Osiris Therapeutics 10-K/A 27 Mar 17 2014 FY Annual report (amended) Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2014	Mar. 06, 2017	Jun. 30, 2014
Document and Entity Information
Entity Registrant Name	OSIRIS THERAPEUTICS, INC.
Entity Central Index Key	1,360,886
Document Type	10-K/A
Document Period End Date	Dec. 31, 2014
Amendment Flag	true
Amendment Description	Osiris Therapeutics, Inc. (the "Company") is filing this amendment (this "Amendment" or "Form 10 K/A") to its Annual Report on Form 10 K for the year ended December 31, 2014, which was originally filed on March 20, 2015 (the "Original Form 10 K" or the "Original Filing"). This Amendment includes restated financial statements for the year ended December 31, 2014. This Amendment also includes restated 2014 interim financial statements in Note 16 (Quarterly Financial Data (Unaudited)) to the financial statements in Part II, Item 8 of this Form 10 K/A. The corrections contained in these restated financial statements, which we refer to herein as the "Restatement," were prepared following an independent review by the Audit Committee (the "Audit Committee") of the Company's Board of Directors into certain accounting matters, which is further described herein.
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	No
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 303,915,919
Entity Common Stock, Shares Outstanding		34,525,886
Document Fiscal Year Focus	2,014
Document Fiscal Period Focus	FY

BALANCE SHEETS

BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Current assets:
Cash	$ 2,208	$ 946	$ 2,658	$ 2,342	$ 2,416	$ 1,801	$ 1,579	$ 1,287	$ 1,854	$ 1,661
Investments available for sale	37,305	42,349	45,759	34,650	39,508	26,464	25,626	28,292
Trading securities	10,591	15,060	15,584	16,907	17,086
Trade accounts receivable, net of reserves	13,373	12,512	9,291	8,627	7,459	6,773	6,406	5,346
Other receivables	10,081	623	472	15,346	15,369	104	104	104
Inventory	9,824	7,867	5,353	3,249	1,929	1,682	1,866	1,843
Prepaid expenses and other current assets	2,894	2,234	1,444	480	355	639	356	462
Current assets of discontinued operations				96	91	247
Total current assets	86,276	81,591	80,561	81,697	84,213	37,710	35,937	37,334
Property and equipment, net	2,079	2,004	1,895	1,809	1,896	2,009	2,040	2,037
Deferred tax asset				5,796	5,849
Restricted cash			223	243	243	243	317	317
Other Assets, Noncurrent	95	96
Total assets	88,450	83,691	82,679	89,545	92,201	39,962	38,294	39,688
Current liabilities:
Accounts payable and accrued expenses	7,468	6,591	5,870	3,135	4,842	3,652	6,826	4,985
Capital lease obligations, current portion	45	45	45	45	45	45	45	44
Deferred exclusivity fee revenue, current portion	1,667
Deferred tax liability				5,796	5,849
Current liabilities of discontinued operations				17	57	463
Total current liabilities	9,180	6,636	5,915	8,993	10,793	7,702	7,555	6,089
Other long-term liabilities	3,589	276	280	319	355	433	469	501
Total liabilities	12,769	6,912	6,195	9,312	11,148	8,135	8,024	6,590
Commitments and contingencies
Stockholders' equity
Common stock, $.001 par value, 90,000 shares authorized, 34,346 shares outstanding - 2014, 34,115 shares outstanding - 2013	35	35	34	34	34	34	33	33
Additional paid-in-capital	287,320	286,299	285,603	284,116	282,702	283,369	280,616	279,911
Accumulated other comprehensive (loss) income	(54)	42	72	55	(33)	(89)	(86)	5
Accumulated deficit	(211,620)	(209,597)	(209,225)	(203,972)	(201,650)	(251,487)	(250,293)	(246,851)
Total stockholders' equity	75,681	76,779	76,484	80,233	81,053	31,827	30,270	33,098	$ 35,172	$ 45,620
Total liabilities and stockholders' equity	$ 88,450	$ 83,691	$ 82,679	$ 89,545	$ 92,201	$ 39,962	$ 38,294	$ 39,688

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013
CONDENSED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001	$ 0.001	$ 0.001	$ 0.001	$ 0.001	$ 0.001	$ 0.001
Common stock, shares authorized	90,000	90,000	90,000	90,000	90,000	90,000	90,000	90,000
Common stock, shares outstanding	34,346	34,320	34,310	34,222	34,115	34,115	32,989	32,930

STATEMENTS OF COMPREHENSIVE (LO

STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended								6 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Jun. 30, 2014	Jun. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
STATEMENTS OF COMPREHENSIVE LOSS
Product revenue	$ 18,165	$ 16,307	$ 9,206	$ 7,157	$ 8,296	$ 7,680	$ 5,759	$ 3,963	$ 16,363	$ 9,722	$ 32,670	$ 17,402	$ 50,835	$ 25,698	$ 7,164
Cost of product revenue	3,249	3,524	2,058	1,055	2,192	2,018	1,543	1,098	3,113	2,641	6,637	4,659	9,886	6,851	2,420
Gross Profit	14,916	12,783	7,148	6,102	6,104	5,662	4,216	2,865	13,250	7,081	26,033	12,743	40,949	18,847	4,744
Operating expenses:
Research and development	1,037	913	986	478	1,091	968	1,206	1,065	1,464	2,271	2,377	3,239	3,414	4,330	4,059
Sales and marketing	12,619	9,971	8,016	5,778	4,864	4,073	3,609	1,264	13,794	4,873	23,765	8,946	36,384	13,810	2,836
General and administrative	3,223	1,772	1,590	978	297	630	566	1,045	2,568	1,611	4,340	2,241	7,563	2,538	2,282
Fees paid to related parties													169		2
Share-based payments to related parties													403	180	1,918
Total operating expenses													47,933	20,858	11,097
Loss from operations of continuing operations	(2,009)	80	(3,483)	(1,572)	(148)	(9)	(1,165)	(689)	(5,055)	(1,854)	(4,975)	(1,863)	(6,984)	(2,011)	(6,353)
Other Nonoperating Income (Expense)	(8)	(405)	(1,232)	(126)	334	26	25	29	(1,358)	54	(1,763)	80	(1,771)	414	49
Income (Loss) from continuing operations, before income taxes	(2,017)	(325)	(4,715)	(1,698)	186	17	(1,140)	(660)	(6,413)	(1,800)	(6,738)	(1,783)	(8,755)	(1,597)	(6,304)
Income tax benefit	(53)	(23)	(21)		994		(358)	358	(21)		(44)		(97)	994	37
Loss from continuing operations	(2,070)	(348)	(4,736)	(1,698)	1,180	17	(1,498)	(302)	(6,434)	(1,800)	(6,782)	(1,783)	(8,852)	(603)	(6,267)
Discontinued operations:
Loss from discontinued operations, net of income taxes of $516 in 2014, $0 in 2013, and $0 in 2012													(1,118)	(6,668)	(5,318)
Gain from sale of discontinued operations, net of income taxes of $1,374 in 2013														49,731
(Loss) income from discontinued operations	47	(24)	(517)	(624)	48,657	(1,211)	(1,944)	(2,439)	(1,141)	(4,383)	(1,165)	(5,594)	(1,118)	43,063	(5,318)
Net (loss) income	$ (2,023)	$ (372)	$ (5,253)	$ (2,322)	$ 49,837	$ (1,194)	$ (3,442)	$ (2,741)	$ (7,575)	$ (6,183)	$ (7,947)	$ (7,377)	(9,970)	42,460	(11,585)
Other comprehensive income (loss)
Unrealized gain (loss) on investments available for sale													(21)	(13)	(40)
Comprehensive income (loss)													$ (9,991)	$ 42,447	$ (11,625)
Basic and diluted (loss) income per share
Income (loss) from continuing operations (in dollars per share)	$ (0.06)	$ (0.01)	$ (0.14)	$ (0.05)	$ 0.03		$ (0.05)	$ (0.01)	$ (0.19)	$ (0.05)	$ (0.20)	$ (0.05)	$ (0.26)	$ (0.02)	$ (0.19)
Income (loss) from discontinued operations (in dollars per share)			(0.02)	(0.02)	1.43	$ (0.04)	(0.06)	(0.07)	(0.03)	(0.13)	(0.03)	(0.17)	(0.03)	1.29	(0.16)
Basic and diluted income (loss) per share (in dollars per share)	$ (0.06)	$ (0.01)	$ (0.16)	$ (0.07)	$ 1.46	$ (0.04)	$ (0.11)	$ (0.08)	$ (0.22)	$ (0.18)	$ (0.23)	$ (0.22)	$ (0.29)	$ 1.27	$ (0.35)
Weighted average common shares (basic and diluted) (in shares)													34,263	33,307	32,859

STATEMENTS OF COMPREHENSIVE (L5

STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
STATEMENTS OF COMPREHENSIVE LOSS
Income tax expense, which was offset against the income from discontinued operations	$ 516	$ 0	$ 0
Gain from sale of discontinued operations, income taxes		$ 1,374

STATEMENTS OF CHANGES IN STOCKH

STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive (Loss) Income	Accumulated Deficit	Total
Balance (Previously Reported) at Dec. 31, 2011	$ 33	$ 278,092	$ 20	$ (232,327)	$ 45,818
Balance (Restatement Adjustment)				(198)	(198)
Balance at Dec. 31, 2011	$ 33	278,092	20	(232,525)	45,620
Balance (in shares) (Previously Reported) at Dec. 31, 2011	32,827,521
Balance (in shares) at Dec. 31, 2011	32,827,521
Increase (Decrease) in Stockholders' Equity
Exercise of options to purchase common stock ($.40- $22.74 per share)		87			87
Exercise of options to purchase common stock (in shares)	28,708
Share-based payment-director services		127			127
Share-based payment-director services (in shares)	25,000
Share-based payment-employee compensation		963			963
Net income (loss) | Previously Reported					(11,065)
Net income (loss) | Restatement Adjustment					(520)
Net income (loss)				(11,585)	(11,585)
Unrealized gain (loss) on investments available for sale | Previously Reported					(40)
Unrealized gain (loss) on investments available for sale			(40)		(40)
Balance (Restated) at Dec. 31, 2012	$ 33	279,269	(20)	(244,110)	35,172
Balance (in shares) at Dec. 31, 2012	32,881,229
Increase (Decrease) in Stockholders' Equity
Net income (loss) | Previously Reported					(2,735)
Net income (loss) | Restatement Adjustment					(6)
Net income (loss)					(2,741)
Balance (Restated) (Previously Reported) at Mar. 31, 2013					33,822
Balance (Restated) (Restatement Adjustment)					(724)
Balance (Restated) at Mar. 31, 2013					$ 33,098
Balance (in shares) at Mar. 31, 2013					32,930,000
Balance at Dec. 31, 2012	$ 33	279,269	(20)	(244,110)	$ 35,172
Balance (in shares) at Dec. 31, 2012	32,881,229
Increase (Decrease) in Stockholders' Equity
Net income (loss) | Previously Reported					(6,491)
Net income (loss) | Restatement Adjustment					308
Net income (loss)					(6,183)
Balance (Restated) (Previously Reported) at Jun. 30, 2013					30,680
Balance (Restated) (Restatement Adjustment)					(410)
Balance (Restated) at Jun. 30, 2013					$ 30,270
Balance (in shares) at Jun. 30, 2013					32,989,000
Balance at Dec. 31, 2012	$ 33	279,269	(20)	(244,110)	$ 35,172
Balance (in shares) at Dec. 31, 2012	32,881,229
Increase (Decrease) in Stockholders' Equity
Net income (loss) | Previously Reported					(8,167)
Net income (loss) | Restatement Adjustment					790
Net income (loss)					(7,377)
Balance (Restated) (Previously Reported) at Sep. 30, 2013					31,755
Balance (Restated) (Restatement Adjustment)					72
Balance (Restated) at Sep. 30, 2013					$ 31,827
Balance (in shares) at Sep. 30, 2013					34,115,000
Balance at Dec. 31, 2012	$ 33	279,269	(20)	(244,110)	$ 35,172
Balance (in shares) at Dec. 31, 2012	32,881,229
Increase (Decrease) in Stockholders' Equity
Exercise of options to purchase common stock ($.40- $22.74 per share)		2,193			2,193
Exercise of options to purchase common stock (in shares)	642,514
Share-based payment-director services		180			180
Share-based payment-director services (in shares)	23,250
Net exercise of warrant to purchase common stock	$ 1	(1)
Net exercise of warrant to purchase common stock (in shares)	567,610
Share-based payment-employee compensation		1,061			1,061
Net income (loss) | Previously Reported					41,638
Net income (loss) | Restatement Adjustment					822
Net income (loss)				42,460	42,460
Unrealized gain (loss) on investments available for sale | Previously Reported					(13)
Unrealized gain (loss) on investments available for sale			(13)		(13)
Balance (Restated) (Previously Reported) at Dec. 31, 2013					80,949
Balance (Restated) (Restatement Adjustment)					104
Balance (Restated) at Dec. 31, 2013	$ 34	282,702	(33)	(201,650)	$ 81,053
Balance (in shares) at Dec. 31, 2013	34,114,603				34,115,000
Balance (Previously Reported) at Mar. 31, 2013					$ 33,822
Balance (Restatement Adjustment)					(724)
Balance at Mar. 31, 2013					$ 33,098
Balance (in shares) at Mar. 31, 2013					32,930,000
Increase (Decrease) in Stockholders' Equity
Net income (loss) | Previously Reported					$ (3,756)
Net income (loss) | Restatement Adjustment					314
Net income (loss)					(3,442)
Balance (Restated) (Previously Reported) at Jun. 30, 2013					30,680
Balance (Restated) (Restatement Adjustment)					(410)
Balance (Restated) at Jun. 30, 2013					$ 30,270
Balance (in shares) at Jun. 30, 2013					32,989,000
Increase (Decrease) in Stockholders' Equity
Net income (loss) | Previously Reported					$ (1,676)
Net income (loss) | Restatement Adjustment					482
Net income (loss)					(1,194)
Balance (Restated) (Previously Reported) at Sep. 30, 2013					31,755
Balance (Restated) (Restatement Adjustment)					72
Balance (Restated) at Sep. 30, 2013					$ 31,827
Balance (in shares) at Sep. 30, 2013					34,115,000
Increase (Decrease) in Stockholders' Equity
Net income (loss) | Previously Reported					$ 49,805
Net income (loss) | Restatement Adjustment					32
Net income (loss)					49,837
Balance (Restated) (Previously Reported) at Dec. 31, 2013					80,949
Balance (Restated) (Restatement Adjustment)					104
Balance (Restated) at Dec. 31, 2013	$ 34	282,702	(33)	(201,650)	$ 81,053
Balance (in shares) at Dec. 31, 2013	34,114,603				34,115,000
Increase (Decrease) in Stockholders' Equity
Net income (loss) | Previously Reported					$ (1,365)
Net income (loss) | Restatement Adjustment					(957)
Net income (loss)					(2,322)
Balance (Restated) (Previously Reported) at Mar. 31, 2014					81,189
Balance (Restated) (Restatement Adjustment)					(956)
Balance (Restated) at Mar. 31, 2014					$ 80,233
Balance (in shares) at Mar. 31, 2014					34,222,000
Balance (Previously Reported) at Dec. 31, 2013					$ 80,949
Balance (Restatement Adjustment)					104
Balance at Dec. 31, 2013	$ 34	282,702	(33)	(201,650)	$ 81,053
Balance (in shares) at Dec. 31, 2013	34,114,603				34,115,000
Increase (Decrease) in Stockholders' Equity
Net income (loss) | Previously Reported					$ (3,250)
Net income (loss) | Restatement Adjustment					(4,325)
Net income (loss)					(7,575)
Balance (Restated) (Previously Reported) at Jun. 30, 2014					80,847
Balance (Restated) (Restatement Adjustment)					(4,363)
Balance (Restated) at Jun. 30, 2014					$ 76,484
Balance (in shares) at Jun. 30, 2014					34,310,000
Balance (Previously Reported) at Dec. 31, 2013					$ 80,949
Balance (Restatement Adjustment)					104
Balance at Dec. 31, 2013	$ 34	282,702	(33)	(201,650)	$ 81,053
Balance (in shares) at Dec. 31, 2013	34,114,603				34,115,000
Increase (Decrease) in Stockholders' Equity
Net income (loss) | Previously Reported					$ (2,605)
Net income (loss) | Restatement Adjustment					(5,342)
Net income (loss)					(7,947)
Balance (Restated) (Previously Reported) at Sep. 30, 2014					82,115
Balance (Restated) (Restatement Adjustment)					(5,336)
Balance (Restated) at Sep. 30, 2014					$ 76,779
Balance (in shares) at Sep. 30, 2014					34,320,000
Balance (Previously Reported) at Dec. 31, 2013					$ 80,949
Balance (Restatement Adjustment)					104
Balance at Dec. 31, 2013	$ 34	282,702	(33)	(201,650)	$ 81,053
Balance (in shares) at Dec. 31, 2013	34,114,603				34,115,000
Increase (Decrease) in Stockholders' Equity
Exercise of options to purchase common stock ($.40- $22.74 per share)	$ 1	1,684			$ 1,685
Exercise of options to purchase common stock (in shares)	204,085
Share-based payment-director services		403			403
Share-based payment-director services (in shares)	27,000
Share-based payment-employee compensation		2,526			2,526
Net income (loss) | Previously Reported					(1,789)
Net income (loss) | Restatement Adjustment					(8,181)
Net income (loss)				(9,970)	(9,970)
Unrealized gain (loss) on investments available for sale | Previously Reported					(21)
Unrealized gain (loss) on investments available for sale			(21)		(21)
Windfall tax benefit from stock-based compensation		5			5
Balance (Restated) (Previously Reported) at Dec. 31, 2014					83,963
Balance (Restated) (Restatement Adjustment)					(8,282)
Balance (Restated) at Dec. 31, 2014	$ 35	287,320	(54)	(211,620)	$ 75,681
Balance (in shares) at Dec. 31, 2014	34,345,688				34,346,000
Balance (Previously Reported) at Mar. 31, 2014					$ 81,189
Balance (Restatement Adjustment)					(956)
Balance at Mar. 31, 2014					$ 80,233
Balance (in shares) at Mar. 31, 2014					34,222,000
Increase (Decrease) in Stockholders' Equity
Net income (loss) | Previously Reported					$ (1,885)
Net income (loss) | Restatement Adjustment					(3,368)
Net income (loss)					(5,253)
Balance (Restated) (Previously Reported) at Jun. 30, 2014					80,847
Balance (Restated) (Restatement Adjustment)					(4,363)
Balance (Restated) at Jun. 30, 2014					$ 76,484
Balance (in shares) at Jun. 30, 2014					34,310,000
Increase (Decrease) in Stockholders' Equity
Net income (loss) | Previously Reported					$ 645
Net income (loss) | Restatement Adjustment					(1,017)
Net income (loss)					(372)
Balance (Restated) (Previously Reported) at Sep. 30, 2014					82,115
Balance (Restated) (Restatement Adjustment)					(5,336)
Balance (Restated) at Sep. 30, 2014					$ 76,779
Balance (in shares) at Sep. 30, 2014					34,320,000
Increase (Decrease) in Stockholders' Equity
Net income (loss) | Previously Reported					$ 816
Net income (loss) | Restatement Adjustment					(2,839)
Net income (loss)					(2,023)
Balance (Restated) (Previously Reported) at Dec. 31, 2014					83,963
Balance (Restated) (Restatement Adjustment)					(8,282)
Balance (Restated) at Dec. 31, 2014	$ 35	$ 287,320	$ (54)	$ (211,620)	$ 75,681
Balance (in shares) at Dec. 31, 2014	34,345,688				34,346,000

STATEMENTS OF CHANGES IN STOCK7

STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Exercise of options to purchase common stock, per share, low end of range	$ 0.40	$ 0.40	$ 0.40
Exercise of options to purchase common stock, per share, high end of range	14.19	22.74	7.74
Share-based payment-director services, per share	$ 14.93	7.73	$ 5.08
Exercise of warrant to purchase common stock, per share		$ 11

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Continuing operations
Loss from continuing operations	$ (8,852)	$ (603)	$ (6,267)
Adjustments to reconcile loss from continuing operations to net cash used in operations of continuing operations:
Unrealized loss on trading securities	401	(401)
Depreciation and amortization	940	587	552
Non cash share-based payments	2,929	583	492
Provision for bad debts	1,628	80	22
Changes in operating assets and liabilities: Detailed value tagged in table below
Accounts receivable	(7,542)	(4,685)	(2,185)
Inventory	(7,895)	(456)	(642)
Prepaid expenses, and other current assets	(2,832)	88	(293)
Tax Receivable	(10)	(160)	2,188
Other assets	(95)
Deferred revenue		(947)	685
Accounts payable, accrued expenses, and other current liabilities	2,572	2,605	665
Net cash used in operating activities of continuing operations	(18,756)	(3,309)	(4,783)
Discontinued operations
Loss from operations of discontinued operations, net of income taxes	(1,118)	(6,668)	(5,318)
Adjustments to reconcile loss from discontinued operations to net cash used in operations of discontinued operations:
Expiration of price protection derivative related to trading securities	1,685	(1,705)
Depreciation and amortization		156	156
Non cash share-based payments		658	598
Changes in operating assets and liabilities:
Accounts receivable and other current assets	15,091	113	(172)
Accounts payable and accrued expenses	(57)	(2,846)	(419)
Deferred revenue			(3,333)
Net cash provided by (used in) operations of discontinued operations	15,601	(10,292)	(8,488)
Net cash used in operating activities	(3,155)	(13,601)	(13,271)
Cash flows from investing activities:
Purchases of property and equipment	(1,123)	(528)	(128)
Proceeds from sale of discontinued operations, net		19,751
Proceeds from sale of investments available for sale	114,374	55,357	217,185
Purchases of investments available for sale	(112,192)	(62,640)	(203,733)
Net cash provided by investing activities	1,059	11,940	13,324
Cash flows from financing activities:
Principal payments on capital lease obligations	(45)	(44)	(22)
Restricted cash	243	74	75
Proceeds from the exercise of options to purchase common stock	1,685	2,193	87
Windfall benefit from stock-based compensation	5
Net cash provided by financing activities	1,888	2,223	140
Net (decrease) increase in cash	(208)	562	193
Cash at beginning of period	2,416	1,854	1,661
Cash at end of period	2,208	2,416	1,854
Supplemental disclosure of cash flows information:
Cash paid for income taxes	619	539
Supplemental disclosure of non cash activities:
Deferred compensation related to Stryker agreement	5,000
Equipment acquired under a capital lease			228
Guaranteed payment related to trading securities	4,409
Trading securities from the sales of discontinued operations		15,000
Purchase price guarantee related to trading securities		1,685
Proceeds receivable due from sale of discontinued operations		15,000
Unrealized loss on investments available for sale	$ 21	$ 13	$ 40

Description of Business and Sig

Description of Business and Significant Accounting Policies	12 Months Ended
	Dec. 31, 2014
Description of Business and Significant Accounting Policies
Description of Business and Significant Accounting Policies	1. Description of Business and Significant Accounting Policies Description of Business Osiris Therapeutics, Inc. ("we," "us," "our," or the "Company") is a Maryland corporation headquartered in Columbia, Maryland. We began operations on December 23, 1992 and were a Delaware corporation until, with the approval of our stockholders, we reincorporated as a Maryland corporation on May 31, 2010. We are a world leader in researching, developing and marketing cellular regenerative medicine products that improve the health and lives of patients and lower overall healthcare costs. We continue to advance research and development (“R&D”) in biotechnology by focusing on innovation in regenerative medicine, including bioengineering, stem cell research and viable tissue-based products. Osiris has achieved commercial success with products in orthopedics, sports medicine and wound care. From 2010 to 2013, we operated our business in two segments, Biosurgery and Therapeutics. Our Biosurgery business, created in 2009, works to harness the ability of cells and novel constructs to promote the body’s natural healing with the goals of improving surgical outcomes and offering better treatment options for patients and physicians. Our Therapeutics business focused on developing biologic stem cell drug candidates from a readily available and non-controversial source—adult bone marrow—until it was sold, as described further below. Our Biosurgery business has continued to grow since its inception, and we have increased our organizational focus on the development and commercialization of products in this segment. Consistent with this organizational focus, as discussed further in Note 3—Discontinued Operations below, on October 10, 2013, we entered into an Asset Purchase Agreement (the “Purchase Agreement”) with Mesoblast International SARL (“Mesoblast”), a wholly owned subsidiary of Mesoblast Limited (“Mesoblast Limited”), to sell our Therapeutics segment, including all of our culture expanded mesenchymal stem cell (“ceMSC”) business, including Prochymal and other related assets. We eliminated the Therapeutics segment from our continuing operations as a result of the disposal transaction, and have presented the assets, liabilities, and results of the segment’s operations as a discontinued operation for all periods presented. Our continuing operations now represent the portion of our business previously referred to as our Biosurgery segment. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Due to the inherent uncertainty involved in making those assumptions, actual results could differ from those estimates. We believe that the most significant estimates that affect our financial statements are those that relate to deferred tax assets, inventory valuation, share‑based compensation and the value of the derivative instrument obtained in connection with the sale of our former Therapeutics business. Restatement and Revisions to Prior Financial statements We have restated our audited financial statements for the year ended December 31, 2014. For more information about the restatement, see Note 2 below. Note 16 below includes restated unaudited interim financial statements for 2014. In addition to the restatement of the annual and interim periods in 2014, we have also corrected immaterial errors in our financial statements for the years ended December 31, 2013, 2012 and 2011. See “Revision of the Prior Period Financial Statement” in Note 2 for a description of the revisions to correct the immaterial errors in the years ended December 31, 2013, 2012 and 2011. Reclassifications The previously reported columns of the Company’s Statements of Comprehensive Income (Loss) for the year’s ended December 31, 2014, 2013 and 2012 reflect the reclassification of operating expenses between captions in the operating expense section of such financial statements in order to report such expenses consistently over the three years then ended. These reclassifications did not affect our results of operations or financial positions for the years presented. Cash Amounts listed as cash on our balance sheets are maintained in depository accounts at a commercial bank. Cash and cash equivalents, which include highly liquid investments with maturities of three months or less when purchased, held in our brokerage investment accounts are classified as investments available for sale, as the amounts represent investments that have matured and are anticipated to be reinvested in debt securities in the near future, and are disclosed at fair value, which approximates cost. Investments Available for Sale Investments available for sale consist primarily of marketable securities with maturities less than one year. Investments available for sale are valued at their fair value, with unrealized gains and losses reported as a separate component of stockholders’ equity in accumulated other comprehensive income. All realized gains and losses on our investments available for sale are recognized in results of operations as other income. Investments available for sale are evaluated periodically to determine whether a decline in their value is “other than temporary.” The term “other than temporary” is not intended to indicate a permanent decline in value. Rather, it means that the prospects for near term recovery of value are not necessarily favorable, or that there is a lack of evidence to support fair values equal to, or greater than, the carrying value of the security. We review criteria such as the magnitude and duration of the decline, as well as the reasons for the decline, to predict whether the loss in value is other than temporary. If a decline in value is determined to be other than temporary, the carrying value of the security is reduced and a corresponding charge to earnings is recognized. Restricted Cash We periodically are required under the terms of various agreements to provide letters of credit which are collateralized by cash deposits. The majority of the restricted cash balance relates to a letter of credit that we caused to be issued in lieu of a security deposit under the operating lease for our Columbia, Maryland facility. Trade Accounts Receivable Trade accounts receivable are reported at their net realizable value. We charge off uncollectible receivables when the likelihood of collection is remote. We set credit terms with individual customers, and consider receivables outstanding longer than the time specified in the respective customer’s contract to be past due. As of December 31, 2014 and 2013, accounts receivable in the accompanying balance sheets are reported net of a $1.7 million and an $78,000 allowance for doubtful accounts, respectively. We have incurred bad debt expense of $1.6 million, $80,000 and $22,000 related to our Biosurgery operations during 2014, 2013 and 2012, respectively. Inventory We begin carrying inventory of our Biosurgery products on our balance sheet following commercial launch of such products. Inventory consists of raw materials, biologic products in process, finished goods available for sale and products held by customers under consignment sales arrangements. We determine our inventory values using the first-in, first-out method. Inventory is valued at the lower of cost or market, and excludes units that we anticipate distributing for clinical evaluation. Property and Equipment Property and equipment, including improvements that extend useful lives, are valued at cost, while maintenance and repairs are charged to operations as incurred. Depreciation is calculated using the straight‑line method based on estimated useful lives ranging from three to seven years for furniture, equipment and internal use software. Leasehold improvements and assets under capital leases are amortized over the shorter of the estimated useful life of the asset or the original term of the lease. Valuation of Long‑lived Assets We review long‑lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be fully recoverable. These events or changes in circumstances may include a significant deterioration of operating results, changes in business plans, or changes in anticipated future cash flows. If an impairment indicator is present, we evaluate recoverability by a comparison of the carrying amount of the assets to future undiscounted net cash flows expected to be generated by the assets. Assets are grouped at the lowest level for which there is identifiable cash flows that are largely independent of the cash flows generated by other asset groups. If the total of the expected undiscounted future cash flows is less than the carrying amount of the asset, an impairment loss is recognized for the difference between the fair value and carrying value of assets. Fair value is generally determined by estimates of discounted cash flows. The discount rate used in any estimate of discounted cash flows would be the rate required for a similar investment of like risk. There were no impairment losses recognized during 2014, 2013 or 2012. Derivative and Securities Received in Business Disposition – Trading Securities All derivative instruments within the scope of Accounting Standards Codification (“ ASC”) 815, Derivatives and Hedging, are recorded on the balance sheet at fair value. As of December 31, 2013 our only derivative instrument was the price guarantee regarding the payment received in restricted Mesoblast Limited shares described in Note 14—Derivative and Securities Received in Business Disposition below. We do not hold derivative financial instruments for trading purposes. As discussed in Note 3— Discontinued Operations, we disposed of our Therapeutics segment in October 2013. A portion of the consideration for the sale of that business was stock of Mesoblast Limited, the parent of the purchaser, Mesoblast. We were required to hold that stock for one year from the date of receipt. This agreed upon holding period was later extended to May 31, 2015. Mesoblast Limited is a public company and its stock is traded on the Australian Stock Exchange. As of December 31, 2014 and 2013, we reflect the investment as a current asset in Trading Securities, at market value as of the balance sheet dates, since it was our intent to sell our Mesoblast Limited shares following the expiration of the agreed upon holding period. In December 2014, the price protection on these shares expired, but Mesoblast Limited agreed to pay us $15 million in cash for the stock in the first half of 2015 and the holding period of the shares was extended to May 2015. Accordingly, this $15 million is shown as $10.6 million in Trading Securities and $4.4 million in Other Receivables on our balance sheets as of December 31, 2014. The Mesoblast Limited stock was previously subject to limited price protection for the one year required holding period. To the extent the value of those shares decreased during the holding period, Mesoblast was required to pay us for the decrease in value. This payment was to be made at least one half in cash and at the option of Mesoblast, up to one half in additional shares of Mesoblast Limited stock. Any additional Mesoblast Limited stock would also have to be held for one year during which period there was no further price protection. In 2013, the price protection was accounted for as a derivative under ASC 815, Derivatives and Hedging, and, as such was recorded on the balance sheets at fair value, with changes recognized in net income. We elected to measure the Mesoblast stock at fair value with changes in fair value reflected in net income, as permitted under ASC 825-10, Financial Instruments—Fair Value Option. The price protection ended in December 2014 and we no longer have a derivative instrument. Revenue Recognition We sell our products through our direct sales force and our distributor network. Some of our distributors act as principals buying our product at a stipulated price and selling to their end-use (clinical provider) customers at a marked-up price. Other distributors act as agents selling to end-use customers in exchange for earning sales commissions and/or administrative support fees. Revenue from sales to distributors who are principals is recorded at our sales price to the distributor, while revenue from sales to distributors who function as agents to Osiris is recorded at the sales price to the end-use customer. We recognize revenue from sales of our products when title and the risk of loss pass to the customer, persuasive evidence of an arrangement exists, sales amounts are fixed and determinable and collectability is reasonably assured. We recognize revenue upon shipment when a customer provides a purchase order or other documentation evidencing their acceptance of ownership risks in advance of shipment. Many of our customers accept the risks of ownership only when they use (implant) our product. For these customers, we recognize revenue upon our receipt of notice of product use and classify products shipped to these customers as consignment inventory pending receipt of such notice. With regard to a number of transactions in 2014, the Company granted unusually long payment terms to certain of its distributors. As further described in Note 2, the Company has determined that these unusually long payment terms caused these transactions to fail the “fixed and determinable“ criteria required under GAAP to recognize revenue. Accordingly, the accompanying 2014 financial statements have been restated to reverse revenue from sales initiated under these unusually long payment terms and will recognize such transactions as revenue in a future period only when cash payment is received from the distributor. In December 2014, we entered into exclusive distribution agreements with a subsidiary of Stryker Corporation (“Stryker”) for the marketing and distribution of BIO(4) ™ , formerly branded by the Company as OvationOS®, our viable bone matrix allograft. Pursuant to the agreement, Stryker has been granted worldwide distribution rights to the product and any improvements, for all surgical applications. We will be responsible for supply, manufacturing, inventory management, shipments to customers, continued research and product improvement activities. We will recognize as revenue the amounts charged to customers for the allografts and related services. Commissions and administrative fees paid to Stryker will be accounted for as selling expenses, as Stryker is acting as outside sales and marketing agent for Osiris. We are entitled to receive an initial exclusivity fee of $5 million and additional fees upon any exercise by Stryker of its right to extend the initial term, whether on an exclusive or non-exclusive basis. The exclusivity fee and any extension fees subsequently received are considered to be adjustments of the selling expenses. As such, we recognize the $5 million exclusivity fee as deferred revenue to be amortized over the related exclusivity period in proportion to the expected fees to be paid to Stryker, as an offset to selling expenses. At December 31, 2014, Osiris recorded a $5 million receivable included in other receivables with the offset to short-term deferred exclusivity fee revenue of $1.67 million and long-term deferred exclusivity fee revenue of $3.33 million included in other long term liabilities. In October 2014, we entered into an exclusive commercial and development partnership for our cartilage product, Cartiform®, with Arthrex, Inc. (“Arthrex”). The agreement provides Arthrex with exclusive commercial distribution rights to Cartiform® beginning in 2015. We will be responsible for manufacturing, continued research and product improvement activities. The responsibilities related to the design and conduct of future clinical development programs will be shared between both organizations. Pursuant to the agreement, Arthrex is entitled to a certain commission on Cartiform® sales. We will recognize the full sales price as revenue and account for the payment to Arthrex as commission expense. Therapeutics Revenue Recognition In our former Therapeutics business, we evaluated revenue from agreements that have multiple elements to determine whether the components of the arrangement represent separate units of accounting. To recognize a delivered item in a multiple element arrangement, the delivered items must have value on a standalone basis and the delivery or performance must be probable and within our control for any delivered items that have a right of return. The determination of whether multiple elements of a collaboration agreement meet the criteria for separate units of accounting requires us to exercise judgment. We account for the activities of our former Therapeutics business as discontinued operations. Revenue from research licenses associated with our former Therapeutics business were recognized as earned upon either the incurring of reimbursable expenses directly related to the particular research plan or the completion of certain development milestones as defined within the terms of the agreement. Payments received in advance of research performance were designated as deferred revenue. Non‑refundable upfront license fees and certain other related fees associated with our former Therapeutics business were recognized on a straight‑line basis over the development periods of the contract deliverables. Fees associated with substantive at risk performance based milestones are recognized as revenue upon their completion, as defined in the respective agreements. Incidental assignment of technology rights were recognized as revenue when and if it was earned and received. In October 2008, we entered into a Collaboration Agreement with Genzyme Corporation, then an independent and now a Sanofi company (“Genzyme”), for the development and commercialization of our biologic drug candidates, Prochymal and Chondrogen™. Under this agreement, Genzyme made non‑contingent, non‑refundable cash payments to us, totaling $130 million. The agreement provided Genzyme with certain rights to intellectual property developed by us, and required that we continue to perform certain development work related to the subject biologic drug candidates. In February 2012, Sanofi issued a press release which included an update on their R&D pipeline, stating that it had discontinued its project with Prochymal for Graft versus Host Disease. In September 2012, we reached agreement with Sanofi to conclude the Collaboration Agreement without either party having any continuing obligation to the other. We evaluated the deliverables related to the upfront payments made to us under the Genzyme Collaboration Agreement, and concluded that the various deliverables represent a single unit of accounting. For this reason, we deferred the recognition of revenue related to the upfront payments, and amortized these amounts to revenue on a straight‑line basis over the estimated delivery period of the required development services, which extended through January 2012. Research and Development Costs We expense internal and external R&D costs, including costs of funded R&D arrangements and the manufacture of clinical batches of Biosurgery products used in clinical trials, in the period incurred. Income Taxes Deferred tax liabilities and assets are recognized for the estimated future tax consequences of temporary differences, income tax credits and net operating loss carryforwards. Temporary differences are primarily the result of the differences between the tax bases of assets and liabilities and their financial reporting values. Deferred tax liabilities and assets are measured by applying the enacted statutory tax rates applicable to the future years in which deferred tax liabilities or assets are expected to be settled or realized. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense, if any, consists of the taxes payable for the current period and the change during the period in deferred tax assets and liabilities. We recognize in our financial statements the impact of a tax position, if that position is more likely than not to be sustained upon an examination, based on the technical merits of the position. Interest and penalties related to income tax matters are recorded as income tax expense. At December 31, 2014 and 2013, we had no accruals for interest or penalties related to income tax matters. Income per Common Share Basic income per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted income per common share adjusts basic income per share for the potentially dilutive effects of common share equivalents, using the treasury stock method, and includes the incremental effect of shares that would be issued upon the assumed exercise of stock options and warrants. Diluted loss from continuing operations for the year ended December 31, 2014 excludes all 1,608,557 shares issuable upon the exercise of options, as their impact on our loss from continuing operations is anti-dilutive. As a result, basic and diluted weighted average common shares outstanding are identical. Diluted loss from continuing operations for the year ended December 31, 2013 excludes all 1,233,767 shares issuable upon the exercise of options, as their impact on our loss from continuing operations is anti-dilutive. As a result, basic and diluted weighted average common shares outstanding are identical. Diluted loss per common share for the year ended December 31, 2012 excludes the 1,000,000 shares issuable upon the exercise of an outstanding "out-of the money" warrant, and all 1,826,114 of our outstanding options as of December 31, 2012, as their impact on our net loss is anti-dilutive. As a result, basic and diluted weighted average common shares outstanding are identical. Share‑Based Compensation We account for share‑based payments using the fair value method. We recognize all share‑based payments to employees and non‑employee directors in our financial statements based on their grant date fair values, calculated using the Black‑Scholes option pricing model. Compensation expense related to share‑based awards is recognized on a straight‑line basis for each vesting tranche based on the value of share awards that are expected to vest on the grant date, which is revised to reflect actual forfeitures. Comprehensive Income Comprehensive income consists of net income and all changes in equity from non‑stockholder sources, which consist of changes in unrealized gains and losses on investments. Concentration of Risk We maintain cash and short‑term investment balances in accounts that exceed federally insured limits, although we have not experienced any losses on such accounts. We also invest excess cash in investment-grade securities, generally with maturities of one year or less. We have historically provided credit in the normal course of business to contract counterparties and to the distributors of our products. Trade accounts receivable in the accompanying balance sheets consist primarily of amounts due from distributors and end-user customers of our products within the United States. For the year ended and as of December 31, 2014, we had two customers that comprised 51% of our revenue and 31% of our trade net receivables. For the year ended and as of December 31, 2013, we had three customers that comprised 60% of our revenue and 39% of our trade net receivables. As discussed under “Trade Accounts Receivable” above, we incurred bad debt expense of $1.6 million, $80,000 and $22,000 related to our Biosurgery operations during 2014, 2013 and 2012, respectively. Recent Accounting Guidance Not Yet Adopted at December 31, 2014 In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers,” which requires an entity to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. The new standard will replace most of the existing revenue recognition standards in GAAP when it becomes effective on January 1, 2017. Early adoption is not permitted. The new standard can be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of the change recognized at the date of the initial application. We are currently assessing the impact the adoption of ASU 2014-09 will have on our financial statements. In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements - Going Concern,” which require management to evaluate, at each reporting period, 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 the financial statements are issued and provide related disclosures. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. We are currently assessing the impact the adoption of ASU 2014-15 will have on our financial statements.

Restatement of the Financial St

Restatement of the Financial Statements	12 Months Ended
	Dec. 31, 2014
Accounting Changes and Error Corrections [Abstract]
Accounting Changes and Error Corrections [Text Block]	2. Restatement of the Financial Statements This Note 2 to the Company’s financial statements discloses the impact on the restated financial statements for the year ended December 31, 2014 and the nature and derivation of the associated adjustments. The impact of the restatement on interim periods in 2014 is described in Note 16 (unaudited). The corrections contained in these restated financial statements are referred to herein as the “Restatement.” See also “Revision of the Prior Period Financial Statements” in this Note 2 for a description of certain immaterial errors in the years ended December 31, 2013, 2012 and 2011. Restatement Background As previously described in the Company’s Current Report on Form 8-K filed on March 15, 2015, the Audit Committee, in consultation with management, concluded that the Company’s unaudited interim and audited annual financial statements previously issued for 2014 and its unaudited interim financial statements previously issued for the three and nine months ended September 30, 2015 should not be relied upon due to errors identified in such financial statements related to the timing of revenue recognition under contracts with distributors. In the Company’s Current Report on Form 8-K filed on November 20, 2015, the Company previously disclosed its conclusion that its unaudited interim financial statements for the quarters ended March 31, 2015 and June 30, 2015 should not be relied upon for similar reasons. The corrections contained in these restated financial statements were prepared following an independent review by the Audit Committee (the “Audit Committee”) of the Company’s Board of Directors into certain accounting matters (the “Independent Review”) as described in the Explanatory Note. Impact of the Restatement Based on the Independent Review, the Audit Committee concluded, among other things, that there were both material and immaterial misstatements in the financial statements for the year ended December 31, 2014. The correction of these material and other immaterial errors decreased product revenue by $9.0 million for the year ended December 31, 2014. The correction of these errors decreased net income for the year ended December 31, 2014 by $8.2 million. The primary material errors corrected in the restatement relate to recognition of revenue under distributor sales arrangements and valuation of inventory. Recognition of revenue under distributor sales arrangements Based on the Audit Committee’s Independent Review, the Company determined that it had erred in its application of GAAP with respect to the recognition of revenue arising from the two types of distributor sales arrangements described below: 1. Certain distributor sales did not meet the criteria for recognizing revenue in 2014 . During 2014, the Company provided unusually long payment terms to two distributors that were affiliated with each other. Granting a customer unusually long payment terms can cause the related sales transactions to fail the “fixed and determinable” criteria required under GAAP to recognize revenue. Also, for one sales transaction to a third distributor in the fourth quarter of 2014, the Company determined that evidence existed which suggests that an arrangement under GAAP did not exist in 2014. Accordingly, revenue arising from these transactions did not meet the criteria for recognizing revenue under GAAP in 2014. Correction of these errors decreased 2014 revenue by $10.3 million and decreased trade accounts receivable as of December 31, 2014 by the same amount. Net of product costs and sales commission expenses arising from these transactions, correction of these errors decreased 2014 net income by $5.6 million. Under GAAP, the $10.3 million revenue reversed in 2014 may be recognized in a future period on an accrual basis upon meeting the criteria for revenue recognition or, if such criteria is not met, on a cash basis, upon receipt of payment from the customer. 2. Sales through government contracting agent . The Company utilizes a government contracting agent through which it sells to facilities of the United States Department of Veterans Affairs and the United States Department of Defense under the agent’s GSA Federal Supply Schedule. The Company erred in reporting revenue from such sales net of the agent’s fees, although GAAP (and the Company’s policy) requires that revenue arising from contractual arrangements of this type be reported at the gross price paid by the end user, and that the related fees be reported as a sales expense. Correction of this error, with respect to these sales, increased both 2014 sales and marketing expenses and product revenue by $1.5 million and, accordingly, had no impact on net income. Taken together, correction of the errors arising from these two types of distributor sales arrangements decreased 2014 product revenue by $8.8 million (consisting of a $10.3 million decrease described in paragraph (1) above offset by a $1.5 million increase described in paragraph (2) above). In addition, the Company corrected other revenue accounting errors unrelated to distributor sales arrangements which decreased 2014 product revenue by an additional $241,000. As a result, the correction of errors in the Restatement decreased 2014 product revenue by a total $9.0 million Consistent with corrections in the Company’s recognition revenue, the product costs arising from the distributor sales transactions for which revenue has been reversed have also been reversed and added back to inventory. As a result of such corrections, inventory as of December 31, 2014 increased by $852,000 and the cost of product revenue for the year then ended decreased by the same amount. Similarly, sales commission expenses incurred during 2014 in connection with the distributor sales transactions for which revenue has been reversed have also been reversed. As a result of such corrections, prepaid expenses increased by $2.2 million, with respect to such expenses paid during 2014, and accrued expenses decreased by $1.5 million, with respect to commissions unpaid and accrued as of December 31, 2014, while 2014 sales and marketing expenses decreased by $3.8 million. Valuation of inventory and accounting for consigned inventory quantities Management determined that there were errors in the valuation of the Company’s finished goods inventory resulting from computational errors, failure to update and apply current cost information in the calculation of unit costs, and non-timely identification and write-off of products that were no longer salable as determined by the Company’s quality assurance procedures. In addition, management determined the need to establish a reserve for consigned finished goods inventory as the Company had not adequately monitored the ultimate disposition of consigned goods whereby some were returned, or scrapped, or used by the consignee. Lastly, management determined the need to establish a reserve for work-in-process inventory which largely consists of product in quarantine pending the outcome of the Company’s quality assurance procedures. This process results in a reasonably consistent identification of product that is unsalable. Correction of these errors, to write-down the value of inventory as of December 31, 2014, increased 2014 cost of revenue and decreased 2014 net income by $2.0 million. Bad debt reserve Management determined that it did not correctly assess the collectability of accounts receivable and determined an appropriate allowance for doubtful accounts as of December 31, 2014. Correction of this error, by increasing its 2014 bad debt expenses and allowance for doubtful accounts as of December 31, 2014, increased the Company's 2014 general and administrative expenses by approximately $450,000 and reduced its accounts receivables as of December 31, 2014 by the same amount. Classification of costs and expenses to income statement captions Management determined that errors had been made in classification of costs and expenses to income statement captions. Correction of these errors reduced 2014 cost of product revenue and research and development expenses by $4.1 million and $3.6 million, respectively, and increased sales and marketing and general and administrative expenses by $7.6 million and $134,000, respectively. Other adjustments In addition to the error corrections mentioned above, adjustments were made to the financial statements for various immaterial errors identified by management and the Audit Committee during the course of the restatement process. The net impact of such adjustments was to decrease net income by $507,000 for the year ended December 31, 2014. Tax effect of restatement adjustments The Company reduced 2014 income tax expense by $585,000 to account for the impact of the adjustments in the Restatement described above. The financial reporting impact of the error correction adjustments described above is as follows: Year ended December 31, 2014 (a) Revenue Recognition Error Corrections Net Income Stockholders' (in thousands) Impact Equity Impact Product revenue $ $ — Cost of product revenue — Sales and marketing expenses — Trade accounts receivable — Inventory — Prepaids and other current assets — Accounts payable and accrued expenses — Net (decrease)/increase $ $ Year ended December 31, 2014 (b) Inventory Valuation Error Corrections Net Income Stockholders' (in thousands) Impact Equity Impact Cost of product revenue $ $ — Inventory — Net (decrease)/increase $ $ Year ended December 31, 2014 (c) Bad Debt Reserve Net Income Stockholders' (in thousands) Impact Equity Impact General and administrative expenses $ $ — Trade accounts receivable — Net (decrease)/increase $ $ Year ended December 31, 2014 (d) Expense Caption Classification Error Corrections Net Income Stockholders' (in thousands) Impact Equity Impact Cost of product revenue $ $ — Research and development expenses — Sales and marketing expenses — General and administrative expenses — Net (decrease)/increase $ — $ — Year ended December 31, 2014 (e) Other Immaterial Error Corrections Net Income Stockholders' (in thousands) Impact Equity Impact Cost of product revenue $ $ — Research and development expenses — Sales and marketing expenses — General and administrative expenses — Related party fees — Income tax expense — Other receivables — Property and equipment — Accounts payable and accrued expenses — Additional paid-in capital — Beginning retained earnings — Net (decrease)/increase $ $ Year ended December 31, 2014 (f) Tax effect of restatement adjustments Net Income Stockholders' (in thousands) Impact Equity Impact Income tax expense $ $ — Loss from discontinued operations — Other receivables — Accounts payable and accrued expenses — Additional paid-in capital — Net (decrease)/increase $ $ Year ended December 31, 2014 Summary of Restatement Adjustments Net Income Stockholders' Restatement (in thousands) Impact Equity Impact Ref Product revenue $ $ — (a) Cost of product revenue — (a), (b), (d), (e) Research and development expenses — (d), (e) Sales and marketing expenses — (a), (d), (e) General and administrative expenses — (c), (d), (e) Related party fees — (e) Income tax expense — (e), (f) Loss from discontinued operations — (f) Trade accounts receivable — (a), (c) Other receivables — (e), (f) Inventory — (a), (b) Prepaids and other current assets — (a) Property and equipment — (e) Accounts payable and accrued expenses — (a), (e), (f) Additional paid-in capital — (e), (f) Beginning retained earnings — (e) Net (decrease)/increase $ $ The following table presents the effects of the Restatement on the Company’s Balance Sheet as of December 31, 2014. December 31, 2014 (Previously Restatement 2014 Restatement (in thousands, except per share data) Reported) Adjustments (Restated) Ref Assets Current assets: Cash $ $ — $ Investments available for sale — Trading securities — Trade accounts receivable, net of reserves (a), (c) Other receivables (e), (f) Inventory (a), (b) Prepaid expenses and other current assets (a) Total current assets Property and equipment, net (e) Other assets — Total assets $ $ $ Liabilities and Stockholders' Equity Current liabilities: Accounts payable and accrued expenses $ $ $ (a), (e), (f) Capital lease obligations, current portion — Deferred exclusivity fee revenue, current portion — Total current liabilities Other long-term liabilities — Total liabilities Commitments and contingencies Stockholders' equity Common stock, $.001 par value, 90,000 shares authorized, 34,346 shares outstanding — Additional paid-in-capital (e), (f) Accumulated other comprehensive loss — Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity $ $ $ The following table presents the effects of the Restatement on the Company’s Statement of Comprehensive Income (Loss) for the year ended December 31, 2014. Year ended December 31, 2014 (Previously Restatement 2014 Restatement (in thousands, except per share data) Reported) Adjustments (Restated) Ref Product revenue $ $ $ (a) Cost of product revenue (a), (b), (d), (e) Gross profit Operating expenses Research and development (d), (e) Sales and marketing (a), (d), (e) General and administrative (c), (d), (e) Fees paid to related parties (e) Share based payments to related parties — Total operating expenses Income (loss) from operations Other (expense) income, net — Loss from continuing operations, before income taxes Income tax (expense) benefit (e), (f) Loss from continuing operations Discontinued operations Loss from operations of discontinued operations, net of income taxes of $516 in 2014 (f) (Loss) income from discontinued operations Net (loss) income Other comprehensive loss Unrealized loss on investments available for sale — Comprehensive (loss) income $ $ $ Basic and diluted loss per share Loss from continuing operations $ $ $ Loss from discontinued operations Basic and diluted loss per share $ $ $ Weighted average common shares (basic and diluted) The following table presents the effects of the Restatement on the Company’s Statement of Cash Flows for the year ended December 31, 2014. Year ended December 31, 2014 (Previously Restatement 2014 Restatement (in thousands) Reported) Adjustments (Restated) Ref Cash flows from operating activities: Continuing operations Loss from continuing operations $ $ $ Adjustments to reconcile loss from continuing operations to net cash used in operations of continuing operations: Unrealized loss on trading securities — Depreciation and amortization — Non cash share-based payments (e) Provision for bad debts (c) Changes in operating assets and liabilities: Accounts receivable (a) Inventory (a), (b) Prepaid expenses, and other current assets (a), (e) Tax receivable — (f) Other assets — Accounts payable, accrued expenses, and other liabilities (a), (e), (f) Net cash used in operating activities of continuing operations Discontinued operations Loss from discontinued operations (f) Adjustments to reconcile loss from discontinued operations to net cash used in operations of discontinued operations: Expiration of price protection derivative related to trading securities — Changes in operating assets and liabilities: Accounts receivable and other current assets — Accounts payable and accrued expenses — Net cash provided by operations of discontinued operations Net cash used in operating activities Cash flows from investing activities: Purchases of property and equipment (e) Proceeds from sale of investments available for sale — Purchases of investments available for sale — Net cash provided by investing activities Cash flows from financing activities: Principal payments on capital lease obligations — Restricted cash — Proceeds from the exercise of options to purchase common stock — Windfall benefit from stock-based compensation Net cash provided by financing activities Net (decrease) in cash — Cash at beginning of period — Cash at end of period $ $ — $ Supplemental disclosure of cash flows information: Cash paid for income taxes $ $ — $ Supplemental disclosure of non cash activities: Deferred compensation related to Stryker agreement — Guaranteed payment related to trading securities — Unrealized loss on investments available for sale — Revision of Prior Period Financial Statements In addition to the correction of the errors in 2014 in the Restatement described above, the Company also corrected certain immaterial errors in its financial statements for years ended December 31, 2013, 2012 and 2011 contained herein. In accordance with ASC 650-10-S99 and S55 (formerly Staff Accounting Bulletins (“SAB”) No. 99 and No. 108), Accounting Changes and Error Corrections , the Company concluded that these errors were, individually, and in the aggregate, not material, quantitatively or qualitatively, to the financial statements in these periods. The adjustments to correct the immaterial errors only had an impact on certain captions within the comprehensive statement of income (loss) and balance sheets as set forth below. For year ended December 31, 2013 2012 2011 Net Income Stockholders' Net Income Stockholders' Net Income Stockholders' (in thousands) Impact Equity Impact Impact Equity Impact Impact Equity Impact Revenue Recognition Product revenue $ $ — $ $ — $ $ — Cost of product revenue — — — Sales and marketing expenses — — — — — Deferred revenue — — — Inventory — — — Directors' Expenses Other receivables — — — — Fees paid to related parties — — — — Tax Effect of the Adjustments Income taxes benefit — — — — — Income from discontinued operations — — — — — Net increase/(decrease) $ $ $ $ $ $ Adjustments related to periods prior to January 1, 2012 are reflected as an adjustment to beginning retained earnings for the year ended December 31, 2012. The immaterial errors to product revenue in the table above were identified during the Independent Review and relate to a type of distributor sales arrangement under which the distributor agrees to be billed in advance of the Company’s shipment of ordered products, commonly referred to as “bill and hold” arrangements. Historically, the Company had recognized product revenue upon shipment provided a purchase order or other documentation evidencing the customer’s acceptance of the risks of ownership had been received before shipment, or upon receipt of notification of product use (implantation) if no such documentation was provided in advance. However, a limited number of distributor sales transactions in 2012 and 2011 were accounted for as bill and hold arrangements, which were initially deemed to qualify under GAAP for revenue recognition upon invoicing of the customer even though shipment was expected to take place at an unspecified future date. In the Independent Review, the Audit Committee determined that these transactions had failed to meet all of the GAAP criteria required to recognize revenue in advance of shipment and concluded that recognition of such revenue should be reversed and recognized in a subsequent period when the product had been shipped to the distributors or their end-use (clinical provider) customers. Correction of these errors, to recognize revenue when the shipment is completed, decreased 2012 and 2011 revenue by $685,000 and $262,000, respectively. Recognition of such revenue upon completion of shipment increased 2013 revenue by $947,000. Net of product costs arising from these transactions, correction of these errors decreased 2012 and 2011 net income by $554,000 and $198,000, respectively, and increased 2013 net income by $752,000. The Company utilizes a government contracting agent through which it sells to the United States Department of Veterans Affairs and the United States Department of Defense facilities under the agent’s GSA Federal Supply Schedule. The Company erred in reporting revenue from such sales net of the agent’s contracting fees, although GAAP (and the Company’s policy) requires that revenue arising from contractual arrangements of this type be reported at the gross price paid by the end user, and that the related fees be reported as a sales expense. Correction of this error, with respect to these sales, increased both 2013 sales and marketing expenses and product revenue by $443,000 and, accordingly, had no impact on net income. The Company has also recorded adjustments reducing related party expenses by $70,000 and $34,000 for the years ended December 31, 2013 and 2012, respectively, which represent the amounts of expenses that the Audit Committee determined should not have reimbursed to the Chairman of the Board in those years. See Note 10, Related Party Transactions and Warrant, for more details. The following table presents the effects of the revision of the Company’s previously issued Balance Sheet as of December 31, 2013. December 31, 2013 (Previously 2013 (in thousands, except per share data) Reported) Adjustments (Revised) Assets Current assets: Cash $ $ — $ Investments available for sale — Trading securities — Trade accounts receivable, net of reserves — Other receivables Inventory — Prepaid expenses and other current assets — Current assets of discontinued operations — Total current assets Property and equipment, net — Deferred tax asset — Restricted cash — Total assets $ $ $ Liabilities and Stockholders' Equity Current liabilities: Accounts payable and accrued expenses $ $ — $ Capital lease obligations, current portion — Deferred exclusivity fee revenue, current portion — — — Deferred tax liability — Current liabilities of discontinued operations — Total current liabilities — Other long-term liabilities — Total liabilities — Commitments and contingencies Stockholders' equity Common stock, $.001 par value, 90,000 shares authorized, 34,115 shares outstanding — Additional paid-in-capital — Accumulated other comprehensive loss — Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity $ $ $ The following table presents the effects of the revision of the Company’s previously issued Statement of Comprehensive Income (Loss) for the year ended December 31, 2013. Year ended December 31, 2013 (Previously 2013 (in thousands, except per share data) Reported) Adjustments (Revised) Product revenue $ $ $ Cost of product revenue Gross profit Operating expenses: Research and development — Sales and marketing General and administrative — Fees paid to related parties — Share based payments to related parties — Total operating expenses Income (loss) from operations Other income, net — Loss from continuing operations, before income taxes Income tax (expense) benefit Loss from continuing operations Discontinued operations: Loss from operations of discontinued operations, net of income taxes of $0 — Gain from sale of discontinued operations, net of income taxes of $1,374 in 2013 Income from discontinued operations Net income Other comprehensive loss Unrealized loss on investments available for sale — Comprehensive income $ $ $ Basic and diluted income (loss) per share Income (loss) from continuing operations $ $ $ Income (loss) from discontinued operations — Basic and diluted income (loss) per share $ $ $ Weighted average common shares (basic and diluted) The following table presents the effects of the revision of the Company’s previously issued Statement of Cash Flows for the year ended December 31, 2013. Year ended December 31, 2013 (Previously 2013 (in thousands) Reported) Adjustments (Revised) Cash flows from operating activities: Continuing operations Loss from continuing operations $ $ $ Adjustments to reconcile loss from continuing operations to net cash used in operations of continuing operations: Unrealized gain on trading securities — Depreciation and amortization — Non cash share-based payments — Provision for bad debts — Changes in operating assets and liabilities: Accounts receivable — Inventory Prepaid expenses, and other current assets Tax Receivable — Other assets — — — Deferred revenue — Accounts payable, accrued expenses, and other liabilities — Net cash used in operating activities of continuing operations Discontinued operations Loss from discontinued operations — Adjustments to reconcile loss from discontinued operations to net cash used in operations of discontinued operations: Expiration of price protection derivative related to trading securities — Depreciation and amortization — Non cash share-based payments — Changes in operating assets and liabilities: — Accounts receivable and other current assets — Accounts payable and accrued expenses — Net cash used in operations of discontinued operations — Net cash used in operating activities Cash flows from investing activities: Purchases of property and equipment — Proceeds from sale of discontinued operations, net Proceeds from sale of investments available for sale — Purchases of investments available for sale — Net cash provided by investing activities Cash flows from financing activities: Principal payments on capital lease obligations — Restricted cash — Proceeds from the exercise of options to purchase common stock — Net cash provided by financing activities — Net increase in cash — Cash at beginning of period — Cash at end of period $ $ — $ Supplemental disclosure of cash flows information: Cash paid for income taxes $ $ — $ Supplemental disclosure of non cash activities: Trading securities from the sales of discontinued operations — Purchase price guarantee related to trading securities — Proceeds receivable due from sale of discontinued operations — Unrealized loss on investments available for sale — The following table presents the effects of the revision of the Company’s previously issued Statement of Comprehensive Income (Loss) for the year ended December 31, 2012. Year ended December 31, 2012 (Previously 2012 (in thousands, except per share data) Reported) Adjustments (Revised) Product revenue $ $ $ Cost of product revenue Gross profit Operating expenses: Research and development — Sales and marketing — General and administrative — Fees paid to related parties Share based payments to related parties — Total operating expenses Loss from operations Other income, net — Loss from continuing operations, before income taxes Income tax benefit — Loss from continuing operations Discontinued operations: Loss from operations of discontinued operations, net of income taxes of $0 — Loss from discontinued operations — Net loss Other comprehensive loss Unrealized loss on investments available for sale — Comprehensive loss $ $ $ Basic and diluted loss per share Loss from continuing operations $ $ $ Loss from discontinued operations — Basic and diluted loss per share $ $ $ Weighted average common shares (basic) The following table presents the effects of the revision of the Company’s previously issued Statement of Cash Flows for the year ended December 31, 2012. Year ended December 31, 2012 (Previously Restatement 2012 (in thousands) Reported) Adjustments (Revised) Cash flows from operating activities: Continuing operations Loss from continuing operations $ $ $ Adjustments to reconcile loss from continuing operations to net cash used in operations of continuing operations: Depreciation and amortization — Non cash share-based payments — Provision for bad debts — Changes in operating assets and liabilities: Accounts receivable — Inventory Prepaid expenses, and other current assets Tax Receivable — Other assets — — — Deferred revenue — Accounts payable, accrued expenses, and other liabilities — Net cash used in operating activities of continuing operations — Discontinued operations Loss from discontinued operations — Adjustments to reconcile loss from discontinued operations to net cash used in operations of discontinued operations: Depreciation and amortization — Non cash share-based payments — Changes in operating assets and liabilities: Accounts receivable and other current assets — Accounts payable and accrued expenses — Deferred revenue — Net cash provided by (used in) operations of discontinued operations — Net cash used in operating activities — Cash flows from investing activities: Purchases of property and equipment — Proceeds from sale of investments available for sale — Purchases of investments available for sale — Net cash provided by investing activities — Cash flows from financing activities: Principal payments on capital lease obligations — Restricted cash — Proceeds from the exercise of options to purchase common stock — Net cash provided by financing activities — Net increase in cash — Cash at beginning of period — Cash at end of period $ $ — $ Supplemental disclosure of cash flows information: Cash paid for income taxes $ — $ — $ — Supplemental disclosure of non cash activities: Equipment acquired under a capital lease — Unrealized loss on investments available for sale —

Discontinued Operations

Discontinued Operations	12 Months Ended
	Dec. 31, 2014
Discontinued Operations
Discontinued Operations	3. Discontinued Operations As reported on our Current Report on Form 8‑K filed on October 10, 2013, we entered into a Purchase Agreement with Mesoblast, pursuant to the terms of which we sold our ceMSC business, including Prochymal and other related assets. The Purchase Agreement provides for payment to us of $50 million in initial consideration, and payment of up to an additional $50 million upon the achievement by Mesoblast of certain clinical and regulatory milestones. Additionally, we are entitled to earn low single to double digit cash royalties on future sales by Mesoblast of Prochymal and other products utilizing the acquired ceMSC technology. The Purchase Agreement provides for the $50 million of initial payments and up to $50 million of contingent additional payments to us upon our achievement of milestone events, as follows: Amount Milestone ($000) Initial consideration Letter of intent payments $ Initial closing payment Additional closing payment, received in April 2014 Delivery of all scheduled assets under the Transfer Agreement (paid in stock) Total initial consideration Contingent consideration First marketing authorization received in the U.S. First marketing authorization received from France, Germany, or European Union Completion of the enrollment of the Phase 3 Crohn’s Trial or Mesoblast’s election to discontinue the trial Receipt of final data for the Crohn’s trial or first marketing approval for Crohn’s Total conditional consideration Total possible purchase price $ Of the $50 million in total initial consideration, we received at December 31, 2013, payment of $20 million in cash, and $15 million in Mesoblast Limited ordinary shares, which were delivered to us upon completed delivery of the ceMSC assets. The remaining $15 million of the initial consideration was paid in cash in April 2014. The Mesoblast Limited shares received by us were subject to a one year holding period from the date of receipt, but had limited downside protection for a drop in the Mesoblast Limited share price over the holding period. We evaluated this downside protection, and determined that it met the criteria of a derivative instrument. The fair value of the protection at the time of the disposition of our Therapeutics business was $1.7 million. We recognized the price protection derivative as an asset at December 31, 2013 at its then fair value of $1.7 million, which was reflected in the calculation of the gain on sale of the Therapeutics business. The price protection ended in December 2014 and Mesoblast Limited agreed to pay us no less than $15 million in cash for the stock prior to the end of the first half of 2015. Accordingly, we no longer have a derivative instrument as of December 31, 2014. Our ability to receive the second $50 million is subject to satisfaction of the milestones indicated above all of which are largely dependent upon the clinical and regulatory success of Mesoblast and other factors not in our control. These include many if not all of the risks and uncertainties that our ceMSC business was subject to prior to its sale to Mesoblast, including product development, efficacy and regulatory risks. We have received no such payments thus far, nor do we have any expectation of receiving any such payments in the foreseeable future. Our ability to earn royalties from Mesoblast is subject to these same risks and will require performance by Mesoblast that results in its meeting some or all of the milestones referred to above, and is thereafter also dependent upon the commercial success of Mesoblast's ceMSC business. Royalties, if any, are payable to us in cash. Any portion of the second $50 million that becomes payable to us will be payable, at the discretion of Mesoblast Limited, in Mesoblast Limited ordinary shares, based on a then current valuation of such shares. Any such Mesoblast ordinary shares that we receive will also be subject to a one year holding period, with the same limited downside protection described above. We eliminated the Therapeutics segment from our continuing operations as a result of the disposal transaction and have presented the assets, liabilities, and results of the segment’s operations as a discontinued operation for all periods presented. We have no continuing involvement with the Therapeutics business, and the only continuing cash flows to us related to the Therapeutics business will be the contingent consideration and royalties provided for under the purchase agreement, as described above. We received no such contingent payments or royalties in 2014 or 2013. We recognized a gain of approximately $49.4 million of the sale of discontinued operations during the year ended December 31, 2013, representing the $50.0 million in initial payments received under the Purchase Agreement and the $1.7 million fair value of the derivative instrument received, net of transaction costs of $0.6 million, including legal, accounting and advisory fees, and income tax expense of $1.4 million. The net assets allocable to the Therapeutics business at December 31, 2014 and 2013 were as follows: (in thousands) 2014 2013 Current assets: Accounts receivable $ — $ Current liabilities: Accounts payable and accrued expenses $ — $ Summarized operating results of the Therapeutics segment are as follows: Year ended December 31, (in thousands) 2014 2013 2012 (Restated) Revenue from collaborative research agreements and royalties $ $ $ Operating expenses: Research and development $ General and administrative Total operating expenses $ $ $ Loss from discontinued operations before income tax expense Income tax expense — — Loss from discontinued operations $ $ $ Revenue for our Therapeutics segment historically consisted primarily of collaborative research agreements and royalties. Because of the disposition of our Therapeutics business in 2013, we no longer incur R&D expenses related to these discontinued operations. Our Therapeutics segment also earned royalty revenue and cost reimbursement under our adult expanded access program. Royalties are earned on the sale of human mesenchymal stem cells sold for research purposes. We recognize this revenue as sales are made. Revenue from our former Therapeutics business include approximately $288,000 of royalty revenue in 2014, $215,000 of royalty revenue in 2013, and $305,000 of royalty revenue in 2012. Revenue from our former Therapeutics business also include approximately $0, $424,000, and $296,000 in cost reimbursement for Prochymal used in our adult expanded access program during 2014, 2013 and 2012, respectively.

Segment Reporting

Segment Reporting	12 Months Ended
	Dec. 31, 2014
Segment Reporting
Segment Reporting	4. Segment Reporting Prior to the sale of our Therapeutics business in 2013, we managed our business in two operating segments: our Biosurgery segment and our Therapeutics segment. Our Biosurgery segment is focused on the development, manufacture and distribution of biologic products for wound healing, cartilage repair, and orthopedics to harness the ability of cells and novel constructs to promote the body’s natural healing. We launched Grafix® for commercial distribution in 2010, began distribution of Ovation® in early 2011, and began distribution of Cartiform® during 2013. In the second half of 2014 we began commercial sale of OvationOS® (rebranded by Stryker as BIO4™ in 2015), a cadaveric bone product used in many of the same clinical applications historically served by our placenta-based Ovation® product. Sales of these products have increased with the expansion of our direct sales force and distribution network and the broadening of our reimbursement coverage. Our rapidly growing direct sales force, started in 2013, focuses exclusively on Grafix® sales. We entered into two new exclusive distribution agreements in the fourth quarter of 2014, with a subsidiary of Stryker for the marketing and distribution of BIO4™ (formerly branded by the Company as OvationOS®), and with Arthrex for the marketing and distribution of Cartiform®. First sales under these agreements begin in 2015. Our Therapeutics segment focused on developing and marketing products to treat medical conditions in the inflammatory and cardiovascular disease areas. Its operations focused on clinical trials and discovery efforts. As disclosed in Note 3— Discontinued Operations , we entered into a Purchase Agreement with Mesoblast, pursuant to the terms of which we sold our ceMSC business, including Prochymal and other related assets. Following the sale of our former Therapeutics segment, we now have only one operating segment. As such, our financial statements present the assets, liabilities, and results of the former Therapeutics segment as discontinued operations for all periods presented, the rest of our balance sheets and statements of comprehensive (loss) income present information of the remaining Biosurgery segment.

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2014
Property and Equipment
Property and Equipment	5. Property and Equipment Property and equipment at December 31, 2014 and 2013 are as follows: (in thousands) 2014 2013 (Restated) Laboratory and manufacturing equipment $ $ Computer hardware, furniture and fixtures Leased assets Leasehold improvements Accumulated depreciation and amortization Property and equipment, net $ $ Depreciation expense was $940,000, $587,000, and $552,000 for 2014, 2013 and 2012, respectively.

Inventory

Inventory	12 Months Ended
	Dec. 31, 2014
Inventory
Inventory	6. Inventory We began carrying inventory of our Biosurgery products on our balance sheet following commercial launch of such products. As of December 31, 2014 and 2013, inventory for our Biosurgery business consists of the following: (in thousands) 2014 2013 (Restated) Raw materials and supplies $ $ Work-in-process Finished goods Total Biosurgery inventory, net $ $ The finished goods inventory included gross consigned inventory of $2.0 million and $115,000 as of December 31, 2014 and 2013, respectively. These consigned finished goods inventory were reduced by reserves of $136,000 and $0 as of December 31, 2014 and 2013, respectively. In addition, finished goods inventory is stated net of reserves for product known to be unsalable of $288,000 and $0 as of December 31, 2014 and 2013, respectively. The work-in-process inventory is largely product that is in quarantine pending completion of Company’s quality assurance procedures. The amounts presented are net of reserves of $268,000 and $0 as of December 31, 2014 and 2013, respectively. Prior to the transaction described in Note 3— Discontinued Operations , we did not carry any inventory for our Therapeutics products, as we had yet to launch Prochymal for commercial distribution.

Capital Lease

Capital Lease	12 Months Ended
	Dec. 31, 2014
Capital Lease
Capital Lease	7. Capital Lease In July 2012, we leased equipment under a capital lease at an effective interest rate of approximately 5%, with 60 monthly payments of $4,000 starting July 2012. The capital lease is recorded at the present value of the future minimum lease payments. Future minimum lease payments under the capital lease agreement at December 31, 2014 are as follows: (in thousands) Amount December 31, 2015 $ 2016 2017 Less: Amount representing interest Present value of minimum lease payments Less: Current portion of capital lease obligations Long-term portion of capital lease obligations $

Share-Based Compensation

Share-Based Compensation	12 Months Ended
	Dec. 31, 2014
Share-Based Compensation
Share-Based Compensation	8. Share‑Based Compensation In April 2006, we adopted our 2006 Omnibus Plan. We amended and restated this plan in 2008 and 2010, and amended it further in 2012, in each case to, among other things, increase the number of shares available for grant. In addition, we had previously established our Amended and Restated 1994 Stock Incentive Plan. Both Plans authorize the issuance of various forms of stock‑based awards, including incentive and non‑qualified stock options, stock purchase rights, stock appreciation rights and restricted and unrestricted stock awards. A total of 2,250,000 shares of our common stock have been reserved for issuance under the Amended and Restated 2006 Omnibus Plan, and 736,378 shares were reserved under our Amended and Restated 1994 Stock Incentive Plan. We ceased all grants under the Amended and Restated 1994 Stock Incentive Plan concurrent with our initial public offering in August 2006. As a result, no shares are currently available for future awards under the Amended and Restated 1994 Stock Incentive Plan. At December 31, 2014, there were approximately 513,906 shares available for future awards under the Amended and Restated 2006 Omnibus Plan. We generally issue stock option awards that vest over four years and have a ten‑year contractual life. We estimate the fair value of stock options using the Black‑Scholes option‑pricing model. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by persons who receive equity awards. The fair value of stock options granted during each of the periods was estimated using the following assumptions: Years ended December 31, 2014 2013 2012 Assumptions Weighted average risk-free interest rate 1.50 % 1.00 - 1.50 % 2.00 % Dividend yield 0.00 % 0.00 % 0.00 % Expected life of option grants 5.0 Yrs 5.0 - 6.5 Yrs 6.0 - 6.3 Yrs volatility 60 % 52 - 61 % 52 - 54 % The expected life of stock options granted was based on the our historical option exercise experience and post vesting forfeiture experience using the historical expected term from the vesting date. The expected volatility of the options granted was determined using historical volatilities based on stock prices over a look‑back period corresponding to the expected life. The risk‑free interest rate was determined using the yield available for zero‑coupon United States government issues with a remaining term approximating the expected life of the options. The forfeiture rate was determined based on historical pre‑vesting forfeitures. We have never paid a dividend and have no intention to pay a dividend, and as such, the dividend yield is zero. In connection with the stock options exercised during the year ended December 31, 2014, we received cash proceeds of $1.7 million. At December 31, 2014, there was $4.6 million of total unrecognized compensation costs related to non‑vested stock options, which is expected to be recognized through 2018. A summary of stock option activity for the years ended December 31, 2014, 2013 and 2012 is as follows: Weighted Weighted Average Aggregate Average Remaining Intrinsic Number of Exercise Contractual Value Shares Price Life (in thousands) Balance, December 31, 2011 $ years Granted $ Exercised $ $ Forfeited or canceled $ Balance, December 31, 2012 $ years $ Granted $ Exercised $ $ Forfeited or canceled $ Balance, December 31, 2013 $ years $ Granted $ Exercised $ $ Forfeited or canceled $ Balance, December 31, 2014 $ years $ Exercisable at December 31, 2014 $ years $ A summary of stock options outstanding at December 31, 2014, by price range is as follows: Options Outstanding Options Exercisable Weighted-Average Remaining Weighted-Average Number Contractual Life Exercise Number Weighted-Average Range of Exercise Prices Outstanding (in years) Price Outstanding Exercise Price $ 0.40 - $ 4.00 $ $ $ 4.01 - $ 5.25 $ 5.26 - $ 7.25 $ 7.01 - $ 7.75 $ 7.76 - $ 8.50 $ 8.51 - $ 12.75 $ 12.76 - $ 14.00 $ 14.01 - $ 16.00 — — $ 16.01 - $ 17.50 $ 17.51 - $ 24.00 $ $ The weighted fair value of options granted during the years ended December 31, 2014, 2013 and 2012 were $7.62, $4.68 and $2.82, respectively. The table below reflects the total share‑based compensation expense, including share‑based payments to our non‑employee directors, but excluding the non-cash expense related to the extension of the expiration date of an outstanding warrant as discussed in Note 10 below recognized in our statements of comprehensive (loss) income for the years ended December 31, 2014, 2013 and 2012. Year Ended December 31, (in thousands) 2014 2013 2012 (Restated) Cost of product revenue $ $ — $ — Sales and marketing — — Research and development General and administrative Discontinued operations — Total $ $ $

Investments Available for Sale

Investments Available for Sale	12 Months Ended
	Dec. 31, 2014
Investments Available for Sale
Investments Available for Sale	9. Investments Available for Sale Investments available for sale consisted of the following as of December 31, 2014 and 2013: The cash equivalents detailed below represent highly liquid investments with maturities of three months or less when purchased that are held in our brokerage investment accounts. They are classified as investments available for sale as the amounts represent investments that have matured and are anticipated to be reinvested in debt securities in the near future. December 31, 2014 December 31, 2013 Unrealized Unrealized (in thousands) Cost Gain Loss Fair Value Cost Gain Loss Fair Value Cash equivalents Money market funds & certificates of deposit $ $ — $ — $ $ $ — $ — $ Corporate debt securities & commercial paper 21 22 Investments Municipal securities Agency obligations Mutual Funds — — — — — — US & International government agencies 1 — — Investments available for sale $ $ $ $ $ $ $ $ The following tables summarize the securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of December 31, 2014 and 2013: Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) Value Loss Value Loss Value Loss December 31, 2014 Municipal securities $ $ $ $ $ 2,032 $ Agency obligations — — 3,939 Corporate debt securities & commercial paper — — 7,073 US & International government agencies — — 2,873 Total temporarily impaired $ $ $ $ $ 15,917 $ Less than 12 months More than 12 months Total Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) Value Loss Value Loss Value Loss December 31, 2013 Corporate debt securities & commercial paper $ $ (10) $ — $ — $ 3,341 $ (10) Municipal securities (24) — — 4,530 (24) Agency obligations (35) — — 3,804 (35) Total temporarily impaired $ $ (69) $ — $ — $ 11,675 $ (69) The following table summarizes maturities of our investments available for sale as of December 31, 2014 and 2013: December 31, 2014 December 31, 2013 (in thousands) Cost Fair Value Cost Fair Value Maturities: Within 3 months $ $ $ $ Between 3 - 12 months More than 1 year Investments available for sale $ $ $ $ Realized gains (losses) and investment income earned on investments available for sale were $(390,000), $(414,000), and $0, respectively, for the years ended December 31, 2014, 2013 and 2012, and have been included as a component of “Other income, net” in the accompanying financial statements.

Related Party Transactions and

Related Party Transactions and Warrant	12 Months Ended
	Dec. 31, 2014
Related Party Transactions and Warrant
Related Party Transactions and Warrant	10. Related Party Transactions and Warrant Peter Friedli. Peter Friedli, the Chairman of our Board of Directors, or entities with which he is affiliated, has been responsible for procuring since 1993, an aggregate of approximately $270 million in debt and equity financing for us and our predecessor company. As of December 31, 2014, Mr. Friedli is the beneficial owner of approximately 43% of our common stock as of December 31, 2014. Of the shares beneficially owned by Mr. Friedli at December 31, 2014, 85,000 shares were received by him as Board compensation since 1996, 12,500 shares were granted in recognition of his fundraising efforts, as discussed below, 567,610 shares were received by him upon his net exercise of a warrant to purchase 1,000,000 shares of our common stock at $11.00 per share, as described below, and the remaining shares were acquired through investment or through purchase from third parties. Of the 85,000 shares received by Mr. Friedli as board compensation since 1996, 10,000 shares, then valued at approximately $149,300, were issued to Mr. Friedli in 2014, 10,000 shares, then valued at approximately $77,000, were issued to Mr. Friedli in 2013, and 10,000 shares, then valued at approximately $51,000, were issued to Mr. Friedli in 2012. In response to Mr. Friedli's successful efforts in procuring for us accommodations relative to financing transactions that had occurred prior to our initial public offering, we issued to Mr. Friedli in 2006, in connection with and just prior to our initial public offering, a warrant exercisable for up to 1,000,000 shares of our common stock at $11.00 per share, the price for which shares were sold in the initial public offering. Mr. Friedli exercised this warrant on August 14, 2013 using the Net Exercise Method, resulting in the net issuance of 567,610 shares of our common stock. As of December 31, 2013, we no longer have any outstanding warrants. In connection with the Restatement, the Audit Committee evaluated certain issues related to director expense reimbursements. On the basis of that review, the Audit Committee determined that certain requests for reimbursement submitted between 2012 and 2015 by the Company’s Chairman of the Board to the Company’s former chief financial officer should not have been paid to him. In December 2016 the Chairman returned to the Company $216,000 representing the full amount that the Audit Committee determined should not have been paid to him. The Company has recorded a receivable of $216,000 and $104,000 as of December 31, 2014 and 2013, which represents the amounts that the Audit Committee determined should not have been reimbursed in those years. Prolexys Pharmaceuticals, Inc. During the third quarter of 2011 we entered into a contract research agreement with Prolexys Pharmaceuticals, Inc. (“Prolexys”) under which we are conducting for Prolexys an early stage clinical trial investigating a novel compound as a product candidate for cancer therapeutics. This contract was filed as an exhibit to and discussed in a Current Report on Form 8‑K filed by us with the SEC on September 14, 2011 primarily because of the related nature of the management and ownership of Prolexys with us and our management and with certain of our significant stockholders, and not because our rights or obligations under the contract research agreement with Prolexys are otherwise material to us. We are not incurring any third-party costs related to our work with Prolexys and are primarily contributing only the efforts of employees. All third-party costs associated with the Prolexys study are paid directly by Prolexys. As of December 31, 2014, the amount of internal resources we have devoted to Prolexys is not material to our operations as a whole. As of December 31, 2014, Prolexys is 35.7% owned by BIH SA, which owns 7.8% of our outstanding common stock; 24.3% owned by Peter Friedli who is the Chairman of our Board of Directors and direct owner of 29.3% of our common stock; and 13.8% owned by Venturetec, Inc., which holds 12.5% of our common stock. As of December 31, 2014, Peter Friedli is the President and an approximately 2% owner of Venturetec, Inc. Mr. Friedli has also recently reported the acquisition of a convertible bond that would entitle him, upon conversion, to acquire an additional approximately 19% interest in Venturetec, Inc. As of December 31, 2014, Lode Debrabandere, our former chief executive officer, served on the Board of Directors of Prolexys, but has no other interest therein. This arrangement is part of our ongoing efforts to expand our portfolio of product candidates, but we do not consider this arrangement to be material to us at this time. Our Board of Directors and Audit Committee, including all of our independent directors, but with Mr. Friedli abstaining, unanimously approved this transaction.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2014
Income Taxes
Income Taxes	11. Income Taxes For income tax reporting purposes, we reported taxable income in 2014 and 2013, compared to a loss in 2012. The income in 2014 and 2013 was primarily attributable to the gain from sale of discontinued operations which are reflected in the statements of comprehensive (loss) income, net of income taxes. Continuing operations below reflect a tax expense in the amount of $97,000 and a benefit in the amount of $1.3 million generated during 2014 and 2013, respectively. Included in the 2013 amount is $79,000 of taxes recoverable from a prior period. Included as a component of discontinued operations was a tax expense of $516,000 and $1.3 million for 2014 and 2013, respectively. The gain from sale of discontinued operations in 2013 included interest to be accrued in the amount of $70,000 which increased income taxes payable. In the future, the utilization of our tax attributes will be limited to the federal alternative minimum tax threshold. The effective tax rate benefit (expense) varies from the U.S. Federal Statutory tax rate principally due to the following: 2014 2013 2012 (Restated) U.S. Federal Statutory tax rate % % % State taxes, net of federal benefits % % % Nondeductible expenses % % % Stock compensation % % % Change in valuation allowance % % % Credits % % % Change in tax rate % % % Other % % % Effective tax rate % % % The components of our net deferred tax assets and liabilities at December 31 are as follows: (in thousands) 2014 2013 (Restated) Deferred Tax Assets Credits $ $ Net Operating loss carry-forward — — Stock options—NQSO Fixed assets Accrued Expenses Allowance for doubtful accounts Deferred rent — UNICAP — Inventory Restatement — Inventory Reserve — Other — Valuation allowance Net deferred tax assets $ $ Deferred Tax Liabilities Gain on installment sale $ — $ 481(a) Adjustment $ $ — $ $ We presently have available for federal income tax purposes approximately $71.1 million of general business credit carryforwards, which expire beginning in 2025 through 2032. In addition, we have approximately $1.4 million alternative minimum tax credit carryforwards as of December 31, 2014, which do not expire. In addition, the windfall equity-based compensation deductions are tracked, but will not be recorded to the balance sheet until Management determines that such amounts will be utilized. During 2014, we had $5.4 million, of windfall stock compensation deductions. When realized, the tax benefit associated with these deductions will be credited to additional paid‑in capital. Our ability to realize its deferred tax assets depends primarily upon the generation of sufficient future taxable income to allow for the utilization of the Company's deductible temporary differences and upon tax planning strategies. Realization of net deferred tax assets is dependent on the Company's ability to generate future taxable income, which is uncertain. We have recorded a valuation allowance of $75.5 million and $72.6 million, against the Company's net deferred tax assets as of December 31, 2014 and December 31 2013, respectively, as Management believes it is more likely than not that the assets will not be realized. Utilization of the credit carryforwards may be subject to an annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended, and similar state provisions. The Company has not performed a detailed analysis to determine whether an ownership change under Section 382 of the Internal Revenue Code occurred. The effect of an ownership change would be the imposition of an annual limitation on the use of credits attributable to periods before the change and could result in a reduction in the total credits available. We are subject to income taxes in the United States and several states. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. The Company had tax net operating losses and credit carryforwards that are subject to examination for a number of years beyond the year in which they are generated for tax purposes. Since a portion of these carryforwards may be utilized in the future, many of these attribute carryforwards remain subject to examination. Our policy is to recognize interest and penalties related to income tax matters in income tax expense. As of December 31, 2014 and December 31, 2013, we had no accruals for interest or penalties related to income tax matters.

Defined Contribution Plan

Defined Contribution Plan	12 Months Ended
	Dec. 31, 2014
Defined Contribution Plan
Defined Contribution Plan	12. Defined Contribution Plan We have a 401(k) plan that is available to all employees. Employee contributions are voluntary and are determined on an individual basis up to the amount allowable under federal regulations. Employer contributions to the plan are at the discretion of the Board of Directors and vest over a seven year period beginning after the third year of eligibility. No employer contributions have been made to date.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2014
Commitments and Contingencies
Commitments and Contingencies	13. Commitments and Contingencies Contract Research Organizations We utilize independent contract research organizations (“CROs”) to perform many of the tasks required under our clinical trials. We rely on CROs for their testing expertise and to ensure the objectivity of our clinical results. Under the terms of these agreements, we design the protocol regarding the testing to be performed, and the CRO assists in the enrollment of the patients and testing sites, administers the trial, performs statistical analysis of the results, and compiles the final report. We pay fees directly to the CROs for their professional services, which may be payable upon specified trial milestones or as they provide services, depending on the structure of the contract. We are also responsible for reimbursing the CROs for certain pass thru expenses they incur in administering the trial. The timing of our payments to the CROs is dependent upon the progress of the various trials, which is highly variable dependent upon the speed with which the CROs are able to enroll patients and testing sites. As such, we are unable to specifically predict the timing of future payments to CROs in connection with a specific clinical trial. We may also utilize CROs for future clinical trials. We have active contracts with a CRO related to ongoing clinical trials. The total cost of these future obligations is estimated to be approximately $10.7 million which is expected to be paid through 2017. Leases During 2006, we entered into a sublease agreement for approximately 61,000 square feet of laboratory, production, warehouse, and office space in Columbia, Maryland. We have also entered into a direct lease with the owner of this facility that was effective as of June 1, 2009 upon the expiration of the sublease and originally expired in July 2016. According to the terms of the lease agreement, we were required to provide a letter of credit which was fully collateralized by restricted cash and as of December 31, 2013, the letter of credit of $243,000 remained outstanding. In September 2014, we entered into an amendment to the operating lease for our Columbia, Maryland facility, extending the term of the lease through July 2023 and increasing the future minimum lease commitment by $9.0 million. The lease amendment includes an allowance for tenant improvements of approximately $1.5 million that we expect to utilize in 2015 to expand our manufacturing facilities and adjust our office space to accommodate our additional employees. Under the amended lease agreement, we also replaced the $243,000 letter of credit with a $95,000 cash deposit and eliminated all restricted cash. The future minimum lease payments due under the operating lease for this facility are as follows: (in thousands) 2015 $ 2016 2017 2018 2019 Thereafter $ Our expenses under this lease were $1.3 million, $1.3 million, and $1.3 million, during 2014, 2013 and 2012, respectively. Historically, we also have entered into various financing arrangements to lease laboratory and other equipment. The terms of these facilities and equipment leases are considered capitalized leases. As discussed in Note 7— Capital Lease , in July 2012, we leased an additional $228,000 of equipment under a capital lease, which was included in our balance sheets as of December 31, 2014 along with $114,100 of accumulated depreciation. Legal The Company is party to outstanding legal proceedings, investigations and claims as described below. The Company cannot predict with any certainty the final outcome of any legal proceedings, investigations (including any settlement discussions with the government seeking to resolve such investigations) or claims made against it as described in the paragraphs below, and there can be no assurance that the ultimate resolution of any such matter will not have a material adverse impact on the Company’s consolidated financial position, results of operations, or cash flows. The Company records accruals for certain outstanding legal proceedings, investigations or claims when it is probable that a liability will be incurred and the amount of the loss can be reasonably estimated. The Company evaluates, on a quarterly basis, developments in legal proceedings, investigations and claims that could affect the amount of any accrual, as well as any developments that would make a loss contingency both probable and reasonably estimable. When a loss contingency is not both probable and reasonably estimable, the Company does not accrue the loss. However, if the loss (or an additional loss in excess of the accrual) is at least a reasonable possibility and material, then the Company discloses a reasonable estimate of the possible loss or range of loss, if such reasonable estimate can be made. If the Company cannot make a reasonable estimate of the possible loss, or range of loss, then that is disclosed. The assessments of whether a loss is probable or a reasonable possibility, and whether the loss or range of loss is reasonably estimable, often involve a series of complex judgments about future events. Among the factors that the Company considers in this assessment are the nature of existing legal proceedings, investigations and claims, the asserted or possible damages or loss contingency (if reasonably estimable), the progress of the matter, existing law and precedent, the opinions or views of legal counsel and other advisers, the involvement of the U.S. Government and its agencies in such proceedings, the Company’s experience in similar matters and the experience of other companies, the facts available to the Company at the time of assessment, and how the Company intends to respond, or has responded, to the proceeding, investigation or claim. The Company’s assessment of these factors may change over time as individual proceedings, investigations or claims progress. For matters where the Company is not currently able to reasonably estimate the range of reasonably possible loss, the factors that have contributed to this determination include the following: (i) the damages sought are indeterminate, or an investigation has not manifested itself in a filed civil or criminal complaint, (ii) the matters are in the early stages, (iii) the matters involve novel or unsettled legal theories or a large or uncertain number of actual or potential cases or parties, and/or (iv) discussions with the government or other parties in matters that may be expected ultimately to be resolved through negotiation and settlement have not reached the point where the Company believes a reasonable estimate of loss, or range of loss, can be made. In such instances, the Company believes that there is considerable uncertainty regarding the timing or ultimate resolution of such matters, including a possible eventual loss, fine, penalty or business impact, if any. In addition, the Company does not accrue for estimated legal fees and other directly related costs as they are expensed as incurred. In addition to the matters described in the paragraphs below, in the normal course of its business, the Company is involved in various lawsuits from time to time and may be subject to certain other contingencies, none of which we believe to be material. Based on our analysis and assessment as described above, including consultation with our legal counsel, management is of the opinion that there are no matters that are probable or reasonably possible that require accrual or disclosure, except for the matters described below related to the Restatement. Securities Class Action Complaint On November 23, 2015, a putative class action lawsuit was filed in the United States District Court for the District of Maryland by a single plaintiff, individually and on behalf of other persons similarly situated, against the Company and three current or former executive officers of the Company. The action, captioned Kiran Kumar Nallagonda v. Osiris Therapeutics, Inc. et al. , Case 1:15-cv-03562 (the “Nallagonda Action”), alleges, among other things, that the defendants made materially false or misleading statements and material omissions in the Company’s SEC filings in violation of the federal securities laws. The complaint seeks certification as a class action, unspecified damages and reimbursement of attorneys’ fees. On March 21, 2016, the Court entered an order appointing a lead plaintiff and a lead plaintiff’s counsel. Subsequently, on August 15, 2016, the Court entered an order providing that the lead plaintiff shall file an amended complaint no later than 15 days after the Company files amended financial statements with the SEC. This matter remains at an early stage and, as of the date of this Form 10-K/A, we cannot reasonably estimate the possible loss, or range of loss, in connection with it. Shareholder Derivative Complaints On March 2, 2016, a shareholder derivative complaint was filed in the Circuit Court for Howard County in the State of Maryland (Case No. 13C16106811) by a single plaintiff, derivatively and on behalf of the Company, against individual members of the Company’s board of directors and certain executive officers. This action, captioned Kevin Connelley v. Lode Debrabandere et al., alleges that each of the individual directors and officers named as defendants (i) violated their fiduciary duties to the Company’s shareholders; (ii) abused their ability to control and influence the Company; (iii) engaged in gross mismanagement of the assets and business of the Company; and (iv) was unjustly enriched at the expense of, and to the detriment of, the Company. The alleged claims generally relate to the matters that are the subject of the Nallagonda Action. The plaintiff seeks, among other things, unspecified monetary damages, reimbursement of attorneys’ fees and shareholder votes on amendments to the Company’s Articles of Incorporation and Bylaws with respect to various corporate governance policies. On June 2, 2016, the Court entered an order that, subject to certain qualifications, stayed the action until 30 days after the entry of an order either: (1) denying all motions to dismiss in the Nallagonda Action, or (2) finally dismissing the Nallagonda Action with prejudice. This matter remains at an early stage and, as of the date of this Form 10-K/A, we cannot reasonably estimate the possible loss, or range of loss, in connection with it. On July 26, 2016, an alleged shareholder of the Company filed a complaint in the Circuit Court for Howard County in the state of Maryland (Case 13C16108356) against the Company and certain directors captioned Brian C. Lee v. Osiris Therapeutics, Inc., et al. The plaintiff alleged that the Company and its directors failed to schedule or hold an annual meeting within the time period allegedly required by the Company’s bylaws and Maryland Law. On March 1, 2017, the parties executed a settlement agreement that will resolve the litigation if the Company provides shareholders with certain additional information on or before March 30, 2017. The Company intends to fulfill its obligations pursuant to the settlement agreement and expects this complaint to be voluntarily dismissed with prejudice. On February 9, 2017, a shareholder derivative complaint was filed in the United States District Court for the District of Maryland (Case No. 1:17-cv-00381-JKB) by a single plaintiff, derivatively and on behalf of the Company, against individual members of the Company’s board of directors. This action, captioned Recupero v. Friedli et al ., alleges, among other things, that each of the individual directors named as defendants (i) violated their fiduciary duties to the Company’s shareholders, including that such violations constituted constructive fraud; (ii) engaged in gross mismanagement of the assets and business of the Company; and (iii) was unjustly enriched at the expense of, and to the detriment of, the Company. The plaintiff seeks, among other things, unspecified monetary damages, reimbursement of attorneys’, accountants’ and experts’ fees, and that the Company take all necessary actions to improve and comply with corporate governance, internal procedures and existing laws. Government Investigations As disclosed in the Company’s Current Report on Form 8‑K filed on March 15, 2016, the Company has received a subpoena from the SEC relating to a non-public investigation relating to its historic accounting practices, which have been under independent review by the Audit Committee of the Company’s Board of Directors, with the assistance of outside professionals. Counsel to the Audit Committee also has voluntarily advised the SEC about the Independent Review. The Company is cooperating fully with the SEC in this matter. As disclosed in the Company’s Current Report on Form 8‑K filed on May 27, 2016, the Company was contacted by the United States Attorney’s Office for the Southern District of New York (the “U.S. Attorney”), and was notified that a criminal investigation had been opened by that office, which to the Company’s knowledge is considering the same issues that are under review by the SEC. The Company is cooperating fully with the U.S. Attorney in this matter. We cannot predict if, when or how these matters will be resolved or what, if any, actions we may be required to take as part of any resolution of these matters. Any action by the SEC, the U.S. Attorney or other governmental agency could result in civil or criminal sanctions against us and/or certain of our current and former officers, directors and employees. At this stage in the matter, we cannot reasonably estimate the possible loss, or range of loss, in connection with it.

Derivative and Securities Recei

Derivative and Securities Received in Business Disposition	12 Months Ended
	Dec. 31, 2014
Derivative and Securities Received in Business Disposition
Derivative and Securities Received in Business Disposition	14. Derivative and Securities Received in Business Disposition The only derivative instrument to which the Company was a party was the price protection related to the shares received from Mesoblast Limited as part of the disposition of our Therapeutics business. As discussed in Note 3— Discontinued Operations, the $15 million milestone for completed delivery of the ceMSC assets was payable in either cash or stock, at Mesoblast's election. Because Mesoblast made that payment in stock, the Purchase Agreement provided that these shares were subject to a one year holding period, during which time we were afforded limited protection for any drop in the Mesoblast Limited share price. In the event that the shares decreased in value during the holding period, we would be compensated for 100% of the decrease in value, with 50% of the decrease payable to us in cash, and the remaining 50% again payable in either cash or ordinary shares, at Mesoblast’s election. Any additional shares issued would have been subject to an additional one year holding period, but would not be afforded price protection. The price protection was recorded as a part of the initial consideration received under the Purchase Agreement at its fair value as of that date of $1.7 million. We evaluated this downside protection, and determined that it met the criteria of a derivative instrument under ASC 815. As such, the price protection derivative was re-measured at its fair value with change in fair value recorded in net income as a component of "Other income". In December, the price protection for the Mesoblast Limited ordinary shares expired, but Mesoblast agreed to pay us no less than $15 million in cash for the stock prior to the end of the first half of 2015. Accordingly, we no longer have a derivative instrument as of December 31, 2014. As part of the amended agreement, the holding period of the ordinary shares was extended to May 2015 and the shares remained restricted as of December 31, 2014. The fair value of the price protection derivative was $1.7 million as of December 31, 2013, which was included as a component of "Trading Securities.” From the closing of the sale of the Therapeutics business through December 31, 2014 and 2013, respectively, we recorded a loss of $1.7 million and $52,000 on the price protection, which was included as a component of "Other income.” The shares of Mesoblast Limited to which the price protection relates were received by the Company on December 18, 2013 and were required to be held for one year from the date of receipt. The fair value of the shares when they were received was $15 million. The Company elected to remeasure the Mesoblast Limited shares at fair value, with changes in fair value being recorded as a component of “Other income”. As such, the statement of comprehensive (loss) income impact of changes in the fair value of the Mesoblast Limited shares and the statement of comprehensive (loss) income impact of changes in the fair value of the price protection derivative largely offset each other during the mandatory holding. The fair value of the Mesoblast Limited shares as of December 31, 2014 and 2013, determined by reference to the trading price of identical Mesoblast Limited ordinary shares on the Australian Stock Exchange, was $10.6 million and $15.4 million, respectively. The gain during the period from December 18, 2013 through December 31, 2013 was $401,000. The loss during the year ended December 31, 2014 was $401,000. The difference of $4.4 million between the fair value of the Mesoblast Limited shares, and the guaranteed payment of $15 million is included in “Other Receivables” on our Balance Sheets as of December 31, 2014.

Fair Value

Fair Value	12 Months Ended
	Dec. 31, 2014
Fair Value
Fair Value	15. Fair Value Fair value is defined as the price at which an asset could be exchanged or a liability transferred (an exit price) in an orderly transaction between knowledgeable, willing parties in the principal or most advantageous market for the asset or liability. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. Financial assets recorded at fair value in the accompanying financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The levels are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities, and are as follows: Level 1 Inputs are unadjusted, quoted prices in active markets for identical assets at the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. The fair valued assets we hold that are generally included in this category are money market securities and the Mesoblast Limited shares received in the disposition of the Therapeutics business, where fair value is based on publicly quoted prices. Level 2 Inputs are other than quoted prices included in Level 1, which are either directly or indirectly observable for the asset or liability through correlation with market data at the reporting date and for the duration of the instrument’s anticipated life. The fair valued assets we hold that are generally included in this category are investment grade short‑term securities. 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 and which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the reporting date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. The only asset we hold that is included in this category is the price protection derivative related to the Mesoblast Limited shares received in the disposition of our Therapeutics business. When quoted prices in active markets for identical assets are available, we use these quoted market prices to determine the fair value of financial assets and classify these assets as Level 1. In other cases where a quoted market price for identical assets in an active market is either not available or not observable, we obtain the fair value from a third-party vendor that uses pricing models, such as matrix pricing, to determine fair value. These financial assets would then be classified as Level 2. In the event quoted market prices were not available, we would determine fair value using broker quotes or an internal analysis of each investment’s financial statements and cash flow projections. In these instances, financial assets would be classified based upon the lowest level of input that is significant to the valuation. Thus, financial assets might be classified in Level 3 even though there could be some significant inputs that may be readily available. There have been no transfers between level 1 and 2. The price protection derivative related to the Mesoblast Limited shares was classified in Level 3. Its fair value was determined through use of the Black‑Scholes valuation method, a standard industry methodology for valuing equity options, because the price protection is economically equivalent to a put option on the Mesoblast Limited shares at a price of $15 million. Significant inputs to the model include the following: Fair value of underlying Mesoblast Limited stock: $15,000,000 Contractual life: 1.0 year Volatility: 40% Risk‑free interest rate: 0.13% Expected dividends: $0 The price protection related to Mesoblast Limited shares ended in December 2014. There were no other transfers in and out of Level 3. The following table represents a rollforward of the fair value of Level 3 instruments, comprised solely of the limited price protection derivative related to the Mesoblast Limited stock issued to us in connection with the sale of our former Therapeutics business: December 31, December 31, (in thousands) 2014 2013 Balance at beginning of period $ $ — Fair value upon receipt of Mesoblast stick — Change in fair value Settlements — Balance at end of period $ — $ Assets and liabilities measured at fair value on a recurring basis are summarized below as of December 31, 2014 and 2013: December 31, 2014 (in thousands) Level I Level II Level III Total Assets Investments: Available for Sale Securities Cash & Cash Equivalents $ — — $ US & International government agencies — — Mutual Funds — — — — Agency Obligations — — Corporate Debt Securities & Commercial Paper — — Municipal Securities — — Total investments available for sale $ $ $ — $ Securities received in business disposition Restricted shares of Mesoblast common stock $ $ — $ — $ Total assets $ $ $ — $ December 31, 2013 (in thousands) Level I Level II Level III Total Assets Investments: Available for Sale Securities Cash & Cash Equivalents $ $ — $ — $ US & International government agencies — — Certificates of Deposit — — Agency Obligations — — Corporate Debt Securities & Commercial Paper — — Municipal Securities — — Total investments available for sale $ $ $ — $ Derivative and securities received in business disposition Restricted shares of Mesoblast common stock — — Price protection on restricted shares of Mesoblast common stock — — Total derivative instruments and securities — Total assets $ $ $ $

Quarterly Financial Data (Unaud

Quarterly Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2014
Quarterly Financial Data (Unaudited)
Quarterly Financial Data (Unaudited)	16. Quarterly Financial Data (Unaudited) We have restated all quarterly periods of 2014 to reflect the effects of the restatement described herein and revised our previously issued condensed financial information for each quarter in 2013 (Note 2). The following tables summarize the impacts of the results on our previously reported condensed statements of operations and balances sheets included in our Quarterly Reports on Form 10-Q for each respective period. Condensed Statements of Comprehensive Income (Loss) (in thousands, except per share data) Previously Reported Year to Year to Date Date First Second Second Third Third Fourth Quarter Quarter Quarter Quarter Quarter Quarter 2014 Product revenue $ $ $ $ $ $ Cost of product revenue Gross profit Research and development expenses Sales and marketing expenses General and administrative expenses Related party expenses Income (loss) from operations Other (expense) income Net (loss) income from continuing operations, before income taxes Income tax (expense) benefit — Loss from continuing operations Loss from discontinued operations Net loss $ $ $ $ $ $ **Loss from continuing operations per share, basic and diluted $ $ $ $ $ $ **Loss from discontinued operations per share, basic and diluted $ $ $ $ — $ $ **Net loss per share, basic and diluted $ $ $ $ $ $ Adjustments Year to Year to Date Date First Second Second Third Third Fourth Quarter Quarter Quarter Quarter Quarter Quarter 2014 Product revenue $ $ $ $ $ $ Cost of product revenue Gross profit Research and development expenses Sales and marketing expenses General and administrative expenses — Related party expenses — — — Income (loss) from operations Other (expense) income — — — — — — Net (loss) income from continuing operations, before income taxes Income tax (expense) benefit Loss from continuing operations (Loss) income from discontinued operations Net loss $ $ $ $ $ $ **Loss from continuing operations per share, basic and diluted $ $ $ $ $ $ **Loss from discontinued operations per share, basic and diluted $ — $ $ $ — $ $ **Net loss per share, basic and diluted $ $ $ $ $ $ Restated Year to Year to Date Date First Second Second Third Third Fourth Quarter Quarter Quarter Quarter Quarter Quarter 2014 Product revenue $ $ $ $ $ $ Cost of product revenue Gross profit Research and development expenses Sales and marketing expenses General and administrative expenses Related party expenses Income (loss) from operations Other (expense) income Net (loss) income from continuing operations, before income taxes Income tax (expense) benefit — Loss from continuing operations (Loss) income from discontinued operations Net loss $ $ $ $ $ $ **Loss from continuing operations per share, basic and diluted $ $ $ $ $ $ **Loss from discontinued operations per share, basic and diluted $ $ $ $ — $ $ — **Net loss per share, basic and diluted $ $ $ $ $ $ **(Loss) income per share is calculated on a quarterly basis and may not be additive to year-to-date amounts. Condensed Balance Sheets ( in thousands, except per share data) March 31, 2014 (Previously 2014 Reported) Adjustments (Restated) Assets Cash $ $ — $ Investments available for sale — Trading securities — Trade accounts receivable, net of reserves Other receivables Inventory Prepaid expenses and other current assets Current assets of discontinued operations — Total current assets Property and equipment, net Deferred tax asset Restricted cash — Total assets $ $ $ Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued expenses $ $ $ Capital lease obligations, current portion — Deferred tax liability Current liabilities of discontinued operations — Total current liabilities Other long-term liabilities — Total liabilities Commitments and contingencies Stockholders' equity Common stock, $.001 par value, 90,000 shares authorized, 34,222 shares outstanding — Additional paid-in-capital Accumulated other comprehensive loss — Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity $ $ $ June 30, 2014 (Previously 2014 Reported) Adjustments (Restated) Assets Cash $ $ — $ Investments available for sale — Trading securities — Trade accounts receivable, net of reserves Other receivables Inventory Prepaid expenses and other current assets Total current assets Property and equipment, net Restricted cash — Total assets $ $ $ Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued expenses $ $ $ Capital lease obligations, current portion — Total current liabilities Other long-term liabilities — Total liabilities Commitments and contingencies Stockholders' equity Common stock, $.001 par value, 90,000 shares authorized, 34,310 shares outstanding — Additional paid-in-capital Accumulated other comprehensive loss — Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity $ $ $ September 30, 2014 (Previously 2014 Reported) Adjustments (Restated) Assets Cash $ $ — $ Investments available for sale — Trading securities — Trade accounts receivable, net of reserves Other receivables Inventory Prepaid expenses and other current assets Total current assets Property and equipment, net Other assets — Total assets $ $ $ Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued expenses $ $ $ Capital lease obligations, current portion — Total current liabilities Other long-term liabilities — Total liabilities Commitments and contingencies Stockholders' equity Common stock, $.001 par value, 90,000 shares authorized, 34,320 shares outstanding — Additional paid-in-capital Accumulated other comprehensive loss — Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity $ $ $ The adjustments had an impact on certain captions within the condensed statements of cash flows for the restated interim quarterly periods contained within the years ended December 31, 2014 as discussed in Note 2 to the Company’s financial statements included in Part II, Item 8 of this Form 10-K/A. The following tables summarize our unaudited revised quarterly results for the year ended December 31, 2013: Condensed Statements of Comprehensive Income (Loss) (in thousands, except per share data) Previously Reported Year to Year to Date Date First Second Second Third Third Fourth 2013 Product revenue $ $ $ $ $ $ Cost of product revenue Gross profit Research and development expenses Sales and marketing expenses General and administrative expenses Related party expenses — — — Income (loss) from operations Other (expense) income Net (loss) income from continuing operations, before income taxes Income tax (expense) benefit — — — Loss from continuing operations Loss from discontinued operations Net (loss) income $ $ $ $ $ $ **Loss from continuing operations per share, basic and diluted $ $ $ $ $ $ **Loss from discontinued operations per share, basic and diluted $ $ $ $ $ $ **Net loss per share, basic and diluted $ $ $ $ $ $ Adjustments Year to Year to Date Date First Second Second Third Third Fourth 2013 Product revenue $ $ $ $ $ $ Cost of product revenue Gross profit Research and development expenses — — — — — — Sales and marketing expenses General and administrative expenses — — — — — — Related party expenses — — — Income (loss) from operations Other (expense) income — — — — — — Net (loss) income from continuing operations, before income taxes Income tax (expense) benefit — — — — — Loss from continuing operations Loss from discontinued operations — — — — — Net (loss) income $ $ $ $ $ $ **Loss from continuing operations per share, basic and diluted $ — $ — $ $ $ $ **Loss from discontinued operations per share, basic and diluted $ — $ — $ — $ — $ — $ **Net loss per share, basic and diluted $ — $ — $ $ $ $ — Revised Year to Year to Date Date First Second Second Third Third Fourth 2013 Product revenue $ $ $ $ $ $ Cost of product revenue Gross profit Research and development expenses Sales and marketing expenses General and administrative expenses Related party expenses — — — Income (loss) from operations Other (expense) income Net (loss) income from continuing operations, before income taxes Income tax (expense) benefit — — — Loss from continuing operations Loss from discontinued operations Net (loss) income $ $ $ $ $ $ **Loss from continuing operations per share, basic and diluted $ $ $ $ — $ $ **Loss from discontinued operations per share, basic and diluted $ $ $ $ $ $ **Net loss per share, basic and diluted $ $ $ $ $ $ ** The adjustments had an impact on certain captions within the condensed statements of cash flows for the revised quarterly periods contained within the year ended December 31, 2013 as discussed in Note 2 to the Company’s financial statements. Condensed Balance Sheets (in thousands, except per share data) March 31, 2013 (Previously 2013 Reported) Adjustments (Revised) Assets Cash $ $ — $ Investments available for sale — Trade accounts receivable, net of reserves — Other receivables — Inventory Prepaid expenses and other current assets — Total current assets Property and equipment, net Restricted cash — Total assets $ $ $ Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued expense $ $ — $ Capital lease obligations, current portion — Deferred revenue, current — Total current liabilities Other long-term liabilities — Total liabilities Commitments and contingencies Stockholders' equity Common stock, $.001 par value, 90,000 shares authorized, 32,930 shares outstanding — Additional paid-in-capital — Accumulated other comprehensive loss — Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity $ $ $ June 30, 2013 (Previously 2013 Reported) Adjustments (Revised) Assets Cash $ $ — $ Investments available for sale — Trade accounts receivable, net of reserves — Other receivables — Inventory Prepaid expenses and other current assets — Total current assets Property and equipment, net Restricted cash — Total assets $ $ $ Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued expense $ $ — $ Capital lease obligations, current portion — Deferred revenue, current — Total current liabilities Other long-term liabilities — Total liabilities Commitments and contingencies Stockholders' equity Common stock, $.001 par value, 90,000 shares authorized, 32,989 shares outstanding — Additional paid-in-capital — Accumulated other comprehensive loss — Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity $ $ $ September 30, 2013 (Previously 2013 Reported) Adjustments (Revised) Assets Cash $ $ — $ Investments available for sale — Trade accounts receivable, net of reserves — Other receivables — Inventory Prepaid expenses and other current assets — Current assets of discontinued operations — Total current assets Property and equipment, net Restricted cash — Total assets $ $ $ Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued expense $ $ — $ Capital lease obligations, current portion — Deferred revenue, current — Deferred gain on sale — Current liabilities of discontinued operations — Total current liabilities Other long-term liabilities — Total liabilities Commitments and contingencies Stockholders' equity Common stock, $.001 par value, 90,000 shares authorized, 34,115 shares outstanding — Additional paid-in-capital — Accumulated other comprehensive loss — Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity $ $ $

Subsequent Events (unaudited)

Subsequent Events (unaudited)	12 Months Ended
	Dec. 31, 2014
Subsequent Events (unaudited)
Subsequent Events (unaudited)	17. Subsequent Events We evaluated our December 31, 2014 financial statements for subsequent events through the date the financial statements were issued. Pursuant to the exclusive distribution agreement we entered into with a subsidiary of Stryker in December 2014, we received the initial exclusivity fee of $5 million from Stryker in February 2015. This fee was required to be paid by Stryker within five business days of receipt of documents outlined in the December 2014 agreement. In May 2015, concurrent with the expiration of the agreed holding period of the Mesoblast Limited shares received as part of the sale of the Company’s ceMSC business, described in Note 3, Mesoblast Limited paid the Company $6.2 million representing the decline in the market value of the shares through that date. Later in 2015 the Company sold all of its Mesoblast Limited shares for $6.5 million. A $2.3 million loss was recognized in 2015 in connection with these transactions. We are not aware of any other subsequent events which would require disclosure in the financial statements.

SCHEDULE II-VALUATION AND QUALI

SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS	12 Months Ended
	Dec. 31, 2014
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS	Balance at Beginning of Balance at (in thousands) Year Additions Deductions End of Year Accounts Receivable Reserve: 2014 (Restated) $ $ $ — $ 2013 2012 — Inventory Reserve: 2014 (Restated) $ — $ $ — $ 2013 — — 2012 — Net Deferred Tax Asset Valuation Allowance: 2014 (Restated) $ $ $ — $ 2013 — 2012 —

Description of Business and S27

Description of Business and Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2014
Description of Business and Significant Accounting Policies
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Due to the inherent uncertainty involved in making those assumptions, actual results could differ from those estimates. We believe that the most significant estimates that affect our financial statements are those that relate to deferred tax assets, inventory valuation, share‑based compensation and the value of the derivative instrument obtained in connection with the sale of our former Therapeutics business.
Restatement and Revisions to Prior Financial Statements	Restatement and Revisions to Prior Financial statements We have restated our audited financial statements for the year ended December 31, 2014. For more information about the restatement, see Note 2 below. Note 16 below includes restated unaudited interim financial statements for 2014. In addition to the restatement of the annual and interim periods in 2014, we have also corrected immaterial errors in our financial statements for the years ended December 31, 2013, 2012 and 2011. See “Revision of the Prior Period Financial Statement” in Note 2 for a description of the revisions to correct the immaterial errors in the years ended December 31, 2013, 2012 and 2011.
Reclassifications	Reclassifications The previously reported columns of the Company’s Statements of Comprehensive Income (Loss) for the year’s ended December 31, 2014, 2013 and 2012 reflect the reclassification of operating expenses between captions in the operating expense section of such financial statements in order to report such expenses consistently over the three years then ended. These reclassifications did not affect our results of operations or financial positions for the years presented.
Cash	Cash Amounts listed as cash on our balance sheets are maintained in depository accounts at a commercial bank. Cash and cash equivalents, which include highly liquid investments with maturities of three months or less when purchased, held in our brokerage investment accounts are classified as investments available for sale, as the amounts represent investments that have matured and are anticipated to be reinvested in debt securities in the near future, and are disclosed at fair value, which approximates cost.
Investments Available for Sale	Investments Available for Sale Investments available for sale consist primarily of marketable securities with maturities less than one year. Investments available for sale are valued at their fair value, with unrealized gains and losses reported as a separate component of stockholders’ equity in accumulated other comprehensive income. All realized gains and losses on our investments available for sale are recognized in results of operations as other income. Investments available for sale are evaluated periodically to determine whether a decline in their value is “other than temporary.” The term “other than temporary” is not intended to indicate a permanent decline in value. Rather, it means that the prospects for near term recovery of value are not necessarily favorable, or that there is a lack of evidence to support fair values equal to, or greater than, the carrying value of the security. We review criteria such as the magnitude and duration of the decline, as well as the reasons for the decline, to predict whether the loss in value is other than temporary. If a decline in value is determined to be other than temporary, the carrying value of the security is reduced and a corresponding charge to earnings is recognized.
Restricted Cash	Restricted Cash We periodically are required under the terms of various agreements to provide letters of credit which are collateralized by cash deposits. The majority of the restricted cash balance relates to a letter of credit that we caused to be issued in lieu of a security deposit under the operating lease for our Columbia, Maryland facility.
Trade Accounts Receivable	Trade Accounts Receivable Trade accounts receivable are reported at their net realizable value. We charge off uncollectible receivables when the likelihood of collection is remote. We set credit terms with individual customers, and consider receivables outstanding longer than the time specified in the respective customer’s contract to be past due. As of December 31, 2014 and 2013, accounts receivable in the accompanying balance sheets are reported net of a $1.7 million and an $78,000 allowance for doubtful accounts, respectively. We have incurred bad debt expense of $1.6 million, $80,000 and $22,000 related to our Biosurgery operations during 2014, 2013 and 2012, respectively.
Inventory	Inventory We begin carrying inventory of our Biosurgery products on our balance sheet following commercial launch of such products. Inventory consists of raw materials, biologic products in process, finished goods available for sale and products held by customers under consignment sales arrangements. We determine our inventory values using the first-in, first-out method. Inventory is valued at the lower of cost or market, and excludes units that we anticipate distributing for clinical evaluation.
Property and Equipment	Property and Equipment Property and equipment, including improvements that extend useful lives, are valued at cost, while maintenance and repairs are charged to operations as incurred. Depreciation is calculated using the straight‑line method based on estimated useful lives ranging from three to seven years for furniture, equipment and internal use software. Leasehold improvements and assets under capital leases are amortized over the shorter of the estimated useful life of the asset or the original term of the lease.
Valuation of Long-lived Assets	Valuation of Long‑lived Assets We review long‑lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be fully recoverable. These events or changes in circumstances may include a significant deterioration of operating results, changes in business plans, or changes in anticipated future cash flows. If an impairment indicator is present, we evaluate recoverability by a comparison of the carrying amount of the assets to future undiscounted net cash flows expected to be generated by the assets. Assets are grouped at the lowest level for which there is identifiable cash flows that are largely independent of the cash flows generated by other asset groups. If the total of the expected undiscounted future cash flows is less than the carrying amount of the asset, an impairment loss is recognized for the difference between the fair value and carrying value of assets. Fair value is generally determined by estimates of discounted cash flows. The discount rate used in any estimate of discounted cash flows would be the rate required for a similar investment of like risk. There were no impairment losses recognized during 2014, 2013 or 2012.
Derivative and Securities Received in Business Disposition	Derivative and Securities Received in Business Disposition – Trading Securities All derivative instruments within the scope of Accounting Standards Codification (“ ASC”) 815, Derivatives and Hedging, are recorded on the balance sheet at fair value. As of December 31, 2013 our only derivative instrument was the price guarantee regarding the payment received in restricted Mesoblast Limited shares described in Note 14—Derivative and Securities Received in Business Disposition below. We do not hold derivative financial instruments for trading purposes. As discussed in Note 3— Discontinued Operations, we disposed of our Therapeutics segment in October 2013. A portion of the consideration for the sale of that business was stock of Mesoblast Limited, the parent of the purchaser, Mesoblast. We were required to hold that stock for one year from the date of receipt. This agreed upon holding period was later extended to May 31, 2015. Mesoblast Limited is a public company and its stock is traded on the Australian Stock Exchange. As of December 31, 2014 and 2013, we reflect the investment as a current asset in Trading Securities, at market value as of the balance sheet dates, since it was our intent to sell our Mesoblast Limited shares following the expiration of the agreed upon holding period. In December 2014, the price protection on these shares expired, but Mesoblast Limited agreed to pay us $15 million in cash for the stock in the first half of 2015 and the holding period of the shares was extended to May 2015. Accordingly, this $15 million is shown as $10.6 million in Trading Securities and $4.4 million in Other Receivables on our balance sheets as of December 31, 2014. The Mesoblast Limited stock was previously subject to limited price protection for the one year required holding period. To the extent the value of those shares decreased during the holding period, Mesoblast was required to pay us for the decrease in value. This payment was to be made at least one half in cash and at the option of Mesoblast, up to one half in additional shares of Mesoblast Limited stock. Any additional Mesoblast Limited stock would also have to be held for one year during which period there was no further price protection. In 2013, the price protection was accounted for as a derivative under ASC 815, Derivatives and Hedging, and, as such was recorded on the balance sheets at fair value, with changes recognized in net income. We elected to measure the Mesoblast stock at fair value with changes in fair value reflected in net income, as permitted under ASC 825-10, Financial Instruments—Fair Value Option. The price protection ended in December 2014 and we no longer have a derivative instrument.
Revenue Recognition	Revenue Recognition We sell our products through our direct sales force and our distributor network. Some of our distributors act as principals buying our product at a stipulated price and selling to their end-use (clinical provider) customers at a marked-up price. Other distributors act as agents selling to end-use customers in exchange for earning sales commissions and/or administrative support fees. Revenue from sales to distributors who are principals is recorded at our sales price to the distributor, while revenue from sales to distributors who function as agents to Osiris is recorded at the sales price to the end-use customer. We recognize revenue from sales of our products when title and the risk of loss pass to the customer, persuasive evidence of an arrangement exists, sales amounts are fixed and determinable and collectability is reasonably assured. We recognize revenue upon shipment when a customer provides a purchase order or other documentation evidencing their acceptance of ownership risks in advance of shipment. Many of our customers accept the risks of ownership only when they use (implant) our product. For these customers, we recognize revenue upon our receipt of notice of product use and classify products shipped to these customers as consignment inventory pending receipt of such notice. With regard to a number of transactions in 2014, the Company granted unusually long payment terms to certain of its distributors. As further described in Note 2, the Company has determined that these unusually long payment terms caused these transactions to fail the “fixed and determinable“ criteria required under GAAP to recognize revenue. Accordingly, the accompanying 2014 financial statements have been restated to reverse revenue from sales initiated under these unusually long payment terms and will recognize such transactions as revenue in a future period only when cash payment is received from the distributor. In December 2014, we entered into exclusive distribution agreements with a subsidiary of Stryker Corporation (“Stryker”) for the marketing and distribution of BIO(4) ™ , formerly branded by the Company as OvationOS®, our viable bone matrix allograft. Pursuant to the agreement, Stryker has been granted worldwide distribution rights to the product and any improvements, for all surgical applications. We will be responsible for supply, manufacturing, inventory management, shipments to customers, continued research and product improvement activities. We will recognize as revenue the amounts charged to customers for the allografts and related services. Commissions and administrative fees paid to Stryker will be accounted for as selling expenses, as Stryker is acting as outside sales and marketing agent for Osiris. We are entitled to receive an initial exclusivity fee of $5 million and additional fees upon any exercise by Stryker of its right to extend the initial term, whether on an exclusive or non-exclusive basis. The exclusivity fee and any extension fees subsequently received are considered to be adjustments of the selling expenses. As such, we recognize the $5 million exclusivity fee as deferred revenue to be amortized over the related exclusivity period in proportion to the expected fees to be paid to Stryker, as an offset to selling expenses. At December 31, 2014, Osiris recorded a $5 million receivable included in other receivables with the offset to short-term deferred exclusivity fee revenue of $1.67 million and long-term deferred exclusivity fee revenue of $3.33 million included in other long term liabilities. In October 2014, we entered into an exclusive commercial and development partnership for our cartilage product, Cartiform®, with Arthrex, Inc. (“Arthrex”). The agreement provides Arthrex with exclusive commercial distribution rights to Cartiform® beginning in 2015. We will be responsible for manufacturing, continued research and product improvement activities. The responsibilities related to the design and conduct of future clinical development programs will be shared between both organizations. Pursuant to the agreement, Arthrex is entitled to a certain commission on Cartiform® sales. We will recognize the full sales price as revenue and account for the payment to Arthrex as commission expense.
Therapeutics Revenue Recognition	Therapeutics Revenue Recognition In our former Therapeutics business, we evaluated revenue from agreements that have multiple elements to determine whether the components of the arrangement represent separate units of accounting. To recognize a delivered item in a multiple element arrangement, the delivered items must have value on a standalone basis and the delivery or performance must be probable and within our control for any delivered items that have a right of return. The determination of whether multiple elements of a collaboration agreement meet the criteria for separate units of accounting requires us to exercise judgment. We account for the activities of our former Therapeutics business as discontinued operations. Revenue from research licenses associated with our former Therapeutics business were recognized as earned upon either the incurring of reimbursable expenses directly related to the particular research plan or the completion of certain development milestones as defined within the terms of the agreement. Payments received in advance of research performance were designated as deferred revenue. Non‑refundable upfront license fees and certain other related fees associated with our former Therapeutics business were recognized on a straight‑line basis over the development periods of the contract deliverables. Fees associated with substantive at risk performance based milestones are recognized as revenue upon their completion, as defined in the respective agreements. Incidental assignment of technology rights were recognized as revenue when and if it was earned and received. In October 2008, we entered into a Collaboration Agreement with Genzyme Corporation, then an independent and now a Sanofi company (“Genzyme”), for the development and commercialization of our biologic drug candidates, Prochymal and Chondrogen™. Under this agreement, Genzyme made non‑contingent, non‑refundable cash payments to us, totaling $130 million. The agreement provided Genzyme with certain rights to intellectual property developed by us, and required that we continue to perform certain development work related to the subject biologic drug candidates. In February 2012, Sanofi issued a press release which included an update on their R&D pipeline, stating that it had discontinued its project with Prochymal for Graft versus Host Disease. In September 2012, we reached agreement with Sanofi to conclude the Collaboration Agreement without either party having any continuing obligation to the other. We evaluated the deliverables related to the upfront payments made to us under the Genzyme Collaboration Agreement, and concluded that the various deliverables represent a single unit of accounting. For this reason, we deferred the recognition of revenue related to the upfront payments, and amortized these amounts to revenue on a straight‑line basis over the estimated delivery period of the required development services, which extended through January 2012.
Research and Development Costs	Research and Development Costs We expense internal and external R&D costs, including costs of funded R&D arrangements and the manufacture of clinical batches of Biosurgery products used in clinical trials, in the period incurred.
Income Taxes	Income Taxes Deferred tax liabilities and assets are recognized for the estimated future tax consequences of temporary differences, income tax credits and net operating loss carryforwards. Temporary differences are primarily the result of the differences between the tax bases of assets and liabilities and their financial reporting values. Deferred tax liabilities and assets are measured by applying the enacted statutory tax rates applicable to the future years in which deferred tax liabilities or assets are expected to be settled or realized. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense, if any, consists of the taxes payable for the current period and the change during the period in deferred tax assets and liabilities. We recognize in our financial statements the impact of a tax position, if that position is more likely than not to be sustained upon an examination, based on the technical merits of the position. Interest and penalties related to income tax matters are recorded as income tax expense. At December 31, 2014 and 2013, we had no accruals for interest or penalties related to income tax matters.
Income per Common Share	Income per Common Share Basic income per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted income per common share adjusts basic income per share for the potentially dilutive effects of common share equivalents, using the treasury stock method, and includes the incremental effect of shares that would be issued upon the assumed exercise of stock options and warrants. Diluted loss from continuing operations for the year ended December 31, 2014 excludes all 1,608,557 shares issuable upon the exercise of options, as their impact on our loss from continuing operations is anti-dilutive. As a result, basic and diluted weighted average common shares outstanding are identical. Diluted loss from continuing operations for the year ended December 31, 2013 excludes all 1,233,767 shares issuable upon the exercise of options, as their impact on our loss from continuing operations is anti-dilutive. As a result, basic and diluted weighted average common shares outstanding are identical. Diluted loss per common share for the year ended December 31, 2012 excludes the 1,000,000 shares issuable upon the exercise of an outstanding "out-of the money" warrant, and all 1,826,114 of our outstanding options as of December 31, 2012, as their impact on our net loss is anti-dilutive. As a result, basic and diluted weighted average common shares outstanding are identical.
Share-Based Compensation	Share‑Based Compensation We account for share‑based payments using the fair value method. We recognize all share‑based payments to employees and non‑employee directors in our financial statements based on their grant date fair values, calculated using the Black‑Scholes option pricing model. Compensation expense related to share‑based awards is recognized on a straight‑line basis for each vesting tranche based on the value of share awards that are expected to vest on the grant date, which is revised to reflect actual forfeitures.
Comprehensive Income	Comprehensive Income Comprehensive income consists of net income and all changes in equity from non‑stockholder sources, which consist of changes in unrealized gains and losses on investments.
Concentration of Risk	Concentration of Risk We maintain cash and short‑term investment balances in accounts that exceed federally insured limits, although we have not experienced any losses on such accounts. We also invest excess cash in investment-grade securities, generally with maturities of one year or less. We have historically provided credit in the normal course of business to contract counterparties and to the distributors of our products. Trade accounts receivable in the accompanying balance sheets consist primarily of amounts due from distributors and end-user customers of our products within the United States. For the year ended and as of December 31, 2014, we had two customers that comprised 51% of our revenue and 31% of our trade net receivables. For the year ended and as of December 31, 2013, we had three customers that comprised 60% of our revenue and 39% of our trade net receivables. As discussed under “Trade Accounts Receivable” above, we incurred bad debt expense of $1.6 million, $80,000 and $22,000 related to our Biosurgery operations during 2014, 2013 and 2012, respectively.
Recent Accounting Guidance Not Yet Adopted at December 31, 2014	Recent Accounting Guidance Not Yet Adopted at December 31, 2014 In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers,” which requires an entity to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. The new standard will replace most of the existing revenue recognition standards in GAAP when it becomes effective on January 1, 2017. Early adoption is not permitted. The new standard can be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of the change recognized at the date of the initial application. We are currently assessing the impact the adoption of ASU 2014-09 will have on our financial statements. In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements - Going Concern,” which require management to evaluate, at each reporting period, 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 the financial statements are issued and provide related disclosures. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. We are currently assessing the impact the adoption of ASU 2014-15 will have on our financial statements.

Restatement of the Financial 28

Restatement of the Financial Statements (Tables)	12 Months Ended
	Dec. 31, 2014
Accounting Changes and Error Corrections [Abstract]
Schedule of impact of the error correction adjustments	Year ended December 31, 2014 (a) Revenue Recognition Error Corrections Net Income Stockholders' (in thousands) Impact Equity Impact Product revenue $ $ — Cost of product revenue — Sales and marketing expenses — Trade accounts receivable — Inventory — Prepaids and other current assets — Accounts payable and accrued expenses — Net (decrease)/increase $ $ Year ended December 31, 2014 (b) Inventory Valuation Error Corrections Net Income Stockholders' (in thousands) Impact Equity Impact Cost of product revenue $ $ — Inventory — Net (decrease)/increase $ $ Year ended December 31, 2014 (c) Bad Debt Reserve Net Income Stockholders' (in thousands) Impact Equity Impact General and administrative expenses $ $ — Trade accounts receivable — Net (decrease)/increase $ $ Year ended December 31, 2014 (d) Expense Caption Classification Error Corrections Net Income Stockholders' (in thousands) Impact Equity Impact Cost of product revenue $ $ — Research and development expenses — Sales and marketing expenses — General and administrative expenses — Net (decrease)/increase $ — $ — Year ended December 31, 2014 (e) Other Immaterial Error Corrections Net Income Stockholders' (in thousands) Impact Equity Impact Cost of product revenue $ $ — Research and development expenses — Sales and marketing expenses — General and administrative expenses — Related party fees — Income tax expense — Other receivables — Property and equipment — Accounts payable and accrued expenses — Additional paid-in capital — Beginning retained earnings — Net (decrease)/increase $ $ Year ended December 31, 2014 (f) Tax effect of restatement adjustments Net Income Stockholders' (in thousands) Impact Equity Impact Income tax expense $ $ — Loss from discontinued operations — Other receivables — Accounts payable and accrued expenses — Additional paid-in capital — Net (decrease)/increase $ $ Year ended December 31, 2014 Summary of Restatement Adjustments Net Income Stockholders' Restatement (in thousands) Impact Equity Impact Ref Product revenue $ $ — (a) Cost of product revenue — (a), (b), (d), (e) Research and development expenses — (d), (e) Sales and marketing expenses — (a), (d), (e) General and administrative expenses — (c), (d), (e) Related party fees — (e) Income tax expense — (e), (f) Loss from discontinued operations — (f) Trade accounts receivable — (a), (c) Other receivables — (e), (f) Inventory — (a), (b) Prepaids and other current assets — (a) Property and equipment — (e) Accounts payable and accrued expenses — (a), (e), (f) Additional paid-in capital — (e), (f) Beginning retained earnings — (e) Net (decrease)/increase $ $
Schedule of effects of restatement on the Balance Sheet	December 31, 2014 (Previously Restatement 2014 Restatement (in thousands, except per share data) Reported) Adjustments (Restated) Ref Assets Current assets: Cash $ $ — $ Investments available for sale — Trading securities — Trade accounts receivable, net of reserves (a), (c) Other receivables (e), (f) Inventory (a), (b) Prepaid expenses and other current assets (a) Total current assets Property and equipment, net (e) Other assets — Total assets $ $ $ Liabilities and Stockholders' Equity Current liabilities: Accounts payable and accrued expenses $ $ $ (a), (e), (f) Capital lease obligations, current portion — Deferred exclusivity fee revenue, current portion — Total current liabilities Other long-term liabilities — Total liabilities Commitments and contingencies Stockholders' equity Common stock, $.001 par value, 90,000 shares authorized, 34,346 shares outstanding — Additional paid-in-capital (e), (f) Accumulated other comprehensive loss — Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity $ $ $ December 31, 2013 (Previously 2013 (in thousands, except per share data) Reported) Adjustments (Revised) Assets Current assets: Cash $ $ — $ Investments available for sale — Trading securities — Trade accounts receivable, net of reserves — Other receivables Inventory — Prepaid expenses and other current assets — Current assets of discontinued operations — Total current assets Property and equipment, net — Deferred tax asset — Restricted cash — Total assets $ $ $ Liabilities and Stockholders' Equity Current liabilities: Accounts payable and accrued expenses $ $ — $ Capital lease obligations, current portion — Deferred exclusivity fee revenue, current portion — — — Deferred tax liability — Current liabilities of discontinued operations — Total current liabilities — Other long-term liabilities — Total liabilities — Commitments and contingencies Stockholders' equity Common stock, $.001 par value, 90,000 shares authorized, 34,115 shares outstanding — Additional paid-in-capital — Accumulated other comprehensive loss — Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity $ $ $
Schedule of effects of restatement on the Statement of Comprehensive Loss	Year ended December 31, 2014 (Previously Restatement 2014 Restatement (in thousands, except per share data) Reported) Adjustments (Restated) Ref Product revenue $ $ $ (a) Cost of product revenue (a), (b), (d), (e) Gross profit Operating expenses Research and development (d), (e) Sales and marketing (a), (d), (e) General and administrative (c), (d), (e) Fees paid to related parties (e) Share based payments to related parties — Total operating expenses Income (loss) from operations Other (expense) income, net — Loss from continuing operations, before income taxes Income tax (expense) benefit (e), (f) Loss from continuing operations Discontinued operations Loss from operations of discontinued operations, net of income taxes of $516 in 2014 (f) (Loss) income from discontinued operations Net (loss) income Other comprehensive loss Unrealized loss on investments available for sale — Comprehensive (loss) income $ $ $ Basic and diluted loss per share Loss from continuing operations $ $ $ Loss from discontinued operations Basic and diluted loss per share $ $ $ Weighted average common shares (basic and diluted) Year ended December 31, 2013 (Previously 2013 (in thousands, except per share data) Reported) Adjustments (Revised) Product revenue $ $ $ Cost of product revenue Gross profit Operating expenses: Research and development — Sales and marketing General and administrative — Fees paid to related parties — Share based payments to related parties — Total operating expenses Income (loss) from operations Other income, net — Loss from continuing operations, before income taxes Income tax (expense) benefit Loss from continuing operations Discontinued operations: Loss from operations of discontinued operations, net of income taxes of $0 — Gain from sale of discontinued operations, net of income taxes of $1,374 in 2013 Income from discontinued operations Net income Other comprehensive loss Unrealized loss on investments available for sale — Comprehensive income $ $ $ Basic and diluted income (loss) per share Income (loss) from continuing operations $ $ $ Income (loss) from discontinued operations — Basic and diluted income (loss) per share $ $ $ Weighted average common shares (basic and diluted) Year ended December 31, 2012 (Previously 2012 (in thousands, except per share data) Reported) Adjustments (Revised) Product revenue $ $ $ Cost of product revenue Gross profit Operating expenses: Research and development — Sales and marketing — General and administrative — Fees paid to related parties Share based payments to related parties — Total operating expenses Loss from operations Other income, net — Loss from continuing operations, before income taxes Income tax benefit — Loss from continuing operations Discontinued operations: Loss from operations of discontinued operations, net of income taxes of $0 — Loss from discontinued operations — Net loss Other comprehensive loss Unrealized loss on investments available for sale — Comprehensive loss $ $ $ Basic and diluted loss per share Loss from continuing operations $ $ $ Loss from discontinued operations — Basic and diluted loss per share $ $ $ Weighted average common shares (basic)
Schedule of effects of restatement on the Statement of Cash Flows	Year ended December 31, 2014 (Previously Restatement 2014 Restatement (in thousands) Reported) Adjustments (Restated) Ref Cash flows from operating activities: Continuing operations Loss from continuing operations $ $ $ Adjustments to reconcile loss from continuing operations to net cash used in operations of continuing operations: Unrealized loss on trading securities — Depreciation and amortization — Non cash share-based payments (e) Provision for bad debts (c) Changes in operating assets and liabilities: Accounts receivable (a) Inventory (a), (b) Prepaid expenses, and other current assets (a), (e) Tax receivable — (f) Other assets — Accounts payable, accrued expenses, and other liabilities (a), (e), (f) Net cash used in operating activities of continuing operations Discontinued operations Loss from discontinued operations (f) Adjustments to reconcile loss from discontinued operations to net cash used in operations of discontinued operations: Expiration of price protection derivative related to trading securities — Changes in operating assets and liabilities: Accounts receivable and other current assets — Accounts payable and accrued expenses — Net cash provided by operations of discontinued operations Net cash used in operating activities Cash flows from investing activities: Purchases of property and equipment (e) Proceeds from sale of investments available for sale — Purchases of investments available for sale — Net cash provided by investing activities Cash flows from financing activities: Principal payments on capital lease obligations — Restricted cash — Proceeds from the exercise of options to purchase common stock — Windfall benefit from stock-based compensation Net cash provided by financing activities Net (decrease) in cash — Cash at beginning of period — Cash at end of period $ $ — $ Supplemental disclosure of cash flows information: Cash paid for income taxes $ $ — $ Supplemental disclosure of non cash activities: Deferred compensation related to Stryker agreement — Guaranteed payment related to trading securities — Unrealized loss on investments available for sale — Year ended December 31, 2013 (Previously 2013 (in thousands) Reported) Adjustments (Revised) Cash flows from operating activities: Continuing operations Loss from continuing operations $ $ $ Adjustments to reconcile loss from continuing operations to net cash used in operations of continuing operations: Unrealized gain on trading securities — Depreciation and amortization — Non cash share-based payments — Provision for bad debts — Changes in operating assets and liabilities: Accounts receivable — Inventory Prepaid expenses, and other current assets Tax Receivable — Other assets — — — Deferred revenue — Accounts payable, accrued expenses, and other liabilities — Net cash used in operating activities of continuing operations Discontinued operations Loss from discontinued operations — Adjustments to reconcile loss from discontinued operations to net cash used in operations of discontinued operations: Expiration of price protection derivative related to trading securities — Depreciation and amortization — Non cash share-based payments — Changes in operating assets and liabilities: — Accounts receivable and other current assets — Accounts payable and accrued expenses — Net cash used in operations of discontinued operations — Net cash used in operating activities Cash flows from investing activities: Purchases of property and equipment — Proceeds from sale of discontinued operations, net Proceeds from sale of investments available for sale — Purchases of investments available for sale — Net cash provided by investing activities Cash flows from financing activities: Principal payments on capital lease obligations — Restricted cash — Proceeds from the exercise of options to purchase common stock — Net cash provided by financing activities — Net increase in cash — Cash at beginning of period — Cash at end of period $ $ — $ Supplemental disclosure of cash flows information: Cash paid for income taxes $ $ — $ Supplemental disclosure of non cash activities: Trading securities from the sales of discontinued operations — Purchase price guarantee related to trading securities — Proceeds receivable due from sale of discontinued operations — Unrealized loss on investments available for sale — Year ended December 31, 2012 (Previously Restatement 2012 (in thousands) Reported) Adjustments (Revised) Cash flows from operating activities: Continuing operations Loss from continuing operations $ $ $ Adjustments to reconcile loss from continuing operations to net cash used in operations of continuing operations: Depreciation and amortization — Non cash share-based payments — Provision for bad debts — Changes in operating assets and liabilities: Accounts receivable — Inventory Prepaid expenses, and other current assets Tax Receivable — Other assets — — — Deferred revenue — Accounts payable, accrued expenses, and other liabilities — Net cash used in operating activities of continuing operations — Discontinued operations Loss from discontinued operations — Adjustments to reconcile loss from discontinued operations to net cash used in operations of discontinued operations: Depreciation and amortization — Non cash share-based payments — Changes in operating assets and liabilities: Accounts receivable and other current assets — Accounts payable and accrued expenses — Deferred revenue — Net cash provided by (used in) operations of discontinued operations — Net cash used in operating activities — Cash flows from investing activities: Purchases of property and equipment — Proceeds from sale of investments available for sale — Purchases of investments available for sale — Net cash provided by investing activities — Cash flows from financing activities: Principal payments on capital lease obligations — Restricted cash — Proceeds from the exercise of options to purchase common stock — Net cash provided by financing activities — Net increase in cash — Cash at beginning of period — Cash at end of period $ $ — $ Supplemental disclosure of cash flows information: Cash paid for income taxes $ — $ — $ — Supplemental disclosure of non cash activities: Equipment acquired under a capital lease — Unrealized loss on investments available for sale —
Schedule of revision of prior period financial statements	For year ended December 31, 2013 2012 2011 Net Income Stockholders' Net Income Stockholders' Net Income Stockholders' (in thousands) Impact Equity Impact Impact Equity Impact Impact Equity Impact Revenue Recognition Product revenue $ $ — $ $ — $ $ — Cost of product revenue — — — Sales and marketing expenses — — — — — Deferred revenue — — — Inventory — — — Directors' Expenses Other receivables — — — — Fees paid to related parties — — — — Tax Effect of the Adjustments Income taxes benefit — — — — — Income from discontinued operations — — — — — Net increase/(decrease) $ $ $ $ $ $

Discontinued Operations (Tables

Discontinued Operations (Tables)	12 Months Ended
	Dec. 31, 2014
Discontinued Operations
Schedule of initial consideration and contingent additional payments upon achievement of milestone events provided under Purchase Agreement	Amount Milestone ($000) Initial consideration Letter of intent payments $ Initial closing payment Additional closing payment, received in April 2014 Delivery of all scheduled assets under the Transfer Agreement (paid in stock) Total initial consideration Contingent consideration First marketing authorization received in the U.S. First marketing authorization received from France, Germany, or European Union Completion of the enrollment of the Phase 3 Crohn’s Trial or Mesoblast’s election to discontinue the trial Receipt of final data for the Crohn’s trial or first marketing approval for Crohn’s Total conditional consideration Total possible purchase price $
Schedule of net assets allocable to the Therapeutics business	(in thousands) 2014 2013 Current assets: Accounts receivable $ — $ Current liabilities: Accounts payable and accrued expenses $ — $
Summary of operating results of discontinued operations	Year ended December 31, (in thousands) 2014 2013 2012 (Restated) Revenue from collaborative research agreements and royalties $ $ $ Operating expenses: Research and development $ General and administrative Total operating expenses $ $ $ Loss from discontinued operations before income tax expense Income tax expense — — Loss from discontinued operations $ $ $

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2014
Property and Equipment
Property, Plant and Equipment [Table Text Block]	(in thousands) 2014 2013 (Restated) Laboratory and manufacturing equipment $ $ Computer hardware, furniture and fixtures Leased assets Leasehold improvements Accumulated depreciation and amortization Property and equipment, net $ $

Inventory (Tables)

Inventory (Tables)	12 Months Ended
	Dec. 31, 2014
Inventory
Schedule of inventory for Biosurgery business	(in thousands) 2014 2013 (Restated) Raw materials and supplies $ $ Work-in-process Finished goods Total Biosurgery inventory, net $ $

Capital Lease (Tables)

Capital Lease (Tables)	12 Months Ended
	Dec. 31, 2014
Capital Lease
Schedule of future minimum lease payments under the capital lease agreement	(in thousands) Amount December 31, 2015 $ 2016 2017 Less: Amount representing interest Present value of minimum lease payments Less: Current portion of capital lease obligations Long-term portion of capital lease obligations $

Share-Based Compensation (Table

Share-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2014
Share-Based Compensation
Schedule of assumptions used to estimate fair value of stock options granted	Years ended December 31, 2014 2013 2012 Assumptions Weighted average risk-free interest rate 1.50 % 1.00 - 1.50 % 2.00 % Dividend yield 0.00 % 0.00 % 0.00 % Expected life of option grants 5.0 Yrs 5.0 - 6.5 Yrs 6.0 - 6.3 Yrs volatility 60 % 52 - 61 % 52 - 54 %
Summary of stock option activity	Weighted Weighted Average Aggregate Average Remaining Intrinsic Number of Exercise Contractual Value Shares Price Life (in thousands) Balance, December 31, 2011 $ years Granted $ Exercised $ $ Forfeited or canceled $ Balance, December 31, 2012 $ years $ Granted $ Exercised $ $ Forfeited or canceled $ Balance, December 31, 2013 $ years $ Granted $ Exercised $ $ Forfeited or canceled $ Balance, December 31, 2014 $ years $ Exercisable at December 31, 2014 $ years $
Summary of stock options outstanding by price range	Options Outstanding Options Exercisable Weighted-Average Remaining Weighted-Average Number Contractual Life Exercise Number Weighted-Average Range of Exercise Prices Outstanding (in years) Price Outstanding Exercise Price $ 0.40 - $ 4.00 $ $ $ 4.01 - $ 5.25 $ 5.26 - $ 7.25 $ 7.01 - $ 7.75 $ 7.76 - $ 8.50 $ 8.51 - $ 12.75 $ 12.76 - $ 14.00 $ 14.01 - $ 16.00 — — $ 16.01 - $ 17.50 $ 17.51 - $ 24.00 $ $
Schedule of share-based compensation expense	Year Ended December 31, (in thousands) 2014 2013 2012 (Restated) Cost of product revenue $ $ — $ — Sales and marketing — — Research and development General and administrative Discontinued operations — Total $ $ $

Investments Available for Sale

Investments Available for Sale (Tables)	12 Months Ended
	Dec. 31, 2014
Investments Available for Sale
Schedule of investments available for sale	December 31, 2014 December 31, 2013 Unrealized Unrealized (in thousands) Cost Gain Loss Fair Value Cost Gain Loss Fair Value Cash equivalents Money market funds & certificates of deposit $ $ — $ — $ $ $ — $ — $ Corporate debt securities & commercial paper 21 22 Investments Municipal securities Agency obligations Mutual Funds — — — — — — US & International government agencies 1 — — Investments available for sale $ $ $ $ $ $ $ $
Summary of securities with unrealized losses	Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) Value Loss Value Loss Value Loss December 31, 2014 Municipal securities $ $ $ $ $ 2,032 $ Agency obligations — — 3,939 Corporate debt securities & commercial paper — — 7,073 US & International government agencies — — 2,873 Total temporarily impaired $ $ $ $ $ 15,917 $ Less than 12 months More than 12 months Total Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) Value Loss Value Loss Value Loss December 31, 2013 Corporate debt securities & commercial paper $ $ (10) $ — $ — $ 3,341 $ (10) Municipal securities (24) — — 4,530 (24) Agency obligations (35) — — 3,804 (35) Total temporarily impaired $ $ (69) $ — $ — $ 11,675 $ (69)
Schedule of maturities of investments available for sale	December 31, 2014 December 31, 2013 (in thousands) Cost Fair Value Cost Fair Value Maturities: Within 3 months $ $ $ $ Between 3 - 12 months More than 1 year Investments available for sale $ $ $ $

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2014
Income Taxes
Schedule of effective tax rate benefit (expense) that varies from the U.S. Federal Statutory tax rate	2014 2013 2012 (Restated) U.S. Federal Statutory tax rate % % % State taxes, net of federal benefits % % % Nondeductible expenses % % % Stock compensation % % % Change in valuation allowance % % % Credits % % % Change in tax rate % % % Other % % % Effective tax rate % % %
Schedule of components of net deferred tax assets and liabilities	(in thousands) 2014 2013 (Restated) Deferred Tax Assets Credits $ $ Net Operating loss carry-forward — — Stock options—NQSO Fixed assets Accrued Expenses Allowance for doubtful accounts Deferred rent — UNICAP — Inventory Restatement — Inventory Reserve — Other — Valuation allowance Net deferred tax assets $ $ Deferred Tax Liabilities Gain on installment sale $ — $ 481(a) Adjustment $ $ — $ $

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2014
Commitments and Contingencies
Schedule of future minimum lease payments due under the operating lease	(in thousands) 2015 $ 2016 2017 2018 2019 Thereafter $

Fair Value (Tables)

Fair Value (Tables)	12 Months Ended
	Dec. 31, 2014
Fair Value
Schedule of rollforward of the fair value of Level 3 instruments, comprised solely of the limited price protection derivative related to the Mesoblast stock issued to entity in connection with the sale of entity's former Therapeutics business	December 31, December 31, (in thousands) 2014 2013 Balance at beginning of period $ $ — Fair value upon receipt of Mesoblast stick — Change in fair value Settlements — Balance at end of period $ — $
Schedule of assets and liabilities measured at fair value on a recurring basis	December 31, 2014 (in thousands) Level I Level II Level III Total Assets Investments: Available for Sale Securities Cash & Cash Equivalents $ — — $ US & International government agencies — — Mutual Funds — — — — Agency Obligations — — Corporate Debt Securities & Commercial Paper — — Municipal Securities — — Total investments available for sale $ $ $ — $ Securities received in business disposition Restricted shares of Mesoblast common stock $ $ — $ — $ Total assets $ $ $ — $ December 31, 2013 (in thousands) Level I Level II Level III Total Assets Investments: Available for Sale Securities Cash & Cash Equivalents $ $ — $ — $ US & International government agencies — — Certificates of Deposit — — Agency Obligations — — Corporate Debt Securities & Commercial Paper — — Municipal Securities — — Total investments available for sale $ $ $ — $ Derivative and securities received in business disposition Restricted shares of Mesoblast common stock — — Price protection on restricted shares of Mesoblast common stock — — Total derivative instruments and securities — Total assets $ $ $ $

Quarterly Financial Data (Una38

Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2014
Quarterly Financial Data (Unaudited)
Schedule of unaudited quarterly results	Previously Reported Year to Year to Date Date First Second Second Third Third Fourth Quarter Quarter Quarter Quarter Quarter Quarter 2014 Product revenue $ $ $ $ $ $ Cost of product revenue Gross profit Research and development expenses Sales and marketing expenses General and administrative expenses Related party expenses Income (loss) from operations Other (expense) income Net (loss) income from continuing operations, before income taxes Income tax (expense) benefit — Loss from continuing operations Loss from discontinued operations Net loss $ $ $ $ $ $ **Loss from continuing operations per share, basic and diluted $ $ $ $ $ $ **Loss from discontinued operations per share, basic and diluted $ $ $ $ — $ $ **Net loss per share, basic and diluted $ $ $ $ $ $ Adjustments Year to Year to Date Date First Second Second Third Third Fourth Quarter Quarter Quarter Quarter Quarter Quarter 2014 Product revenue $ $ $ $ $ $ Cost of product revenue Gross profit Research and development expenses Sales and marketing expenses General and administrative expenses — Related party expenses — — — Income (loss) from operations Other (expense) income — — — — — — Net (loss) income from continuing operations, before income taxes Income tax (expense) benefit Loss from continuing operations (Loss) income from discontinued operations Net loss $ $ $ $ $ $ **Loss from continuing operations per share, basic and diluted $ $ $ $ $ $ **Loss from discontinued operations per share, basic and diluted $ — $ $ $ — $ $ **Net loss per share, basic and diluted $ $ $ $ $ $ Restated Year to Year to Date Date First Second Second Third Third Fourth Quarter Quarter Quarter Quarter Quarter Quarter 2014 Product revenue $ $ $ $ $ $ Cost of product revenue Gross profit Research and development expenses Sales and marketing expenses General and administrative expenses Related party expenses Income (loss) from operations Other (expense) income Net (loss) income from continuing operations, before income taxes Income tax (expense) benefit — Loss from continuing operations (Loss) income from discontinued operations Net loss $ $ $ $ $ $ **Loss from continuing operations per share, basic and diluted $ $ $ $ $ $ **Loss from discontinued operations per share, basic and diluted $ $ $ $ — $ $ — **Net loss per share, basic and diluted $ $ $ $ $ $ March 31, 2014 (Previously 2014 Reported) Adjustments (Restated) Assets Cash $ $ — $ Investments available for sale — Trading securities — Trade accounts receivable, net of reserves Other receivables Inventory Prepaid expenses and other current assets Current assets of discontinued operations — Total current assets Property and equipment, net Deferred tax asset Restricted cash — Total assets $ $ $ Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued expenses $ $ $ Capital lease obligations, current portion — Deferred tax liability Current liabilities of discontinued operations — Total current liabilities Other long-term liabilities — Total liabilities Commitments and contingencies Stockholders' equity Common stock, $.001 par value, 90,000 shares authorized, 34,222 shares outstanding — Additional paid-in-capital Accumulated other comprehensive loss — Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity $ $ $ June 30, 2014 (Previously 2014 Reported) Adjustments (Restated) Assets Cash $ $ — $ Investments available for sale — Trading securities — Trade accounts receivable, net of reserves Other receivables Inventory Prepaid expenses and other current assets Total current assets Property and equipment, net Restricted cash — Total assets $ $ $ Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued expenses $ $ $ Capital lease obligations, current portion — Total current liabilities Other long-term liabilities — Total liabilities Commitments and contingencies Stockholders' equity Common stock, $.001 par value, 90,000 shares authorized, 34,310 shares outstanding — Additional paid-in-capital Accumulated other comprehensive loss — Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity $ $ $ September 30, 2014 (Previously 2014 Reported) Adjustments (Restated) Assets Cash $ $ — $ Investments available for sale — Trading securities — Trade accounts receivable, net of reserves Other receivables Inventory Prepaid expenses and other current assets Total current assets Property and equipment, net Other assets — Total assets $ $ $ Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued expenses $ $ $ Capital lease obligations, current portion — Total current liabilities Other long-term liabilities — Total liabilities Commitments and contingencies Stockholders' equity Common stock, $.001 par value, 90,000 shares authorized, 34,320 shares outstanding — Additional paid-in-capital Accumulated other comprehensive loss — Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity $ $ $ Previously Reported Year to Year to Date Date First Second Second Third Third Fourth 2013 Product revenue $ $ $ $ $ $ Cost of product revenue Gross profit Research and development expenses Sales and marketing expenses General and administrative expenses Related party expenses — — — Income (loss) from operations Other (expense) income Net (loss) income from continuing operations, before income taxes Income tax (expense) benefit — — — Loss from continuing operations Loss from discontinued operations Net (loss) income $ $ $ $ $ $ **Loss from continuing operations per share, basic and diluted $ $ $ $ $ $ **Loss from discontinued operations per share, basic and diluted $ $ $ $ $ $ **Net loss per share, basic and diluted $ $ $ $ $ $ Adjustments Year to Year to Date Date First Second Second Third Third Fourth 2013 Product revenue $ $ $ $ $ $ Cost of product revenue Gross profit Research and development expenses — — — — — — Sales and marketing expenses General and administrative expenses — — — — — — Related party expenses — — — Income (loss) from operations Other (expense) income — — — — — — Net (loss) income from continuing operations, before income taxes Income tax (expense) benefit — — — — — Loss from continuing operations Loss from discontinued operations — — — — — Net (loss) income $ $ $ $ $ $ **Loss from continuing operations per share, basic and diluted $ — $ — $ $ $ $ **Loss from discontinued operations per share, basic and diluted $ — $ — $ — $ — $ — $ **Net loss per share, basic and diluted $ — $ — $ $ $ $ — Revised Year to Year to Date Date First Second Second Third Third Fourth 2013 Product revenue $ $ $ $ $ $ Cost of product revenue Gross profit Research and development expenses Sales and marketing expenses General and administrative expenses Related party expenses — — — Income (loss) from operations Other (expense) income Net (loss) income from continuing operations, before income taxes Income tax (expense) benefit — — — Loss from continuing operations Loss from discontinued operations Net (loss) income $ $ $ $ $ $ **Loss from continuing operations per share, basic and diluted $ $ $ $ — $ $ **Loss from discontinued operations per share, basic and diluted $ $ $ $ $ $ **Net loss per share, basic and diluted $ $ $ $ $ $ March 31, 2013 (Previously 2013 Reported) Adjustments (Revised) Assets Cash $ $ — $ Investments available for sale — Trade accounts receivable, net of reserves — Other receivables — Inventory Prepaid expenses and other current assets — Total current assets Property and equipment, net Restricted cash — Total assets $ $ $ Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued expense $ $ — $ Capital lease obligations, current portion — Deferred revenue, current — Total current liabilities Other long-term liabilities — Total liabilities Commitments and contingencies Stockholders' equity Common stock, $.001 par value, 90,000 shares authorized, 32,930 shares outstanding — Additional paid-in-capital — Accumulated other comprehensive loss — Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity $ $ $ June 30, 2013 (Previously 2013 Reported) Adjustments (Revised) Assets Cash $ $ — $ Investments available for sale — Trade accounts receivable, net of reserves — Other receivables — Inventory Prepaid expenses and other current assets — Total current assets Property and equipment, net Restricted cash — Total assets $ $ $ Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued expense $ $ — $ Capital lease obligations, current portion — Deferred revenue, current — Total current liabilities Other long-term liabilities — Total liabilities Commitments and contingencies Stockholders' equity Common stock, $.001 par value, 90,000 shares authorized, 32,989 shares outstanding — Additional paid-in-capital — Accumulated other comprehensive loss — Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity $ $ $ September 30, 2013 (Previously 2013 Reported) Adjustments (Revised) Assets Cash $ $ — $ Investments available for sale — Trade accounts receivable, net of reserves — Other receivables — Inventory Prepaid expenses and other current assets — Current assets of discontinued operations — Total current assets Property and equipment, net Restricted cash — Total assets $ $ $ Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued expense $ $ — $ Capital lease obligations, current portion — Deferred revenue, current — Deferred gain on sale — Current liabilities of discontinued operations — Total current liabilities Other long-term liabilities — Total liabilities Commitments and contingencies Stockholders' equity Common stock, $.001 par value, 90,000 shares authorized, 34,115 shares outstanding — Additional paid-in-capital — Accumulated other comprehensive loss — Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity $ $ $

Description of Business and S39

Description of Business and Significant Accounting Policies (Details)	12 Months Ended			48 Months Ended
	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	Dec. 31, 2012USD ($)	Dec. 31, 2013USD ($)item
Trade Accounts Receivable
Number of business segments | item				2
Trade Accounts Receivable
Allowance for doubtful accounts related to accounts receivable	$ 1,700,000	$ 78,000		$ 78,000
Provision for bad debts	1,628,000	80,000	$ 22,000
Biosurgery segment
Trade Accounts Receivable
Provision for bad debts	$ 1,600,000	$ 80,000	$ 22,000

Description of Business and S40

Description of Business and Significant Accounting Policies (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Valuation of Long-lived Assets
Impairment losses	$ 0	$ 0	$ 0
Furniture, equipment and internal use software | Minimum
Property and Equipment
Estimated useful lives	3 years
Furniture, equipment and internal use software | Maximum
Property and Equipment
Estimated useful lives	7 years

Description of Business and S41

Description of Business and Significant Accounting Policies (Details 3) - USD ($) $ in Thousands	Dec. 31, 2013	Oct. 10, 2013	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013
Derivative and Securities Received in Business Disposition
Trading securities	$ 17,086		$ 10,591	$ 15,060	$ 15,584	$ 16,907
Other receivables	$ 15,369		10,081	$ 623	$ 472	$ 15,346	$ 104	$ 104	$ 104
Purchase Agreement with Mesoblast
Derivative and Securities Received in Business Disposition
Holding period for any payments made in ordinary shares		1 year
Other receivables			$ 4,400
Holding period of stock subject to limited price protection	1 year
Aggregate compensation to be received for decrease in value of shares payable in cash (as a percent)			50.00%
Aggregate compensation to be received in additional shares for decrease in value of shares (as a percent)			50.00%
Therapeutics segment | Purchase Agreement with Mesoblast
Derivative and Securities Received in Business Disposition
Holding period for any payments made in ordinary shares		1 year
Consideration in restricted stock			$ 15,000
Trading securities			10,600
Other receivables			$ 4,400

Description of Business and S42

Description of Business and Significant Accounting Policies (Details 4) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2008	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013
Revenue Recognition
Other receivables	$ 10,081		$ 623	$ 472	$ 15,346	$ 15,369	$ 104	$ 104	$ 104
Deferred exclusivity fee revenue, current portion	1,667
Biosurgery segment
Revenue Recognition
Other receivables	5,000
Biosurgery segment | Stryker
Revenue Recognition
Initial exclusivity fee	5,000
Deferred revenue to be amortized	5,000
Other long term liabilities | Biosurgery segment
Revenue Recognition
Deferred exclusivity fee revenue, current portion	1,670
Long-term deferred exclusivity fee revenue	$ 3,330
Genzyme Corporation
Revenue Recognition
Non-contingent, non-refundable cash payments		$ 130,000

Description of Business and S43

Description of Business and Significant Accounting Policies (Details 5) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Taxes
Accruals for interest or penalties related to income tax matters	$ 0	$ 0
Warrant
Income per Common Share
Anti-dilutive securities not included in diluted income (loss) per common share			1,000,000
Stock options
Income per Common Share
Anti-dilutive securities not included in diluted income (loss) per common share	1,608,557	1,233,767	1,826,114

Description of Business and S44

Description of Business and Significant Accounting Policies - Risk (Details)	12 Months Ended
	Dec. 31, 2014USD ($)customer	Dec. 31, 2013USD ($)customer	Dec. 31, 2012USD ($)
Concentration of Risk
Bad debt expense | $	$ 1,628,000	$ 80,000	$ 22,000
Biosurgery segment
Concentration of Risk
Bad debt expense | $	$ 1,600,000	$ 80,000	$ 22,000
Two Customers
Concentration of Risk
Number of customers | customer	2
Three Customers
Concentration of Risk
Number of customers | customer		3
Receivables | Customers | Two Customers
Concentration of Risk
Concentration of risk (as a percent)	31.00%
Receivables | Customers | Three Customers
Concentration of Risk
Concentration of risk (as a percent)		39.00%
Revenue. | Customers | Two Customers
Concentration of Risk
Concentration of risk (as a percent)	51.00%
Revenue. | Customers | Three Customers
Concentration of Risk
Concentration of risk (as a percent)		60.00%

Restatement of the Financial 45

Restatement of the Financial Statements - Summary of Restatement Adjustments (Details) - USD ($)	3 Months Ended								6 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Jun. 30, 2014	Jun. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Jan. 01, 2014
Net income (loss)	$ (2,023,000)	$ (372,000)	$ (5,253,000)	$ (2,322,000)	$ 49,837,000	$ (1,194,000)	$ (3,442,000)	$ (2,741,000)	$ (7,575,000)	$ (6,183,000)	$ (7,947,000)	$ (7,377,000)	$ (9,970,000)	$ 42,460,000	$ (11,585,000)
Product revenue	18,165,000	16,307,000	9,206,000	7,157,000	8,296,000	7,680,000	5,759,000	3,963,000	16,363,000	9,722,000	32,670,000	17,402,000	50,835,000	25,698,000	7,164,000
Cost of product revenue	(3,249,000)	(3,524,000)	(2,058,000)	(1,055,000)	(2,192,000)	(2,018,000)	(1,543,000)	(1,098,000)	(3,113,000)	(2,641,000)	(6,637,000)	(4,659,000)	(9,886,000)	(6,851,000)	(2,420,000)
Research and development	(1,037,000)	(913,000)	(986,000)	(478,000)	(1,091,000)	(968,000)	(1,206,000)	(1,065,000)	(1,464,000)	(2,271,000)	(2,377,000)	(3,239,000)	(3,414,000)	(4,330,000)	(4,059,000)
Sales and marketing expenses	(12,619,000)	(9,971,000)	(8,016,000)	(5,778,000)	(4,864,000)	(4,073,000)	(3,609,000)	(1,264,000)	(13,794,000)	(4,873,000)	(23,765,000)	(8,946,000)	(36,384,000)	(13,810,000)	(2,836,000)
General and administrative expenses	(3,223,000)	(1,772,000)	(1,590,000)	(978,000)	(297,000)	(630,000)	(566,000)	(1,045,000)	(2,568,000)	(1,611,000)	(4,340,000)	(2,241,000)	(7,563,000)	(2,538,000)	(2,282,000)
Related party fees													(169,000)		(2,000)
Trade accounts receivable, net of reserves	13,373,000	12,512,000	9,291,000	8,627,000	7,459,000	6,773,000	6,406,000	5,346,000	9,291,000	6,406,000	12,512,000	6,773,000	13,373,000	7,459,000
Inventory	9,824,000	7,867,000	5,353,000	3,249,000	1,929,000	1,682,000	1,866,000	1,843,000	5,353,000	1,866,000	7,867,000	1,682,000	9,824,000	1,929,000
Prepaid expenses and other current assets	2,894,000	2,234,000	1,444,000	480,000	355,000	639,000	356,000	462,000	1,444,000	356,000	2,234,000	639,000	2,894,000	355,000
Property and equipment, net	2,079,000	2,004,000	1,895,000	1,809,000	1,896,000	2,009,000	2,040,000	2,037,000	1,895,000	2,040,000	2,004,000	2,009,000	2,079,000	1,896,000
Accounts payable and accrued expenses	(7,468,000)	(6,591,000)	(5,870,000)	(3,135,000)	(4,842,000)	(3,652,000)	(6,826,000)	(4,985,000)	(5,870,000)	(6,826,000)	(6,591,000)	(3,652,000)	(7,468,000)	(4,842,000)
Income tax benefit	(53,000)	(23,000)	(21,000)		994,000		(358,000)	358,000	(21,000)		(44,000)		(97,000)	994,000	37,000
Deferred revenue															(3,333,000)
Beginning retained earnings	(211,620,000)	(209,597,000)	(209,225,000)	(203,972,000)	(201,650,000)	(251,487,000)	(250,293,000)	(246,851,000)	(209,225,000)	(250,293,000)	(209,597,000)	(251,487,000)	(211,620,000)	(201,650,000)
Restatement Adjustment
Net income (loss)	(2,839,000)	(1,017,000)	(3,368,000)	(957,000)	32,000	482,000	314,000	(6,000)	(4,325,000)	308,000	(5,342,000)	790,000	(8,181,000)	822,000	(520,000)
Product revenue	(1,154,000)	(897,000)	(4,084,000)	(2,897,000)	216,000	798,000	468,000	(92,000)	(6,981,000)	376,000	(7,878,000)	1,174,000	(9,032,000)	1,390,000	(685,000)
Cost of product revenue	1,001,000	261,000	866,000	1,157,000	(10,000)	(160,000)	(62,000)	37,000	2,023,000	(25,000)	2,284,000	(185,000)	3,285,000	(195,000)	131,000
Research and development	2,893,000	294,000	69,000	192,000					261,000		555,000		3,448,000
Sales and marketing expenses	(5,272,000)	(650,000)	(268,000)	376,000	(174,000)	(156,000)	(92,000)	(21,000)	108,000	(113,000)	(542,000)	(269,000)	(5,814,000)	(443,000)
General and administrative expenses	(657,000)	(147,000)		103,000					103,000		(44,000)		(701,000)
Related party fees													112,000	70,000	34,000
Trade accounts receivable, net of reserves	(10,934,000)	(8,934,000)	(7,599,000)	(3,136,000)					(7,599,000)		(8,934,000)		(10,934,000)
Inventory	(1,100,000)	(973,000)	(187,000)	912,000		10,000	170,000	232,000	(187,000)	170,000	(973,000)	10,000	(1,100,000)
Prepaid expenses and other current assets	2,244,000	1,745,000	1,040,000	162,000					1,040,000		1,745,000		2,244,000
Property and equipment, net	(8,000)	(8,000)									(8,000)		(8,000)
Other receivables.	130,000												130,000
Accounts payable and accrued expenses	1,386,000	2,685,000	2,167,000	890,000					2,167,000		2,685,000		1,386,000
Additional paid-in capital	205,000												205,000
Income tax benefit	36,000	81,000	109,000	(130,000)	(332,000)				(21,000)		60,000		96,000	(332,000)
Loss from discontinued operations													425,000
Beginning retained earnings	(8,077,000)	$ (5,238,000)	$ (4,221,000)	$ (853,000)	104,000	$ 72,000	$ (410,000)	$ (724,000)	$ (4,221,000)	$ (410,000)	$ (5,238,000)	$ 72,000	(8,077,000)	104,000			$ (104,000)
Net (decrease)/increase													(8,181,000)	822,000	(520,000)	$ (198,000)
Revenue Recognition Error Corrections
Net income (loss)														752,000	(554,000)
Revenue Recognition Error Corrections | Restatement Adjustment
Product revenue													(9,032,000)	1,390,000	(685,000)	(262,000)
Cost of product revenue													852,000	(195,000)	131,000	64,000
Sales and marketing expenses													2,323,000
Trade accounts receivable, net of reserves	(10,484,000)												(10,484,000)
Inventory	852,000				(195,000)								852,000	(195,000)	131,000	64,000
Prepaid expenses and other current assets	2,244,000												2,244,000
Accounts payable and accrued expenses	1,531,000												1,531,000
Deferred revenue														947,000	(685,000)	$ (262,000)
Net (decrease)/increase													(5,857,000)
Revenue Recognition Unrelated To Distribution Sales Arrangements | Restatement Adjustment
Product revenue													(241,000)
Revenue Recognition Two Types Of Distributor Sales Arrangements | Restatement Adjustment
Product revenue													(8,800,000)
Certain Distributor Sales | Restatement Adjustment
Net income (loss)													(5,600,000)
Product revenue													(10,300,000)
Trade accounts receivable, net of reserves	(10,300,000)												(10,300,000)
Sales Through Government Contracting Agent | Restatement Adjustment
Impact on net income (loss)													0
Product revenue													1,500,000
Sales and marketing expenses													(1,500,000)
Inventory Valuation Error Corrections | Restatement Adjustment
Cost of product revenue													(1,952,000)
Inventory	(1,952,000)												(1,952,000)
Net (decrease)/increase													(1,952,000)
Bad Debt Reserve Error Corrections | Restatement Adjustment
General and administrative expenses													(450,000)
Trade accounts receivable, net of reserves	(450,000)												(450,000)
Net (decrease)/increase													(450,000)
Expense Caption Classification Error Corrections | Restatement Adjustment
Cost of product revenue													4,134,000
Research and development													3,619,000
Sales and marketing expenses													(7,619,000)
General and administrative expenses													(134,000)
Other Immaterial Error Corrections | Restatement Adjustment
Impact on net income (loss)													507,000
Cost of product revenue													251,000
Research and development													(171,000)
Sales and marketing expenses													(518,000)
General and administrative expenses													(117,000)
Related party fees													112,000	70,000	34,000
Property and equipment, net	(8,000)												(8,000)
Other receivables.	216,000				$ 70,000								216,000	70,000	$ 34,000
Accounts payable and accrued expenses	(814,000)												(814,000)
Additional paid-in capital	203,000												203,000
Income tax benefit													(64,000)
Beginning retained earnings																	$ (104,000)
Net (decrease)/increase													(507,000)
Tax Effect Of Restatement Adjustments | Restatement Adjustment
Other receivables.	(86,000)												(86,000)
Accounts payable and accrued expenses	669,000												669,000
Additional paid-in capital	$ 2,000												2,000
Income tax benefit													160,000	(332,000)
Loss from discontinued operations													425,000	$ (332,000)
Net (decrease)/increase													$ 585,000

Restatement of the Financial 46

Restatement of the Financial Statements - Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Jan. 01, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Current assets:
Cash	$ 2,208	$ 946	$ 2,658	$ 2,342		$ 2,416	$ 1,801	$ 1,579	$ 1,287	$ 1,854	$ 1,661
Investments available for sale	37,305	42,349	45,759	34,650		39,508	26,464	25,626	28,292
Trading securities	10,591	15,060	15,584	16,907		17,086
Other receivables	10,081	623	472	15,346		15,369	104	104	104
Trade accounts receivable, net of reserves	13,373	12,512	9,291	8,627		7,459	6,773	6,406	5,346
Inventory	9,824	7,867	5,353	3,249		1,929	1,682	1,866	1,843
Prepaid expenses and other current assets	2,894	2,234	1,444	480		355	639	356	462
Current assets of discontinued operations				96		91	247
Total current assets	86,276	81,591	80,561	81,697		84,213	37,710	35,937	37,334
Property and equipment, net	2,079	2,004	1,895	1,809		1,896	2,009	2,040	2,037
Deferred tax asset				5,796		5,849
Other assets	95	96
Restricted cash			223	243		243	243	317	317
Total assets	88,450	83,691	82,679	89,545		92,201	39,962	38,294	39,688
Current liabilities:
Accounts payable and accrued expenses	7,468	6,591	5,870	3,135		4,842	3,652	6,826	4,985
Capital lease obligations, current portion	45	45	45	45		45	45	45	44
Deferred exclusivity fee revenue, current portion							42	684	1,060
Deferred exclusivity fee revenue, current portion	1,667
Deferred tax liability				5,796		5,849
Current liabilities of discontinued operations				17		57	463
Total current liabilities	9,180	6,636	5,915	8,993		10,793	7,702	7,555	6,089
Other long-term liabilities	3,589	276	280	319		355	433	469	501
Total liabilities	12,769	6,912	6,195	9,312		11,148	8,135	8,024	6,590
Commitments and contingencies
Stockholders' equity
Common stock, $.001 par value, 90,000 shares authorized, 34,346 shares outstanding - 2014, 34,115 shares outstanding - 2013	35	35	34	34		34	34	33	33
Additional paid-in-capital	287,320	286,299	285,603	284,116		282,702	283,369	280,616	279,911
Accumulated other comprehensive (loss) income	(54)	42	72	55		(33)	(89)	(86)	5
Accumulated deficit	(211,620)	(209,597)	(209,225)	(203,972)		(201,650)	(251,487)	(250,293)	(246,851)
Total stockholders' equity	75,681	76,779	76,484	80,233		81,053	31,827	30,270	33,098	35,172	45,620
Total liabilities and stockholders' equity	88,450	83,691	82,679	89,545		92,201	39,962	38,294	39,688
Previously Reported
Current assets:
Cash	2,208	946	2,658	2,342		2,416	1,801	1,579	1,287	$ 1,854	1,661
Investments available for sale	37,305	42,349	45,759	34,650		39,508	26,464	25,626	28,292
Trading securities	10,591	15,060	15,584	16,907		17,086
Other receivables	9,951	474	256	15,130		15,265
Trade accounts receivable, net of reserves	24,307	21,446	16,890	11,763		7,459	6,773	6,406	5,346
Inventory	10,924	8,840	5,540	2,337		1,929	1,672	1,696	1,611
Prepaid expenses and other current assets	650	489	404	318		355	639	356	462
Current assets of discontinued operations				96		91	247
Total current assets	95,936	89,604	87,091	83,543		84,109	37,596	35,663	36,998
Property and equipment, net	2,087	2,012	1,895	1,809		1,896	2,009	2,040	2,037
Deferred tax asset				5,737		5,849
Other assets	95	96
Restricted cash			223	243		243	243	317	317
Total assets	98,118	91,712	89,209	91,332		92,097	39,848	38,020	39,352
Current liabilities:
Accounts payable and accrued expenses	8,854	9,276	8,037	4,025		4,842	3,652	6,826	4,985
Capital lease obligations, current portion	45	45	45	45		45	45	45	44
Deferred exclusivity fee revenue, current portion	1,667
Deferred tax liability				5,737		5,849
Current liabilities of discontinued operations				17		57	463
Total current liabilities	10,566	9,321	8,082	9,824		10,793	7,660	6,871	5,029
Other long-term liabilities	3,589	276	280	319		355	433	469	501
Total liabilities	14,155	9,597	8,362	10,143		11,148	8,093	7,340	5,530
Commitments and contingencies
Stockholders' equity
Common stock, $.001 par value, 90,000 shares authorized, 34,346 shares outstanding - 2014, 34,115 shares outstanding - 2013	35	35	34	34		34	34	33	33
Additional paid-in-capital	287,525	286,397	285,745	284,219		282,702	283,369	280,616	279,911
Accumulated other comprehensive (loss) income	(54)	42	72	55		(33)	(89)	(86)	5
Accumulated deficit	(203,543)	(204,359)	(205,004)	(203,119)		(201,754)	(251,559)	(249,883)	(246,127)
Total stockholders' equity	83,963	82,115	80,847	81,189		80,949	31,755	30,680	33,822		45,818
Total liabilities and stockholders' equity	98,118	91,712	89,209	91,332		92,097	39,848	38,020	39,352
Restatement Adjustment
Current assets:
Other receivables	130	149	216	216		104	104	104	104
Trade accounts receivable, net of reserves	(10,934)	(8,934)	(7,599)	(3,136)
Inventory	(1,100)	(973)	(187)	912			10	170	232
Prepaid expenses and other current assets	2,244	1,745	1,040	162
Total current assets	(9,660)	(8,013)	(6,530)	(1,846)		104	114	274	336
Property and equipment, net	(8)	(8)
Deferred tax asset				59
Total assets	(9,668)	(8,021)	(6,530)	(1,787)		104	114	274	336
Current liabilities:
Accounts payable and accrued expenses	(1,386)	(2,685)	(2,167)	(890)
Deferred exclusivity fee revenue, current portion							42	684	1,060
Deferred tax liability				59
Total current liabilities	(1,386)	(2,685)	(2,167)	(831)			42	684	1,060
Total liabilities	(1,386)	(2,685)	(2,167)	(831)			42	684	1,060
Commitments and contingencies
Stockholders' equity
Additional paid-in-capital	(205)	(98)	(142)	(103)
Accumulated deficit	(8,077)	(5,238)	(4,221)	(853)	$ (104)	104	72	(410)	(724)
Total stockholders' equity	(8,282)	(5,336)	(4,363)	(956)		104	72	(410)	(724)		$ (198)
Total liabilities and stockholders' equity	$ (9,668)	$ (8,021)	$ (6,530)	$ (1,787)		$ 104	$ 114	$ 274	$ 336

Restatement of the Financial 47

Restatement of the Financial Statements - Balance Sheets (Parentheticals) (Details 3) - $ / shares shares in Thousands	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013
CONDENSED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001	$ 0.001	$ 0.001	$ 0.001	$ 0.001	$ 0.001	$ 0.001
Common stock, shares authorized	90,000	90,000	90,000	90,000	90,000	90,000	90,000	90,000
Common stock, shares outstanding	34,346	34,320	34,310	34,222	34,115	34,115	32,989	32,930

Restatement of the Financial 48

Restatement of the Financial Statements - Statement of Comprehensive Loss (Details 4) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								6 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Jun. 30, 2014	Jun. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Product revenue	$ 18,165	$ 16,307	$ 9,206	$ 7,157	$ 8,296	$ 7,680	$ 5,759	$ 3,963	$ 16,363	$ 9,722	$ 32,670	$ 17,402	$ 50,835	$ 25,698	$ 7,164
Cost of product revenue	3,249	3,524	2,058	1,055	2,192	2,018	1,543	1,098	3,113	2,641	6,637	4,659	9,886	6,851	2,420
Gross Profit	14,916	12,783	7,148	6,102	6,104	5,662	4,216	2,865	13,250	7,081	26,033	12,743	40,949	18,847	4,744
Operating expenses:
Research and development	1,037	913	986	478	1,091	968	1,206	1,065	1,464	2,271	2,377	3,239	3,414	4,330	4,059
Sales and marketing expenses	12,619	9,971	8,016	5,778	4,864	4,073	3,609	1,264	13,794	4,873	23,765	8,946	36,384	13,810	2,836
General and administrative	3,223	1,772	1,590	978	297	630	566	1,045	2,568	1,611	4,340	2,241	7,563	2,538	2,282
Fees paid to related parties													169		2
Share-based payments to related parties													403	180	1,918
Total operating expenses													47,933	20,858	11,097
Loss from operations of continuing operations	(2,009)	80	(3,483)	(1,572)	(148)	(9)	(1,165)	(689)	(5,055)	(1,854)	(4,975)	(1,863)	(6,984)	(2,011)	(6,353)
Other income (expense), net	(8)	(405)	(1,232)	(126)	334	26	25	29	(1,358)	54	(1,763)	80	(1,771)	414	49
Income (Loss) from continuing operations, before income taxes	(2,017)	(325)	(4,715)	(1,698)	186	17	(1,140)	(660)	(6,413)	(1,800)	(6,738)	(1,783)	(8,755)	(1,597)	(6,304)
Income tax benefit	(53)	(23)	(21)		994		(358)	358	(21)		(44)		(97)	994	37
Loss from continuing operations	(2,070)	(348)	(4,736)	(1,698)	1,180	17	(1,498)	(302)	(6,434)	(1,800)	(6,782)	(1,783)	(8,852)	(603)	(6,267)
Discontinued operations:
Loss from discontinued operations													1,118	6,668	5,318
Gain from sale of discontinued operations, net of income taxes of $1,374 in 2013														49,731
(Loss) income from discontinued operations	47	(24)	(517)	(624)	48,657	(1,211)	(1,944)	(2,439)	(1,141)	(4,383)	(1,165)	(5,594)	(1,118)	43,063	(5,318)
Net (loss) income	$ (2,023)	$ (372)	$ (5,253)	$ (2,322)	$ 49,837	$ (1,194)	$ (3,442)	$ (2,741)	$ (7,575)	$ (6,183)	$ (7,947)	$ (7,377)	(9,970)	42,460	(11,585)
Other comprehensive income (loss)
Unrealized gain (loss) on investments available for sale													(21)	(13)	(40)
Comprehensive income (loss)													$ (9,991)	$ 42,447	$ (11,625)
Basic and diluted (loss) income per share
Income (loss) from continuing operations (in dollars per share)	$ (0.06)	$ (0.01)	$ (0.14)	$ (0.05)	$ 0.03		$ (0.05)	$ (0.01)	$ (0.19)	$ (0.05)	$ (0.20)	$ (0.05)	$ (0.26)	$ (0.02)	$ (0.19)
Income (loss) from discontinued operations (in dollars per share)			(0.02)	(0.02)	1.43	$ (0.04)	(0.06)	(0.07)	(0.03)	(0.13)	(0.03)	(0.17)	(0.03)	1.29	(0.16)
Basic and diluted income (loss) per share (in dollars per share)	$ (0.06)	$ (0.01)	$ (0.16)	$ (0.07)	$ 1.46	$ (0.04)	$ (0.11)	$ (0.08)	$ (0.22)	$ (0.18)	$ (0.23)	$ (0.22)	$ (0.29)	$ 1.27	$ (0.35)
Weighted average common shares (basic and diluted) (in shares)													34,263	33,307	32,859
Previously Reported
Product revenue	$ 19,319	$ 17,204	$ 13,290	$ 10,054	$ 8,080	$ 6,882	$ 5,291	$ 4,055	$ 23,344	$ 9,346	$ 40,548	$ 16,228	$ 59,867	$ 24,308	$ 7,849
Cost of product revenue	4,250	3,785	2,924	2,212	2,182	1,858	1,481	1,135	5,136	2,616	8,921	4,474	13,171	6,656	2,551
Gross Profit	15,069	13,419	10,366	7,842	5,898	5,024	3,810	2,920	18,208	6,730	31,627	11,754	46,696	17,652	5,298
Operating expenses:
Research and development	3,930	1,207	1,055	670	1,091	968	1,206	1,065	1,725	2,271	2,932	3,239	6,862	4,330	4,059
Sales and marketing expenses	7,347	9,321	7,748	6,154	4,690	3,917	3,517	1,243	13,902	4,760	23,223	8,677	30,570	13,367	2,836
General and administrative	2,566	1,625	1,590	1,081	297	630	566	1,045	2,671	1,611	4,296	2,241	6,862	2,538	2,282
Fees paid to related parties													281	70	36
Share-based payments to related parties													403	180	1,918
Total operating expenses													44,978	20,485	11,131
Loss from operations of continuing operations	1,180	1,219	(66)	(615)	(180)	(491)	(1,479)	(683)	(681)	(2,162)	538	(2,653)	1,718	(2,833)	(5,833)
Other income (expense), net	(8)	(405)	(1,232)	(126)	334	26	25	29	(1,358)	54	(1,763)	80	(1,771)	414	49
Income (Loss) from continuing operations, before income taxes	1,172	814	(1,298)	(741)	154	(465)	(1,454)	(654)	(2,039)	(2,108)	(1,225)	(2,573)	(53)	(2,419)	(5,784)
Income tax benefit	(89)	(104)	(130)	130	1,326		(358)	358			(104)		(193)	1,326	37
Loss from continuing operations	1,083	710	(1,428)	(611)	1,480	(465)	(1,812)	(296)	(2,039)	(2,108)	(1,329)	(2,573)	(246)	(1,093)	(5,747)
Discontinued operations:
Loss from discontinued operations													1,543	6,668	5,318
Gain from sale of discontinued operations, net of income taxes of $1,374 in 2013														49,399
(Loss) income from discontinued operations	(267)	(65)	(457)	(754)	48,325	(1,211)	(1,944)	(2,439)	(1,211)	(4,383)	(1,276)	(5,594)	(1,543)	42,731	(5,318)
Net (loss) income	$ 816	$ 645	$ (1,885)	$ (1,365)	$ 49,805	$ (1,676)	$ (3,756)	$ (2,735)	$ (3,250)	$ (6,491)	$ (2,605)	$ (8,167)	(1,789)	41,638	(11,065)
Other comprehensive income (loss)
Unrealized gain (loss) on investments available for sale													(21)	(13)	(40)
Comprehensive income (loss)													$ (1,810)	$ 41,625	$ (11,105)
Basic and diluted (loss) income per share
Income (loss) from continuing operations (in dollars per share)	$ 0.03	$ 0.02	$ (0.04)	$ (0.02)	$ 0.04	$ (0.01)	$ (0.05)	$ (0.01)	$ (0.06)	$ (0.06)	$ (0.04)	$ (0.08)	$ (0.01)	$ (0.04)	$ (0.17)
Income (loss) from discontinued operations (in dollars per share)	(0.01)		(0.01)	(0.02)	1.42	(0.04)	(0.06)	(0.07)	(0.04)	(0.13)	(0.04)	(0.17)	(0.04)	1.29	(0.16)
Basic and diluted income (loss) per share (in dollars per share)	$ 0.02	$ 0.02	$ (0.05)	$ (0.04)	$ 1.46	$ (0.05)	$ (0.11)	$ (0.08)	$ (0.10)	$ (0.19)	$ (0.08)	$ (0.25)	$ (0.05)	$ 1.25	$ (0.33)
Weighted average common shares (basic and diluted) (in shares)													34,263	33,307	32,859
Restatement Adjustment
Product revenue	$ (1,154)	$ (897)	$ (4,084)	$ (2,897)	$ 216	$ 798	$ 468	$ (92)	$ (6,981)	$ 376	$ (7,878)	$ 1,174	$ (9,032)	$ 1,390	$ (685)
Cost of product revenue	(1,001)	(261)	(866)	(1,157)	10	160	62	(37)	(2,023)	25	(2,284)	185	(3,285)	195	(131)
Gross Profit	(153)	(636)	(3,218)	(1,740)	206	638	406	(55)	(4,958)	351	(5,594)	989	(5,747)	1,195	(554)
Operating expenses:
Research and development	(2,893)	(294)	(69)	(192)					(261)		(555)		(3,448)
Sales and marketing expenses	5,272	650	268	(376)	174	156	92	21	(108)	113	542	269	5,814	443
General and administrative	657	147		(103)					(103)		44		701
Fees paid to related parties													(112)	(70)	(34)
Total operating expenses													2,955	373	(34)
Loss from operations of continuing operations	(3,189)	(1,139)	(3,417)	(957)	32	482	314	(6)	(4,374)	308	(5,513)	790	(8,702)	822	(520)
Income (Loss) from continuing operations, before income taxes	(3,189)	(1,139)	(3,417)	(957)	32	482	314	(6)	(4,374)	308	(5,513)	790	(8,702)	822	(520)
Income tax benefit	36	81	109	(130)	(332)				(21)		60		96	(332)
Loss from continuing operations	(3,153)	(1,058)	(3,308)	(1,087)	(300)	482	314	(6)	(4,395)	308	(5,453)	790	(8,606)	490	(520)
Discontinued operations:
Loss from discontinued operations													(425)
Gain from sale of discontinued operations, net of income taxes of $1,374 in 2013														332
(Loss) income from discontinued operations	314	41	(60)	130	332				70		111		425	332
Net (loss) income	$ (2,839)	$ (1,017)	$ (3,368)	$ (957)	$ 32	$ 482	$ 314	$ (6)	$ (4,325)	$ 308	$ (5,342)	$ 790	(8,181)	822	(520)
Other comprehensive income (loss)
Comprehensive income (loss)													$ (8,181)	$ 822	$ (520)
Basic and diluted (loss) income per share
Income (loss) from continuing operations (in dollars per share)	$ (0.09)	$ (0.03)	$ (0.10)	$ (0.03)	$ (0.01)	$ 0.01			$ (0.13)	$ 0.01	$ (0.16)	$ 0.03	$ (0.25)	$ 0.02	$ (0.02)
Income (loss) from discontinued operations (in dollars per share)	0.01		(0.01)		$ 0.01				0.01		0.01		0.01
Basic and diluted income (loss) per share (in dollars per share)	$ (0.08)	$ (0.03)	$ (0.11)	$ (0.03)		$ 0.01			$ (0.12)	$ 0.01	$ (0.15)	$ 0.03	$ (0.24)	$ 0.02	$ (0.02)

Restatement of the Financial 49

Restatement of the Financial Statements - Statement of Comprehensive Loss (parenthetcals) (Details 5) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
STATEMENTS OF COMPREHENSIVE LOSS
Gain from sale of discontinued operations, income taxes		$ 1,374
Discontinued Operation, Tax Effect of Income (Loss) from Discontinued Operation During Phase-out Period	$ 516	$ 0	$ 0

Restatement of the Financial 50

Restatement of the Financial Statements - Cash flows (Details 6) - USD ($) $ in Thousands	3 Months Ended								6 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Jun. 30, 2014	Jun. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Continuing operations
Loss from continuing operations	$ (2,070)	$ (348)	$ (4,736)	$ (1,698)	$ 1,180	$ 17	$ (1,498)	$ (302)	$ (6,434)	$ (1,800)	$ (6,782)	$ (1,783)	$ (8,852)	$ (603)	$ (6,267)
Adjustments to reconcile loss from continuing operations to net cash used in operations of continuing operations:
Unrealized loss on trading securities													401	(401)
Depreciation and amortization													940	587	552
Non cash share-based payments													2,929	583	492
Provision for bad debts													1,628	80	22
Changes in operating assets and liabilities: Detailed value tagged in table below
Accounts receivable													(7,542)	(4,685)	(2,185)
Inventory													(7,895)	(456)	(642)
Prepaid expenses, and other current assets													(2,832)	88	(293)
Tax Receivable													(10)	(160)	2,188
Other assets													(95)
Deferred revenue														(947)	685
Accounts payable, accrued expenses, and other current liabilities													2,572	2,605	665
Net cash used in operating activities of continuing operations													(18,756)	(3,309)	(4,783)
Discontinued operations
Loss from operations of discontinued operations, net of income taxes													(1,118)	(6,668)	(5,318)
Adjustments to reconcile loss from discontinued operations to net cash used in operations of discontinued operations:
Expiration of price protection derivative related to trading securities													1,685	(1,705)
Depreciation and amortization														156	156
Non cash share-based payments														658	598
Changes in operating assets and liabilities:
Accounts receivable and other current assets													15,091	113	(172)
Accounts payable and accrued expenses													(57)	(2,846)	(419)
Deferred revenue															(3,333)
Net cash provided by (used in) operations of discontinued operations													15,601	(10,292)	(8,488)
Net cash used in operating activities													(3,155)	(13,601)	(13,271)
Cash flows from investing activities:
Purchases of property and equipment													(1,123)	(528)	(128)
Proceeds from sale of discontinued operations, net														19,751
Proceeds from sale of investments available for sale													114,374	55,357	217,185
Purchases of investments available for sale													(112,192)	(62,640)	(203,733)
Net cash provided by investing activities													1,059	11,940	13,324
Cash flows from financing activities:
Principal payments on capital lease obligations													(45)	(44)	(22)
Restricted cash													243	74	75
Proceeds from the exercise of options to purchase common stock													1,685	2,193	87
Windfall benefit from stock-based compensation													5
Net cash provided by financing activities													1,888	2,223	140
Net (decrease) increase in cash													(208)	562	193
Cash at beginning of period	946	2,658	2,342	2,416	1,801	1,579	1,287	1,854	2,416	1,854	2,416	1,854	2,416	1,854	1,661
Cash at end of period	2,208	946	2,658	2,342	2,416	1,801	1,579	1,287	2,658	1,579	946	1,801	2,208	2,416	1,854
Supplemental disclosure of cash flows information:
Cash paid for income taxes													619	539
Supplemental disclosure of non cash activities:
Deferred compensation related to Stryker agreement													5,000
Equipment acquired under a capital lease															228
Guaranteed payment related to trading securities													4,409
Trading securities from the sales of discontinued operations														15,000
Purchase price guarantee related to trading securities														1,685
Proceeds receivable due from sale of discontinued operations														15,000
Unrealized loss on investments available for sale													21	13	40
Previously Reported
Continuing operations
Loss from continuing operations	1,083	710	(1,428)	(611)	1,480	(465)	(1,812)	(296)	(2,039)	(2,108)	(1,329)	(2,573)	(246)	(1,093)	(5,747)
Adjustments to reconcile loss from continuing operations to net cash used in operations of continuing operations:
Unrealized loss on trading securities													401	(401)
Depreciation and amortization													940	587	552
Non cash share-based payments													3,132	583	492
Provision for bad debts													1,178	80	22
Changes in operating assets and liabilities: Detailed value tagged in table below
Accounts receivable													(18,026)	(4,685)	(2,185)
Inventory													(8,995)	(651)	(511)
Prepaid expenses, and other current assets													(572)	158	(259)
Tax Receivable														(160)	2,188
Other assets													(95)
Accounts payable, accrued expenses, and other current liabilities													3,958	2,605	665
Net cash used in operating activities of continuing operations													(18,325)	(2,977)	(4,783)
Discontinued operations
Loss from operations of discontinued operations, net of income taxes													(1,543)	(6,668)	(5,318)
Adjustments to reconcile loss from discontinued operations to net cash used in operations of discontinued operations:
Expiration of price protection derivative related to trading securities													1,685	(1,705)
Depreciation and amortization														156	156
Non cash share-based payments														658	598
Changes in operating assets and liabilities:
Accounts receivable and other current assets													15,091	113	(172)
Accounts payable and accrued expenses													(57)	(2,846)	(419)
Deferred revenue															(3,333)
Net cash provided by (used in) operations of discontinued operations													15,176	(10,292)	(8,488)
Net cash used in operating activities													(3,149)	(13,269)	(13,271)
Cash flows from investing activities:
Purchases of property and equipment													(1,131)	(528)	(128)
Proceeds from sale of discontinued operations, net														19,419
Proceeds from sale of investments available for sale													114,374	55,357	217,185
Purchases of investments available for sale													(112,192)	(62,640)	(203,733)
Net cash provided by investing activities													1,051	11,608	13,324
Cash flows from financing activities:
Principal payments on capital lease obligations													(45)	(44)	(22)
Restricted cash													243	74	75
Proceeds from the exercise of options to purchase common stock													1,685	2,193	87
Windfall benefit from stock-based compensation													7
Net cash provided by financing activities													1,890	2,223	140
Net (decrease) increase in cash													(208)	562	193
Cash at beginning of period	946	2,658	2,342	2,416	1,801	1,579	1,287	1,854	2,416	1,854	2,416	1,854	2,416	1,854	1,661
Cash at end of period	2,208	946	2,658	2,342	2,416	1,801	1,579	1,287	2,658	1,579	946	1,801	2,208	2,416	1,854
Supplemental disclosure of cash flows information:
Cash paid for income taxes													619	539
Supplemental disclosure of non cash activities:
Deferred compensation related to Stryker agreement													5,000
Equipment acquired under a capital lease															228
Guaranteed payment related to trading securities													4,409
Trading securities from the sales of discontinued operations														15,000
Purchase price guarantee related to trading securities														1,685
Proceeds receivable due from sale of discontinued operations														15,000
Unrealized loss on investments available for sale													21	13	40
Restatement Adjustment
Continuing operations
Loss from continuing operations	$ (3,153)	$ (1,058)	$ (3,308)	$ (1,087)	$ (300)	$ 482	$ 314	$ (6)	$ (4,395)	$ 308	$ (5,453)	$ 790	(8,606)	490	(520)
Adjustments to reconcile loss from continuing operations to net cash used in operations of continuing operations:
Non cash share-based payments													(203)
Provision for bad debts													450
Changes in operating assets and liabilities: Detailed value tagged in table below
Accounts receivable													10,484
Inventory													1,100	195	(131)
Prepaid expenses, and other current assets													(2,260)	(70)	(34)
Tax Receivable													(10)
Deferred revenue														(947)	$ 685
Accounts payable, accrued expenses, and other current liabilities													(1,386)
Net cash used in operating activities of continuing operations													(431)	(332)
Discontinued operations
Loss from operations of discontinued operations, net of income taxes													425
Changes in operating assets and liabilities:
Net cash provided by (used in) operations of discontinued operations													425
Net cash used in operating activities													(6)	(332)
Cash flows from investing activities:
Purchases of property and equipment													8
Proceeds from sale of discontinued operations, net														332
Net cash provided by investing activities													8	$ 332
Cash flows from financing activities:
Windfall benefit from stock-based compensation													(2)
Net cash provided by financing activities													$ (2)

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($)	Oct. 10, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Apr. 30, 2014
Initial consideration and contingent additional payments provided under Purchase Agreement
Income tax expense related to gain from sale of discontinued operation			$ 1,374,000
Gain (loss) on sale of discontinued operations			49,731,000
Current liabilities:
Royalty revenue		$ 0	0
Operating expenses:
Income tax expense		(516,000)	0	$ 0
Loss from discontinued operations		1,118,000	6,668,000	5,318,000
Therapeutics segment
Initial consideration and contingent additional payments provided under Purchase Agreement
Gain (loss) on sale of discontinued operations			49,400,000
Current assets:
Accounts Receivable			91,000
Current liabilities:
Accounts payable and accrued expenses			57,000
Royalty revenue		288,000	215,000	305,000
Summarized operating results
Revenue from collaborative research agreements and royalties		288,000	639,000	3,955,000
Operating expenses:
Research and development		299,000	6,426,000	8,607,000
General and administrative		591,000	881,000	666,000
Total operating expenses		890,000	7,307,000	9,273,000
Loss from discontinued operations before income tax expense		(602,000)	(6,668,000)	(5,318,000)
Income tax expense		(516,000)
Loss from discontinued operations		1,118,000	6,668,000	5,318,000
Cost of reimbursement		0	424,000	$ 296,000
Purchase Agreement with Mesoblast
Initial consideration and contingent additional payments provided under Purchase Agreement
Holding period for any payments made in ordinary shares	1 year
Purchase Agreement with Mesoblast | Hedging instrument
Initial consideration and contingent additional payments provided under Purchase Agreement
Fair value of derivative instruments		1,700,000	1,700,000
Purchase Agreement with Mesoblast | Therapeutics segment
Initial consideration and contingent additional payments provided under Purchase Agreement
Initial consideration	$ 50,000,000
Contingent Consideration	50,000,000
Total possible purchase price	$ 100,000,000
Total initial consideration paid in cash			20,000,000		$ 15,000,000
Initial consideration paid in ordinary shares			(15,000,000)
Holding period for any payments made in ordinary shares	1 year
Fair value of derivative instruments			1,700,000
Consideration in restricted stock		$ 15,000,000
Transaction costs			$ 600,000
Purchase Agreement with Mesoblast | Letter of intent payments | Therapeutics segment
Initial consideration and contingent additional payments provided under Purchase Agreement
Initial consideration	$ 3,500,000
Purchase Agreement with Mesoblast | Initial closing payment | Therapeutics segment
Initial consideration and contingent additional payments provided under Purchase Agreement
Initial consideration	16,500,000
Purchase Agreement with Mesoblast | Additional closing payment, received in April 2014 | Therapeutics segment
Initial consideration and contingent additional payments provided under Purchase Agreement
Initial consideration	15,000,000
Purchase Agreement with Mesoblast | Delivery of all scheduled assets under the Transfer Agreement (paid in stock) | Therapeutics segment
Initial consideration and contingent additional payments provided under Purchase Agreement
Initial consideration	15,000,000
Purchase Agreement with Mesoblast | First marketing authorization received in the U.S. | Therapeutics segment
Initial consideration and contingent additional payments provided under Purchase Agreement
Contingent Consideration	20,000,000
Purchase Agreement with Mesoblast | First marketing authorization received from France, Germany, or European Union | Therapeutics segment
Initial consideration and contingent additional payments provided under Purchase Agreement
Contingent Consideration	10,000,000
Purchase Agreement with Mesoblast | Completion of the enrollment of the Phase 3 Crohn's Trial or Mesoblast's election to discontinue the trial | Therapeutics segment
Initial consideration and contingent additional payments provided under Purchase Agreement
Contingent Consideration	10,000,000
Purchase Agreement with Mesoblast | Receipt of final data for the Crohn's trial or first marketing approval for Crohn's | Therapeutics segment
Initial consideration and contingent additional payments provided under Purchase Agreement
Contingent Consideration	$ 10,000,000

Segment Reporting (Details)

Segment Reporting (Details)	Oct. 09, 2013segment	Dec. 31, 2014agreement	Dec. 31, 2014segment
Segment Reporting
Number of operating segments historically managed by the entity	2
Number of new exclusive distribution agreements | agreement		2
Number of operating segments			1

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013
Property and Equipment
Property and equipment, gross	$ 7,173	$ 6,050
Accumulated depreciation and amortization	(5,094)	(4,154)
Property and equipment, net	2,079	1,896		$ 2,004	$ 1,895	$ 1,809	$ 2,009	$ 2,040	$ 2,037
Depreciation	940	587	$ 552
Laboratory and manufacturing equipment
Property and Equipment
Property and equipment, gross	1,203	663
Computer hardware, furniture and fixtures
Property and Equipment
Property and equipment, gross	1,377	899
Leased assets
Property and Equipment
Property and equipment, gross	228	228
Leasehold improvements
Property and Equipment
Property and equipment, gross	$ 4,365	$ 4,260

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013
Inventory
Total Biosurgery inventory, net	$ 9,824	$ 7,867	$ 5,353	$ 3,249	$ 1,929	$ 1,682	$ 1,866	$ 1,843
Biosurgery segment
Inventory
Raw materials and supplies	1,025				387
Work-in-process	2,823				371
Finished goods	5,976				1,171
Total Biosurgery inventory, net	9,824				1,929
Consigned Inventory
Inventory
Gross consigned inventory	2,000				115
Reserve for inventory reduction	136				0
Work In Process Inventory
Inventory
Reserve for inventory reduction	268				0
Finished Goods Inventory
Inventory
Reserve for inventory reduction	$ 288				$ 0

Capital Lease (Details)

Capital Lease (Details) - USD ($)	1 Months Ended
	Jul. 31, 2012	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013
Capital Lease
Effective interest rate (as a percent)	5.00%
Term of lease	60 months
Amount of monthly payments of capital lease	$ 4,000
Future minimum lease payments under the capital lease agreement
2,015		$ 48,000
2,016		48,000
2,017		24,000
Total		120,000
Less: Amount representing interest		(3,000)
Present value of minimum lease payments		117,000
Less: Current portion of capital lease obligations		(45,000)	$ (45,000)	$ (45,000)	$ (45,000)	$ (45,000)	$ (45,000)	$ (45,000)	$ (44,000)
Long-term portion of capital lease obligations		$ 72,000

Share-Based Compensation (Detai

Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Assumptions to estimate the fair value of stock options granted
Proceeds for exercise of options	$ 1,685	$ 2,193	$ 87
Weighted Average Remaining Term Contractual Life
Weighted Average Remaining Contractual Life				6 years 9 months 18 days
Aggregate Intrinsic Value
Exercised (in dollars)			$ 114
Stock options
Share-Based Compensation
Vesting period	4 years
Contractual life	10 years
Assumptions to estimate the fair value of stock options granted
Coupon rate on United States government issues used to determine risk-free interest rate (as a percent)	1.50%		2.00%
Dividend yield (as a percent)	0.00%	0.00%	0.00%
Expected life of option grants	5 years
Volatility	60.00%
Proceeds for exercise of options	$ 1,700
Total unrecognized compensation costs related to non-vested stock options	$ 4,600
Number of Shares
Outstanding at the beginning of the period (in shares)	1,233,767	1,826,114	1,702,072
Granted (in shares)	988,500	452,000	302,000
Exercised (in shares)	(204,085)	(642,514)	(28,708)
Forfeited or Canceled (in shares)	(409,625)	(401,833)	(149,250)
Outstanding at the end of the period (in shares)	1,608,557	1,233,767	1,826,114	1,702,072
Exercisable at the end of the period (in shares)	400,432
Weighted Average Exercise Price Per Share
Outstanding at the beginning of the period (in dollars per share)	$ 10.61	$ 8.72	$ 9.06
Granted (in dollars per share)	14.59	9.03	5.50
Exercised (in dollars per share)	(8.25)	(6.50)	(3.05)
Forfeited or canceled (in dollars per share)	(15.92)	(6.79)	(7.20)
Outstanding at the end of the period (in dollars per share)	12.01	$ 10.61	$ 8.72	$ 9.06
Exercisable at the end of the period (in dollars per share)	$ 9.79
Weighted Average Remaining Term Contractual Life
Weighted Average Remaining Contractual Life	7 years 11 months 1 day	6 years 3 months 18 days	6 years 1 month 6 days
Exercisable at the end of the period	5 years 15 days
Aggregate Intrinsic Value
Outstanding at the beginning of the period (in dollars)	$ 7,992	$ 4,754
Exercised (in dollars)	1,341	6,983
Outstanding at the end of the period (in dollars)	6,774	$ 7,992	$ 4,754
Exercisable at the end of the period (in dollars)	$ 2,759
Weighted average fair value of options granted (in dollars per share)	$ 7.62	$ 4.68	$ 2.82
Stock options | Minimum
Assumptions to estimate the fair value of stock options granted
Coupon rate on United States government issues used to determine risk-free interest rate (as a percent)		1.00%
Expected life of option grants		5 years	6 years
Volatility		52.00%	52.00%
Stock options | Maximum
Assumptions to estimate the fair value of stock options granted
Coupon rate on United States government issues used to determine risk-free interest rate (as a percent)		1.50%
Expected life of option grants		6 years 6 months	6 years 3 months 18 days
Volatility		61.00%	54.00%
Amended and Restated 2006 Omnibus Plan
Share-Based Compensation
Common stock reserved for issuance (in shares)	2,250,000
Shares available for future issuance	513,906
Amended and Restated 1994 Stock Incentive Plan
Share-Based Compensation
Common stock reserved for issuance (in shares)	736,378
Shares available for future issuance	0

Share-Based Compensation - Opti

Share-Based Compensation - Options by price range (Details) - Stock options	12 Months Ended
	Dec. 31, 2014$ / sharesshares
Options Outstanding
Number Outstanding (in shares) | shares	1,608,557
Weighted Average Remaining Contractual Life	8 years
Weighted-Average Exercise Price (in dollars per share)	$ 12.01
Options Exercisable
Number Exercisable (in shares) | shares	400,432
Weighted-Average Exercise Price (in dollars per share)	$ 9.79
$0.01 to $1.00
Outstanding and exercisable options
Exercise price, lower range limit (in dollars per share)	0.40
Exercise price, upper range limit (in dollars per share)	$ 4
Options Outstanding
Number Outstanding (in shares) | shares	8,813
Weighted Average Remaining Contractual Life	10 months 24 days
Weighted-Average Exercise Price (in dollars per share)	$ 0.40
Options Exercisable
Number Exercisable (in shares) | shares	8,813
Weighted-Average Exercise Price (in dollars per share)	$ 0.40
$1.01 to $5.00
Outstanding and exercisable options
Exercise price, lower range limit (in dollars per share)	4.01
Exercise price, upper range limit (in dollars per share)	$ 5.25
Options Outstanding
Number Outstanding (in shares) | shares	133,790
Weighted Average Remaining Contractual Life	7 years 1 month 6 days
Weighted-Average Exercise Price (in dollars per share)	$ 5.31
Options Exercisable
Number Exercisable (in shares) | shares	51,790
Weighted-Average Exercise Price (in dollars per share)	$ 5.08
$5.01 to $6.75
Outstanding and exercisable options
Exercise price, lower range limit (in dollars per share)	5.26
Exercise price, upper range limit (in dollars per share)	$ 7.25
Options Outstanding
Number Outstanding (in shares) | shares	171,815
Weighted Average Remaining Contractual Life	5 years 4 months 24 days
Weighted-Average Exercise Price (in dollars per share)	$ 6.89
Options Exercisable
Number Exercisable (in shares) | shares	121,065
Weighted-Average Exercise Price (in dollars per share)	$ 6.85
$6.76 to $7.50
Outstanding and exercisable options
Exercise price, lower range limit (in dollars per share)	7.01
Exercise price, upper range limit (in dollars per share)	$ 7.75
Options Outstanding
Number Outstanding (in shares) | shares	210,139
Weighted Average Remaining Contractual Life	7 years 3 months 18 days
Weighted-Average Exercise Price (in dollars per share)	$ 7.73
Options Exercisable
Number Exercisable (in shares) | shares	86,764
Weighted-Average Exercise Price (in dollars per share)	$ 7.74
$7.51 to $8.50
Outstanding and exercisable options
Exercise price, lower range limit (in dollars per share)	7.76
Exercise price, upper range limit (in dollars per share)	$ 8.50
Options Outstanding
Number Outstanding (in shares) | shares	6,625
Weighted Average Remaining Contractual Life	7 years 10 months 24 days
Weighted-Average Exercise Price (in dollars per share)	$ 8.22
Options Exercisable
Number Exercisable (in shares) | shares	750
Weighted-Average Exercise Price (in dollars per share)	$ 7.80
$8.51 to $12.25
Outstanding and exercisable options
Exercise price, lower range limit (in dollars per share)	8.51
Exercise price, upper range limit (in dollars per share)	$ 12.75
Options Outstanding
Number Outstanding (in shares) | shares	151,375
Weighted Average Remaining Contractual Life	7 years 10 months 24 days
Weighted-Average Exercise Price (in dollars per share)	$ 11.42
Options Exercisable
Number Exercisable (in shares) | shares	42,750
Weighted-Average Exercise Price (in dollars per share)	$ 11.23
$12.26 to $15.00
Outstanding and exercisable options
Exercise price, lower range limit (in dollars per share)	12.76
Exercise price, upper range limit (in dollars per share)	$ 14
Options Outstanding
Number Outstanding (in shares) | shares	342,000
Weighted Average Remaining Contractual Life	9 years 4 months 24 days
Weighted-Average Exercise Price (in dollars per share)	$ 13.51
Options Exercisable
Number Exercisable (in shares) | shares	8,250
Weighted-Average Exercise Price (in dollars per share)	$ 13
$15.01 to $17.50
Outstanding and exercisable options
Exercise price, lower range limit (in dollars per share)	14.01
Exercise price, upper range limit (in dollars per share)	$ 16
Options Outstanding
Number Outstanding (in shares) | shares	290,000
Weighted Average Remaining Contractual Life	9 years 3 months 18 days
Weighted-Average Exercise Price (in dollars per share)	$ 15.01
$17.51 to $20.00
Outstanding and exercisable options
Exercise price, lower range limit (in dollars per share)	16.01
Exercise price, upper range limit (in dollars per share)	$ 17.50
Options Outstanding
Number Outstanding (in shares) | shares	230,500
Weighted Average Remaining Contractual Life	8 years 8 months 12 days
Weighted-Average Exercise Price (in dollars per share)	$ 16.48
Options Exercisable
Number Exercisable (in shares) | shares	16,750
Weighted-Average Exercise Price (in dollars per share)	$ 17.08
$ 20.01 to $23.62
Outstanding and exercisable options
Exercise price, lower range limit (in dollars per share)	17.51
Exercise price, upper range limit (in dollars per share)	$ 24
Options Outstanding
Number Outstanding (in shares) | shares	63,500
Weighted Average Remaining Contractual Life	3 years 7 months 6 days
Weighted-Average Exercise Price (in dollars per share)	$ 20.03
Options Exercisable
Number Exercisable (in shares) | shares	63,500
Weighted-Average Exercise Price (in dollars per share)	$ 20.03

Share-Based Compensation - Comp

Share-Based Compensation - Compensation expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Share-based compensation expense
Discontinued operations		$ 658	$ 598
Stock options
Share-based compensation expense
Share-based compensation	$ 2,929	1,241	1,090
Cost of product revenue | Stock options
Share-based compensation expense
Share-based compensation	253
Sales and marketing
Share-based compensation expense
Share-based compensation	505
Research and development
Share-based compensation expense
Share-based compensation	505	335	238
General and administrative | Stock options
Share-based compensation expense
Share-based compensation	$ 1,666	$ 248	$ 254

Investments Available for Sal59

Investments Available for Sale (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Investments available for sale
Cost	$ 37,359	$ 39,541
Unrealized gain	47	36
Unrealized loss	(101)	(69)
Fair Value	37,305	39,508
Fair Value
Less than 12 Months	14,885	11,675
12 Months or more	1,032
Total	15,917	11,675
Unrealized Loss
Less than 12 Months	(55)	(69)
12 Months or more	(46)
Total	(101)	(69)
Investments
Investments available for sale
Cost	23,481	32,531
Unrealized gain	26	14
Unrealized loss	(77)	(59)
Fair Value	23,430	32,486
Municipal Securities
Investments available for sale
Cost	12,400	12,507
Unrealized gain	13	9
Unrealized loss	(47)	(24)
Fair Value	12,366	12,492
Fair Value
Less than 12 Months	1,000	4,530
12 Months or more	1,032
Total	2,032	4,530
Unrealized Loss
Less than 12 Months	(1)	(24)
12 Months or more	(46)
Total	(47)	(24)
Agency Obligations
Investments available for sale
Cost	5,401	6,704
Unrealized gain	12	5
Unrealized loss	(28)	(35)
Fair Value	5,385	6,674
Fair Value
Less than 12 Months	3,939	3,804
Total	3,939	3,804
Unrealized Loss
Less than 12 Months	(28)	(35)
Total	(28)	(35)
Mutual Funds
Investments available for sale
Cost		4,076
Fair Value		4,076
US and International government agencies
Investments available for sale
Cost	5,680	9,244
Unrealized gain	1
Unrealized loss	(2)
Fair Value	5,679	9,244
Fair Value
Less than 12 Months	2,873
Total	2,873
Unrealized Loss
Less than 12 Months	(2)
Total	(2)
Cash & Cash equivalents
Investments available for sale
Cost	13,878	7,010
Unrealized gain	21	22
Unrealized loss	(24)	(10)
Fair Value	13,875	7,022
Money market funds and certificates of deposit
Investments available for sale
Cost	1,043	655
Fair Value	1,043	655
Corporate debt securities & commercial paper
Investments available for sale
Cost	12,835	6,355
Unrealized gain	21	22
Unrealized loss	(24)	(10)
Fair Value	12,832	6,367
Fair Value
Less than 12 Months	7,073	3,341
Total	7,073	3,341
Unrealized Loss
Less than 12 Months	(24)	(10)
Total	$ (24)	$ (10)

Investments Available for Sal60

Investments Available for Sale - Maturities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Cost
Maturities Within 3-months	$ 3,056	$ 12,663
Maturities Between 3 - 12 months	12,658	1,624
More than 1 year	21,645	25,254
Cost of investments available for sale	37,359	39,541
Fair Value
Maturities Within 3-months	3,056	12,664
Maturities Between 3 - 12 months	12,660	1,610
More than 1 year	21,589	25,234
Fair value of investments available for sale	37,305	39,508
Realized gains and investment income earned on investments available for sale	$ (390)	$ (414)	$ 0

Related Party Transactions an61

Related Party Transactions and Warrant (Details) - USD ($)	Aug. 14, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Jul. 31, 2006
Related Party Transaction and Warrants
Value of shares issued to related party for serving as Board Director		$ 403,000	$ 180,000	$ 127,000
Warrant
Related Party Transaction and Warrants
Issuance of common stock on exercise of warrants (in shares)	567,610
Number of shares of common stock that can be purchased through outstanding warrant					1,000,000
Exercise price (in dollars per share)					$ 11
Restatement Adjustment
Related Party Transaction and Warrants
Due from Chairman of the Board		130,000
Chairman of Board of Directors | Restatement Adjustment
Related Party Transaction and Warrants
Amount of director expense reimbursement returned by Chairman of the Board		216,000
Due from Chairman of the Board		216,000	$ 104,000
Chairman of Board of Directors
Related Party Transaction and Warrants
Debt and equity financing procured by related party		$ 270,000,000
Percentage of beneficial ownership interest held by related party		43.00%
Number of shares received by related party as Board compensation since 1996		85,000
Shares granted in recognition of fundraising efforts by related party		12,500
Shares issued to related party for servicing as Board of Director		10,000	10,000	10,000
Value of shares issued to related party for serving as Board Director		$ 149,300	$ 77,000	$ 51,000
Direct ownership percentage held in entity by related party		29.30%
Chairman of Board of Directors | Prolexys Pharmaceuticals, Inc
Related Party Transaction and Warrants
Percentage of ownership interest held by related party in research agreement counterparty		24.30%
Percentage of ownership interest held by related party in another related party with ownership interest in research agreement counterparty		2.00%
Additional percentage of ownership interest in counterparty to agreement which will be acquired by related party upon conversion of convertible bond		19.00%
Chairman of Board of Directors | Warrant
Related Party Transaction and Warrants
Issuance of common stock on exercise of warrants (in shares)		567,610
Number of shares of common stock that can be purchased through outstanding warrant		1,000,000
Exercise price (in dollars per share)		$ 11
BIH SA
Related Party Transaction and Warrants
Ownership percentage held in entity by related party		7.80%
BIH SA | Prolexys Pharmaceuticals, Inc
Related Party Transaction and Warrants
Percentage of ownership interest held by related party in research agreement counterparty		35.70%
Venturetec, Inc
Related Party Transaction and Warrants
Ownership percentage held in entity by related party		12.50%
Venturetec, Inc | Prolexys Pharmaceuticals, Inc
Related Party Transaction and Warrants
Percentage of ownership interest held by related party in research agreement counterparty		13.80%

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended						6 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013	Mar. 31, 2013	Jun. 30, 2014	Sep. 30, 2014	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Revenue Recognition
Income tax benefit	$ (53,000)	$ (23,000)	$ (21,000)	$ 994,000	$ (358,000)	$ 358,000	$ (21,000)	$ (44,000)	$ (97,000)	$ 994,000	$ 37,000
Amount of taxes recoverable from a prior period included in tax benefits										79,000
Income tax expense, which was offset against the income from discontinued operations									$ 516,000	0	$ 0
Interest accrued included in gain from sale of discontinued operations										70,000
Income tax expense related to gain from sale of discontinued operation										$ 1,374,000
Effective tax rate varies from the U.S. Federal Statutory tax rate
U.S. Federal Statutory tax rate									35.00%	35.00%	35.00%
State taxes, net of federal benefits									(0.20%)	7.90%	0.40%
Nondeductible expenses									(2.00%)	(2.20%)	(5.10%)
Stock compensation									(16.20%)	18.60%	0.00%
Change in valuation allowance (as a percent)									(23.10%)	0.00%	(30.30%)
Credit									1.40%	5.10%	0.00%
Change in tax rate									4.10%	0.00%	0.00%
Other									(0.10%)	0.00%	0.60%
Effective tax rate (as a percent)									(1.10%)	64.40%	0.60%
Deferred Tax Assets:
Credits	70,668,000			75,981,000					$ 70,668,000	$ 75,981,000
Stock options - NQSO	594,000			1,689,000					594,000	1,689,000
Fixed assets	831,000			811,000					831,000	811,000
Accrued Expenses	327,000			101,000					327,000	101,000
Allowance for doubtful accounts	634,000			31,000					634,000	31,000
Deferred rent	97,000								97,000
UNICAP	266,000								266,000
Inventory Restatement	2,045,000								2,045,000
Inventory reserve	150,000								150,000
Other	1,000								1,000
Deferred tax assets gross	75,613,000			78,613,000					75,613,000	78,613,000
Valuation allowance	(75,469,000)			(72,559,000)					(75,469,000)	(72,559,000)
Net deferred tax assets	144,000			6,054,000					144,000	6,054,000
Deferred Tax Liabilities:
Gain on installment sale				(6,054,000)						(6,054,000)
481(a) Adjustment	(144,000)								(144,000)
Total deferred tax liabilities	(144,000)			(6,054,000)					(144,000)	(6,054,000)
Net operating loss carryforwards	1,400,000								1,400,000
Amount of windfall stock compensation deductions									5,400,000
Accruals for interest or penalties related to income tax matters	0			$ 0					0	$ 0
General business credit carry-forwards
Deferred Tax Liabilities:
Tax credit amount	$ 71,100,000								$ 71,100,000

Defined Contribution Plan (Deta

Defined Contribution Plan (Details)	12 Months Ended
	Dec. 31, 2014USD ($)
Defined Contribution Plan
Vesting period	7 years
Eligibility period for commencement of vesting	3 years
Employer contributions to date	$ 0

Commitments and Contingencies64

Commitments and Contingencies (Details)	Aug. 15, 2016	Jun. 02, 2016	Nov. 23, 2015item	Sep. 30, 2014USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	Dec. 31, 2012USD ($)	Dec. 31, 2006ft²
Contract Research Organizations
Estimated future CRO obligations					$ 10,700,000
Capital leases
Equipment under lease agreement					228,000
Accumulated depreciation of equipment acquired under capital lease					114,100
Securities Class Action Complaint
Legal
Number of current or former executives included in class action lawsuit | item			3
Securities Class Action Complaint | Maximum
Legal
Period to file amended complaint	15 days
Shareholder Derivative Complaints | Maximum
Legal
Period for stay order subject to certain qualification		30 days
Columbia Facility
Operating Leases, Rent Expense, Net [Abstract]
Area of property leased (in square feet) | ft²								61,000
Letter of credit outstanding in lieu of security deposit						$ 243,000
Increase in future minimum lease commitment				$ 9,000,000
Security deposit required under lease agreement				95,000
Allowance from the landlord for tenant improvements				$ 1,500,000
Lease expenses					1,300,000	$ 1,300,000	$ 1,300,000
Future minimum lease payments due under the operating lease
2,015					1,194,000
2,016					1,091,000
2,017					1,062,000
2,018					1,088,000
2,019					1,218,000
Thereafter					4,957,000
Future minimum lease payments due					$ 10,610,000

Derivative and Securities Rec65

Derivative and Securities Received in Business Disposition (Details) - USD ($)	Dec. 31, 2013	Dec. 31, 2013	Oct. 10, 2013	Oct. 10, 2013	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 18, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013
Derivative instruments
Other receivables	$ 15,369,000	$ 15,369,000			$ 15,369,000	$ 10,081,000	$ 10,081,000	$ 623,000	$ 472,000	$ 15,346,000		$ 104,000	$ 104,000	$ 104,000
Purchase Agreement with Mesoblast
Derivative instruments
Initial consideration payable either in cash or ordinary shares				$ 15,000,000
Holding period for any payments made in ordinary shares			1 year
Aggregate compensation to be received in additional shares for decrease in value of shares (as a percent)						50.00%
Aggregate compensation to be received for decrease in value of shares payable in cash (as a percent)						50.00%
Aggregate compensation to be received for decrease in value of shares payable in cash or ordinary shares (as a percent)						100.00%
Holding period of stock subject to limited price protection	1 year
Gain loss from shares received from discontinued operations		401,000				$ 401,000
Other receivables						4,400,000	4,400,000
Purchase Agreement with Mesoblast | Therapeutics segment
Derivative instruments
Holding period for any payments made in ordinary shares			1 year
Fair value of derivative instruments	$ 1,700,000	1,700,000			1,700,000
Consideration in restricted stock						15,000,000	15,000,000
Fair value of the shares received from discontinued operations	15,400,000	15,400,000			15,400,000	10,600,000	10,600,000				$ 15,000,000
Other receivables						4,400,000	4,400,000
Purchase Agreement with Mesoblast | Hedging instrument
Derivative instruments
Fair value of derivative instruments	$ 1,700,000	$ 1,700,000			1,700,000	$ 1,700,000	1,700,000
Purchase Agreement with Mesoblast | Hedging instrument | Therapeutics segment
Derivative instruments
Loss on derivative instruments					$ 52,000		$ 1,700,000
Holding period of stock subject to limited price protection	1 year

Fair Value (Details)

Fair Value (Details) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Fair value
Transfers between level 1 and level 2	$ 0
Transfers between level 2 and level 1	0
Other transfers in and out of Level 3
Other transfers in Level 3	0
Other transfers out of Level 3	0
Rollforward of the fair value of Level 3 instruments
Balance at beginning of period	1,685,000
Fair value upon receipt of Mesoblast stock		$ 1,737,000
Change in Fair Value	2,252,000	(52,000)
Expiration of the price protection derivative	(3,937,000)
Balance at end of period		$ 1,685,000
Recurring | Price Protection On Restricted Shares Of Mesoblast Common Stock | Level III
Significant inputs
Fair value	$ 15,000,000
Contractual life	1 year
Volatility (as a percent)	40.00%
Risk free interest rate (as a percent)	0.13%
Expected dividends	$ 0

Fair Value - Recurring basis (D

Fair Value - Recurring basis (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Assets
Investments available for sale	$ 37,305	$ 39,508
Recurring
Assets
Investments available for sale	37,305	39,508
Derivative and securities received in business disposition		17,086
Total assets	47,896	56,594
Recurring | Level I
Assets
Investments available for sale	1,043	655
Derivative and securities received in business disposition		15,401
Total assets	11,634	16,056
Recurring | Level II
Assets
Investments available for sale	36,262	38,853
Total assets	36,262	38,853
Recurring | Level III
Assets
Derivative and securities received in business disposition		1,685
Total assets		1,685
Recurring | Cash & Cash equivalents
Assets
Investments available for sale	1,043	655
Recurring | Cash & Cash equivalents | Level I
Assets
Investments available for sale	1,043	655
Recurring | US & International government agencies
Assets
Investments available for sale	5,679	9,244
Recurring | US & International government agencies | Level II
Assets
Investments available for sale	5,679	9,244
Recurring | Certificates of Deposit
Assets
Investments available for sale		4,076
Recurring | Certificates of Deposit | Level II
Assets
Investments available for sale		4,076
Recurring | Agency Obligations
Assets
Investments available for sale	5,385	6,674
Recurring | Agency Obligations | Level II
Assets
Investments available for sale	5,385	6,674
Recurring | Corporate debt securities & commercial paper
Assets
Investments available for sale	12,832	6,367
Recurring | Corporate debt securities & commercial paper | Level II
Assets
Investments available for sale	12,832	6,367
Recurring | Municipal Securities
Assets
Investments available for sale	12,366	12,492
Recurring | Municipal Securities | Level II
Assets
Investments available for sale	12,366	12,492
Recurring | Restricted shares of Mesoblast common stock
Assets
Derivative and securities received in business disposition	10,591	15,401
Recurring | Restricted shares of Mesoblast common stock | Level I
Assets
Derivative and securities received in business disposition	10,591	15,401
Recurring | Price Protection On Restricted Shares Of Mesoblast Common Stock
Assets
Derivative and securities received in business disposition		1,685
Recurring | Price Protection On Restricted Shares Of Mesoblast Common Stock | Level III
Assets
Derivative and securities received in business disposition		$ 1,685
Derivative instruments	$ 15,000

Quarterly Financial Data (Una68

Quarterly Financial Data (Unaudited) - Consolidated Statements of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								6 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Jun. 30, 2014	Jun. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Product revenue	$ 18,165	$ 16,307	$ 9,206	$ 7,157	$ 8,296	$ 7,680	$ 5,759	$ 3,963	$ 16,363	$ 9,722	$ 32,670	$ 17,402	$ 50,835	$ 25,698	$ 7,164
Cost of product revenue	3,249	3,524	2,058	1,055	2,192	2,018	1,543	1,098	3,113	2,641	6,637	4,659	9,886	6,851	2,420
Gross Profit	14,916	12,783	7,148	6,102	6,104	5,662	4,216	2,865	13,250	7,081	26,033	12,743	40,949	18,847	4,744
Research and development expenses	1,037	913	986	478	1,091	968	1,206	1,065	1,464	2,271	2,377	3,239	3,414	4,330	4,059
Sales and marketing expenses	12,619	9,971	8,016	5,778	4,864	4,073	3,609	1,264	13,794	4,873	23,765	8,946	36,384	13,810	2,836
General and Administrative Expense	3,223	1,772	1,590	978	297	630	566	1,045	2,568	1,611	4,340	2,241	7,563	2,538	2,282
Related party expenses	46	47	39	440				180	479	180	526	180
Income (loss) from operations	(2,009)	80	(3,483)	(1,572)	(148)	(9)	(1,165)	(689)	(5,055)	(1,854)	(4,975)	(1,863)	(6,984)	(2,011)	(6,353)
Other (expense) income	(8)	(405)	(1,232)	(126)	334	26	25	29	(1,358)	54	(1,763)	80	(1,771)	414	49
Income (Loss) from continuing operations, before income taxes	(2,017)	(325)	(4,715)	(1,698)	186	17	(1,140)	(660)	(6,413)	(1,800)	(6,738)	(1,783)	(8,755)	(1,597)	(6,304)
Income tax benefit	(53)	(23)	(21)		994		(358)	358	(21)		(44)		(97)	994	37
Income (loss) from continuing operations	(2,070)	(348)	(4,736)	(1,698)	1,180	17	(1,498)	(302)	(6,434)	(1,800)	(6,782)	(1,783)	(8,852)	(603)	(6,267)
Income (loss) from discontinued operations	47	(24)	(517)	(624)	48,657	(1,211)	(1,944)	(2,439)	(1,141)	(4,383)	(1,165)	(5,594)	(1,118)	43,063	(5,318)
Net income (loss)	$ (2,023)	$ (372)	$ (5,253)	$ (2,322)	$ 49,837	$ (1,194)	$ (3,442)	$ (2,741)	$ (7,575)	$ (6,183)	$ (7,947)	$ (7,377)	$ (9,970)	$ 42,460	$ (11,585)
Loss from continuing operations per share, basic and diluted (in dollars per share)	$ (0.06)	$ (0.01)	$ (0.14)	$ (0.05)	$ 0.03		$ (0.05)	$ (0.01)	$ (0.19)	$ (0.05)	$ (0.20)	$ (0.05)	$ (0.26)	$ (0.02)	$ (0.19)
Income (Loss) from discontinued operations per shares, basic and diluted (in dollars per share)			(0.02)	(0.02)	1.43	$ (0.04)	(0.06)	(0.07)	(0.03)	(0.13)	(0.03)	(0.17)	(0.03)	1.29	(0.16)
Net loss per share, basic and diluted	$ (0.06)	$ (0.01)	$ (0.16)	$ (0.07)	$ 1.46	$ (0.04)	$ (0.11)	$ (0.08)	$ (0.22)	$ (0.18)	$ (0.23)	$ (0.22)	$ (0.29)	$ 1.27	$ (0.35)
Previously Reported
Product revenue	$ 19,319	$ 17,204	$ 13,290	$ 10,054	$ 8,080	$ 6,882	$ 5,291	$ 4,055	$ 23,344	$ 9,346	$ 40,548	$ 16,228	$ 59,867	$ 24,308	$ 7,849
Cost of product revenue	4,250	3,785	2,924	2,212	2,182	1,858	1,481	1,135	5,136	2,616	8,921	4,474	13,171	6,656	2,551
Gross Profit	15,069	13,419	10,366	7,842	5,898	5,024	3,810	2,920	18,208	6,730	31,627	11,754	46,696	17,652	5,298
Research and development expenses	3,930	1,207	1,055	670	1,091	968	1,206	1,065	1,725	2,271	2,932	3,239	6,862	4,330	4,059
Sales and marketing expenses	7,347	9,321	7,748	6,154	4,690	3,917	3,517	1,243	13,902	4,760	23,223	8,677	30,570	13,367	2,836
General and Administrative Expense	2,566	1,625	1,590	1,081	297	630	566	1,045	2,671	1,611	4,296	2,241	6,862	2,538	2,282
Related party expenses	46	47	39	552				250	591	250	638	250
Income (loss) from operations	1,180	1,219	(66)	(615)	(180)	(491)	(1,479)	(683)	(681)	(2,162)	538	(2,653)	1,718	(2,833)	(5,833)
Other (expense) income	(8)	(405)	(1,232)	(126)	334	26	25	29	(1,358)	54	(1,763)	80	(1,771)	414	49
Income (Loss) from continuing operations, before income taxes	1,172	814	(1,298)	(741)	154	(465)	(1,454)	(654)	(2,039)	(2,108)	(1,225)	(2,573)	(53)	(2,419)	(5,784)
Income tax benefit	(89)	(104)	(130)	130	1,326		(358)	358			(104)		(193)	1,326	37
Income (loss) from continuing operations	1,083	710	(1,428)	(611)	1,480	(465)	(1,812)	(296)	(2,039)	(2,108)	(1,329)	(2,573)	(246)	(1,093)	(5,747)
Income (loss) from discontinued operations	(267)	(65)	(457)	(754)	48,325	(1,211)	(1,944)	(2,439)	(1,211)	(4,383)	(1,276)	(5,594)	(1,543)	42,731	(5,318)
Net income (loss)	$ 816	$ 645	$ (1,885)	$ (1,365)	$ 49,805	$ (1,676)	$ (3,756)	$ (2,735)	$ (3,250)	$ (6,491)	$ (2,605)	$ (8,167)	$ (1,789)	$ 41,638	$ (11,065)
Loss from continuing operations per share, basic and diluted (in dollars per share)	$ 0.03	$ 0.02	$ (0.04)	$ (0.02)	$ 0.04	$ (0.01)	$ (0.05)	$ (0.01)	$ (0.06)	$ (0.06)	$ (0.04)	$ (0.08)	$ (0.01)	$ (0.04)	$ (0.17)
Income (Loss) from discontinued operations per shares, basic and diluted (in dollars per share)	(0.01)		(0.01)	(0.02)	1.42	(0.04)	(0.06)	(0.07)	(0.04)	(0.13)	(0.04)	(0.17)	(0.04)	1.29	(0.16)
Net loss per share, basic and diluted	$ 0.02	$ 0.02	$ (0.05)	$ (0.04)	$ 1.46	$ (0.05)	$ (0.11)	$ (0.08)	$ (0.10)	$ (0.19)	$ (0.08)	$ (0.25)	$ (0.05)	$ 1.25	$ (0.33)
Restatement Adjustment
Product revenue	$ (1,154)	$ (897)	$ (4,084)	$ (2,897)	$ 216	$ 798	$ 468	$ (92)	$ (6,981)	$ 376	$ (7,878)	$ 1,174	$ (9,032)	$ 1,390	$ (685)
Cost of product revenue	(1,001)	(261)	(866)	(1,157)	10	160	62	(37)	(2,023)	25	(2,284)	185	(3,285)	195	(131)
Gross Profit	(153)	(636)	(3,218)	(1,740)	206	638	406	(55)	(4,958)	351	(5,594)	989	(5,747)	1,195	(554)
Research and development expenses	(2,893)	(294)	(69)	(192)					(261)		(555)		(3,448)
Sales and marketing expenses	5,272	650	268	(376)	174	156	92	21	(108)	113	542	269	5,814	443
General and Administrative Expense	657	147		(103)					(103)		44		701
Related party expenses				(112)				(70)	(112)	(70)	(112)	(70)
Income (loss) from operations	(3,189)	(1,139)	(3,417)	(957)	32	482	314	(6)	(4,374)	308	(5,513)	790	(8,702)	822	(520)
Income (Loss) from continuing operations, before income taxes	(3,189)	(1,139)	(3,417)	(957)	32	482	314	(6)	(4,374)	308	(5,513)	790	(8,702)	822	(520)
Income tax benefit	36	81	109	(130)	(332)				(21)		60		96	(332)
Income (loss) from continuing operations	(3,153)	(1,058)	(3,308)	(1,087)	(300)	482	314	(6)	(4,395)	308	(5,453)	790	(8,606)	490	(520)
Income (loss) from discontinued operations	314	41	(60)	130	332				70		111		425	332
Net income (loss)	$ (2,839)	$ (1,017)	$ (3,368)	$ (957)	$ 32	$ 482	$ 314	$ (6)	$ (4,325)	$ 308	$ (5,342)	$ 790	$ (8,181)	$ 822	$ (520)
Loss from continuing operations per share, basic and diluted (in dollars per share)	$ (0.09)	$ (0.03)	$ (0.10)	$ (0.03)	$ (0.01)	$ 0.01			$ (0.13)	$ 0.01	$ (0.16)	$ 0.03	$ (0.25)	$ 0.02	$ (0.02)
Income (Loss) from discontinued operations per shares, basic and diluted (in dollars per share)	0.01		(0.01)		$ 0.01				0.01		0.01		0.01
Net loss per share, basic and diluted	$ (0.08)	$ (0.03)	$ (0.11)	$ (0.03)		$ 0.01			$ (0.12)	$ 0.01	$ (0.15)	$ 0.03	$ (0.24)	$ 0.02	$ (0.02)

Quarterly Financial Data (Una69

Quarterly Financial Data (Unaudited) - Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Jan. 01, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Current assets:
Cash	$ 2,208	$ 946	$ 2,658	$ 2,342		$ 2,416	$ 1,801	$ 1,579	$ 1,287	$ 1,854	$ 1,661
Investments available for sale	37,305	42,349	45,759	34,650		39,508	26,464	25,626	28,292
Trading securities	10,591	15,060	15,584	16,907		17,086
Trade accounts receivable, net of reserves	13,373	12,512	9,291	8,627		7,459	6,773	6,406	5,346
Other receivables	10,081	623	472	15,346		15,369	104	104	104
Inventory	9,824	7,867	5,353	3,249		1,929	1,682	1,866	1,843
Prepaid expenses and other current assets	2,894	2,234	1,444	480		355	639	356	462
Current assets of discontinued operations				96		91	247
Total current assets	86,276	81,591	80,561	81,697		84,213	37,710	35,937	37,334
Property and equipment, net	2,079	2,004	1,895	1,809		1,896	2,009	2,040	2,037
Deferred tax asset				5,796		5,849
Restricted cash			223	243		243	243	317	317
Other assets	95	96
Total assets	88,450	83,691	82,679	89,545		92,201	39,962	38,294	39,688
Current liabilities:
Accounts payable and accrued expenses	7,468	6,591	5,870	3,135		4,842	3,652	6,826	4,985
Capital lease obligations, current portion	45	45	45	45		45	45	45	44
Deferred tax liability				5,796		5,849
Deferred revenue current							42	684	1,060
Deferred gain on sale							3,500
Current liabilities of discontinued operations				17		57	463
Total current liabilities	9,180	6,636	5,915	8,993		10,793	7,702	7,555	6,089
Other long-term liabilities	3,589	276	280	319		355	433	469	501
Total liabilities	12,769	6,912	6,195	9,312		11,148	8,135	8,024	6,590
Commitments and contingencies
Stockholders' equity
Common stock, $.001 par value, 90,000 shares authorized, 34,346 shares outstanding - 2014, 34,115 shares outstanding - 2013	35	35	34	34		34	34	33	33
Additional paid-in-capital	287,320	286,299	285,603	284,116		282,702	283,369	280,616	279,911
Accumulated other comprehensive (loss) income	(54)	42	72	55		(33)	(89)	(86)	5
Accumulated deficit	(211,620)	(209,597)	(209,225)	(203,972)		(201,650)	(251,487)	(250,293)	(246,851)
Total stockholders' equity	75,681	76,779	76,484	80,233		81,053	31,827	30,270	33,098	35,172	45,620
Total liabilities and stockholders' equity	88,450	83,691	82,679	89,545		92,201	39,962	38,294	39,688
Previously Reported
Current assets:
Cash	2,208	946	2,658	2,342		2,416	1,801	1,579	1,287	$ 1,854	1,661
Investments available for sale	37,305	42,349	45,759	34,650		39,508	26,464	25,626	28,292
Trading securities	10,591	15,060	15,584	16,907		17,086
Trade accounts receivable, net of reserves	24,307	21,446	16,890	11,763		7,459	6,773	6,406	5,346
Other receivables	9,951	474	256	15,130		15,265
Inventory	10,924	8,840	5,540	2,337		1,929	1,672	1,696	1,611
Prepaid expenses and other current assets	650	489	404	318		355	639	356	462
Current assets of discontinued operations				96		91	247
Total current assets	95,936	89,604	87,091	83,543		84,109	37,596	35,663	36,998
Property and equipment, net	2,087	2,012	1,895	1,809		1,896	2,009	2,040	2,037
Deferred tax asset				5,737		5,849
Restricted cash			223	243		243	243	317	317
Other assets	95	96
Total assets	98,118	91,712	89,209	91,332		92,097	39,848	38,020	39,352
Current liabilities:
Accounts payable and accrued expenses	8,854	9,276	8,037	4,025		4,842	3,652	6,826	4,985
Capital lease obligations, current portion	45	45	45	45		45	45	45	44
Deferred tax liability				5,737		5,849
Deferred gain on sale							3,500
Current liabilities of discontinued operations				17		57	463
Total current liabilities	10,566	9,321	8,082	9,824		10,793	7,660	6,871	5,029
Other long-term liabilities	3,589	276	280	319		355	433	469	501
Total liabilities	14,155	9,597	8,362	10,143		11,148	8,093	7,340	5,530
Commitments and contingencies
Stockholders' equity
Common stock, $.001 par value, 90,000 shares authorized, 34,346 shares outstanding - 2014, 34,115 shares outstanding - 2013	35	35	34	34		34	34	33	33
Additional paid-in-capital	287,525	286,397	285,745	284,219		282,702	283,369	280,616	279,911
Accumulated other comprehensive (loss) income	(54)	42	72	55		(33)	(89)	(86)	5
Accumulated deficit	(203,543)	(204,359)	(205,004)	(203,119)		(201,754)	(251,559)	(249,883)	(246,127)
Total stockholders' equity	83,963	82,115	80,847	81,189		80,949	31,755	30,680	33,822		45,818
Total liabilities and stockholders' equity	98,118	91,712	89,209	91,332		92,097	39,848	38,020	39,352
Restatement Adjustment
Current assets:
Trade accounts receivable, net of reserves	(10,934)	(8,934)	(7,599)	(3,136)
Other receivables	130	149	216	216		104	104	104	104
Inventory	(1,100)	(973)	(187)	912			10	170	232
Prepaid expenses and other current assets	2,244	1,745	1,040	162
Total current assets	(9,660)	(8,013)	(6,530)	(1,846)		104	114	274	336
Property and equipment, net	(8)	(8)
Deferred tax asset				59
Total assets	(9,668)	(8,021)	(6,530)	(1,787)		104	114	274	336
Current liabilities:
Accounts payable and accrued expenses	(1,386)	(2,685)	(2,167)	(890)
Deferred tax liability				59
Deferred revenue current							42	684	1,060
Total current liabilities	(1,386)	(2,685)	(2,167)	(831)			42	684	1,060
Total liabilities	(1,386)	(2,685)	(2,167)	(831)			42	684	1,060
Commitments and contingencies
Stockholders' equity
Additional paid-in-capital	(205)	(98)	(142)	(103)
Accumulated deficit	(8,077)	(5,238)	(4,221)	(853)	$ (104)	104	72	(410)	(724)
Total stockholders' equity	(8,282)	(5,336)	(4,363)	(956)		104	72	(410)	(724)		$ (198)
Total liabilities and stockholders' equity	$ (9,668)	$ (8,021)	$ (6,530)	$ (1,787)		$ 104	$ 114	$ 274	$ 336

Quarterly Financial Data (Una70

Quarterly Financial Data (Unaudited) - Condensed Balance Sheets (Parentheticals) (Details) - $ / shares shares in Thousands	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013
Quarterly Financial Data (Unaudited)
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001	$ 0.001	$ 0.001	$ 0.001	$ 0.001	$ 0.001	$ 0.001
Common stock, shares authorized	90,000	90,000	90,000	90,000	90,000	90,000	90,000	90,000
Common stock, shares outstanding	34,346	34,320	34,310	34,222	34,115	34,115	32,989	32,930

Subsequent Event (unaudited) (D

Subsequent Event (unaudited) (Details) $ in Thousands	1 Months Ended			12 Months Ended
	May 31, 2015USD ($)	Feb. 28, 2015USD ($)	Dec. 31, 2014item	Dec. 31, 2015USD ($)	Dec. 31, 2013USD ($)
Subsequent event
Number Of Business Days Of Receipt Of Documents | item			5
Gain (loss) on sale of discontinued operations					$ 49,731
Subsequent event
Subsequent event
Exclusivity fee		$ 5,000
Purchase Agreement with Mesoblast | Subsequent event
Subsequent event
Amount received upon decline in market value	$ 6,200
Sale consideration				$ 6,500
Gain (loss) on sale of discontinued operations				$ (2,300)

SCHEDULE II-VALUATION AND QUA72

SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Accounts Receivable Reserve:
Valuation and qualifying accounts
Balance at Beginning of Year	$ 78	$ 25	$ 3
Additions	1,628	80	22
Deductions		(27)
Balance at End of Year	1,706	78	25
Inventory Reserve:
Valuation and qualifying accounts
Balance at Beginning of Year		112	274
Additions	692
Deductions		(112)	(162)
Balance at End of Year	692		112
Net Deferred Tax Asset Valuation Allowance:
Valuation and qualifying accounts
Balance at Beginning of Year	72,559	88,243	84,134
Additions	2,910		4,109
Deductions		(15,684)
Balance at End of Year	$ 75,469	$ 72,559	$ 88,243