Athersys, Inc / New (ATHXQ) 10-Q 10 Nov 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Nov. 01, 2014
Document And Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Sep-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'
Trading Symbol	'ATHX	'
Entity Registrant Name	'ATHERSYS, INC / NEW	'
Entity Central Index Key	'0001368148	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	77,515,339

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$32,368	$31,948
Accounts receivable	665	520
Prepaid expenses and other	416	387
Total current assets	33,449	32,855
Equipment, net	1,331	1,333
Total assets	34,780	34,188
Current liabilities:	'	'
Accounts payable	2,891	2,243
Accrued compensation and related benefits	909	1,067
Accrued clinical trial costs	85	88
Accrued expenses	692	884
Deferred revenue	'	86
Note payable	181	'
Total current liabilities	4,758	4,368
Note payable	'	176
Warrant liabilities	3,204	9,823
Stockholders' equity:	'	'
Preferred stock, at stated value; 10,000,000 shares authorized, and no shares issued and outstanding at September 30, 2014 and December 31, 2013	0	0
Common stock, $0.001 par value; 150,000,000 shares authorized, and 77,515,339 and 70,749,212 shares issued at September 30, 2014 and December 31, 2013, respectively, and 77,515,339 and 70,683,480 shares outstanding at September 30, 2014 and December 31, 2013, respectively	78	71
Additional paid-in capital	306,706	284,323
Treasury stock, at cost; 65,732 shares at December 31, 2013	'	-135
Accumulated deficit	-279,966	-264,438
Total stockholders' equity	26,818	19,821
Total liabilities and stockholders' equity	$34,780	$34,188

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]	'	'
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$0.00	$0.00
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	77,515,339	70,749,212
Common stock, shares outstanding	77,515,339	70,683,480
Treasury stock, shares outstanding	'	65,732

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Revenues	'	'	'	'
Contract revenue	$75	$87	$155	$365
Grant revenue	218	534	1,233	1,153
Total revenues	293	621	1,388	1,518
Costs and expenses	'	'	'	'
Research and development	5,775	4,689	17,756	15,372
General and administrative	1,695	1,450	5,303	4,512
Depreciation	91	86	272	257
Total costs and expenses	7,561	6,225	23,331	20,141
Loss from operations	-7,268	-5,604	-21,943	-18,623
Other income (expense), net	9	-4	80	28
Income (expense) from change in fair value of warrants, net	2,540	-6	6,335	-2,353
Net loss and comprehensive loss	($4,719)	($5,614)	($15,528)	($20,948)
Net loss per share - Basic	($0.06)	($0.10)	($0.20)	($0.38)
Weighted average shares outstanding - Basic	77,320,425	57,646,306	76,755,599	55,722,235
Net loss per share - Diluted	($0.08)	($0.10)	($0.23)	($0.38)
Weighted average shares outstanding - Diluted	78,349,840	59,248,031	78,495,281	55,722,235

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Operating activities	'	'
Net loss	($15,528)	($20,948)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation	272	257
Stock-based compensation	1,894	918
Change in fair value of warrant liabilities	-6,335	2,353
Changes in operating assets and liabilities:	'	'
Accounts receivable	-145	37
Prepaid expenses and other assets	-29	3
Accounts payable and accrued expenses	295	-890
Deferred revenue and other	-81	'
Net cash used in operating activities	-19,657	-18,270
Investing activities	'	'
Purchases of equipment	-270	-331
Net cash used in investing activities	-270	-331
Financing activities	'	'
Proceeds from issuance of common stock and warrants, net	19,701	10,617
Purchase of treasury stock	-292	-137
Proceeds from exercise of warrants	938	402
Net cash provided by financing activities	20,347	10,882
Increase (decrease) in cash and cash equivalents	420	-7,719
Cash and cash equivalents at beginning of the period	31,948	25,533
Cash and cash equivalents at end of the period	$32,368	$17,814

Background_and_Basis_of_Presen

Background and Basis of Presentation	9 Months Ended
	Sep. 30, 2014
Accounting Policies [Abstract]	'
Background and Basis of Presentation	'
	1. Background and Basis of Presentation
	We are an international biopharmaceutical company that is focused primarily on the field of regenerative medicine and operate in one business segment. Our operations consist primarily of research and product development activities.
	The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013. The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and Article 10 of Regulation S-X. Accordingly, since they are interim statements, the accompanying financial statements do not include all of the information and notes required by GAAP for complete financial statements. The accompanying financial statements reflect all adjustments, consisting of normal recurring adjustments, that are, in the opinion of management, necessary for a fair presentation of financial position and results of operations for the interim periods presented. Interim results are not necessarily indicative of results for a full year.
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Our critical accounting policies, estimates and assumptions are described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” which is included below in this Quarterly Report on Form 10-Q.

Recently_Issued_Accounting_Sta

Recently Issued Accounting Standard	9 Months Ended
	Sep. 30, 2014
Accounting Changes and Error Corrections [Abstract]	'
Recently Issued Accounting Standard	'
	2. Recently Issued Accounting Standard
	In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 requires an entity to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the amendment provides five steps that an entity should apply when recognizing revenue. The amendment also specifies the accounting of some costs to obtain or fulfill a contract with a customer and expands the disclosure requirements around contracts with customers. An entity can either adopt this amendment retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the update recognized at the date of initial application. The amendment is effective for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. We are in the process of evaluating, but have not determined, the impact that the adoption of ASU 2014-09 will have on our consolidated financial statements.
	In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” which establishes management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and, if so, to provide related footnote disclosures. ASU 2014-15 provides a definition of the term ‘substantial doubt’ and requires an assessment for a period of one year after the date that the financial statements are issued or available to be issued. Management will also be required to evaluate and disclose whether its plans alleviate that doubt. The guidance is effective for the annual periods ending after December 15, 2016 and interim periods thereafter with early adoption permitted. We are in the process of evaluating the impact the new guidance will have on our disclosures.

Net_Loss_per_Share

Net Loss per Share	9 Months Ended
	Sep. 30, 2014
Earnings Per Share [Abstract]	'
Net Loss per Share	'
	3. Net Loss per Share
	Basic and diluted net loss per share have been computed using the weighted-average number of shares of common stock outstanding during the period. The table below reconciles the net loss and the number of shares used to calculate basic and diluted net loss per share for the three and nine month periods ended September 30, 2014 and 2013, in thousands.
		Three months ended						Nine months ended
		September 30,						September 30,
		2014			2013			2014			2013
	Numerator:
	Net loss attributable to common stockholders - Basic	$	(4,719	)	$	(5,614	)	$	(15,528	)	$	(20,948	)
	Less: income from change in fair value of warrants		(1,160	)		(33	)		(2,504	)		—
	Net loss attributable to common stockholders used to calculate diluted net loss per share	$	(5,879	)	$	(5,647	)	$	(18,032	)	$	(20,948	)
	Denominator:
	Weighted-average shares outstanding - Basic		77,320			57,646			76,756			55,722
	Potentially dilutive common shares outstanding:
	Warrants		1,030			1,602			1,739			—
	Weighted-average shares used to calculate diluted net loss per share		78,350			59,248			78,495			55,722
	Basic earnings per share	$	(0.06	)	$	(0.10	)	$	(0.20	)	$	(0.38	)
	Dilutive earnings per share	$	(0.08	)	$	(0.10	)	$	(0.23	)	$	(0.38	)
	We have outstanding options, restricted stock units and warrants that are not used in the calculation of diluted net loss per share because to do so would be antidilutive. The following instruments were excluded from the calculation of diluted net loss per share because their effects would be antidilutive:
		Three months ended						Nine months ended
		September 30,						September 30,
		2014			2013			2014			2013
	Stock options		6,261,164			5,130,329			6,261,164			5,130,329
	Restricted stock units		2,142,779			2,674,348			2,142,779			2,674,348
	Warrants		6,310,000			1,459,026			6,310,000			5,409,027
	Total		14,713,943			9,263,703			14,713,943			13,213,704

Fair_Value_of_Financial_Instru

Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2014

Investments, All Other Investments [Abstract]

'

Fair Value of Financial Instruments

'

4. Fair Value of Financial Instruments

Fair Value Measurements

We classify the inputs used to measure fair value into the following hierarchy:

Level 1

Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2

Adjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or significant inputs other than quoted prices that are observable for the asset or liability.

Level 3

Unobservable inputs for the asset or liability.

The following table provides a summary of the fair values of our assets and liabilities measured at fair value on a recurring basis as of September 30, 2014 (in thousands):

Fair Value Measurements at September 30, 2014 Using

Description

Balance as of

Quoted Prices in Active

Significant Other

Significant Unobservable

September 30, 2014

Markets for Identical

Observable Inputs

Inputs (Level 3)

Assets (Level 1)

(Level 2)

Warrant liabilities

$

3,204

$

—

$

—

$

3,204

We review and reassess the fair value hierarchy classifications on a quarterly basis. Changes from one quarter to the next related to the observability of inputs in a fair value measurement may result in a reclassification between fair value hierarchy levels. There were no reclassifications for all periods presented.

The estimated fair value of warrants accounted for as liabilities, representing a level 3 fair value measure, was determined on the issuance date and subsequently marked to market at each financial reporting date. We use the Black-Scholes valuation model to value the warrant liabilities at fair value. The fair value is estimated using the expected volatility based on our historical volatility for warrants issued after January 1, 2013, or for warrants issued prior to 2013, using the historical volatilities of comparable companies from a representative peer group selected based on industry and market capitalization. The fair value of the warrants is determined using probability weighted-average assumptions, when appropriate. The following inputs were used at September 30, 2014:

Expected Volatility

Risk-Free Interest Rate

Expected Life

Warrants with one year or less remaining term

114.77%

0.13%

0.50 year

Warrants with greater than one year remaining term

67.59% - 78.63%

0.13% - 0.58%

1.34 - 2.46 years

A roll-forward of fair value measurements using significant unobservable inputs (Level 3) for the warrants is as follows (in thousands):

Three months

Nine months

ended

ended

September 30, 2014

September 30, 2014

Balance July 1, 2014

$

5,744

Balance January 1, 2014

$

9,823

Issuance of warrants

—

Issuance of warrants January 2014

2,012

Exercise of warrants

—

Exercise of warrants

(2,296

)

Gain included in income from change in fair value of warrants for the period

(2,540

)

Gain included in income from change in fair value of warrants for the period

(6,335

)

Balance September 30, 2014

$

3,204

Balance September 30, 2014

$

3,204

Collaborative_Arrangements_and

Collaborative Arrangements and Revenue Recognition	9 Months Ended
	Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Collaborative Arrangements and Revenue Recognition	'
	5. Collaborative Arrangements and Revenue Recognition
	Pfizer
	In 2009, we entered into a collaboration with Pfizer Inc. (“Pfizer”) to develop and commercialize our MultiStem® product candidate to treat inflammatory bowel disease (“IBD”) for the worldwide market on an exclusive basis. We are eligible to receive milestone payments upon the successful achievement of certain development, regulatory and commercial milestones, for which we evaluated the nature of the events triggering these contingent payments and concluded that these events constituted substantive milestones that will be recognized as revenue in the period in which the underlying triggering event occurs. No significant milestone revenue has been recognized to date.
	Pfizer pays us for manufacturing product for clinical development and commercialization purposes, which is recognized in the period that the manufacturing services are performed. Pfizer has responsibility for development and regulatory, including decision-making regarding the advancement or cessation of further development under the collaboration. If the product is successfully developed, Pfizer would also have sole responsibility for commercialization. We may elect to co-develop with Pfizer, in which case, the parties would share development and commercialization expenses and profits (if any) on an agreed basis beginning at Phase 3 clinical development. Alternatively, we may elect to not co-develop with Pfizer, in which case Pfizer will pay us tiered single-digit royalties on worldwide commercial sales of MultiStem IBD products. Any royalties may be subject to certain reductions related to market exclusivity, patent claims and credits from sales milestone payments. In the event that Pfizer does not move the program forward, the development and commercialization rights would revert to us.
	RTI Surgical, Inc.
	In 2010, we entered into an agreement with RTI Surgical, Inc. (“RTI”) to develop and commercialize biologic implants using our technology for certain orthopedic applications in the bone graft substitutes market on an exclusive basis. We are eligible to receive cash payments upon the successful achievement of certain commercial milestones. We evaluated the nature of the events triggering these contingent payments and concluded that these events are substantive and that revenue will be recognized in the period in which each underlying triggering event occurs. No milestone revenue has been recognized to date. In addition, we are entitled to receive tiered royalties on worldwide commercial sales of implants using our technologies based on a royalty rate starting in the mid-single digits and increasing into the mid-teens. Any royalties may be subject to a reduction if third-party payments for intellectual property rights are necessary or commercially desirable to permit the manufacture or sale of the product.

Stockbased_Compensation

Stock-based Compensation	9 Months Ended
	Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Stock-based Compensation	'
	6. Stock-based Compensation
	We have two incentive plans that authorized an aggregate of 11,500,000 shares of common stock for awards to employees, directors and consultants. These equity incentive plans authorize the issuance of equity-based compensation in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares and units, and other stock-based awards. As of September 30, 2014, an aggregate of 1,342,905 shares of common stock underlying stock-based awards have been issued or exercised under our equity incentive plans. In the three-month period ended September 30, 2014, restricted stock units equivalent to 302,359 shares of common stock vested during the period.
	As of September 30, 2014, a total of 1,753,152 shares were available for issuance under our equity compensation plans and stock-based awards to purchase 8,403,943 shares of common stock were outstanding. For the three-month periods ended September 30, 2014 and 2013, stock-based compensation expense was approximately $714,000 and $606,000, respectively. At September 30, 2014, total unrecognized estimated compensation cost related to unvested stock-based awards was approximately $6,117,000, which is expected to be recognized by the end of 2018 using the straight-line method.

Issuance_of_Common_Stock_and_W

Issuance of Common Stock and Warrants	9 Months Ended
	Sep. 30, 2014
Equity [Abstract]	'
Issuance of Common Stock and Warrants	'
	7. Issuance of Common Stock and Warrants
	In January 2014, we completed a registered direct offering generating net proceeds of approximately $18.8 million through the issuance of 5,000,000 shares of common stock and warrants to purchase 1,500,000 shares of common stock with an exercise price of $4.50 per share that expire on July 15, 2016. The securities were sold in multiples of a fixed combination of one share of common stock and a warrant to purchase 0.30 shares of common stock at an offering price of $4.10 per fixed combination.
	During the quarter ended September 30, 2014, we did not sell any shares to Aspire Capital, and during the nine-month period ended September 30, 2014, we sold 250,000 shares of common stock at an average price of $3.78 per share. In accordance with the equity purchase agreement, we could elect to sell to Aspire Capital up to $23.5 million of shares of common stock.
	As of September 30, 2014, we had the following outstanding warrants to purchase shares of common stock:
	Number of		Exercise Price		Expiration
	Underlying Shares
		1,310,000	$	3.55	2-Feb-16
		3,021,077	$	1.01	14-Mar-17
		3,500,000	$	2.5	31-Mar-15
		1,500,000	$	4.5	15-Jul-16
		9,331,077

Warrant_Liabilities

Warrant Liabilities	9 Months Ended
	Sep. 30, 2014
Text Block [Abstract]	'
Warrant Liabilities	'
	8. Warrant Liabilities
	We account for common stock warrants as either liabilities or as equity instruments depending on the specific terms of the warrant agreement. Registered common stock warrants that could require cash settlement are accounted for as liabilities. We classify these warrant liabilities on the consolidated balance sheet as a non-current liability. The warrant liabilities are revalued at fair value at each balance sheet date subsequent to the initial issuance. Changes in the fair market value of the warrant are reflected in the consolidated statement of operations as income (expense) from change in fair value of warrants.
	The warrants we issued in the January 2014 and December 2013 registered direct offerings contain a provision for a cash payment in the event that the shares are not delivered to the holder within two trading days. The cash payment equals $10 per day per $2,000 of warrant shares for each day late. The warrants issued in the March 2012 private placement and the February 2011 registered direct offering each contain a provision for net cash settlement in the event that there is a fundamental transaction (e.g., merger, sale of substantially all assets, tender offer, or share exchange). If a fundamental transaction occurs in which the consideration issued consists of all cash or stock in a non-public company, then the warrant holder has the option to receive cash equal to a Black Scholes value of the remaining unexercised portion of the warrant. Further, the March 2012 warrants include price protection in the event we sell stock below the exercise price, as defined, and the exercise price as reduced in February 2013 to $1.01 per share as a result of the October 2012 public offering.
	The warrants have been classified as liabilities, as opposed to equity, due to the potential adjustment to the exercise price that could result upon late delivery of the shares or potential cash settlement upon the occurrence of certain events as described above, and are recorded at their fair values at each balance sheet date.

Income_Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2014
Income Tax Disclosure [Abstract]	'
Income Taxes	'
	9. Income Taxes
	We have net operating loss and research and development tax credit carryforwards that may be used to reduce future taxable income and tax liabilities. Our deferred tax assets have been fully offset by a valuation allowance due to our cumulative losses. As a result of our October 2012 equity offering, our net operating loss carryforwards are significantly limited for use under Section 382 of the Internal Revenue Code.

Recently_Issued_Accounting_Sta1

Recently Issued Accounting Standard (Policies)	9 Months Ended
	Sep. 30, 2014
Accounting Changes and Error Corrections [Abstract]	'
Revenue from Contracts with Customers	'
	In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 requires an entity to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the amendment provides five steps that an entity should apply when recognizing revenue. The amendment also specifies the accounting of some costs to obtain or fulfill a contract with a customer and expands the disclosure requirements around contracts with customers. An entity can either adopt this amendment retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the update recognized at the date of initial application. The amendment is effective for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. We are in the process of evaluating, but have not determined, the impact that the adoption of ASU 2014-09 will have on our consolidated financial statements.
Presentation of Financial Statements	'
	In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” which establishes management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and, if so, to provide related footnote disclosures. ASU 2014-15 provides a definition of the term ‘substantial doubt’ and requires an assessment for a period of one year after the date that the financial statements are issued or available to be issued. Management will also be required to evaluate and disclose whether its plans alleviate that doubt. The guidance is effective for the annual periods ending after December 15, 2016 and interim periods thereafter with early adoption permitted. We are in the process of evaluating the impact the new guidance will have on our disclosures.

Net_Loss_per_Share_Tables

Net Loss per Share (Tables)	9 Months Ended
	Sep. 30, 2014
Earnings Per Share [Abstract]	'
Net Loss and Number of Shares Used to Calculate Basic and Diluted Net Loss Per Share	'
	The table below reconciles the net loss and the number of shares used to calculate basic and diluted net loss per share for the three and nine month periods ended September 30, 2014 and 2013, in thousands.
		Three months ended						Nine months ended
		September 30,						September 30,
		2014			2013			2014			2013
	Numerator:
	Net loss attributable to common stockholders - Basic	$	(4,719	)	$	(5,614	)	$	(15,528	)	$	(20,948	)
	Less: income from change in fair value of warrants		(1,160	)		(33	)		(2,504	)		—
	Net loss attributable to common stockholders used to calculate diluted net loss per share	$	(5,879	)	$	(5,647	)	$	(18,032	)	$	(20,948	)
	Denominator:
	Weighted-average shares outstanding - Basic		77,320			57,646			76,756			55,722
	Potentially dilutive common shares outstanding:
	Warrants		1,030			1,602			1,739			—
	Weighted-average shares used to calculate diluted net loss per share		78,350			59,248			78,495			55,722
	Basic earnings per share	$	(0.06	)	$	(0.10	)	$	(0.20	)	$	(0.38	)
	Dilutive earnings per share	$	(0.08	)	$	(0.10	)	$	(0.23	)	$	(0.38	)
Instruments Excluded from Calculation of Diluted Net Loss Per Share	'
	antidilutive. The following instruments were excluded from the calculation of diluted net loss per share because their effects would be antidilutive:
		Three months ended						Nine months ended
		September 30,						September 30,
		2014			2013			2014			2013
	Stock options		6,261,164			5,130,329			6,261,164			5,130,329
	Restricted stock units		2,142,779			2,674,348			2,142,779			2,674,348
	Warrants		6,310,000			1,459,026			6,310,000			5,409,027
	Total		14,713,943			9,263,703			14,713,943			13,213,704

Fair_Value_of_Financial_Instru1

Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2014

Investments, All Other Investments [Abstract]

'

Summary of Fair Values of Assets and Liabilities Measured at Fair Value on Recurring Basis

'

The following table provides a summary of the fair values of our assets and liabilities measured at fair value on a recurring basis as of September 30, 2014 (in thousands):

Fair Value Measurements at September 30, 2014 Using

Description

Balance as of

Quoted Prices in Active

Significant Other

Significant Unobservable

September 30, 2014

Markets for Identical

Observable Inputs

Inputs (Level 3)

Assets (Level 1)

(Level 2)

Warrant liabilities

$

3,204

$

—

$

—

$

3,204

Fair Value of Warrants Based on Historical Volatilities

'

The fair value of the warrants is determined using probability weighted-average assumptions, when appropriate. The following inputs were used at September 30, 2014:

Expected Volatility

Risk-Free Interest Rate

Expected Life

Warrants with one year or less remaining term

114.77%

0.13%

0.50 year

Warrants with greater than one year remaining term

67.59% - 78.63%

0.13% - 0.58%

1.34 - 2.46 years

Roll-Forward of Fair Value Measurements Using Significant Unobservable Inputs (Level 3) for Warrants

'

A roll-forward of fair value measurements using significant unobservable inputs (Level 3) for the warrants is as follows (in thousands):

Three months

Nine months

ended

ended

September 30, 2014

September 30, 2014

Balance July 1, 2014

$

5,744

Balance January 1, 2014

$

9,823

Issuance of warrants

—

Issuance of warrants January 2014

2,012

Exercise of warrants

—

Exercise of warrants

(2,296

)

Gain included in income from change in fair value of warrants for the period

(2,540

)

Gain included in income from change in fair value of warrants for the period

(6,335

)

Balance September 30, 2014

$

3,204

Balance September 30, 2014

$

3,204

Issuance_of_Common_Stock_and_W1

Issuance of Common Stock and Warrants (Tables)	9 Months Ended
	Sep. 30, 2014
Equity [Abstract]	'
Outstanding Warrants to Purchase Shares of Common Stock	'
	As of September 30, 2014, we had the following outstanding warrants to purchase shares of common stock:
	Number of		Exercise Price		Expiration
	Underlying Shares
		1,310,000	$	3.55	2-Feb-16
		3,021,077	$	1.01	14-Mar-17
		3,500,000	$	2.5	31-Mar-15
		1,500,000	$	4.5	15-Jul-16
		9,331,077

Background_and_Basis_of_Presen1

Background and Basis of Presentation - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2014
	Segment
Accounting Policies [Abstract]	'
Number of business segments	1

Net_Loss_per_Share_Net_Loss_an

Net Loss per Share - Net Loss and Number of Shares Used to Calculate Basic and Diluted Net Loss Per Share (Detail) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Numerator:	'	'	'	'
Net loss and comprehensive loss	($4,719)	($5,614)	($15,528)	($20,948)
Less: income from change in fair value of warrants	-1,160	-33	-2,504	'
Net loss attributable to common stockholders used to calculate diluted net loss per share	($5,879)	($5,647)	($18,032)	($20,948)
Denominator:	'	'	'	'
Weighted-average shares outstanding - Basic	77,320,425	57,646,306	76,755,599	55,722,235
Potentially dilutive common shares outstanding:	'	'	'	'
Warrants	1,030,000	1,602,000	1,739,000	'
Weighted-average shares used to calculate diluted net loss per share	78,349,840	59,248,031	78,495,281	55,722,235
Basic earnings per share	($0.06)	($0.10)	($0.20)	($0.38)
Dilutive earnings per share	($0.08)	($0.10)	($0.23)	($0.38)

Net_Loss_per_Share_Instruments

Net Loss per Share - Instruments Excluded from Calculation of Diluted Net Loss Per Share (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Total	14,713,943	9,263,703	14,713,943	13,213,704
Stock Options [Member]	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Total	6,261,164	5,130,329	6,261,164	5,130,329
Restricted Stock Units [Member]	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Total	2,142,779	2,674,348	2,142,779	2,674,348
Warrants [Member]	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Total	6,310,000	1,459,026	6,310,000	5,409,027

Fair_Value_of_Financial_Instru2

Fair Value of Financial Instruments - Summary of Fair Values of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Warrant liabilities	$3,204	$9,823
Fair Value Measurements, Recurring Basis [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Warrant liabilities	3,204	'
Fair Value Measurements, Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Warrant liabilities	0	'
Fair Value Measurements, Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Warrant liabilities	0	'
Fair Value Measurements, Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Warrant liabilities	$3,204	'

Fair_Value_of_Financial_Instru3

Fair Value of Financial Instruments - Fair Value of Warrants Based on Historical Volatilities (Detail)	9 Months Ended
	Sep. 30, 2014
Warrants With One Year or Less Remaining Term [Member]	'
Class of Warrant or Right [Line Items]	'
Expected Volatility	114.77%
Risk-Free Interest Rate	0.13%
Expected Life	'6 months
Warrants With Greater Than One Year Remaining Term [Member] | Minimum [Member]	'
Class of Warrant or Right [Line Items]	'
Expected Volatility	67.59%
Risk-Free Interest Rate	0.13%
Expected Life	'1 year 4 months 2 days
Warrants With Greater Than One Year Remaining Term [Member] | Maximum [Member]	'
Class of Warrant or Right [Line Items]	'
Expected Volatility	78.63%
Risk-Free Interest Rate	0.58%
Expected Life	'2 years 5 months 16 days

Fair_Value_of_Financial_Instru4

Fair Value of Financial Instruments - Roll-Forward of Fair Value Measurements Using Significant Unobservable Inputs (Level 3) for Warrants (Detail) (Outstanding Warrants [Member], USD $)	3 Months Ended	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2014
Outstanding Warrants [Member]	'	'
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]	'	'
Beginning Balance	$5,744	$9,823
Issuance of warrants	0	2,012
Exercise of warrants	0	-2,296
Gain included in income from change in fair value of warrants for the period	-2,540	-6,335
Ending Balance	$3,204	$3,204

Collaborative_Arrangements_and1

Collaborative Arrangements and Revenue Recognition - Additional Information (Detail) (USD $)	9 Months Ended
	Sep. 30, 2014
Pfizer [Member]	'
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]	'
Commercial milestone revenue	$0
RTI Surgical Inc [Member]	'
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]	'
Commercial milestone revenue	$0

Stockbased_Compensation_Additi

Stock-based Compensation - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
			Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Number of incentive plans	'	'	2	'
Common stock authorized for equity incentive plans	11,500,000	'	11,500,000	'
Common stock issued under equity incentive plans	'	'	1,342,905	'
Shares of common stock outstanding	8,403,943	'	8,403,943	'
Stock-based compensation expense	$714	$606	$1,894	$918
Total unrecognized estimated compensation cost	$6,117	'	$6,117	'
Compensation cost related to unvested stock-based awards not yet recognized, expected year for recognition	'	'	'2018	'
Equity Compensation Plans and Stock-based Awards [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Shares available for issuance	1,753,152	'	1,753,152	'
Restricted Stock Units (RSUs) [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Common stock issued under equity incentive plans	302,359	'	'	'

Issuance_of_Common_Stock_and_W2

Issuance of Common Stock and Warrants - Additional Information (Detail) (USD $)	1 Months Ended	9 Months Ended			9 Months Ended	3 Months Ended	9 Months Ended
	Jan. 31, 2014	Sep. 30, 2014	Sep. 30, 2013	Feb. 28, 2013	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2014
					Aspire [Member]	Aspire [Member]	Aspire [Member]
					Equity Purchase Agreements [Member]	Common Stock [Member]	Common Stock [Member]
Class of Warrant or Right [Line Items]	'	'	'	'	'	'	'
Proceeds from issuance of common stock, net	$18,800,000	$19,701,000	$10,617,000	'	'	'	'
Issuance of common stock, new issues	5,000,000	'	'	'	'	0	250,000
Warrants issued to purchase common stock	1,500,000	'	'	'	'	'	'
Warrant exercise price per share	$4.50	'	'	$1.01	'	'	'
Warrants exercise expiration date	15-Jul-16	'	'	'	'	'	'
Common stock per warrant conversion ratio	0.3	'	'	'	'	'	'
Common stock and warrant combined offering price	$4.10	'	'	'	'	'	'
Sale of shares at an average price	'	'	'	'	'	'	$3.78
Equity purchase agreement maximum amount	'	'	'	'	$23,500,000	'	'

Issuance_of_Common_Stock_and_W3

Issuance of Common Stock and Warrants - Outstanding Warrants to Purchase Shares of Common Stock (Detail) (USD $)	Sep. 30, 2014	Jan. 31, 2014	Feb. 28, 2013	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2014
				February 2, 2016 [Member]	March 14, 2017 [Member]	March 31, 2015 [Member]	July 15, 2016 [Member]
Class of Warrant or Right [Line Items]	'	'	'	'	'	'	'
Number of Underlying Shares	9,331,077	'	'	1,310,000	3,021,077	3,500,000	1,500,000
Exercise Price	'	$4.50	$1.01	$3.55	$1.01	$2.50	$4.50
Expiration	'	'	'	2-Feb-16	14-Mar-17	31-Mar-15	15-Jul-16

Warrant_Liabilities_Additional

Warrant Liabilities - Additional Information (Detail) (USD $)	9 Months Ended
	Sep. 30, 2014	Jan. 31, 2014	Feb. 28, 2013
Equity [Abstract]	'	'	'
Terms of issuance of warrant demanding cash payments	'The warrants we issued in the January 2014 and December 2013 registered direct offerings contain a provision for a cash payment in the event that the shares are not delivered to the holder within two trading days. The cash payment equals $10 per day per $2,000 of warrant shares for each day late.	'	'
Number of trading days to deliver shares under warrants provision	'2 days	'	'
Value of warrants considered for cash payment for late delivery of shares	$2,000	'	'
Cash payment per day for warrants shares not delivered as per provision	$10	'	'
Exercise Price	'	$4.50	$1.01