InVivo Therapeutics (NVIVQ) 10-Q 7 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	Apr. 30, 2015
Document and Entity Information
Entity Registrant Name	INVIVO THERAPEUTICS HOLDINGS CORP.
Entity Central Index Key	1292519
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		26,561,815
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Current assets:
Cash and cash equivalents	$24,516	$13,459
Restricted cash	361	422
Prepaid expenses and other current assets	543	1,072
Total current assets	25,420	14,953
Property, equipment and leasehold improvements, net	1,431	1,605
Other assets	130	135
Total assets	26,981	16,693
Current liabilities:
Accounts payable	793	569
Loan payable-current portion	320	320
Note payable-current portion		18
Derivative warrant liability	12,644	7,224
Accrued expenses	1,364	1,044
Total current liabilities	15,121	9,175
Loan payable	1,600	1,600
Total liabilities	16,721	10,775
Commitments and Contingencies
Stockholders' equity:
Common stock, $0.00001 par value, authorized 50,000,000 shares; issued and outstanding 26,011,852 and 23,453,000 shares at March 31, 2015 and December 31, 2014, respectively.	1	1
Additional paid-in capital	126,344	106,172
Accumulated deficit	-116,085	-100,255
Total stockholders' equity	10,260	5,918
Total liabilities and stockholders' equity	$26,981	$16,693

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Apr. 08, 2015	Mar. 31, 2015	Dec. 31, 2014
Consolidated Balance Sheets
Common stock, par value (in dollars per share)	$0.00	$0.00	$0.00
Common stock, authorized		50,000,000	50,000,000
Common stock, issued		26,011,852	23,453,000
Common stock, outstanding		26,011,852	23,453,000

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Operating expenses:
Research and development	$2,303,000	$3,242,000
General and administrative	3,208,000	1,829,000
Total operating expenses	5,511,000	5,071,000
Operating loss	-5,511,000	-5,071,000
Other income (expense):
Interest income	1,000	1,000
Interest expense	-34,000	-33,000
Derivatives gain (loss)	-10,286,000	0
Other income (expense), net	-10,319,000	-32,000
Net loss	($15,830,000)	($5,103,000)
Net loss per share, basic (in dollars per share)	($0.64)	($0.28)
Net loss per share, diluted (in dollars per share)	($0.64)	($0.28)
Weighted average number of common shares outstanding, basic (in shares)	24,909,876	18,540,697
Weighted average number of common shares outstanding, diluted (in shares)	24,909,876	18,540,697

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net loss	($15,830,000)	($5,103,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense	178,000	195,000
Non-cash derivatives (gain) loss	10,286,000	0
Common stock issued to 401(k) plan	53,000	41,000
Common stock issued for services		282,000
Share-based compensation expense	1,265,000	835,000
Changes in operating assets and liabilities:
Restricted cash	61,000	231,000
Prepaid expenses	529,000	-425,000
Other assets	1,000	1,000
Accounts payable	224,000	-195,000
Accrued expenses	320,000	-56,000
Net cash used in operating activities	-2,913,000	-4,194,000
Cash flows from investing activities:
Purchases of property and equipment		-35,000
Net cash used in investing activities		-35,000
Cash flows from financing activities:
Proceeds from exercise of stock options	131,000
Repayment of note payable	-18,000	-18,000
Proceeds from exercise of warrants	2,819,000
Principal payments on capital lease obligation		-3,000
Proceeds from issuance of common stock	11,038,000	116,000
Net cash provided by financing activities	13,970,000	95,000
Increase (decrease) in cash and cash equivalents	11,057,000	-4,134,000
Cash and cash equivalents at beginning of period	13,459,000	13,980,000
Cash and cash equivalents at end of period	24,516,000	9,846,000
Supplemental disclosure of cash flow information and non-cash transactions:
Cash paid for interest	33,000	32,000
Reclassification of derivative warrant liability to additional paid-in capital	$4,866,000

NATURE_OF_OPERATIONS_BASIS_OF_

NATURE OF OPERATIONS, BASIS OF PRESENTATION, AND RECENT ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Mar. 31, 2015
NATURE OF OPERATIONS, BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS
NATURE OF OPERATIONS, BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS	1.NATURE OF OPERATIONS, BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS
	Business
	InVivo Therapeutics Holdings Corp. was incorporated on April 2, 2003, and on October 26, 2010, acquired the business of InVivo Therapeutics Corporation, which was incorporated on November 28, 2005, and are continuing the existing business operations of InVivo Therapeutics Corporation as a wholly-owned subsidiary of InVivo Therapeutics Holdings Corp. Unless otherwise noted herein, the “Company” or “InVivo” refers to InVivo Therapeutics Holdings Corp. and its wholly owned subsidiary on a consolidated basis. The Company is a research and clinical-stage biomaterials and biotechnology company with a focus on the treatment of spinal cord injuries. Its proprietary technologies incorporate intellectual property licensed under the Company’s exclusive, world-wide license from the Boston Children’s Hospital and the Massachusetts Institute of Technology, as well as intellectual property that has been developed internally in collaboration with its advisors and partners.
	Since its inception, InVivo has devoted substantially all of its efforts to business planning, research and development, recruiting management and technical staff, acquiring operating assets and raising capital.
	Basis of Presentation
	The accompanying unaudited consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States (“GAAP”) consistent with those applied in, and should be read in conjunction with, the Company’s audited financial statements and related footnotes for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K as filed with the United States Securities and Exchange Commission (“SEC”) on March 11, 2015. The unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the Company’s financial position as of March 31, 2015 and its results of operations and cash flows for the interim period presented and are not necessarily indicative of results for subsequent interim periods or for the full year. The interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements as allowed by the relevant SEC rules and regulations; however, the Company believes that its disclosures are adequate to ensure that the information presented is not misleading.
	Reverse Stock Split
	On April 8, 2015, the Company effected a reverse stock split of its common stock, par value $0.00001 per share, at a ratio of 1-for-4. As a result of the reverse stock split, (i) every four shares of the issued and outstanding common stock were automatically converted into one newly issued and outstanding share of common stock, without any change in the par value per share; (ii) the number of shares of common stock into which each outstanding warrant or option to purchase common stock is exercisable was proportionally decreased, and (iii) the number of shares of authorized shares of common stock outstanding was proportionally decreased. Shares of common stock underlying outstanding stock options and other equity instruments convertible into common stock were proportionately reduced and the respective exercise prices, if applicable, were proportionately increased in accordance with the terms of the agreements governing such securities.
	Unless otherwise indicated, all of the Company’s historical share and per share information related to issued and outstanding common stock and outstanding options and warrants exercisable for common stock in these financial statements have been adjusted, on a retroactive basis, to reflect this 1-for-4 reverse stock split.
	Recently Issued Accounting Pronouncements
	In April 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs”. ASU 2015-03 is intended to simplify the presentation of debt issuance costs. These amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. This new guidance is effective for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the adoption of this ASU on the financial statements.
	In January 2015, FASB issued ASU 2015-01 “Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items”. This ASU removes the concept of an extraordinary item.  Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item.  If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The entity also is required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item.  The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015.  Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption.

CASH_AND_CASH_EQUIVALENTS

CASH AND CASH EQUIVALENTS	3 Months Ended
	Mar. 31, 2015
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS	2.CASH AND CASH EQUIVALENTS
	As of March 31, 2015, the Company held $24,516 in cash and cash equivalents. From time to time, the Company may have cash balances in financial institutions in excess of insurance limits. The Company has never experienced any losses related to these balances. The Company’s cash equivalents are held in money market funds. Cash and cash equivalents consisted of the following (in thousands):
		March 31,		December 31,
		2015		2014
	Cash	$	149	$	269
	Money market fund	24,367		13,190
	Total cash and cash equivalents	$	24,516	$	13,459

RESTRICTED_CASH

RESTRICTED CASH	3 Months Ended
	Mar. 31, 2015
RESTRICTED CASH
RESTRICTED CASH	3.RESTRICTED CASH (in thousands)
	Restricted cash for the three months ended March 31, 2015 was $361 and represented $50 of security deposits related to the Company’s credit card account and a $311cash account securing a standby letter of credit in favor of a landlord (see Note 5).

FAIR_VALUE_OF_ASSETS_AND_LIABI

FAIR VALUE OF ASSETS AND LIABILITIES	3 Months Ended
	Mar. 31, 2015
FAIR VALUE OF ASSETS AND LIABILITIES
FAIR VALUE OF ASSETS AND LIABILITIES	4.FAIR VALUE OF ASSETS AND LIABILITIES
	The Company groups its assets and liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.
	Level 1 — Valuation is based on quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.
	Level 2 — Valuation is based on observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
	Level 3 — Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.
	The Company uses valuation methods and assumptions that consider, among other factors, the fair value of the underlying stock, risk-free interest rate, volatility, expected life and dividend rates in estimating fair value for the warrants considered to be derivative instruments.
	Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands):
		At March 31, 2015
		Level 1		Level 2		Level 3		Fair Value
	Liabilities:
	Derivative warrant liability	$	—	$	12,644	$	—	$	12,644
		At December 31, 2014
		Level 1		Level 2		Level 3		Fair Value
	Liabilities:
	Derivative warrant liability	$	—	$	7,224	$	—	$	7,224

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2015
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	5.COMMITMENTS AND CONTINGENCIES
	Operating Lease Commitment (in thousands)
	On November 29, 2011 and as amended on September 17, 2012, the Company entered into a commercial lease for 26,150 square feet of office, laboratory and manufacturing space in Cambridge, Massachusetts (as subsequently amended, the “Cambridge Lease”). The term of the Cambridge Lease is for six years and three months, with one five-year extension option. The Cambridge Lease also requires a standby letter of credit in the amount of $311 (see Note 3).
	The Cambridge Lease contains certain rent escalation clauses. The Company recognizes rent expense on a straight-line basis over the term of the Cambridge Lease and records the difference between the amount charged to expense and the rent paid as a deferred rent liability. As of March 31, 2015, the amount of deferred rent liability is $459 and is included in accrued expenses.
	Pursuant to the terms of the Company’s non-cancelable lease agreements in effect at March 31, 2015, the future minimum rent commitments are as follows (in thousands):
	Year Ended December 31,
	2015	928
	2016	1,263
	2017	1,289
	2018	1,092
	Total	$	4,572
	Total rent expense for the three months ended March 31, 2015 and 2014, including month-to-month leases, was $262 and $287, respectively.
	On September 4, 2013, the Company entered into a settlement agreement with the landlord of the Cambridge Lease, which resulted in the receipt of approximately $286 in prepaid rent as consideration for the settlement of litigation. The settlement has been included in deferred rent payable, and the benefit will be amortized through rent expense over the term of the Cambridge Lease.
	Litigation
	Lawsuit with Former Employee
	In November 2013, the Company filed a lawsuit against Francis Reynolds, its former Chairman, Chief Executive Officer and Chief Financial Officer, in Middlesex Superior Court, Middlesex County, Massachusetts (InVivo Therapeutics Holdings Corp. v. Reynolds, Civil Action No. 13-5004). The complaint alleges breaches of fiduciary duties, breach of contract, conversion, misappropriation of corporate assets, unjust enrichment, corporate waste, and seeks monetary damages and an accounting. The lawsuit involves approximately $500,000 worth of personal and/or exorbitant expenses that the Company alleges Mr. Reynolds inappropriately caused it to pay while he was serving as the Company’s Chief Executive Officer, Chief Financial Officer, President and Chairman of the Board of Directors. On December 6, 2013, Mr. Reynolds answered the complaint, and filed counterclaims against the Company and the Board of Directors. The counterclaims allege two counts of breach of contract, two counts of breach of the covenant of good faith and fair-dealing, and tortious interference with a contract, and seek monetary damages and a declaratory judgment. The counterclaims involve Mr. Reynolds’s allegations that the Company and the Board interfered with the performance of his duties under the terms of his employment agreement, and that Mr. Reynolds was entitled to additional shares upon the exercise of certain stock options. On January 9, 2014, the Company, along with the directors named in the counterclaims, filed its answer. The parties are currently conducting pre-trial discovery. No judgments or rulings are pending at this stage.
	Shareholder Matters and Investigations
	On July 31, 2014, a putative securities class action lawsuit was filed in the United States District Court for the District of Massachusetts, naming the Company and Mr. Reynolds, as defendants (the “Securities Class Action”). The lawsuit alleges violations of the Securities Exchange Act of 1934 in connection with allegedly false and misleading statements related to the timing and completion of the clinical study of the Company’s Neuro-Spinal Scaffold. The plaintiff seeks class certification for purchasers of the Company’s common stock during the period from April 5, 2013 through August 26, 2013 and unspecified damages. On April 3, 2015, the United States District Court for the District of Massachusetts dismissed the plaintiff’s claim with prejudice. Plaintiff filed a notice of appeal of this decision on May 4, 2015.
	On January 23, 2015, Shawn Luger, a purported shareholder of the Company, sent the Company a letter demanding that the Board take action to remedy purported breaches of fiduciary duties allegedly related to the claimed false and misleading statements that were the subject of the Securities Class Action (the “Shareholder Demand”). The Board is currently considering this demand.
	In addition to the Shareholder Demand, the Company has received investigation subpoenas from the Boston Regional Office of the Securities and Exchange Commission and the Massachusetts Securities Division of the Secretary of the Commonwealth of Massachusetts requesting corporate documents also concerning, among other topics, the allegations raised Securities Class Action and the Shareholder Demand. The Company is cooperating with these investigations.

ACCRUED_EXPENSES

ACCRUED EXPENSES	3 Months Ended
	Mar. 31, 2015
ACCRUED EXPENSES
ACCRUED EXPENSES	6.ACCRUED EXPENSES
	Accrued expenses consisted of the following (in thousands):
		March 31,		December 31,
		2015		2014
	Accrued bonus	$	205	$	—
	Accrued legal	454		360
	Accrued payroll	121		49
	Deferred rent payable	459		505
	Accrued vacation	125		72
	Other accrued expenses	—		58
	Total accrued expenses	$	1,364	$	1,044

NOTE_PAYABLE

NOTE PAYABLE	3 Months Ended
	Mar. 31, 2015
NOTE PAYABLE
NOTE PAYABLE	7.NOTE PAYABLE (in thousands)
	In May 2013, the Company entered into a contract for the purchase of an Enterprise Resource Planning (“ERP”) system for $150. The total cost for the ERP system, including interest, was $159, with an implicit interest rate of approximately 6%.
	Pursuant to the terms of the non-cancelable purchase agreement the total cost of the ERP system was paid in full during the three months ended March 31, 2015. In the third quarter of 2013, the Company abandoned the implementation of the ERP system. As such, the ERP system cost of $150 was fully expensed in 2013. The Company reserves the right to implement the ERP system at a future date.

LOAN_PAYABLE

LOAN PAYABLE	3 Months Ended
	Mar. 31, 2015
LOAN PAYABLE
LOAN PAYABLE	8.LOAN PAYABLE (in thousands)
	In October 2012, the Company entered into a loan agreement with the Massachusetts Development Finance Agency (“MassDev”). The loan agreement provided the Company with a $2,000 line of credit from the Massachusetts Emerging Technology Fund, with $200 designated to be used for working capital purposes and the remainder to be used for the purchase of capital equipment. The annual interest rate is fixed at 6.5% with interest-only payments for the first thirty months, commencing on November 1, 2012, and then equal interest and principal payments over the next fifty-four months, with the final maturity on October 5, 2019. Based on the $1,920 balance outstanding as of March 31, 2015, equal monthly principal payments of approximately $36 will be due commencing on May 1, 2015. Therefore, for the years ending December 31, 2015, 2016, 2017, 2018 and 2019, principal payments of $320, $427, $426, $427 and $320, respectively, will be due. In October 2012, the Company issued MassDev a warrant for the purchase of 9,037 shares of its common stock. The warrant has a seven-year term and is exercisable at $6.64 per share. The fair value of the warrant was determined to be $32 and was recorded as a deferred financing cost and is being amortized to interest expense over a seven-year period commencing in October 2012. Amortization of the deferred financing cost for the three months ended March 31, 2015 was $1 and is included in interest expense in the Company’s consolidated statements of operations. The equipment line of credit is secured by substantially all the assets of the Company, excluding intellectual property. Interest expense related to this loan for each of the three months ended March 31, 2015 and 2014 was $31.

COMMON_STOCK

COMMON STOCK	3 Months Ended
	Mar. 31, 2015
COMMON STOCK.
COMMON STOCK	9.COMMON STOCK
	The Company has authorized 50,000,000 shares of common stock, $0.00001 par value per share, of which 26,011,851 shares were issued and outstanding as of March 31, 2015 and 23,453,000 shares were issued and outstanding as of December 31, 2014.
	During the three months ended March 31, 2015, the Company issued an aggregate of 62,580 shares of common stock upon the exercise of stock options, including stock options to purchase 41,275 shares of common stock exercised through cashless exercise provisions resulting in the issuance of 12,707 shares of common stock and stock options to purchase 49,873 shares of common stock exercised for cash, providing cash proceeds of $131.
	During the three months ended March 31, 2015, the Company issued an aggregate of 491,816 shares of common stock upon the exercise of warrants, including warrants to purchase 2,669 shares of common stock exercised through cashless exercise provisions resulting in the issuance of 1,624 shares of common stock and warrants to purchase 490,192 shares of common stock exercised for cash, providing net cash proceeds of $2,819.
	During the three months ended March 31, 2015, the Company issued an aggregate of 4,456 shares of common stock with a fair value of $53 to the Company’s 401(k) plan as matching contributions.
	In January 2015, the Company closed a registered direct offering of an aggregate of 2 million shares of common stock, resulting in net proceeds of $11,038.
	The Company’s common stock began trading on The Nasdaq Capital Market under the symbol “NVIV” on April 17, 2015.

STOCK_OPTIONS

STOCK OPTIONS	3 Months Ended
	Mar. 31, 2015
STOCK OPTIONS
STOCK OPTIONS	10.STOCK OPTIONS
	In 2007, the Company adopted the 2007 Employee, Director and Consultant Stock Plan (the “2007 Plan”). Pursuant to the 2007 Plan, the Company’s Board of Directors (or committees and/or executive officers delegated by the Board of Directors) may grant incentive and nonqualified stock options to the Company’s employees, officers, directors, consultants and advisors. As of March 31, 2015, there were options to purchase an aggregate of 399,143 shares of common stock outstanding under the 2007 Plan and no shares available for future grants under the 2007 Plan.
	On October 26, 2010, the Company’s Board of Directors adopted the 2010 Equity Incentive Plan, which was subsequently approved by the Company’s shareholders (the “2010 Plan”). The 2010 Plan provides for grants of incentive stock options to employees and nonqualified stock options and restricted common stock to employees, consultants and non-employee directors of the Company. The Company’s shareholders approved subsequent amendments in 2012 and 2013 to increase the number of shares available for issuance under the 2010 Plan. As of March 31, 2015, the number of shares authorized for issuance under the 2010 Plan was 2,750,000 shares. As of March 31, 2015, there were options to purchase an aggregate of 2,205,536 shares of common stock outstanding under the 2010 Plan and 319,916 shares available for future grants under the 2010 Plan. Options issued under the 2007 Plan and the 2010 Plan are exercisable for up to 10 years from the date of issuance.
	Share-based compensation (in thousands)
	For stock options issued and outstanding for the three months ended March 31, 2015 and 2014, the Company recorded non-cash, stock-based compensation expense of approximately $1,266 and $835, respectively, net of forfeitures.
	The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions noted in the following table. The Company uses historical data, as well as subsequent events occurring prior to the issuance of the financial statements, to estimate option exercises and employee terminations within the valuation model. The expected term of options granted under the 2007 and 2010 Plans, all of which qualify as “plain vanilla,” is based on the average of the contractual term (10 years) and the vesting period (generally, 48 months). For non-employee options, the expected term is the contractual term. The risk-free rate is based on the yield of a U.S. Treasury security with a term consistent with the option. The assumptions used principally in determining the fair value of options granted were as follows:
		March 31,
		2015
	Risk-free interest rate	1.74	%
	Expected dividend yield	0.00	%
	Expected term (in years)	6.08
	Expected volatility	120.07	%
	A summary of option activity as of March 31, 2015 and changes for the period then ended are presented below (in thousands, except per share data):
	Options	Shares		Weighted		Weighted	Aggregate
				Average		Average	Intrinsic Value
				Exercise		Remaining
				Price		Contractual
						Term in
						Years
	Outstanding at December 31, 2014	2,606,737		$	6.58
	Granted	131,250		$	12.08
	Forfeited	(42,160	)	$	9.54
	Exercised	(91,148	)	$	5.25
	Outstanding at March 31, 2015	2,604,679		$	6.85	7.51	$	13,330
	Vested at March 31, 2015	1,165,942		$	5.93	5.67	$	7,031
	The weighted average grant-date fair value of options granted during the three months ended March 31, 2015 was $10.49 per share. The total fair value of options that vested for the three months ended March 31, 2015 was approximately $2,053. As of March 31, 2015, there was $6,235 of total unrecognized compensation expense related to non-vested share-based option compensation arrangements. The unrecognized compensation expense is estimated to be recognized over a period of 2.78 years at March 31, 2015.

WARRANTS

WARRANTS	3 Months Ended
	Mar. 31, 2015
WARRANTS.
WARRANTS	11.WARRANTS
	The following table presents information about warrants to purchase common stock issued and outstanding at March 31, 2015:
	Year Issued	Classification	Number of	Exercise Price		Date of Expiration
			Warrants
	2010	Equity	373,674	$	5.60	10/26/2017 — 12/3/2017
	2010	Equity	326,916	$	4.00	9/26/2015 — 12/3/2015
	2011	Equity	4,018	$	5.60	6/17/18
	2011	Equity	85,785	$	12.24	12/21/16
	2012	Equity	9,037	$	6.64	10/5/19
	2014	Liability	1,259,967	$	5.75	5/9/19
	Total		2,059,397
	Weighted average exercise price			$	5.31
	Weighted average life in years					3.44

DERIVATIVE_INSTRUMENTS

DERIVATIVE INSTRUMENTS	3 Months Ended
	Mar. 31, 2015
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS	12.DERIVATIVE INSTRUMENTS
	The warrants issued in connection with the Company’s May 2014 public offering have anti-dilution protection provisions that allow for the reduction in the exercise price of the warrants if the Company subsequently issues equity securities, including common stock or any security convertible or exchangeable for shares of common stock, for no consideration or for consideration less than the exercise price of the warrants. Accordingly, through March 2015, these warrants were accounted for as derivative liabilities. The Company used the Black-Scholes option pricing model and assumptions that consider, among other factors, the fair value of the underlying stock, risk-free interest rate, volatility, expected life and dividend rates in estimating fair value for the warrants considered to be derivative instruments. Changes in fair value of the derivative financial instruments are recognized in the Company’s consolidated statement of operations as a derivative gain or loss. The warrant derivative gains (losses) are non-cash income (expenses); and for the three months ended March 31, 2015 and 2014 a gain (loss) of $(10,286) and $0, respectively, were included in other income (expense) in the Company’s consolidated statement of operations.
		March 31,
		2015
	Risk-free interest rate	1.15	%
	Expected dividend yield	0.00	%
	Expected term (in years)	4.11
	Expected volatility	116.99	%
	The primary underlying risk exposure pertaining to the warrants is the change in fair value of the underlying Common Stock for each reporting period.
	Changes in the derivative warrant liability for the three months ended March 31 are as follows (in thousands):
		Three Months Ended March 31,
		2015			2014
	Balance at December 31,	$	7,224		$	—
	Fair value of warrants issued	—			—
	Reduction in derivative liability due to exercise and modification of warrants	(4,866		)	—
	Increase (decrease) in the fair value of warrants	10,286			—
	Balance at March 31,	$	12,644		$	—

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2015
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	13.SUBSEQUENT EVENTS
	All material subsequent events have been included within footnotes 1 and 9 of the consolidated financial statements.

CASH_AND_CASH_EQUIVALENTS_Tabl

CASH AND CASH EQUIVALENTS (Tables)	3 Months Ended
	Mar. 31, 2015
CASH AND CASH EQUIVALENTS
Schedule of cash and cash equivalents	The Company’s cash equivalents are held in money market funds. Cash and cash equivalents consisted of the following (in thousands):
		March 31,		December 31,
		2015		2014
	Cash	$	149	$	269
	Money market fund	24,367		13,190
	Total cash and cash equivalents	$	24,516	$	13,459

FAIR_VALUE_OF_ASSETS_AND_LIABI1

FAIR VALUE OF ASSETS AND LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2015
FAIR VALUE OF ASSETS AND LIABILITIES
Summary of assets and liabilities measured at fair value on a recurring basis	Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands):
		At March 31, 2015
		Level 1		Level 2		Level 3		Fair Value
	Liabilities:
	Derivative warrant liability	$	—	$	12,644	$	—	$	12,644
		At December 31, 2014
		Level 1		Level 2		Level 3		Fair Value
	Liabilities:
	Derivative warrant liability	$	—	$	7,224	$	—	$	7,224

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Mar. 31, 2015
COMMITMENTS AND CONTINGENCIES
Future minimum rent commitments	Pursuant to the terms of the Company’s non-cancelable lease agreements in effect at March 31, 2015, the future minimum rent commitments are as follows (in thousands):
	Year Ended December 31,
	2015	928
	2016	1,263
	2017	1,289
	2018	1,092
	Total	$	4,572

ACCRUED_EXPENSES_Tables

ACCRUED EXPENSES (Tables)	3 Months Ended
	Mar. 31, 2015
ACCRUED EXPENSES
Summary of accrued expenses	Accrued expenses consisted of the following (in thousands):
		March 31,		December 31,
		2015		2014
	Accrued bonus	$	205	$	—
	Accrued legal	454		360
	Accrued payroll	121		49
	Deferred rent payable	459		505
	Accrued vacation	125		72
	Other accrued expenses	—		58
	Total accrued expenses	$	1,364	$	1,044

STOCK_OPTIONS_Tables

STOCK OPTIONS (Tables)	3 Months Ended
	Mar. 31, 2015
STOCK OPTIONS
Schedule of assumptions used principally in determining the fair value of options granted		March 31,
		2015
	Risk-free interest rate	1.74	%
	Expected dividend yield	0.00	%
	Expected term (in years)	6.08
	Expected volatility	120.07	%
Summary of option activity	A summary of option activity as of March 31, 2015 and changes for the period then ended are presented below (in thousands, except per share data):
	Options	Shares		Weighted		Weighted	Aggregate
				Average		Average	Intrinsic Value
				Exercise		Remaining
				Price		Contractual
						Term in
						Years
	Outstanding at December 31, 2014	2,606,737		$	6.58
	Granted	131,250		$	12.08
	Forfeited	(42,160	)	$	9.54
	Exercised	(91,148	)	$	5.25
	Outstanding at March 31, 2015	2,604,679		$	6.85	7.51	$	13,330
	Vested at March 31, 2015	1,165,942		$	5.93	5.67	$	7,031

WARRANTS_Tables

WARRANTS (Tables)	3 Months Ended
	Mar. 31, 2015
WARRANTS.
Schedule of information about warrants to purchase common stock issued and outstanding	The following table presents information about warrants to purchase common stock issued and outstanding at March 31, 2015:
	Year Issued	Classification	Number of	Exercise Price		Date of Expiration
			Warrants
	2010	Equity	373,674	$	5.60	10/26/2017 — 12/3/2017
	2010	Equity	326,916	$	4.00	9/26/2015 — 12/3/2015
	2011	Equity	4,018	$	5.60	6/17/18
	2011	Equity	85,785	$	12.24	12/21/16
	2012	Equity	9,037	$	6.64	10/5/19
	2014	Liability	1,259,967	$	5.75	5/9/19
	Total		2,059,397
	Weighted average exercise price			$	5.31
	Weighted average life in years					3.44

DERIVATIVE_INSTRUMENTS_Tables

DERIVATIVE INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2015
DERIVATIVE INSTRUMENTS
Assumptions used in determining fair value of warrants		March 31,
		2015
	Risk-free interest rate	1.15	%
	Expected dividend yield	0.00	%
	Expected term (in years)	4.11
	Expected volatility	116.99	%
Changes in derivative warrant liability	Changes in the derivative warrant liability for the three months ended March 31 are as follows (in thousands):
		Three Months Ended March 31,
		2015			2014
	Balance at December 31,	$	7,224		$	—
	Fair value of warrants issued	—			—
	Reduction in derivative liability due to exercise and modification of warrants	(4,866		)	—
	Increase (decrease) in the fair value of warrants	10,286			—
	Balance at March 31,	$	12,644		$	—

NATURE_OF_OPERATIONS_BASIS_OF_1

NATURE OF OPERATIONS, BASIS OF PRESENTATION, AND RECENT ACCOUNTING PRONOUNCEMENTS (Details) (USD $)	0 Months Ended
	Apr. 08, 2015	Apr. 08, 2015	Mar. 31, 2015	Dec. 31, 2014
NATURE OF OPERATIONS, BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS
Common stock, par value (in dollars per share)		$0.00	$0.00	$0.00
Reverse stock split ratio	4

CASH_AND_CASH_EQUIVALENTS_Deta

CASH AND CASH EQUIVALENTS (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Cash and cash equivalents
Total cash and cash equivalents	$24,516	$13,459	$9,846	$13,980
Cash.
Cash and cash equivalents
Total cash and cash equivalents	149	269
Money market fund
Cash and cash equivalents
Total cash and cash equivalents	$24,367	$13,190

RESTRICTED_CASH_Details

RESTRICTED CASH (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Restricted cash
Restricted cash	$361	$422
Security deposit related to credit card account
Restricted cash
Restricted cash	50
Standby letter of credit in favor of a landlord
Restricted cash
Restricted cash	$311

FAIR_VALUES_OF_ASSETS_AND_LIAB

FAIR VALUES OF ASSETS AND LIABILITIES (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Assets and liabilities measured at fair value on a recurring basis
Derivative warrant liability	$12,644	$7,224
Recurring basis
Assets and liabilities measured at fair value on a recurring basis
Derivative warrant liability	12,644	7,224
Recurring basis | Level 2
Assets and liabilities measured at fair value on a recurring basis
Derivative warrant liability	$12,644	$7,224

COMMITMENTS_AND_CONTINGENCIES_1

COMMITMENTS AND CONTINGENCIES (Details) (Cambridge Lease, USD $)	0 Months Ended
In Thousands, unless otherwise specified	Nov. 29, 2011	Mar. 31, 2015	Nov. 29, 2011
	item		sqft
	sqft
Cambridge Lease
Commitments
Lease Space for Laboratory and office space (in square feet)	26,150		26,150
Term of commercial lease	6 years 3 months
Number of lease extension options	1
Term of lease extension option	5 years
Standby letter of credit	$311		$311
Deferred rent liability		$459

COMMITMENTS_AND_CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details 2) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014	Sep. 04, 2013
Future minimum rent commitments
2015	$928
2016	1,263
2017	1,289
2018	1,092
Total	4,572
Commitments
Total rent expense	262	287
Amount of settlement agreement			$286

COMMITMENTS_AND_CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES (Details 3) (USD $)	1 Months Ended	0 Months Ended
	Nov. 30, 2013	Dec. 06, 2013
		claim
InVivo Therapeutics Holdings Corp. v. Reynolds
Litigation
Value of damages sought worth of personal and/or exorbitant expenses	$500,000
Reynolds counterclaim against InVivo Therapeutics Holdings Corp.
Litigation
Number of breach of contract claims		2
Number of breach of covenant of good faith and fair-dealing claims		2

ACCRUED_EXPENSES_Details

ACCRUED EXPENSES (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
ACCRUED EXPENSES
Accrued bonus	$205
Accrued legal	454	360
Accrued payroll	121	49
Deferred rent payable	459	505
Accrued vacation	125	72
Other accrued expenses		58
Total accrued expenses	$1,364	$1,044

NOTE_PAYABLE_Details

NOTE PAYABLE (Details) (USD $)	3 Months Ended	1 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	31-May-13
Note payable disclosures
ERP system fully expensed due to abandonment of implementation	$150
Note Payable.
Note payable
Contract price for the purchase of ERP system		150
Total cost for ERP system including interest		$159
Implicit interest rate		6.00%

LOAN_PAYABLE_Details

LOAN PAYABLE (Details) (MassDev, USD $)	3 Months Ended	1 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Oct. 31, 2012
Loans Payable
Line of credit for the purchase of capital equipment		$2,000
Amortization of the deferred financing costs	1
Interest expense	31
Additional disclosure
Line of credit for working capital purpose		200
Fixed interest rate (as a percent)	6.50%
Period for charging equal interest and principal payments	54 months
Maturity date	5-Oct-19
Principal amount outstanding	1,920
Amount of monthly principal payment	36
Commencement date of monthly installments	1-May-15
Future Principal payment due : 2015	320
Future Principal payment due : 2016	427
Future Principal payment due : 2017	426
Future Principal payment due : 2018	427
Future Principal payment due : 2019	320
Warrants
Loans Payable
Number of shares into which a warrant may be converted		9,037
Warrant period		7 years
Exercise price of warrant (in dollars per share)		6.64
Additional disclosure
Approximate fair value of warrant		$32
Amortization period of deferred financing cost		7 years

COMMON_STOCK_Details

COMMON STOCK (Details) (USD $)	3 Months Ended	1 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Jan. 31, 2015	Apr. 08, 2015	Dec. 31, 2014
Common stock, number of shares, par value and other disclosures
Common stock, authorized	50,000,000			50,000,000
Common stock, par value (in dollars per share)	$0.00		$0.00	$0.00
Common stock, issued	26,011,852			23,453,000
Common stock, outstanding	26,011,852			23,453,000
Common stock disclosures
Proceeds from exercise of stock options	$131
Proceeds from exercise of warrants	2,819
Issuance of common stock to 401(k) plan (in dollars)	53
Common Stock
Common stock disclosures
Issuance of common stock upon exercise of stock options (in shares)	62,580
Issuance of stock options to purchase common stock (in shares)	41,275
Issuance of stock for services (in shares)	12,707
Issuance of stock (in shares)	49,873
Proceeds from exercise of stock options	131
Issuance of common stock upon exercise of warrants (in shares)	491,816
Warrants to purchase through cashless exercise provisions (in shares)	2,669
Shares issued through cashless exercise provisions	1,624
Warrants to purchase exercise through cash (in shares)	490,192
Issuance of common stock to 401(k) plan (in shares)	4,456
Common Stock | Public offering
Common stock disclosures
Number of shares issued under underwritten public offering (in shares)		2,000,000
Net proceeds from issuance of equity (in dollars)		$11,038

STOCK_OPTIONS_Details

STOCK OPTIONS (Details) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Stock option
Options available to purchase/Common Stock outstanding	2,604,679		2,606,737
Exercisable period	6 years 29 days
Vesting period	5 years 8 months 1 day
Stock Options and Restricted Stock
Stock option
Stock-based compensation expense, net of forfeitures	1,266	$835
Expected term of options granted	10 years
Vesting period	48 months
2007 Plan
Stock option
Options available to purchase/Common Stock outstanding	399,143
Shares available for future grants	0
Exercisable period	10 years
2010 Plan
Stock option
Options available to purchase/Common Stock outstanding	2,205,536
Shares available for future grants	319,916
Shares authorized for issuance	2,750,000
Exercisable period	10 years

STOCK_OPTIONS_Details_2

STOCK OPTIONS (Details 2)	3 Months Ended
	Mar. 31, 2015
Assumptions used principally in determining the fair value of options granted
Risk-free interest rate (as a percent)	1.74%
Expected dividend yield (as a percent)	0.00%
Expected term	6 years 29 days
Expected volatility (as a percent)	120.07%

STOCK_OPTIONS_Details_3

STOCK OPTIONS (Details 3) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015
Summary of option activity - Shares
Outstanding at the beginning of year (in shares)	2,606,737
Granted (in shares)	131,250
Forfeited (in shares)	-42,160
Exercised (in shares)	-91,148
Outstanding at the end of period (in shares)	2,604,679
Vested at the end of period (in shares)	1,165,942
Summary of option activity - Weighted Average Exercise Price
Outstanding at the beginning of year (in dollars per shares)	$6.58
Granted (in dollars per shares)	$12.08
Forfeited (in dollars per shares)	$9.54
Exercised (in dollars per shares)	$5.25
Outstanding at the end of period (in dollars per shares)	$6.85
Vested at the end of period (in dollars per share)	$5.93
Option activity disclosures
Weighted Average Remaining Contractual Term - Outstanding	7 years 6 months 4 days
Weighted Average Remaining Contractual Term - Vested	5 years 8 months 1 day
Aggregate Intrinsic Value - Outstanding (in dollars)	$13,330
Aggregate Intrinsic Value - Vested (in dollars)	7,031
Stock Option
Weighted average grant-date fair value of options granted	$10.49
Total fair value of options vested	2,053
Total unrecognized compensation expense, related to non-vested share-based compensation arrangements	$6,235
Period for unrecognized compensation expense is estimated to be recognized	2 years 9 months 11 days

WARRANTS_Details

WARRANTS (Details) (USD $)	3 Months Ended
	Mar. 31, 2015
Warrants to purchase common stock issued and outstanding
Number of Warrants	2,059,397
Weighted average exercise price	$5.31
Equity | Derivative with Exercise Price One
Warrants to purchase common stock issued and outstanding
Warrants Issued Year	2010
Number of Warrants	373,674
Warrant Exercise Price	5.6
Equity | Derivative with Exercise Price One | Minimum
Warrants to purchase common stock issued and outstanding
Expiration date	26-Oct-17
Equity | Derivative with Exercise Price Two
Warrants to purchase common stock issued and outstanding
Warrants Issued Year	2010
Number of Warrants	326,916
Warrant Exercise Price	4
Equity | Derivative with Exercise Price Two | Minimum
Warrants to purchase common stock issued and outstanding
Expiration date	26-Sep-15
Equity | Derivative with Exercise Price Three
Warrants to purchase common stock issued and outstanding
Warrants Issued Year	2011
Number of Warrants	4,018
Warrant Exercise Price	5.6
Expiration date	17-Jun-18
Equity | Derivative with Exercise Price Four
Warrants to purchase common stock issued and outstanding
Warrants Issued Year	2011
Number of Warrants	85,785
Warrant Exercise Price	12.24
Expiration date	21-Dec-16
Equity | Derivative with Exercise Price Five
Warrants to purchase common stock issued and outstanding
Warrants Issued Year	2012
Number of Warrants	9,037
Warrant Exercise Price	6.64
Expiration date	5-Oct-19
Liability | Derivative with Exercise Price Six
Warrants to purchase common stock issued and outstanding
Warrants Issued Year	2014
Number of Warrants	1,259,967
Expiration date	9-May-19

DERIVATIVE_INSTRUMENTS_Details

DERIVATIVE INSTRUMENTS (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
DERIVATIVE INSTRUMENTS
Derivatives gain (loss)	($10,286,000)	$0

DERIVATIVE_INSTRUMENTS_Details1

DERIVATIVE INSTRUMENTS (Details 2)	3 Months Ended
	Mar. 31, 2015
Fair value of warrants
Risk-free interest rate (as a percent)	1.15%
Expected dividend yield (as a percent)	0.00%
Expected term (in years)	4 years 1 month 10 days
Expected volatility (as a percent)	116.99%

DERIVATIVE_INSTRUMENTS_Details2

DERIVATIVE INSTRUMENTS (Details 3) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015
Changes in derivative warrant liability
Balance at beginning of year	$7,224
Reduction in derivative liability due to exercise and modification of warrants	-4,866
Increase (decrease) in fair value of warrants	10,286
Balance at end of period	$12,644