Dex Liquidating (CRDC) 10-Q 10 Feb 16 2016 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Dec. 31, 2015	Feb. 05, 2016
Entity Registrant Name	CARDICA INC
Entity Central Index Key	1,178,104
Trading Symbol	crdc
Current Fiscal Year End Date	--06-30
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		89,018,550
Document Type	10-Q
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015
Current assets:
Cash and cash equivalents	$ 6,381	$ 8,264
Short-term investments	12,099	12,972
Accounts receivable, net	533	424
Inventories	1,018	1,391
Prepaid expenses and other current assets	221	310
Total current assets	20,252	23,361
Property and equipment, net	1,452	1,859
Long-term investments		3,970
Restricted cash	104	104
Total assets	21,808	29,294
Current liabilities:
Accounts payable	862	699
Accrued compensation	885	434
Other accrued liabilities	594	522
Current portion of deferred revenue	403	403
Total current liabilities	2,744	2,058
Deferred revenue, net of current portion	2,125	2,125
Notes Payable, Noncurrent	2,971	2,828
Other non-current liabilities	214	194
Total liabilities	$ 8,054	$ 7,205
Commitments and contingencies (Note 9)
Stockholders' equity:
Preferred stock, $0.001 par value: 5,000,000 shares authorized: 191,474 shares issued and outstanding at December 31, 2015, and June 30, 2015	$ 17,214	$ 17,214
Common stock, $0.001 par value: 125,000,000 shares authorized: 89,084,777 and 89,021,443 shares issued and 89,018,550 and 88,955,216 shares outstanding at December 31, 2015, and June 30, 2015, respectively	89	89
Additional paid-in capital	195,499	195,099
Treasury stock at cost (66,227 shares at December 31, 2015, and June 30, 2015)	(596)	(596)
Accumulated comprehensive loss	(14)	(8)
Accumulated deficit	(198,438)	(189,709)
Total stockholders' equity	13,754	22,089
Total liabilities and stockholders' equity	$ 21,808	$ 29,294

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares	Dec. 31, 2015	Jun. 30, 2015
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)	191,474	191,474
Preferred stock, shares outstanding (in shares)	191,474	191,474
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	125,000,000	125,000,000
Common stock, shares issued (in shares)	89,084,777	89,021,443
Common stock, shares outstanding (in shares)	89,018,550	88,955,216
Treasury stock shares (in shares)	66,227	66,227

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Net revenue:
Product sales, net	$ 683,000	$ 639,000	$ 1,420,000	$ 1,690,000
Royalty revenue	17,000	18,000	35,000	35,000
Total net revenue	700,000	657,000	1,455,000	1,725,000
Operating costs and expenses:
Cost of product sales	889,000	944,000	1,912,000	2,577,000
Research and development	1,630,000	1,848,000	3,246,000	3,584,000
Selling, general and administrative	2,161,000	3,205,000	4,818,000	5,863,000
Total operating costs and expenses	4,680,000	5,997,000	9,976,000	12,024,000
Loss from operations	(3,980,000)	(5,340,000)	(8,521,000)	(10,299,000)
Interest income	14,000	13,000	27,000	26,000
Interest expense	(123,000)	(112,000)	(243,000)	(222,000)
Other income (expense), net	2,000	(3,000)	8,000	(12,000)
Net loss	$ (4,087,000)	$ (5,442,000)	$ (8,729,000)	$ (10,507,000)
Basic and diluted net loss per share (in dollars per share)	$ (0.05)	$ (0.06)	$ (0.10)	$ (0.12)
Shares used in computing basic and diluted net loss per share (in shares)	89,018	88,955	88,991	88,950

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Net loss	$ (4,087)	$ (5,442)	$ (8,729)	$ (10,507)
Changes in market value of investments:
Change in unrealized loss on short-term investments, net of tax	(9)	(7)	(6)	(15)
Comprehensive loss	$ (4,096)	$ (5,449)	$ (8,735)	$ (10,522)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Operating activities:
Net loss	$ (8,729)	$ (10,507)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	543	743
Amortization of premiums on marketable securities	106	269
Stock-based compensation expense	400	627
Non-cash interest expense	143	121
Changes in operating assets and liabilities:
Accounts receivable, net	(109)	313
Prepaid expenses and other current assets	89	63
Inventories	373	(310)
Accounts payable and other accrued liabilities	255	628
Accrued compensation	451	(412)
Net cash used in operating activities	(6,478)	(8,465)
Investing activities:
Purchases of property and equipment	(136)	(385)
Proceeds from maturities of investments	13,658	13,279
Purchases of investments	(8,927)	(23,166)
Net cash provided by (cash used) in investing activities	4,595	(10,272)
Financing activities:
Net proceeds from issuances of common stock		(65)
Net increase (decrease) in cash and cash equivalents	(1,883)	(18,802)
Cash and cash equivalents at beginning of period	8,264	25,553
Cash and cash equivalents at end of period	6,381	6,751
Supplemental disclosure of cash flow information:
Interest paid	$ 100	100
Supplemental disclosure of non-cash information:
Incremental debt discount relating to note extension		$ 515

Note 1 - Summary of Significant

Note 1 - Summary of Significant Accounting Policies	6 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Significant Accounting Policies [Text Block]	NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Cardica, Inc. (the “Company”) was incorporated in the state of Delaware on October 15, 1997, as Vascular Innovations, Inc. On November 26, 2001, the Company changed its name to Cardica, Inc. The Company is commercializing and developing the MicroCutter XCHANGE® 30 based on its proprietary “staple-on-a-strip” technology intended for use by thoracic, pediatric, bariatric, colorectal and general surgeons. The MicroCutter XCHANGE® 30, which is currently commercially-available, is a cartridge based microcutter device with a 5 millimeter shaft diameter and a 30 millimeter staple line currently cleared for use in the United States for specified indications for use, and approved in Japan and in the European Union, or EU, for a broader range of specified indications for use. The Company previously had additional products in development, including the MicroCutter XCHANGE® 45, a cartridge based microcutter device with an 8 millimeter shaft and a 45 millimeter staple line, and the MicroCutter FLEXCHANGE™ 30, a cartridge based microcutter device with a flexible shaft to facilitate endoscopic procedures requiring cutting and stapling; however, the Company suspended development of these additional potential products to focus solely on development of the MicroCutter XCHANGE 30. In March 2012, the Company completed the design verification for and applied Conformité Européenne, or the CE Mark, to the MicroCutter XCHANGE 30 and, in December 2012, began a controlled commercial launch of the MicroCutter XCHANGE 30 in Europe. The Company received from the United States Food and Drug Administration, or FDA, 510(k) clearances for the MicroCutter XCHANGE 30 and blue cartridge in January 2014, and for the white cartridge in February 2014, for use in multiple open or minimally-invasive surgical procedures for the transection, resection and/or creation of anastomoses in small and large intestine, as well as the transection of the appendix. The blue cartridge is for use in medium thickness tissue, and the white cartridge is for use in thin tissue. In March 2014, the Company made its first sale of the MicroCutter XCHANGE 30 in the United States, and subsequently temporarily suspended its controlled commercial launch in November 2014, as the Company shifted its focus to improved performance based on surgeon feedback. In April 2015, the Company resumed its controlled commercial launch primarily in Europe, of the MicroCutter XCHANGE 30 for thinner tissue usually requiring deployment of white cartridges. While the Company continues this controlled commercial launch, the Company’s goal is to complete product improvements on the MicroCutter XCHANGE 30 combo device that will accommodate thicker tissue ranges requiring deployment of both white and blue cartridges. To further expand the use of the MicroCutter XCHANGE 30, the Company submitted a 510(k) Premarket Notification to the FDA in April 2015, to expand the indications for use to include vascular structures, and recently received FDA 510(k) clearance to use its MicroCutter XCHANGE ® The Company is attempting to expand in the international market of its MicroCutter XCHANGE 30 with additional selected regulatory filings. The Company also submitted the MicroCutter XCHANGE 30 blue and white cartridges application to Health Canada for regulatory approval of the MicroCutter XCHANGE 30 and, if the Company receives approval, anticipates launching it in Canada. In addition, in August 2013, the Company’s exclusive distributor in Japan, Century Medical, Inc., or Century, filed for regulatory approval of the MicroCutter XCHANGE 30 cartridges with the Pharmaceuticals and Medical Devices Agency, or PMDA, in Japan and in April 2014, filed for the MicroCutter XCHANGE 30 stapler with TUV Rheinland Japan Ltd, a registered third-party agency in Japan and received approvals in late 2014 for both, to market in Japan. Also, in January 2015, Century submitted an application to PMDA, relating to a change in the material of the cartridge insert component within the MicroCutter XCHANGE 30 cartridges, changing the distal tip of the cartridge insert material from a Vectra Liquid Crystal Polymer, or LCP, to IXEF Polyarylamide, or IXEF, and received approval in August 2015 to market in Japan. Historically, the Company generated product revenues primarily from the sale of automated anastomotic systems; however, the Company started generating revenues from the commercial sales of the MicroCutter XCHANGE 30 in Europe in December 2012, and in the United States in March 2014, and through December 31, 2015, the Company generated $1.7 million of net product revenues from the commercial sales of the MicroCutter XCHANGE 30. In November 2015, the Company issued a voluntary removal of the MicroCutter XCHANGE 30 blue cartridges from the market, as the MicroCutter XCHANGE 30 device sold primarily in Europe was labeled for use with the white cartridge only. The impact of the returned products from the voluntary removal was not significant. For the six months ended December 31, 2015, the Company generated net revenue of $1.4 million, including $1.1 million from the sale of automated anastomotic systems, $0.3 million from commercial sales of the MicroCutter XCHANGE 30 and $35,000 of royalty revenue. Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual financial statements which include the accounts of Cardica, Inc. and its wholly-owned subsidiary in Germany. All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for the fair statement of balances and results have been included. The results of operations of any interim period are not necessarily indicative of the results of operations for the full year or any other interim period. The accompanying condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the fiscal year ended June 30, 2015, included in the Company’s Form 10-K filed with the Securities and Exchange Commission on September 25, 2015. Recently Issued Accounting Standards In November 2015, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In July 2015, the FASB issued an accounting standard update which requires an entity measuring inventory other than last-in, first-out (LIFO) or the retail inventory method to measure inventory at the lower of cost and net realizable value. When evidence exists that the net realizable value of inventory is lower than its costs, the difference will be recognized as a loss in the statement of operations. The standard is effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The Company will be evaluating the impact of the adoption of this standard on the Company’s consolidated financial statements and disclosures. In April 2015, the FASB issued an accounting standard update which provides guidance on whether a cloud computing arrangement includes a software license to a customer of such an arrangement. If a cloud computing arrangement includes a software license, a customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses, otherwise the customer should account for the arrangement as a service contract. The standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The standard can be applied prospectively to all arrangements entered into or materially modified after the effective date, or retrospectively. The adoption of this guidance is not expected to have an impact on the Company’s consolidated financial statements and disclosures. In April 2015, the FASB issued an accounting standard update which requires an entity to present debt issuance costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. The standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The standard will be applied retrospectively to each prior period presented. The Company will be evaluating the impact of the adoption of this guidance on the Company’s consolidated balance sheets. In February 2015, the FASB issued an amendment to the accounting standard regarding the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The amendments in this update are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The adoption of this update is not expected to have a material effect on the Company’s consolidated financial statements or disclosures. In August 2014, the FASB issued an accounting standard update related to the disclosures around going concern. The new standard provides guidance around management’s responsibility to evaluate whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. The new standard is effective for the annual periods and interim periods within those annual periods beginning after December 15, 2016. Early application is permitted. The Company will be evaluating the impact of the adoption of this guidance on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606): Revenue from Contracts with Customers Revenue Recognition Use of Estimates The preparation of financial statements in conformity with GAAP generally requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Significant estimates include the valuation of inventory, measurement of stock based compensation, valuation of financial instruments and revenue recognition. Actual results could materially differ from these estimates. Revenue Recognition The Company recognizes revenue when four basic criteria are met: (1) persuasive evidence of an arrangement exists; (2) title has transferred; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured. The Company uses contracts and customer purchase orders to determine the existence of an arrangement. The Company uses shipping documents and third-party proof of delivery to verify that title has transferred. The Company assesses whether the fee is fixed or determinable based upon the terms of the agreement associated with the transaction. To determine whether collection is probable, the Company assesses a number of factors, including past transaction history with the customer and the creditworthiness of the customer. If the Company determines that collection is not reasonably assured, then the recognition of revenue is deferred until collection becomes reasonably assured, which is generally upon receipt of payment. The Company records product sales net of estimated product returns and discounts from the list prices for its products. The amounts of product returns and the discount amounts have not been material to date. The Company’s sales to distributors do not include price protection. Payments that are contingent upon the achievement of a substantive milestone are recognized in their entirety in the period in which the milestone is achieved subject to satisfaction of all revenue recognition criteria at that time. Revenue generated from license fees and performing development services are recognized when they are earned and non-refundable upon receipt, over the period of performance, or upon incurrence of the related development expenses in accordance with contractual terms, based on the actual costs incurred to date plus overhead costs for certain project activities. Amounts paid but not yet earned on a project are recorded as deferred revenue until such time as performance is rendered or the related development expenses, plus overhead costs for certain project activities, are incurred. Inventories Inventories are recorded at the lower of cost or market on a first-in, first-out basis. The Company periodically assesses the recoverability of all inventories, including materials, work-in-process and finished goods, to determine whether adjustments for impairment are required. Inventory that is obsolete or in excess of forecasted usage is written down to its estimated net realizable value based on assumptions about future demand and market conditions. Further reduced demand may result in the need for additional inventory write-downs in the near term. Inventory write-downs are charged to cost of product sales and establish a lower cost basis for the inventory. Risks and Uncertainties The Company depends upon a number of key suppliers, including single source suppliers, the loss of which would materially harm the Company’s business. Single source suppliers are relied upon for certain components and services used in manufacturing the Company’s products. The Company does not have long-term contracts with any of the suppliers; rather, purchase orders are submitted for each order. Because long-term contracts do not exist, none of the suppliers are required to provide the Company any guaranteed minimum quantities. Foreign Currency Translation The Company’s foreign operations are subject to exchange rate fluctuations and foreign currency costs. The functional currency of the German subsidiary is the United States dollar. Transactions and balances denominated in dollars are presented at their original amounts. Monetary assets and liabilities denominated in currencies other than the dollar are re-measured at the current exchange rate prevailing at the balance sheet date. All transaction gains or losses from the re-measurement of monetary assets and liabilities are included in the consolidated statements of operations within other income (expense).

Note 2 - Stockholders' Equity

Note 2 - Stockholders' Equity	6 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	NOTE 2 - STOCKHOLDERS' EQUITY Common Stock and Preferred Stock In April 2014, the Company sold 37,375,000 shares of its common stock at $0.85 per share, and 191,474 shares of Series A Convertible Preferred Stock at $85 per share. The Series A convertible preferred stock is non-voting and is convertible into shares of common stock at a conversion rate of 100 shares of common stock for each share of Series A convertible preferred stock, provided that conversion will be prohibited if, as a result, the holder and their affiliates would own more than 9.98% of the total number of shares of the Company’s common stock then outstanding unless the holder gives the Company at least 61 days prior notice of an intent to convert into shares of common stock that would cause the holder to own more than 9.98% of the total number of shares of common stock then issued and outstanding. Net proceeds from the financing to the Company were approximately $44.6 million. For fiscal year ended June 30, 2014, the Company recorded a deemed dividend of $1.9 million related to beneficial conversion feature of series A convertible preferred stock. A one-time beneficial conversion charge was due to the difference between the common stock price and conversion price on the closing date of the Company’s public offering in April 2014. On August 3, 2011, the Company entered into the At The Market Issuance Sales Agreement (the “ATM Agreement”) with McNicoll, Lewis & Vlak LLC (“MLV”), which provided that, upon the terms and subject to the conditions and limitations set forth therein, the Company could issue and sell up to $10.0 million of the Company’s common stock through MLV as the Company’s sales agent over the term of the ATM Agreement. The Company had received net proceeds of $1.2 million, from the sale of an aggregate of 884,756 shares of common stock through MLV prior to its expiration on August 2, 2014. During the six months ended December 31, 2014, the Company did not sell any shares of common stock through MLV. Stock-Based Compensation Stock-based compensation expense related to employee and director share-based compensation plans, including stock options and restricted stock units, or RSUs, pursuant to Accounting Standards Codification, or ASC, 718 “Compensation — Stock Compensation”. Stock-based compensation cost is measured on the grant date, based on the fair value-based measurement of the award and is recognized as an expense over the requisite service period which generally equals the vesting period of each grant. The Company recognizes compensation expense using the accelerated method and accounts for the non-employee share-based grants pursuant to ASC 505-50, Equity Based Payments to Non-Employees. The Company selected the Black-Scholes option pricing model for determining the estimated fair value-based measurements of share-based awards. The use of the Black-Scholes model requires the use of assumptions including expected term, expected volatility, risk-free interest rate and expected dividends. The Company used the following assumptions in its fair value-based measurements: Three months ended Six months ended December 31, December 31, 2015 201 4 2015 201 4 Risk-free interest rate 1.33 % 0.21% - 1.59 % 0.71% - 1.50 % 0.21% - 1.65% % Dividend yield — — — — Weighted-average expected term (in years) 4.98 4.90 4.24 - 4.98 4.83 - 4.90 Expected volatility 67.4 % 68.4 % 54.8% - 67.4 % 68.4% - 72.1 % The Company estimates the expected life of options granted based on historical exercise and post-vest cancellation patterns, which the Company believes are representative of future behavior . The risk-free interest rate for the expected term of each option is based on a risk-free zero-coupon spot interest rate on the date of grant. The Company has never declared or paid any cash dividends and does not presently plan to pay cash dividends in the foreseeable future. The expected volatility is based on the Company’s historical stock price. The Company estimates forfeitures in calculating the expense related to stock-based compensation. The Company recorded stock-based compensation expenses under ASC 718 of $0.4 million and $0.6 million for the six months ended December 31, 2015 and 2014, respectively. The Company recorded stock-based compensation expenses under ASC 505-50 of $5,991 and $0 for the six months ended December 31, 2015 and 2014, respectively. In December 2014, the Company cancelled certain options granted to employees in excess of the stock plan limits, which resulted in the recognition of $0.2 million of unamortized expense recorded as stock-based compensation expenses. Total compensation expense related to unvested awards not yet recognized is approximately $1.0 million at December 31, 2015, and is expected to be recognized over a weighted average period of 3.3 years. For the three months ended December 31, 2015, the Company issued 4,891,169 options under its Inducement Plan to the Company’s new CEO at a grant price of $0.28 per share. Included in the statement of operations are the following non-cash stock-based compensation expenses (in thousands): Three months ended Six months ended December 31, December 31, 2015 201 4 2015 201 4 Cost of product sales $ 17 $ 21 $ 35 $ 51 Research and development 30 (10 ) 72 53 Selling, general and administrative 218 303 293 523 Total $ 265 $ 314 $ 400 $ 627

Note 3 - Net Loss Per Share

Note 3 - Net Loss Per Share	6 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Earnings Per Share [Text Block]	NOTE 3 - NET LOSS PER SHARE Basic net loss per common share is calculated by dividing net loss by the weighted-average number of common shares outstanding for the period, and without consideration of potential common shares. Diluted net loss per common share is computed by dividing net loss by the weighted-average number of common shares outstanding for the period, plus dilutive potential common shares for the period determined using the treasury-stock method. For purposes of this calculation, options and warrants to purchase stock and unvested restricted stock awards are considered to be potential common shares and are only included in the calculation of diluted net loss per share when their effect is dilutive. In the years the preferred stock is outstanding, the two-class method is used to calculate basic and diluted earnings (loss) per common share since it is a participating security under ASC 260 Earnings per Share The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data): Three months ended Six months ended December 31, December 31, 2015 2014 2015 2014 Numerator: Net loss $ (4,087 ) $ (5,442 ) $ (8,729 ) $ (10,507 ) Denominator: Denominator for basic and diluted net loss per share 89,018 88,955 88,991 88,950 Basic and diluted net loss per share $ (0.05 ) $ (0.06 ) $ (0.10 ) $ (0.12 ) The following table sets forth the outstanding securities not included in the diluted net loss per common share calculation as of December 31, 2015 and 2014, because their effect would be antidilutive (in thousands): As of December 31, 2015 201 4 Options to purchase common stock 9,389 5,297 Unvested restricted stock awards 527 290 Shares reserved for issuance upon conversion of Series A Preferred 19,147 19,147 Total 29,063 24,734

Note 4 - Fair Value Measurement

Note 4 - Fair Value Measurements	6 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Fair Value Disclosures [Text Block]	NOTE 4 - FAIR VALUE MEASUREMENTS ASC 820, “Fair Value Measurements,” Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company does not have any liabilities that are measured at fair value on a recurring basis. All assets that are measured at fair value on a recurring basis have been segregated into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date. These assets measured at fair value are summarized below (in thousands): As of December 31 , 2015 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 5,165 $ — $ — $ 5,165 Corporate debt securities — 744 — 744 Short-term investments: Corporate debt securities — 12,099 — 12,099 Total assets at fair value $ 5,165 $ 12,843 $ — $ 18,008 As of June 30, 2015 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 6,399 $ — $ — $ 6,399 Corporate debt securities — 668 — 668 Short-term investments: Corporate debt securities — 12,972 — 12,972 Long-term investments: Corporate debt securities — 3,970 — 3,970 Total assets at fair value $ 6,399 $ 17,610 $ — $ 24,009 Funds held in money market instruments are included in Level 1 as their fair values are based on market prices/quotes for identical assets in active markets. Corporate debt securities and commercial papers are valued primarily using market prices comparable securities, bid/ask quotes, interest rate yields, and prepayment spreads and are included in Level 2. Cash balances of $0.5 million at December 31, 2015, and $1.2 million at June 30, 2015, were not included in the fair value hierarchy disclosure. As of December 31, 2015, the Company’s material financial assets and liabilities were reported at their current carrying values which approximate fair value given the short-term nature of less than a year, except for its note payable. As of December 31, 2015, the Company’s note payable was reported at its current carrying value which approximates fair value based on Level 3 unobservable inputs involving discounted cash flows and the estimated market rate of borrowing that could be obtained by companies with credit risk similar to the Company’s credit risk. See “Note 8 - Note Payable

Note 5 - Available-for-Sale Sec

Note 5 - Available-for-Sale Securities	6 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]	NOTE 5 – Available–for-Sale Securities The Company held investments in marketable securities as of December 31, 2015, and June 30, 2015, with maturity dates of less than one year for short-term and greater than one year for long-term. The Company’s investments consisted of the following (in thousands): As of December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities: Corporate debt securities – Short-term $ 12,113 $ — $ (14 ) $ 12,099 Total $ 12,113 $ — $ (14 ) $ 12,099 As of June 30, 201 5 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities: Corporate debt securities – Short-term $ 12,978 $ — $ (6 ) $ 12,972 Corporate debt securities – Long-term 3,972 — (2 ) 3,970 Total $ 16,950 $ — $ (8 ) $ 16,942

Note 6 - Inventories

Note 6 - Inventories	6 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Inventory Disclosure [Text Block]	NOTE 6 - INVENTORIES Inventories consisted of the following (in thousands): December 31, 201 5 June 30, 201 5 Raw materials $ 714 $ 870 Work in progress 148 162 Finished goods 156 359 Total $ 1,018 $ 1,391

Note 7 - Distribution, License,

Note 7 - Distribution, License, Development and Commercialization Agreements	6 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Intangible Assets Disclosure [Text Block]	NOTE 7 – DISTRIBUTION, LICENSE, DEVELOPMENT AND COMMERCIALIZATION AGREEMENTS Century On September 2, 2011, the Company signed a distribution agreement (the “2011 Distribution Agreement”) with Century Medical, Inc. (“Century”) with respect to distribution of the Company’s planned microcutter products in Japan. Under the terms of a secured note purchase agreement (“the 2011 note agreement”), Century agreed to loan the Company an aggregate of up to $4.0 million, with principal due in September 30, 2016, subject to certain conditions, which principal due date was extended by two years effective July 1, 2014. Under this facility, the Company received $2.0 million on September 30, 2011, and the remaining $2.0 million on December 27, 2011. The note bears 5% annual interest which is payable quarterly in arrears through September 30, 2018, the maturity date when the total $4.0 million of principal becomes due. In return for the loan commitment, the Company granted Century distribution rights to the Company’s planned microcutter product line in Japan, and a right of first negotiation for distribution rights in Japan to future products. Century is responsible for securing regulatory approval from the Ministry of Health in Japan for the microcutter product line. In August 2013, Century filed for regulatory approval of the MicroCutter XCHANGE 30 cartridges with the Pharmaceuticals and Medical Devices Agency and in April 2014, filed for the MicroCutter XCHANGE 30 stapler with TUV Rheinland Japan Ltd, a registered third-party agency in Japan and received approvals in late 2014 for both, to market in Japan. Also, in January 2015, Century submitted an application to PMDA, relating to a change in the material of the cartridge insert component within the MicroCutter XCHANGE 30 cartridges, changing the distal tip of the cartridge insert material from a LCP to IXEF, and received approval in August 2015 to market in Japan. Now that approvals for marketing in Japan have been obtained, the Company is working with Century to determine their launch plan for the MicroCutter XCHANGE 30 in Japan, specifically whether they launch the commercially-available thin tissue version of the device, or whether they wait until the MicroCutter XCHANGE 30 combo device is available. Proceeds from the note and granting the distribution rights were allocated to the note based on its aggregate fair value of $2.4 million at the dates of receipt. This fair value was determined by discounting cash flows using a discount rate of 18%, which the Company estimated was a market rate of borrowing that could be obtained by companies with credit risk similar to the Company’s. The remainder of the proceeds of $1.6 million was recorded as debt issuance discount and was allocated to the value of the distribution rights granted to Century under the 2011 Distribution Agreement and is included in deferred revenue. The deferred revenue will be recognized over the term of the 2011 Distribution Agreement, beginning upon the first sale by Century of the microcutter products in Japan. The Company’s distribution agreement with Century pertaining to the PAS-Port system, originally dated June 16, 2003, as amended, was last amended effective July 1, 2014. The last amendment, among other things, renewed the contract for another five years, and extended the expiration date to July 31, 2019. The note amendment was accounted for as the modification of the 2011 note agreement, as the value of the consideration provided by the Company in the form of additional distribution rights was estimated to be approximately equal to the reduction in the fair value of the note. Accordingly, the Company reduced the carrying value of the note of $3.1 million to its post-modification fair value of $2.6 million, and recorded the resulting incremental discount of $0.5 million as deferred revenue. The Company determined the fair value of the amended note using the discount rate of 18%, which the Company estimated as the market rate of borrowing as of the modification date that could be obtained by companies with credit risk similar to the Company’s. The incremental discount of $0.5 million will be amortized over the remaining term of the note using the effective interest rate method. The deferred revenue will be recognized over the term of the distribution agreement beginning upon the first sale by Century of the microcutter products in Japan. As of December 31, 2015, and June 30, 2015, the balance of the loan was $3.0 million and $2.8 million net of debt issuance costs of $1.0 million and $1.2 million, respectively, and the distribution of the microcutter products had not begun for the respective periods. For the six months ended December 31, 2015 and 2014, sales of automated anastomosis system to Century accounted for approximately 30% and 25%, of the Company’s total product sales. As of December 31, 2015, and June 30, 2015, Century accounted for approximately 39% and 47%, respectively, of the total accounts receivable balance. Intuitive Surgical On August 16, 2010, the Company entered into a license agreement with Intuitive Surgical (the “License Agreement”) pursuant to which the Company granted to Intuitive Surgical a worldwide, sublicenseable, exclusive license to use the Company’s intellectual property in the robotics field in diagnostic or therapeutic medical procedures, but excluding vascular anastomosis applications, for an upfront license fee of $9.0 million. The Company is eligible to receive single-digit royalties on sales by Intuitive Surgical, its affiliates or its sublicensees of specified products covered by the Company’s patent rights, if any. Each party has the right to terminate the License Agreement in the event of the other party’s uncured material breach or bankruptcy. Following any termination of the License Agreement, the licenses granted to Intuitive Surgical will continue, and except in the case of termination for the Company’s uncured material breach or insolvency, Intuitive Surgical’s payment obligations will continue as well. Under the License Agreement, Intuitive Surgical has rights to improvements in the Company’s technology and intellectual property over a specified period of time. The Company determined that there were two substantive deliverables under the License Agreement representing separate units of accounting: license rights to technology that existed as of August 16, 2010, and license rights to technology that may be developed over the following three years. The $9.0 million upfront license payment and $1.0 million premium on the $3.0 million purchase of the Company’s common stock by Intuitive Surgical in connection with the License Agreement were aggregated and allocated to the two units of accounting based upon the relative estimated selling prices of the deliverables. The relative estimated selling prices of the deliverables were determined using a probability weighted expected return model with significant inputs relating to the nature of potential future outcomes and the probability of occurrence of future outcomes. Based upon the relative estimated selling prices of the deliverables, $9.0 million of the total consideration of $10.0 million was allocated to the license rights to technology that existed as of August 16, 2010, that was recognized as revenue in the three months ended September 30, 2010, and $1.0 million was allocated to technology that may be developed over the following three years that was being recognized as revenue ratably over that three year period. The Company has fully recognized such revenue, and as of December 31, 2015, and June 30, 2015, there was no deferred revenue related to this arrangement. On December 31, 2015, the Company and Intuitive Surgical amended the license agreement, which was initially signed in August 2010, to include, among other things, an agreement providing for a feasibility evaluation and potential development of a surgical stapling cartridge for use with Intuitive Surgical’s da Vinci The feasibility evaluation allows Intuitive Surgical to test and evaluate the Company’s MicroCutter XCHANGE technology. Upon completion of the evaluation, Intuitive Surgical will have the option to initiate a joint development program, for an 8-millimeters-in-diameter surgical stapling cartridge for use with the da Vinci Cook Incorporated In June 2007, the Company entered into, and in September 2007 and in June 2009 amended, a license, development and commercialization agreement with Cook Incorporated, to develop and commercialize a specialized device, which the Company refers to as the PFO Device, designed to close holes in the heart from genetic heart defects known as patent foramen ovales (“PFOs”). Under the agreement, Cook funded certain development activities and the Company and Cook jointly developed the PFO Device. The Company’s significant deliverables under the arrangement were the license rights and the associated development activities. These deliverables were determined to represent one unit of accounting as there was no stand-alone value to the license rights. If developed, Cook would receive an exclusive, worldwide, royalty-bearing license, with the right to grant sublicenses, to make, have made, use, sell, offer for sale and import the PFO Device. The Company did not record any license and development revenue under this agreement for the six months ended December 31, 2015 or 2014. Amounts paid but not yet earned on the project are recorded as deferred revenue until such time as the related development expenses for certain project activities are incurred. A total of $0.4 million under this agreement had been recorded as deferred revenue as of December 31, 2015, and June 30, 2015. On January 6, 2010, the Company and Cook mutually agreed to suspend work on the PFO project and, accordingly, the Company does not anticipate receiving any additional payments or recording any additional revenue related to this agreement in the foreseeable future.

Note 8 - Note Payable

Note 8 - Note Payable	6 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Debt Disclosure [Text Block]	NOTE 8 – NOTE PAYABLE In connection with the 2011 Distribution Agreement with Century (see Note 7, Distribution, License, Development and Commercialization Agreements), the Company entered into a secured note purchase agreement and a related security agreement pursuant to which Century agreed to loan to the Company up to an aggregate of $4.0 million. The secured note purchase agreement was amended effective July 1, 2014, to extend the principal due date by two years. Under this facility, the Company received $2.0 million on September 30, 2011, and the remaining $2.0 million on December 27, 2011. The note bears 5% annual interest which is payable quarterly in arrears on the last business day of March, June, September and December of each year through September 30, 2018, the maturity date when the total $4.0 million of principal becomes due, and can be prepaid by the Company at any time without penalty. The debt issuance discount of approximately $2.1 million is reflected as a reduction in long-term debt and is being amortized as interest expense over the term of the note using the effective interest method. The note is secured by substantially all of the Company's assets, including the Company’s intellectual property related to the PAS-Port® Proximal Anastomosis System, but excluding all other intellectual property, until the note is repaid. There are no covenants associated with this debt. As of December 31, 2015, and June 30, 2015, the balance of the loan was $3.0 million and $2.8 million net of debt issuance costs of $1.0 million and $1.2 million, respectively, and the distribution of the microcutter products had not begun for the respective periods.

Note 9 - Commitments and Contin

Note 9 - Commitments and Contingencies	6 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	NOTE 9 – COMMITMENTS AND CONTINGENCIES Operating Lease On November 11, 2010, the Company entered into an amendment to its facility lease (the “Lease Amendment”). Pursuant to the Lease Amendment, the term of the lease was extended by four years, through August 31, 2015, and the Company was granted an improvement allowance of $0.1 million to be used in connection with the construction of alterations and refurbishment of improvements in the premises, which was used and reimbursed in November 2011, and January 2012. The leasehold improvement allowance was recorded as a reduction of rent expense on a straight-line basis over the term of the lease. On November 24, 2014, the Company entered into another amendment to its facility lease (the “Second Lease Amendment”), extended its lease by three years, from September 1, 2015, through August 31, 2018 (the “Second Extended Term”). In addition, under the Second Lease Amendment, the Company was granted an option to further extend the lease for a period of three years beyond August 31, 2018 (the “Option Term”), with the annual rent payable by the Company during the Option Term to be equal to the annual rent for comparable buildings, as described in the Second Lease Amendment. Under the operating lease, the Company is required to maintain a letter of credit with a restricted cash balance at the Company’s bank. A certificate of deposit of $0.1 million was recorded as restricted cash in the condensed consolidated balance sheet as of December 31, 2015, and June 30, 2015, related to the letter of credit. Future minimum lease payments under the Company’s non-cancelable operating leases having initial terms of a year or more as of December 31, 2015, including the Second Lease Amendment, are as follows (in thousands): Fiscal year ending June 30, Operating Leases 2016 (remaining six months) $ 489 2017 1,001 2018 1,032 2019 173 Total minimum lease payments $ 2,695 Legal Proceedings From time to time, the Company is involved in claims and legal proceedings that arise in the ordinary course of business. Although there can be no assurance as to the ultimate disposition of these matters, the Company had determined, based upon the current information available, that the expected outcome of these matters, individually or in the aggregate, will not have a material adverse effect on our consolidated financial position, results of operations or cash flows.

Note 10 - Subsequent Event

Note 10 - Subsequent Event	6 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Subsequent Events [Text Block]	NOTE 10 – S UBSEQUENT EVENT

Significant Accounting Policies

Significant Accounting Policies (Policies)	6 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Organization [Policy Text Block]	Organization Cardica, Inc. (the “Company”) was incorporated in the state of Delaware on October 15, 1997, as Vascular Innovations, Inc. On November 26, 2001, the Company changed its name to Cardica, Inc. The Company is commercializing and developing the MicroCutter XCHANGE® 30 based on its proprietary “staple-on-a-strip” technology intended for use by thoracic, pediatric, bariatric, colorectal and general surgeons. The MicroCutter XCHANGE® 30, which is currently commercially-available, is a cartridge based microcutter device with a 5 millimeter shaft diameter and a 30 millimeter staple line currently cleared for use in the United States for specified indications for use, and approved in Japan and in the European Union, or EU, for a broader range of specified indications for use. The Company previously had additional products in development, including the MicroCutter XCHANGE® 45, a cartridge based microcutter device with an 8 millimeter shaft and a 45 millimeter staple line, and the MicroCutter FLEXCHANGE™ 30, a cartridge based microcutter device with a flexible shaft to facilitate endoscopic procedures requiring cutting and stapling; however, the Company suspended development of these additional potential products to focus solely on development of the MicroCutter XCHANGE 30. In March 2012, the Company completed the design verification for and applied Conformité Européenne, or the CE Mark, to the MicroCutter XCHANGE 30 and, in December 2012, began a controlled commercial launch of the MicroCutter XCHANGE 30 in Europe. The Company received from the United States Food and Drug Administration, or FDA, 510(k) clearances for the MicroCutter XCHANGE 30 and blue cartridge in January 2014, and for the white cartridge in February 2014, for use in multiple open or minimally-invasive surgical procedures for the transection, resection and/or creation of anastomoses in small and large intestine, as well as the transection of the appendix. The blue cartridge is for use in medium thickness tissue, and the white cartridge is for use in thin tissue. In March 2014, the Company made its first sale of the MicroCutter XCHANGE 30 in the United States, and subsequently temporarily suspended its controlled commercial launch in November 2014, as the Company shifted its focus to improved performance based on surgeon feedback. In April 2015, the Company resumed its controlled commercial launch primarily in Europe, of the MicroCutter XCHANGE 30 for thinner tissue usually requiring deployment of white cartridges. While the Company continues this controlled commercial launch, the Company’s goal is to complete product improvements on the MicroCutter XCHANGE 30 combo device that will accommodate thicker tissue ranges requiring deployment of both white and blue cartridges. To further expand the use of the MicroCutter XCHANGE 30, the Company submitted a 510(k) Premarket Notification to the FDA in April 2015, to expand the indications for use to include vascular structures, and recently received FDA 510(k) clearance to use its MicroCutter XCHANGE ® The Company is attempting to expand in the international market of its MicroCutter XCHANGE 30 with additional selected regulatory filings. The Company also submitted the MicroCutter XCHANGE 30 blue and white cartridges application to Health Canada for regulatory approval of the MicroCutter XCHANGE 30 and, if the Company receives approval, anticipates launching it in Canada. In addition, in August 2013, the Company’s exclusive distributor in Japan, Century Medical, Inc., or Century, filed for regulatory approval of the MicroCutter XCHANGE 30 cartridges with the Pharmaceuticals and Medical Devices Agency, or PMDA, in Japan and in April 2014, filed for the MicroCutter XCHANGE 30 stapler with TUV Rheinland Japan Ltd, a registered third-party agency in Japan and received approvals in late 2014 for both, to market in Japan. Also, in January 2015, Century submitted an application to PMDA, relating to a change in the material of the cartridge insert component within the MicroCutter XCHANGE 30 cartridges, changing the distal tip of the cartridge insert material from a Vectra Liquid Crystal Polymer, or LCP, to IXEF Polyarylamide, or IXEF, and received approval in August 2015 to market in Japan. Historically, the Company generated product revenues primarily from the sale of automated anastomotic systems; however, the Company started generating revenues from the commercial sales of the MicroCutter XCHANGE 30 in Europe in December 2012, and in the United States in March 2014, and through December 31, 2015, the Company generated $1.7 million of net product revenues from the commercial sales of the MicroCutter XCHANGE 30. In November 2015, the Company issued a voluntary removal of the MicroCutter XCHANGE 30 blue cartridges from the market, as the MicroCutter XCHANGE 30 device sold primarily in Europe was labeled for use with the white cartridge only. The impact of the returned products from the voluntary removal was not significant. For the six months ended December 31, 2015, the Company generated net revenue of $1.4 million, including $1.1 million from the sale of automated anastomotic systems, $0.3 million from commercial sales of the MicroCutter XCHANGE 30 and $35,000 of royalty revenue.
Basis of Presentation and Principles of Consolidation [Policy Text Block]	Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual financial statements which include the accounts of Cardica, Inc. and its wholly-owned subsidiary in Germany. All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for the fair statement of balances and results have been included. The results of operations of any interim period are not necessarily indicative of the results of operations for the full year or any other interim period. The accompanying condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the fiscal year ended June 30, 2015, included in the Company’s Form 10-K filed with the Securities and Exchange Commission on September 25, 2015.
New Accounting Pronouncements, Policy [Policy Text Block]	Recently Issued Accounting Standards In November 2015, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In July 2015, the FASB issued an accounting standard update which requires an entity measuring inventory other than last-in, first-out (LIFO) or the retail inventory method to measure inventory at the lower of cost and net realizable value. When evidence exists that the net realizable value of inventory is lower than its costs, the difference will be recognized as a loss in the statement of operations. The standard is effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The Company will be evaluating the impact of the adoption of this standard on the Company’s consolidated financial statements and disclosures. In April 2015, the FASB issued an accounting standard update which provides guidance on whether a cloud computing arrangement includes a software license to a customer of such an arrangement. If a cloud computing arrangement includes a software license, a customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses, otherwise the customer should account for the arrangement as a service contract. The standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The standard can be applied prospectively to all arrangements entered into or materially modified after the effective date, or retrospectively. The adoption of this guidance is not expected to have an impact on the Company’s consolidated financial statements and disclosures. In April 2015, the FASB issued an accounting standard update which requires an entity to present debt issuance costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. The standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The standard will be applied retrospectively to each prior period presented. The Company will be evaluating the impact of the adoption of this guidance on the Company’s consolidated balance sheets. In February 2015, the FASB issued an amendment to the accounting standard regarding the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The amendments in this update are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The adoption of this update is not expected to have a material effect on the Company’s consolidated financial statements or disclosures. In August 2014, the FASB issued an accounting standard update related to the disclosures around going concern. The new standard provides guidance around management’s responsibility to evaluate whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. The new standard is effective for the annual periods and interim periods within those annual periods beginning after December 15, 2016. Early application is permitted. The Company will be evaluating the impact of the adoption of this guidance on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606): Revenue from Contracts with Customers Revenue Recognition
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of financial statements in conformity with GAAP generally requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Significant estimates include the valuation of inventory, measurement of stock based compensation, valuation of financial instruments and revenue recognition. Actual results could materially differ from these estimates.
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition The Company recognizes revenue when four basic criteria are met: (1) persuasive evidence of an arrangement exists; (2) title has transferred; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured. The Company uses contracts and customer purchase orders to determine the existence of an arrangement. The Company uses shipping documents and third-party proof of delivery to verify that title has transferred. The Company assesses whether the fee is fixed or determinable based upon the terms of the agreement associated with the transaction. To determine whether collection is probable, the Company assesses a number of factors, including past transaction history with the customer and the creditworthiness of the customer. If the Company determines that collection is not reasonably assured, then the recognition of revenue is deferred until collection becomes reasonably assured, which is generally upon receipt of payment. The Company records product sales net of estimated product returns and discounts from the list prices for its products. The amounts of product returns and the discount amounts have not been material to date. The Company’s sales to distributors do not include price protection. Payments that are contingent upon the achievement of a substantive milestone are recognized in their entirety in the period in which the milestone is achieved subject to satisfaction of all revenue recognition criteria at that time. Revenue generated from license fees and performing development services are recognized when they are earned and non-refundable upon receipt, over the period of performance, or upon incurrence of the related development expenses in accordance with contractual terms, based on the actual costs incurred to date plus overhead costs for certain project activities. Amounts paid but not yet earned on a project are recorded as deferred revenue until such time as performance is rendered or the related development expenses, plus overhead costs for certain project activities, are incurred.
Inventory, Policy [Policy Text Block]	Inventories Inventories are recorded at the lower of cost or market on a first-in, first-out basis. The Company periodically assesses the recoverability of all inventories, including materials, work-in-process and finished goods, to determine whether adjustments for impairment are required. Inventory that is obsolete or in excess of forecasted usage is written down to its estimated net realizable value based on assumptions about future demand and market conditions. Further reduced demand may result in the need for additional inventory write-downs in the near term. Inventory write-downs are charged to cost of product sales and establish a lower cost basis for the inventory.
Concentration Risk, Credit Risk, Policy [Policy Text Block]	Risks and Uncertainties The Company depends upon a number of key suppliers, including single source suppliers, the loss of which would materially harm the Company’s business. Single source suppliers are relied upon for certain components and services used in manufacturing the Company’s products. The Company does not have long-term contracts with any of the suppliers; rather, purchase orders are submitted for each order. Because long-term contracts do not exist, none of the suppliers are required to provide the Company any guaranteed minimum quantities.
Foreign Currency Transactions and Translations Policy [Policy Text Block]	Foreign Currency Translation The Company’s foreign operations are subject to exchange rate fluctuations and foreign currency costs. The functional currency of the German subsidiary is the United States dollar. Transactions and balances denominated in dollars are presented at their original amounts. Monetary assets and liabilities denominated in currencies other than the dollar are re-measured at the current exchange rate prevailing at the balance sheet date. All transaction gains or losses from the re-measurement of monetary assets and liabilities are included in the consolidated statements of operations within other income (expense).

Note 2 - Stockholders' Equity (

Note 2 - Stockholders' Equity (Tables)	6 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	Three months ended Six months ended December 31, December 31, 2015 201 4 2015 201 4 Risk-free interest rate 1.33 % 0.21% - 1.59 % 0.71% - 1.50 % 0.21% - 1.65% % Dividend yield — — — — Weighted-average expected term (in years) 4.98 4.90 4.24 - 4.98 4.83 - 4.90 Expected volatility 67.4 % 68.4 % 54.8% - 67.4 % 68.4% - 72.1 %
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]	Three months ended Six months ended December 31, December 31, 2015 201 4 2015 201 4 Cost of product sales $ 17 $ 21 $ 35 $ 51 Research and development 30 (10 ) 72 53 Selling, general and administrative 218 303 293 523 Total $ 265 $ 314 $ 400 $ 627

Note 3 - Net Loss Per Share (Ta

Note 3 - Net Loss Per Share (Tables)	6 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three months ended Six months ended December 31, December 31, 2015 2014 2015 2014 Numerator: Net loss $ (4,087 ) $ (5,442 ) $ (8,729 ) $ (10,507 ) Denominator: Denominator for basic and diluted net loss per share 89,018 88,955 88,991 88,950 Basic and diluted net loss per share $ (0.05 ) $ (0.06 ) $ (0.10 ) $ (0.12 )
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	As of December 31, 2015 201 4 Options to purchase common stock 9,389 5,297 Unvested restricted stock awards 527 290 Shares reserved for issuance upon conversion of Series A Preferred 19,147 19,147 Total 29,063 24,734

Note 4 - Fair Value Measureme20

Note 4 - Fair Value Measurements (Tables)	6 Months Ended
	Dec. 31, 2015
Notes Tables
Fair Value, Assets Measured on Recurring Basis [Table Text Block]	As of December 31 , 2015 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 5,165 $ — $ — $ 5,165 Corporate debt securities — 744 — 744 Short-term investments: Corporate debt securities — 12,099 — 12,099 Total assets at fair value $ 5,165 $ 12,843 $ — $ 18,008 As of June 30, 2015 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 6,399 $ — $ — $ 6,399 Corporate debt securities — 668 — 668 Short-term investments: Corporate debt securities — 12,972 — 12,972 Long-term investments: Corporate debt securities — 3,970 — 3,970 Total assets at fair value $ 6,399 $ 17,610 $ — $ 24,009

Note 5 - Available-for-Sale S21

Note 5 - Available-for-Sale Securities (Tables)	6 Months Ended
	Dec. 31, 2015
Notes Tables
Available-for-sale Securities [Table Text Block]	As of December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities: Corporate debt securities – Short-term $ 12,113 $ — $ (14 ) $ 12,099 Total $ 12,113 $ — $ (14 ) $ 12,099 As of June 30, 201 5 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities: Corporate debt securities – Short-term $ 12,978 $ — $ (6 ) $ 12,972 Corporate debt securities – Long-term 3,972 — (2 ) 3,970 Total $ 16,950 $ — $ (8 ) $ 16,942

Note 6 - Inventories (Tables)

Note 6 - Inventories (Tables)	6 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Inventory, Current [Table Text Block]	December 31, 201 5 June 30, 201 5 Raw materials $ 714 $ 870 Work in progress 148 162 Finished goods 156 359 Total $ 1,018 $ 1,391

Note 9 - Commitments and Cont23

Note 9 - Commitments and Contingencies (Tables)	6 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	Fiscal year ending June 30, Operating Leases 2016 (remaining six months) $ 489 2017 1,001 2018 1,032 2019 173 Total minimum lease payments $ 2,695

Note 1 - Summary of Significa24

Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended		6 Months Ended		37 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015
MicroCutter XCHANGE 30 [Member]
Revenue, Net			$ 300,000		$ 1,700,000
Automated Anastomotic Systems [Member]
Revenue, Net			1,100,000
Revenue, Net	$ 700,000	$ 657,000	1,455,000	$ 1,725,000
Royalty Revenue	$ 17,000	$ 18,000	$ 35,000	$ 35,000

Note 2 - Stockholders' Equity25

Note 2 - Stockholders' Equity (Details Textual) - USD ($)	1 Months Ended		3 Months Ended	6 Months Ended		36 Months Ended
	Dec. 31, 2014	Apr. 30, 2014	Dec. 31, 2015	Dec. 31, 2015	Dec. 31, 2014	Aug. 02, 2014	Jun. 30, 2014	Aug. 03, 2011
MLV [Member] | Common Stock [Member]
Stock Issued During Period, Shares, New Issues						884,756
Proceeds from Issuance of Common Stock						$ 1,200,000
MLV [Member]
Aggregate Value of Shares Committed to be Purchased								$ 10,000,000
Common Stock [Member]
Stock Issued During Period, Shares, New Issues		37,375,000
Share Price		$ 0.85
Series A Preferred Stock [Member]
Stock Issued During Period, Shares, New Issues		191,474
Share Price		$ 85
Convertible Preferred Stock, Shares Issued upon Conversion		100
Common Stock Ownership Threshold, Preferred Stock Conversion		9.98%
Dividends Payable							$ 1,900,000
Non Employee Compensation [Member]
Allocated Share-based Compensation Expense				$ 5,991	$ 0
Employee Stock Option [Member] | Unamortized Expense Related to Share-based Awards Granted to Employees in Excess of Plan Limits [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period	200,000
Inducement Plan [Member] | Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			4,891,169
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value			$ 0.28
Proceeds from Issuance or Sale of Equity		$ 44,600,000
Proceeds from Issuance of Common Stock					(65,000)
Allocated Share-based Compensation Expense				400,000	$ 600,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized			$ 1,000,000	$ 1,000,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition				3 years 109 days

Note 2 - Stockholders' Equity -

Note 2 - Stockholders' Equity - Black-Scholes Valuation Assumptions (Details)	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Maximum [Member]
Risk-free interest rate	1.33%	1.59%	1.50%	1.65%
Weighted-average expected term (in years)	4 years 357 days	4 years 328 days	4 years 357 days	4 years 328 days
Expected volatility	67.40%	68.40%	67.40%	72.10%
Minimum [Member]
Risk-free interest rate		0.21%	0.71%	0.21%
Weighted-average expected term (in years)			4 years 87 days	4 years 302 days
Expected volatility			54.80%	68.40%

Note 2 - Stockholders' Equity27

Note 2 - Stockholders' Equity - Non-Cash Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Cost of Sales [Member]
Cost of product sales	$ 17	$ 21	$ 35	$ 51
Research and Development Expense [Member]
Cost of product sales	30	(10)	72	53
Selling, General and Administrative Expenses [Member]
Cost of product sales	218	303	293	523
Cost of product sales	$ 265	$ 314	$ 400	$ 627

Note 3 - Net Loss Per Share - C

Note 3 - Net Loss Per Share - Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Numerator:
Net loss	$ (4,087)	$ (5,442)	$ (8,729)	$ (10,507)
Denominator:
Denominator for basic and diluted net loss per share (in shares)	89,018	88,955	88,991	88,950
Basic and diluted net loss per share (in dollars per share)	$ (0.05)	$ (0.06)	$ (0.10)	$ (0.12)

Note 3 - Net Loss Per Share - A

Note 3 - Net Loss Per Share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands	6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Equity Option [Member]
Options to purchase common stock (in shares)	9,389	5,297
Restricted Stock [Member]
Options to purchase common stock (in shares)	527	290
Common Stock Shares Reserved for Future Issuance [Member]
Options to purchase common stock (in shares)	19,147	19,147
Options to purchase common stock (in shares)	29,063	24,734

Note 4 - Fair Value Measureme30

Note 4 - Fair Value Measurements (Details Textual) - USD ($) $ in Millions	Dec. 31, 2015	Jun. 30, 2015
Cash	$ 0.5	$ 1.2

Note 4 - Fair Value Measureme31

Note 4 - Fair Value Measurements - Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]
Cash equivalents	$ 5,165	$ 6,399
Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities with Maturity Less than 90 Days [Member]
Cash equivalents
Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member]
Short-term investments
Long-term investments
Fair Value, Inputs, Level 1 [Member]
Total assets at fair value	$ 5,165	$ 6,399
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member]
Cash equivalents
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities with Maturity Less than 90 Days [Member]
Cash equivalents	$ 744	$ 668
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member]
Short-term investments	12,099	12,972
Long-term investments		3,970
Fair Value, Inputs, Level 2 [Member]
Total assets at fair value	$ 12,843	$ 17,610
Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member]
Cash equivalents
Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities with Maturity Less than 90 Days [Member]
Cash equivalents
Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member]
Short-term investments
Long-term investments
Fair Value, Inputs, Level 3 [Member]
Total assets at fair value
Money Market Funds [Member]
Cash equivalents	$ 5,165	$ 6,399
Corporate Debt Securities with Maturity Less than 90 Days [Member]
Cash equivalents	744	668
Corporate Debt Securities [Member]
Short-term investments	12,099	12,972
Long-term investments		3,970
Total assets at fair value	$ 18,008	$ 24,009

Note 5 - Available-for-Sale S32

Note 5 - Available-for-Sale Securities - Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015
Corporate Debt Securities [Member]
Amortized Cost	$ 12,113	$ 12,978
Gross Unrealized Losses	(14)	(6)
Fair Value	12,099	12,972
Corporate Bond Securities [Member]
Amortized Cost		3,972
Gross Unrealized Losses		(2)
Fair Value		3,970
Amortized Cost	12,113	16,950
Gross Unrealized Losses	(14)	(8)
Fair Value	$ 12,099	$ 16,942

Note 6 - Inventories - Inventor

Note 6 - Inventories - Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015
Raw materials	$ 714	$ 870
Work in progress	148	162
Finished goods	156	359
Total	$ 1,018	$ 1,391

Note 7 - Distribution, Licens34

Note 7 - Distribution, License, Development and Commercialization Agreements (Details Textual) - USD ($)	Dec. 31, 2015	Dec. 27, 2011	Sep. 30, 2011	Sep. 02, 2011	Aug. 16, 2010	Jan. 31, 2016	Sep. 30, 2011	Aug. 16, 2010	Aug. 16, 2010	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2015	Jun. 30, 2014	Sep. 30, 2010
Cook Incorporated [Member]
Deferred Revenue, Current	$ 400,000									$ 400,000		$ 400,000
Licenses Revenue										0	$ 0
Intuitive Surgical [Member] | Subsequent Event [Member]
Proceeds from License Fees Received						$ 2,000,000
Intuitive Surgical [Member]
Deferred Revenue, Current	0									$ 0		$ 0
Licenses Revenue	$ 2,000,000							$ 9,000,000
Common Stock Premium									$ 1,000,000
Common Stock, Value, Issued					$ 3,000,000			$ 3,000,000	$ 3,000,000
Noncash or Part Noncash Divestiture, Amount of Consideration Received					$ 10,000,000
Deferred Revenue, Noncurrent														$ 1,000,000
Rights to Improvements in Stapling Technology and Certain Patents, Feasibility Evaluation Period	180 days
Century Medical [Member] | Product Concentration Risk [Member] | Sales Revenue, Net [Member]
Concentration Risk, Percentage										30.00%	25.00%
Century Medical [Member] | Product Concentration Risk [Member] | Accounts Receivable [Member]
Concentration Risk, Percentage										39.00%		47.00%
Century Medical [Member] | Notes Payable, Other Payables [Member]
Debt Instrument, Face Amount	$ 4,000,000			$ 4,000,000						$ 4,000,000
Debt Instrument, Interest Rate, Stated Percentage	5.00%			5.00%						5.00%
Fair Value Inputs, Discount Rate				18.00%
Debt Instrument, Unamortized Discount	$ 500,000			$ 1,600,000						$ 500,000
Deferred Revenue	500,000									500,000
Century Medical [Member]
Proceeds from Secured Notes Payable		$ 2,000,000	$ 2,000,000				$ 2,000,000
Notes Payable, Fair Value Disclosure	2,600,000			$ 2,400,000						2,600,000			$ 3,100,000
Debt Instrument, Unamortized Discount	2,100,000									2,100,000
Distribution Agreement Term of Extension											5 years
Notes Payable, Noncurrent	3,000,000									3,000,000		$ 2,800,000
Debt Issuance Cost										1,000,000		1,200,000
Deferred Revenue, Current	403,000									403,000		403,000
Notes Payable, Noncurrent	2,971,000									2,971,000		2,828,000
Common Stock, Value, Issued	89,000									89,000		89,000
Deferred Revenue, Noncurrent	$ 2,125,000									$ 2,125,000		$ 2,125,000

Note 8 - Note Payable (Details

Note 8 - Note Payable (Details Textual) - USD ($)	Dec. 27, 2011	Sep. 30, 2011	Sep. 30, 2011	Dec. 31, 2015	Jun. 30, 2015	Sep. 02, 2011
Century Medical [Member] | Notes Payable, Other Payables [Member]
Debt Instrument, Face Amount				$ 4,000,000		$ 4,000,000
Debt Instrument, Interest Rate, Stated Percentage				5.00%		5.00%
Debt Instrument, Unamortized Discount				$ 500,000		$ 1,600,000
Century Medical [Member]
Proceeds from Secured Notes Payable	$ 2,000,000	$ 2,000,000	$ 2,000,000
Debt Instrument, Unamortized Discount				2,100,000
Notes Payable, Noncurrent				3,000,000	$ 2,800,000
Debt Issuance Cost				1,000,000	1,200,000
Notes Payable, Noncurrent				$ 2,971,000	$ 2,828,000

Note 9 - Commitments and Cont36

Note 9 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015	Jun. 30, 2012
Restricted Cash, Letter of Credit [Member]
Restricted Cash and Cash Equivalents	$ 100	$ 100
Restricted Cash and Cash Equivalents	$ 104	$ 104
Leasehold Improvements, Gross			$ 100

Note 9 - Commitments and Cont37

Note 9 - Commitments and Contingencies - Future Minimum Lease Payments (Details) $ in Thousands	Dec. 31, 2015USD ($)
2016 (remaining six months)	$ 489
2,017	1,001
2,018	1,032
2,019	173
Total minimum lease payments	$ 2,695

Note 10 - Subsequent Event (Det

Note 10 - Subsequent Event (Details Textual)	Jan. 29, 2016
Reverse Stock Split [Member] | Subsequent Event [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio	10