y) reserved for issuance upon exercise of outstanding warrants and options decreased from approximately 16 million shares to approximately 1.1 million shares, and (z) reserved but unallocated under our current equity incentive plans (including the stockholder-approved share increase to the Company’s 2014 Equity Incentive Plan) decreased from approximately 1.5 million common shares to approximately 0.1 million common shares. The number of authorized shares of preferred stock remained unchanged. Following the reverse split, certain reclassifications have been made to the prior periods' financial statements to conform to the current period's presentation. The Company adjusted shareholders' equity to reflect the reverse stock split by reclassifying an amount equal to the par value of the additional shares arising from the split from common stock to the Additional Paid-in Capital during the first quarter of fiscal 2016, resulting in no net impact to shareholders' equity on our consolidated balance sheets. The Company has been advised that shares of our common stock will commence trading on a split-adjusted basis on May 12, 2016. Fractional shares will be rounded up to the nearest whole share and proportional adjustments will be made to the Company's outstanding stock options, warrants and equity incentive plans

Use of Estimates

Use of Estimates	3 Months Ended
	Mar. 31, 2016
Use of Estimates [Abstract]
Use of Estimates	2. Use of Estimates The preparation of Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. Our most significant estimates and critical accounting policies involve recognizing revenue, estimating useful lives of long-lived assets, valuing warrants, determining the assumptions used in measuring share-based compensation expense and valuing allowances for doubtful accounts, and inventories.

Capital Availability

Capital Availability	3 Months Ended
	Mar. 31, 2016
Capital Availability [Abstract]
Capital Availability	3. Capital Availability We incurred net losses of $5.3 million for the three months ended March 31, 2016 and $22.6 million for the three months ended March 31, 2015, respectively. We have an accumulated deficit of $362 million as of March 31, 2016. Additionally, we have used net cash of $5 million to fund our operating activities for the three months ended March 31, 2016 and 2015. To date, these operating losses have been funded primarily from outside sources of invested capital and gross profits. We have had, and we will likely continue to have, an ongoing need to raise additional cash from outside sources to fund our future operations. However, our ability to raise capital was adversely affected once FDA put a hold on our Athena trials in mid-2014, which had an adverse impact to stock price performance and our corresponding ability to restructure our debt. More recently, a continued downward trend in our stock price resulting from general economic and industry conditions as well as the market’s unfavorable view of our recent equity financings (which financings were priced at a discount to market and included 100% warrant coverage) and our Nasdaq listing deficiency, have made it more difficult to procure additional capital on terms reasonably acceptable to us. The accompanying consolidated condensed financial statements have been prepared assuming that the Company will continue as a going concern. If we are unsuccessful in our efforts to raise outside capital in the near term, we will be required to significantly reduce our research, development, and administrative operations, including reduction of our employee base, in order to offset the lack of available funding. We are pursuing financing opportunities in both the private and public debt and equity markets as well as through strategic corporate partnerships. We have an established history of raising capital through these platforms, and we are currently involved in negotiations with multiple parties. Our efforts in 2014 and 2015 to raise capital took longer than we initially anticipated. We expect to continue to utilize our cash and cash equivalents to fund operations at least through September of 2016, subject to minimum cash and cash liquidity requirements of the Loan and Security Agreement with the Lender, which requires that we maintain at least $5 million of cash on hand to avoid an event of default under the Loan and Security Agreement. We continue to seek additional cash through product revenues, strategic collaborations, and future sales of equity or debt securities. Although there can be no assurance given, we hope to successfully complete one or more additional financing transactions and corporate partnerships in the near-term. Without this additional capital, current working capital and cash generated from sales and containment of operating costs will not provide adequate funding for research, sales and marketing efforts, clinical and preclinical trials, and product development activities at their current levels. If sufficient capital is not raised, we will at a minimum need to significantly reduce or curtail our research and development and other operations, and this could negatively affect our ability to achieve corporate goals. Specifically, we have prepared an operating plan that calls for us to reduce operations to focus almost entirely on one US clinical program and the supply of current products to existing or new distribution channels. In addition, as part of this plan, there would be minimal expenditures for ongoing scientific research, product development or clinical research. This impacts research and development headcount, external subcontractor expenditures, capital outlay and general and administrative expenditures related to the supervision of such activities. In parallel, we would significantly reduce administrative staff and salaries consistent with the overall reduction in scope of operations. In aggregate, such reductions could result in eliminations of roles for the majority of the Company’s current staff and the deferral or elimination of all ongoing development projects until such time that cash resources were available from operations or outside sources to re-establish development and growth plans. Management is currently reviewing contractual obligations related to the pre-clinical and clinical commitments along with minimum purchase requirements to include deferral of such commitments as part of this plan. While management is actively pursuing it’s near term financial and strategic alternatives it is also, in parallel, continuing to evaluate the timing of implementation of the alternative operating plan and the initiation of the identified reductions.

Transactions with Olympus Corpo

Transactions with Olympus Corporation	3 Months Ended
	Mar. 31, 2016
Transactions with Olympus Corporation [Abstract]
Transactions with Olympus Corporation	4. Transactions with Olympus Corporation Under our Joint Venture Termination Agreement (“Termination Agreement”), dated May 8, 2013, with Olympus Corporation (“Olympus”), we were required to pay Olympus a total purchase price of $6 million within two years of the date of the Termination Agreement. Pursuant to amendments to the Joint Venture Termination Agreement, dated April 30, 2015 and January 8, 2016, the Company’s repayment obligations were extended through May 8, 2016. We made payments under the Termination Agreement totaling approximately $4.2 million through December 31, 2015, as well as separate payments of $0.5 million each in January 2016 and April 2016. We paid the remaining balance of $0.8 million before the May 8, 2016 due date.

Long-term Debt

Long-term Debt	3 Months Ended
	Mar. 31, 2016
Long-term Debt [Abstract]
Long-term Debt	5. Long-term Debt On May 29, 2015, we entered into the Loan and Security Agreement (“Loan Agreement”) with Oxford Finance LLC (“Oxford” or “Lender”), pursuant to which the Lender funded an aggregate principal amount of $17.7 million (“Term Loan”), subject to the terms and conditions set forth in the loan agreement. The Term Loan accrues interest at a floating rate of 8.95% per annum, comprised of three-month LIBOR rate with a floor of 1.00% plus 7.95%. Pursuant to the Loan Agreement, we were previously required to make interest only payments through June 1, 2016 and thereafter we were required to make payments of principal and accrued interest in equal monthly installments sufficient to amortize the Term loan through June 1, 2019, the maturity date. On February 23, 2016, Cytori received an acknowledgement and agreement from Oxford related to the positive data on Cytori US ACT-OA clinical trial. As a result, pursuant to the Loan Agreement, the period for which the Company is required to make interest-only payments was extended from July 1, 2016 to January 1, 2017. All unpaid principal and interest with respect to the Term Loan is due and payable in full on June 1, 2019. At maturity of the Term Loan, or earlier repayment in full following voluntary prepayment or upon acceleration, the Company is required to make a final payment fee in an aggregate amount equal to approximately $1.1 million. In connection with the Term Loan, on May 29, 2015, we issued to the Lender warrants to purchase an aggregate of 94,441 shares of our common stock at an exercise price of $10.35 per share. These warrants are exercisable on or after November 30, 2015 and will expire on May 29, 2025 and, following the authoritative accounting guidance, are equity classified. In connection with the Loan Agreement, we prepaid all outstanding amounts under our prior loan agreement with Oxford and Silicon Valley Bank, at which time the Company’s obligations under the prior loan agreement immediately terminated. The Company paid to the prior agent and the prior lenders (Oxford and Silicon Valley Bank) approximately $25.4 million, consisting of the then outstanding principal balance due of approximately $23.4 million, accrued but unpaid interest of approximately $0.2 million, final payment and other agency fees of approximately $1.8 million and other customary lender fees and expenses. For Oxford, we accounted for this Term Loan as a debt modification. The Company retired $3.1 million of the principal of the previous loan and the corresponding unamortized fees were expensed. The remaining fees of $0.8 million were recorded as debt discount, and along with the new loan fees, will be amortized as an adjustment of interest expense using the effective interest method. For Silicon Valley Bank, which did not participate in the Term Loan, the payoff of the loan was accounted for as debt extinguishment. Accordingly, a total loss on debt extinguishment of $0.3 million was recorded, which includes the unamortized fees and discounts along with final payment fees. We allocated the aggregate proceeds of the Term Loan between the warrants and the debt obligations based on their relative fair values. The fair value of the warrants issued to the Lender was calculated utilizing the Black-Scholes option pricing model. The Black-Scholes option-pricing model incorporates various and highly sensitive assumptions including expected volatility, expected term and risk-free interest rates. The expected volatility is based on the historical volatility of the Company’s common stock over the most recent period. The risk-free interest rate for period within the contractual life of the warrant is based on the U.S. Treasury yield in effect at the time of grant. We will amortize the relative fair value of the warrants as a discount of $0.8 million over the term of the loan using the effective interest method, with an effective interest rate of 14.95%. The Term Loan is collateralized by a security interest in substantially all of the Company’s existing and after-acquired assets, subject to certain exceptions set forth in the Loan Agreement and excluding its intellectual property assets, which are subject to a negative pledge.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2016
Revenue Recognition [Abstract]
Revenue Recognition	6. Revenue Recognition Concentration of Significant Customers One distributor and one direct customer comprised 68% of our revenue recognized for the three months ended March 31, 2016. Two direct customers and one distributor accounted for 68% of total outstanding accounts receivable (excluding receivables from U.S. Department of Health and Human Service’s Biomedical Advanced Research and Development Authority (BARDA)) as of March 31, 2016. Three distributors comprised 68% of our revenue recognized for the three months ended March 31, 2015. Two direct customers accounted for 73% of total outstanding accounts receivable as of December 31, 2015. Product revenues, classified by geographic location, are as follows: Three months ended March 31, 2016 March 31, 2015 Product Revenues % of Total Product Revenues % of Total Americas $ 235,000 18 % $ 201,000 22 % Japan 966,000 72 % 605,000 67 % EMEA 132,000 10 % 92,000 10 % Asia Pacific — 0 % 4,000 1 % Total product revenues $ 1,333,000 100 % $ 902,000 100 % Research and Development We earn revenue for performing tasks under research and development agreements with governmental agencies like the BARDA. Revenues derived from reimbursement of direct out-of-pocket expenses for research costs associated with government contracts are recorded as government contract and other within development revenues. Government contract revenue is recorded at the gross amount of the reimbursement. The costs associated with these reimbursements are reflected as a component of research and development expense in our statements of operations. We recognized $1.6 million in BARDA revenue for the three months ended March 31, 2016, as compared to $1.4 million for the three months ended March 31, 2015.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2016
Inventories [Abstract]
Inventories	7. Inventories Inventories are carried at the lower of cost or market, determined on the first-in, first-out (FIFO) method. Inventories consisted of the following: March 31, 2016 December 31, 2015 Raw materials $ 981,000 $ 1,009,000 Work in process 1,189,000 816,000 Finished goods 2,292,000 2,473,000 $ 4,462,000 $ 4,298,000

Loss per Share

Loss per Share	3 Months Ended
	Mar. 31, 2016
Loss per Share [Abstract]
Loss per Share	8. Loss per Share Basic per share data is computed by dividing net income or loss applicable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted per share data is computed by dividing net income or loss applicable to common stockholders by the weighted average number of common shares outstanding during the period increased to include, if dilutive, the number of additional common shares that would have been outstanding as calculated using the treasury stock method. Potential common shares were related entirely to outstanding but unexercised options and warrants for all periods presented. We have excluded all potentially dilutive securities, including unvested performance-based restricted stock, from the calculation of diluted loss per share attributable to common stockholders for the three months ended March 31, 2016 and 2015, as their inclusion would be antidilutive. Potentially dilutive common shares excluded from the calculations of diluted loss per share were 1.1 million for the three months ended March 31, 2016 and 2.7 million for the three months ended March 31, 2015.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies [Abstract]
Commitments and Contingencies	9. Commitments and Contingencies We have entered into agreements with various research organizations for pre-clinical and clinical development studies, which have provisions for cancellation. Under the terms of these agreements, the vendors provide a variety of services including conducting research, recruiting and enrolling patients, monitoring studies and data analysis. Payments under these agreements typically include fees for services and reimbursement of expenses. The timing of payments due under these agreements is estimated based on current study progress. As of March 31, 2016, we have clinical research study obligations of $5.1 million, $4.2 million of which are expected to be complete within a year. Should the timing of the clinical trials change, the timing of the payment of these obligations would also change. We have entered into several lease agreements for our headquarters office location as well as international office locations. As of March 31, 2016, we have remaining lease obligations of $ $ We have entered into minimum purchase agreement with Roche Diagnostics Corporation. Pursuant to the agreement, as of March 31, 2016, we have a minimum purchase obligation of $6.0 million, $1.2 million of which is expected to be completed within a year. We are subject to various claims and contingencies related to legal proceedings. Due to their nature, such legal proceedings involve inherent uncertainties including, but not limited to, court rulings, negotiations between affected parties and governmental actions. Management assesses the probability of loss for such contingencies and accrues a liability and/or discloses the relevant circumstances, as appropriate. Management believes that any liability to us that may arise as a result of currently pending legal proceedings will not have a material adverse effect on our financial condition, liquidity, or results of operations as a whole. Refer to note 4 for a discussion of our commitments and contingencies related to our transactions with Olympus Corporation.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2016
Fair Value Measurements [Abstract]
Fair Value Measurements	10. Fair Value Measurements Fair value measurements are market-based measurements, not entity-specific measurements. Therefore, fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. We follow a three-level hierarchy to prioritize the inputs used in the valuation techniques to derive fair values. The basis for fair value measurements for each level within the hierarchy is described below: · · · As of March 31, 2016 and as of December 31, 2015, the Company did not have any assets or liabilities measured at fair value. Warrants with exercise price reset features (down-round protection) were accounted for as liabilities, with changes in the fair value included in net loss for the respective periods. Because some of the inputs to our valuation model were either not observable or were not derived principally from or corroborated by observable market data by correlation or other means, the warrant liability was classified as Level 3 in the fair value hierarchy. All of these warrants were cashless exercised on or before December 31, 2015.

Fair Value

Fair Value	3 Months Ended
	Mar. 31, 2016
Fair Value [Abstract]
Fair Value	11. Fair Value Financial Instruments We disclose fair value information about all financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate fair value. The disclosures of estimated fair value of financial instruments at March 31, 2016 and December 31, 2015, were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts. The carrying amounts for cash and cash equivalents, accounts receivable, inventories, other current assets, accounts payable, accrued expenses and other liabilities approximate fair value due to the short-term nature of these instruments. We utilize quoted market prices to estimate the fair value of our fixed rate debt, when available. If quoted market prices are not available, we calculate the fair value of our fixed rate debt based on a currently available market rate assuming the loans are outstanding through maturity and considering the collateral. In determining the current market rate for fixed rate debt, a market spread is added to the quoted yields on federal government treasury securities with similar terms to the debt. At March 31, 2016 and December 31, 2015, the aggregate fair value and the carrying value of the Company’s fixed rate long-term debt were as follows: March 31, 2016 December 31, 2015 Fair Value Carrying Value Fair Value Carrying Value Fixed rate long-term debt $ 16,988,000 $ 16,919,000 $ 16,844,000 $ 16,681,000 Carrying value is net of debt discount and capitalized loan fees of $1.9 million and $2.1 million as of March 31, 2016 and December 31, 2015, respectively. The fair value of debt is classified as Level 3 in the fair value hierarchy as some of the inputs to our valuation model are either not observable quoted prices or are not derived principally from or corroborated by observable market data by correlation or other means.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2016
Stockholders' Equity [Abstract]
Stockholders' Equity	12. Stockholders’ Equity Preferred Stock We have authorized 5 million shares of $0.001 par value preferred stock. Our Board of Directors is authorized to designate the terms and conditions of any preferred stock we issue without further action by the common stockholders. There were 13,500 shares of Series A 3.6% Convertible Preferred Stock that had been issued at March 31, 2016 and December 31, 2015, none of which were outstanding as of either date. The fair value of the common stock into which the Series A 3.6% Convertible Preferred Stock was convertible on the date of issuance exceeded the proceeds allocated to the preferred stock, resulting in the beneficial conversion feature that we recognized as a dividend to the preferred shareholders and, accordingly, an adjustment to net loss to arrive at net loss allocable to common shareholders. Certain shares of Series A 3.6% Convertible Preferred Stock were not convertible until shareholder approval, which occurred in January 2015. As a result, dividend for the beneficial conversion feature of $0.7 million was recorded during the quarter ended March 31, 2015. In connection with the 3.6% Convertible Preferred Stock outstanding at December 31, 2014, we declared a cash dividend of $0.08 million. The cash dividend was paid in January and April 2015. Common Stock In May 2015, the Company entered into a Securities Purchase Agreement with certain institutional investors pursuant to which the Company agreed to sell up to $25 million of units, with each unit consisting of one share of its common stock and one warrant to purchase one share of its common stock, in a registered direct offering. The purchase and sale of the units took place in two separate closings. At the initial closing, which took place on May 8, 2015, the Company received approximately $17.4 million in net proceeds from the sale of units. The second closing of the purchase and sale of the units occurred on August 27, 2015 upon satisfaction of certain conditions, including, without limitation, stockholder vote, and the Company received approximately $2.1 million in net proceeds from the sale of 500,000 units of the 1,000,000 units available for sale at the second closing. On December 17, 2015, the Company and the holders of October 2014 warrants agreed to amend the October 2014 Warrants pursuant to an Amendment to Common Stock Purchase Warrant (the “2014 Amendment”). Also on December 17, 2015, the Company and the holders of the May 2015 Warrants and the August 2015 Warrants (collectively the “2015 Warrants”) agreed to amend the 2015 Warrants pursuant to an Amendment to Series A-1 Warrant to Purchase Common Stock and Amendment to Series A-2 Warrant to Purchase Common Stock, respectively (the “2015 Amendment” and, together with the 2014 Amendment, the “Warrant Amendments”). The Warrant Amendments provide that the holders may exercise their warrants on a “cashless exercise” basis in whole on or prior to December 31, 2015, whereby each exercising holder of the amended 2015 Warrants would receive 0.75 shares for each warrants share exercised and each exercising holder of the amended 2014 Warrants would receive 0.69 shares for each warrant share exercised. In addition, the Warrant Amendments removed certain provisions which provided that the exercise price of the Warrants would be reset in the event of certain equity issuances by the Company for a price below the exercise price of the Warrants as of the time of such issuance. All 2014 Warrants and all 2015 Warrants were cashless exercised on or before December 31, 2015.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	13. Subsequent Events On April 6, 2016, the Company filed a Registration Statement on Form S-1 registering non-transferable subscription rights to purchase up to $10,000,000 of units to be distributed at no charge to the holders of our common stock as of the record date. The rights provide the holders the option to subscribe for units, with each unit consisting of one share of common stock and a fraction of a warrant (with each whole warrant representing the right to purchase one share of common stock). The record date and pricing terms of the rights offering have not yet been determined. There is no guarantee that the rights offering will be consummated, or if it is consummated that it will raise sufficient capital to enable the Company to continue to execute its business strategy as currently contemplated. See “Risk Factors” below for more information .

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2016
Basis of Presentation [Abstract]
Basis of Presentation	Our accompanying unaudited consolidated condensed financial statements as of March 31, 2016 and for the three months ended March 31, 2016 and 2015 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. Our consolidated condensed balance sheet at March 31, 2016 has been derived from the audited financial statements at December 31, 2015, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the financial position and results of operations of Cytori Therapeutics, Inc., and our subsidiaries (the “Company”) have been included. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. These financial statements should be read in conjunction with the Consolidated Financial Statements and notes therein included in our annual report on Form 10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission on March 11, 2016. On May 10, 2016, following stockholder and Board approval, an amendment (the “Amendment”) to the Company’s amended and restated certificate of incorporation, as amended, was filed and declared effective, which Amendment (i) effectuated a one-for-fifteen (1:15) reverse stock split of the Company’s (ii) outstanding common stock, and (iii) common stock reserved for issuance upon exercise of outstanding warrants and options decreased the total number of authorized shares of common stock of the Company from 290 million to 75 million (The “1;15 Reverse Stock Split”). Upon effectiveness of the 1:15 Reverse Stock Split, the number of shares of the Company’s common stock (x) issued and outstanding decreased from approximately 200 million shares (as of March 31, 2016) to approximately 13 million shares; (y) reserved for issuance upon exercise of outstanding warrants and options decreased from approximately 16 million shares to approximately 1.1 million shares, and (z) reserved but unallocated under our current equity incentive plans (including the stockholder-approved share increase to the Company’s 2014 Equity Incentive Plan) decreased from approximately 1.5 million common shares to approximately 0.1 million common shares. The number of authorized shares of preferred stock remained unchanged. Following the reverse split, certain reclassifications have been made to the prior periods' financial statements to conform to the current period's presentation. The Company adjusted shareholders' equity to reflect the reverse stock split by reclassifying an amount equal to the par value of the additional shares arising from the split from common stock to the Additional Paid-in Capital during the first quarter of fiscal 2016, resulting in no net impact to shareholders' equity on our consolidated balance sheets. The Company has been advised that shares of our common stock will commence trading on a split-adjusted basis on May 12, 2016. Fractional shares will be rounded up to the nearest whole share and proportional adjustments will be made to the Company's outstanding stock options, warrants and equity incentive plans

Use of Estimates (Policies)

Use of Estimates (Policies)	3 Months Ended
	Mar. 31, 2016
Use of Estimates [Abstract]
Use of Estimates	The preparation of Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. Our most significant estimates and critical accounting policies involve recognizing revenue, estimating useful lives of long-lived assets, valuing warrants, determining the assumptions used in measuring share-based compensation expense and valuing allowances for doubtful accounts, and inventories.

Revenue Recognition (Policies)

Revenue Recognition (Policies)	3 Months Ended
	Mar. 31, 2016
Revenue Recognition [Abstract]
Revenue Recognition	Concentration of Significant Customers One distributor and one direct customer comprised 68% of our revenue recognized for the three months ended March 31, 2016. Two direct customers and one distributor accounted for 68% of total outstanding accounts receivable (excluding receivables from U.S. Department of Health and Human Service’s Biomedical Advanced Research and Development Authority (BARDA)) as of March 31, 2016. Three distributors comprised 68% of our revenue recognized for the three months ended March 31, 2015. Two direct customers accounted for 73% of total outstanding accounts receivable as of December 31, 2015. Product revenues, classified by geographic location, are as follows: Three months ended March 31, 2016 March 31, 2015 Product Revenues % of Total Product Revenues % of Total Americas $ 235,000 18 % $ 201,000 22 % Japan 966,000 72 % 605,000 67 % EMEA 132,000 10 % 92,000 10 % Asia Pacific — 0 % 4,000 1 % Total product revenues $ 1,333,000 100 % $ 902,000 100 % Research and Development We earn revenue for performing tasks under research and development agreements with governmental agencies like the BARDA. Revenues derived from reimbursement of direct out-of-pocket expenses for research costs associated with government contracts are recorded as government contract and other within development revenues. Government contract revenue is recorded at the gross amount of the reimbursement. The costs associated with these reimbursements are reflected as a component of research and development expense in our statements of operations. We recognized $1.6 million in BARDA revenue for the three months ended March 31, 2016, as compared to $1.4 million for the three months ended March 31, 2015.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2016
Revenue Recognition [Abstract]
Product Revenues by Geographic Location	Product revenues, classified by geographic location, are as follows: Three months ended March 31, 2016 March 31, 2015 Product Revenues % of Total Product Revenues % of Total Americas $ 235,000 18 % $ 201,000 22 % Japan 966,000 72 % 605,000 67 % EMEA 132,000 10 % 92,000 10 % Asia Pacific — 0 % 4,000 1 % Total product revenues $ 1,333,000 100 % $ 902,000 100 %

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2016
Inventories [Abstract]
Inventory	Inventories consisted of the following: March 31, 2016 December 31, 2015 Raw materials $ 981,000 $ 1,009,000 Work in process 1,189,000 816,000 Finished goods 2,292,000 2,473,000 $ 4,462,000 $ 4,298,000

Fair Value (Tables)

Fair Value (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value [Abstract]
Fair Value and Carrying Value of Long-term Debt	At March 31, 2016 and December 31, 2015, the aggregate fair value and the carrying value of the Company’s fixed rate long-term debt were as follows: March 31, 2016 December 31, 2015 Fair Value Carrying Value Fair Value Carrying Value Fixed rate long-term debt $ 16,988,000 $ 16,919,000 $ 16,844,000 $ 16,681,000

Basis of Presentation (Details)

Basis of Presentation (Details)	May. 10, 2016shares	Apr. 06, 2016shares	Mar. 31, 2016shares	Dec. 31, 2015shares
Subsequent Event [Line Items]
Common stock, shares authorized (in shares)			75,000,000	290,000,000
Common stock, shares issued and outstanding after reverse stock split (in shares)			13,310,740	13,003,893
Common stock, shares, issued (in shares)			200,000,000
Number of shares callable by warrants (in shares)			16,000,000
2014 Equity Incentive Plan [Member]
Subsequent Event [Line Items]
Number of shares callable by warrants (in shares)			1,500,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Reverse stock split of common stock	15
Common stock, shares authorized (in shares)	75,000,000
Common stock, shares issued and outstanding after reverse stock split (in shares)	13,000,000
Number of shares callable by warrants (in shares)	1,100,000	1
Subsequent Event [Member] | 2014 Equity Incentive Plan [Member]
Subsequent Event [Line Items]
Number of shares callable by warrants (in shares)	100,000

Capital Availability (Details)

Capital Availability (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Capital Availability [Abstract]
Net loss	$ (5,339,000)	$ (21,958,000)
Accumulated deficit	(362,356,000)		$ (357,017,000)
Net cash used in operating activities	(5,058,000)	$ (5,030,000)
Minimum cash on hand consider to avoid an event of default	$ 5,000,000
Percentage of warrant coverage	100.00%

Transactions with Olympus Cor27

Transactions with Olympus Corporation (Details) - USD ($) $ in Millions	Apr. 30, 2015	Mar. 31, 2016
Acquisition of Olympus' Interest in the Joint Venture [Abstract]
Total purchase price	$ 6
Purchase price payment agreement term		2 years
Amendment One to Joint Venture Termination Agreement [Member]
Acquisition of Olympus' Interest in the Joint Venture [Abstract]
Purchase price payment termination agreement total	4.2
Purchase price principal amount payable on January 31, 2016	0.5
Purchase price principal amount payable on April 30, 2016	0.5
Purchase price principal amount and accrued interest payable on May 8, 2016	$ 0.8

Long-term Debt (Details)

Long-term Debt (Details) - USD ($) $ / shares in Units, $ in Millions	May. 29, 2015	Mar. 31, 2016
Debt Instrument [Line Items]
Number of shares callable by warrants (in shares)		16,000,000
LIBOR [Member] | Interest Rate Floor [Member]
Debt Instrument [Line Items]
Basis variable rate	1.00%
Term Loan [Member]
Debt Instrument [Line Items]
Origination date		May 29, 2015
Original loan amount	$ 17.7
Interest rate	8.95%
Basis variable rate	7.95%
Maturity date		Jun. 1, 2019
Fees amount associated with loan	$ 1.1
Date from which warrants are exercisable		Nov. 30, 2015
Number of shares callable by warrants (in shares)	94,441
Warrant exercise price (in dollars per share)	$ 10.35
Warrant expiration date		May 29, 2025
Repayment of long term debt	$ 25.4
Term Loan remaining balance at date of Amendment	23.4
Accrued but unpaid interest	0.2
Final payment fee	1.8
Principal amount of previous loan retired	3.1
Unamortized debt discount	$ 0.8
Effective interest rate	14.95%
Loss on debt extinguishment	$ 0.3
Term Loan [Member] | Final Payment [Member]
Debt Instrument [Line Items]
Fees amount associated with loan	$ 0.8

Revenue Recognition (Details)

Revenue Recognition (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2016USD ($)DistributorCustomer	Mar. 31, 2015USD ($)Distributor	Dec. 31, 2015Customer
Concentration Risk [Table]
Revenues	$ 1,333,000	$ 902,000
Concentration risk percentage	100.00%	100.00%
Customer Concentration Risk [Member] | Revenue Recognized [Member]
Concentration Risk [Table]
Number of distributors | Distributor	1	3
Number of customers | Customer	1
Concentration risk percentage	68.00%	68.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member]
Concentration Risk [Table]
Number of distributors | Distributor	1
Number of customers | Customer	2		2
Concentration risk percentage	68.00%		73.00%
BARDA Contract [Member]
Research and Development Arrangements [Line Items]
Revenue recognized	$ 1,600,000	$ 1,400,000
Americas [Member]
Concentration Risk [Table]
Revenues	$ 235,000	$ 201,000
Concentration risk percentage	18.00%	22.00%
Japan [Member]
Concentration Risk [Table]
Revenues	$ 966,000	$ 605,000
Concentration risk percentage	72.00%	67.00%
EMEA [Member]
Concentration Risk [Table]
Revenues	$ 132,000	$ 92,000
Concentration risk percentage	10.00%	10.00%
Asia Pacific [Member]
Concentration Risk [Table]
Revenues	$ 0	$ 4,000
Concentration risk percentage	0.00%	1.00%

Inventories (Details)

Inventories (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Inventories [Abstract]
Raw materials	$ 981,000	$ 1,009,000
Work in process	1,189,000	816,000
Finished goods	2,292,000	2,473,000
Inventory, net	$ 4,462,000	$ 4,298,000

Loss per Share (Details)

Loss per Share (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Loss per Share [Abstract]
Dilutive common shares excluded from the calculations of diluted loss per share (in shares)	1.1	2.7

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Mar. 31, 2016USD ($)
Pre-clinical Research Study Obligations [Member]
Recorded Unconditional Purchase Obligation [Line Items]
Purchase obligation	$ 5.1
Purchase obligation, due in next twelve months	4.2
Operating Lease Obligations [Member]
Recorded Unconditional Purchase Obligation [Line Items]
Contractual obligation	3.6
Contractual obligation, due in next twelve months	2.3
Roche Diagnostics Corporation [Member]
Recorded Unconditional Purchase Obligation [Line Items]
Purchase obligation	6
Purchase obligation, due in next twelve months	$ 1.2

Fair Value (Details)

Fair Value (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed rate long-term debt	$ 16,988,000	$ 16,844,000
Carrying Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed rate long-term debt	16,919,000	16,681,000
Debt discount and capitalized loan fees	$ 1,900,000	$ 2,100,000

Stockholders' Equity (Details)

Stockholders' Equity (Details) $ / shares in Units, $ in Thousands	Aug. 27, 2015USD ($)shares	May. 08, 2015USD ($)	May. 31, 2015USD ($)Closingshares	Mar. 31, 2016$ / sharesshares	Dec. 31, 2015$ / sharesshares	Dec. 31, 2014USD ($)	Dec. 17, 2015shares	Mar. 31, 2015USD ($)
Preferred Stock [Abstract]
Preferred stock, shares authorized (in shares)				5,000,000
Preferred stock, par value (in dollars per share) | $ / shares				$ 0.001
Common Stock [Abstract]
Number of securities callable by each unit (in shares)				16,000,000
Common stock, shares authorized (in shares)				75,000,000	290,000,000
Series A Preferred Stock [Member]
Preferred Stock [Abstract]
Preferred stock, shares authorized (in shares)				5,000,000	5,000,000
Preferred stock, par value (in dollars per share) | $ / shares				$ 0.001	$ 0.001
Preferred stock, shares issued (in shares)				13,500	13,500
Convertible preferred stock				3.60%	3.60%	3.60%
Series A Preferred Stock [Member] | Dividend Declared [Member]
Preferred Stock [Abstract]
Dividends payable | $						$ 80
Series A Preferred Stock [Member] | Dividend Paid [Member]
Preferred Stock [Abstract]
Dividends payable | $								$ 700
2015 Amendment [Member] | Common Stock [Member]
Common Stock [Abstract]
Number of shares callable by each warrant (in shares)							0.75
2014 Amendment [Member] | Common Stock [Member]
Common Stock [Abstract]
Number of shares callable by each warrant (in shares)							0.69
Securities Purchase Agreement [Member]
Common Stock [Abstract]
Common stock issued, value | $			$ 25,000
Number of closings | Closing			2
Securities Purchase Agreement [Member] | Common Stock [Member]
Common Stock [Abstract]
Number of securities callable by each unit (in shares)			1
Number of shares callable by each warrant (in shares)			1
Securities Purchase Agreement [Member] | Warrants [Member]
Common Stock [Abstract]
Number of securities callable by each unit (in shares)			1
Securities Purchase Agreement [Member] | Initial Closing [Member]
Common Stock [Abstract]
Proceeds from private placement of stock | $		$ 17,400
Securities Purchase Agreement [Member] | Second Closing [Member]
Common Stock [Abstract]
Proceeds from private placement of stock | $	$ 2,100
Common stock issued (in shares)	500,000
Common stock, shares authorized (in shares)	1,000,000

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	May. 10, 2016	Apr. 06, 2016	Mar. 31, 2016
Subsequent Event [Line Items]
Number of securities callable by each unit (in shares)			16,000,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Number of securities callable by each unit (in shares)	1,100,000	1
Number of shares callable by each warrant (in shares)		1
Subsequent Event [Member] | Maximum [Member]
Subsequent Event [Line Items]
Value of units purchased for distribution to common stockholders		$ 10,000,000