Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 12, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'CELLULAR DYNAMICS INTERNATIONAL, INC. | ' |
Entity Central Index Key | '0001482080 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 15,757,613 |
Balance_Sheets
Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $68,575 | $33,900 |
Accounts receivable, net | 1,908 | 2,658 |
Inventories | 3,507 | 2,381 |
Prepaid expenses and other assets | 1,092 | 662 |
Total current assets | 75,082 | 39,601 |
Property and equipment, net | 901 | 873 |
Goodwill | 6,817 | 6,817 |
Intangible assets, net | 4,142 | 4,195 |
Debt issuance costs, net | 211 | 0 |
Other assets | 10 | 10 |
Total | 87,163 | 51,496 |
Current liabilities: | ' | ' |
Accounts payable | 1,246 | 1,035 |
Accrued liabilities | 2,706 | 1,830 |
Deferred revenue | 525 | 570 |
Current maturities of long-term debt | 18 | 336 |
Total current liabilities | 4,495 | 3,771 |
Long-term debt, less current portion | 11,808 | 734 |
Commitments and contingencies (Note 7) | ' | ' |
Shareholders' equity: | ' | ' |
Convertible preferred stock | 0 | 0 |
Common stock, $0.0001 par value — authorized, 135,715,623 at December 31, 2012 and 100,000,000 at September 30, 2013; issued and outstanding, 1,733,651 shares at December 31, 2012 and 15,749,938 shares at September 30, 2013 | 2 | 0 |
Additional paid-in-capital | 171,167 | 9,451 |
Accumulated deficit | 100,309 | 82,064 |
Total shareholders' equity | 70,860 | 46,991 |
Total | 87,163 | 51,496 |
Preferred Class A [Member] | ' | ' |
Shareholders' equity: | ' | ' |
Convertible preferred stock | 0 | 28,191 |
Preferred Class B [Member] | ' | ' |
Shareholders' equity: | ' | ' |
Convertible preferred stock | $0 | $91,413 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Preferred Stock Par Value (in dollars per share) | $0.01 | $0.01 |
Authorized Preferred Stock (in shares) | 10,000,000 | 0 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock Outstanding (in shares) | 0 | 0 |
Common Stock Par Value (in dollars per share) | $0.00 | $0.00 |
Common Stock Authorized (in shares) | 100,000,000 | 135,715,623 |
Common Stock Issued (in shares) | 15,749,938 | 1,733,651 |
Common Stock Outstanding (in shares) | 15,749,938 | 1,733,651 |
Preferred Class A [Member] | ' | ' |
Preferred Stock Par Value (in dollars per share) | $0.01 | $0.01 |
Authorized Preferred Stock (in shares) | 0 | 28,413,291 |
Preferred Stock, Shares Issued | 0 | 2,914,187 |
Preferred Stock Outstanding (in shares) | 0 | 2,914,187 |
Preferred Class B [Member] | ' | ' |
Preferred Stock Par Value (in dollars per share) | $0.01 | $0.01 |
Authorized Preferred Stock (in shares) | 0 | 70,512,809 |
Preferred Stock, Shares Issued | 0 | 7,232,092 |
Preferred Stock Outstanding (in shares) | 0 | 7,232,092 |
Statement_of_Operations
Statement of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ' | ' | ' | ' |
Product sales | $1,793 | $1,075 | $5,516 | $2,892 |
Collaborations, partnerships and other revenues | 730 | 158 | 2,209 | 747 |
Total revenues | 2,523 | 1,233 | 7,725 | 3,639 |
Costs and expenses: | ' | ' | ' | ' |
Cost of product sales | 371 | 287 | 1,624 | 848 |
Research and development | 3,906 | 3,529 | 11,673 | 10,352 |
Sales and marketing | 1,679 | 1,083 | 4,710 | 3,075 |
General and administrative | 3,727 | 1,805 | 7,614 | 5,797 |
Total costs and expenses | 9,683 | 6,704 | 25,621 | 20,072 |
Loss from operations | -7,160 | -5,471 | -17,896 | -16,433 |
Other (expense) income: | ' | ' | ' | ' |
Interest expense | -358 | -8 | -369 | -27 |
Other income | 20 | 0 | 20 | 1 |
Total other expense | -338 | -8 | -349 | -26 |
Net loss | ($7,498) | ($5,479) | ($18,245) | ($16,459) |
Net loss per share of common stock, basic and diluted | ($0.62) | ($3.16) | ($3.49) | ($9.54) |
Shares used in computing net loss per share of common stock, basic and diluted | 12,087,370 | 1,733,609 | 5,223,101 | 1,724,902 |
Statement_of_Cash_Flows
Statement of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net loss | ($18,245) | ($16,459) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation | 618 | 849 |
Amortization of licenses, patents and other agreements | 383 | 221 |
Amortization of debt issuance costs and debt discount | 24 | 0 |
Stock-based compensation | 928 | 794 |
Gain on revaluation of warrants | -20 | 0 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 750 | -238 |
Inventories | -1,126 | -432 |
Prepaid expenses and other current assets | -430 | -149 |
Accounts payable | 186 | 59 |
Accrued liabilities | 525 | -323 |
Accrued interest | 59 | 0 |
Deferred revenue | -45 | -54 |
Net cash used in operating activities | -16,393 | -15,732 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -646 | -127 |
Payments to acquire licenses | -235 | -445 |
Net cash used in investing activities | -881 | -572 |
Cash flows from financing activities: | ' | ' |
Repayments of debt | -1,055 | -305 |
Proceeds from debt | 12,000 | 0 |
Payments of debt issuance costs | -163 | 0 |
Proceeds from exercise of stock options | 103 | 151 |
Proceeds from issuance of common stock, net of issuance costs | 41,064 | 0 |
Net cash (used in) provided by financing activities | 51,949 | -154 |
Net (decrease) increase in cash and cash equivalents | 34,675 | -16,458 |
Cash and cash equivalents — Beginning of period | 33,900 | 36,729 |
Cash and cash equivalents — End of period | 68,575 | 20,271 |
Supplemental disclosure of cash flow information — | ' | ' |
Cash paid for interest | 284 | 28 |
Supplemental information on noncash activities: | ' | ' |
Issuance of stock options for non-competition agreement | 70 | 0 |
Accrued interest converted to principal | 0 | 66 |
Licenses not yet paid | 25 | 1,800 |
Debt issuance costs not yet paid | 59 | 0 |
Common stock issuance costs not yet paid | $292 | $0 |
Description_of_business
Description of business | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description of business | ' |
Description of business | |
Cellular Dynamics International, Inc. (the Company), was incorporated in Wisconsin in late 2007 under the name iPS Cells, Inc. (iPS). In July 2008, the Company acquired two companies—Cellular Dynamics International, Inc. (CDI) and Stem Cell Products, Inc. (SCP)—in a common stock merger transaction. Subsequent to the acquisitions, the combined entity was renamed Cellular Dynamics International, Inc. | |
The Company develops and manufactures fully functioning human cells in industrial quantities to precise specifications. Its proprietary iCell Operating System (iCell O/S) includes true human cells in multiple cell types (iCell products), human induced pluripotent stem cells (iPSCs) and custom iPSCs and iCell products (MyCell products). Its iCell O/S products provide standardized, easy-to-use, cost-effective access to the human cell, the smallest fully functioning operating unit of human biology. Customers use the Company's iCell O/S products, among other purposes, for drug discovery and screening; to test the safety and efficacy of their small molecule and biologic drug candidates; for stem cell banking; and in researching cellular therapeutics. | |
Basis of presentation – The unaudited interim financial statements have been prepared on the same basis as the annual consolidated statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s financial position and results of operations and cash flows for all interim periods presented herein. The financial data and the other information disclosed in these notes to the financial statements related to the interim periods are unaudited. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the year ending December 31, 2013 or for any other interim period or for any other future year. | |
On June 27, 2013, the Company’s Board of Directors authorized a 1 for 9.75 reverse split of its Series A preferred stock, Series B preferred stock and common stock which was effective July 9, 2013. These financial statements give retroactive effect to the stock split. | |
Use of estimates – The accompanying financial statements have been presented in conformity with accounting principles generally accepted in the United States of America (GAAP). The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates primarily include those required in the valuation of impairment analysis of inventory, patents, licenses, goodwill, intangible assets and property and equipment; as well as estimates relating to revenue recognition and stock-based compensation. Management bases its estimates on certain assumptions, which it believes are reasonable in the circumstances, and while actual results could differ from those estimates, management does not believe that any change in those assumptions in the near term would have a significant effect on the Company's financial position, results of operations or cash flows. | |
Significant accounting policies – There have been no material changes to the Company's significant accounting policies as compared to the significant accounting policies described in the Company's Prospectus filed pursuant to Rule 424(b) under the Securities Act with the Securities and Exchange Commission on July 26, 2013. |
Supplemental_financial_informa
Supplemental financial information | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Supplemental financial information | ' | ||||||||||||
Supplemental financial information | |||||||||||||
Accounts receivable – The Company establishes an allowance for doubtful accounts based on a customer's ability and likelihood to pay. There was no allowance at December 31, 2012 and an allowance of $29,000 at September 30, 2013. | |||||||||||||
Inventories – | |||||||||||||
Inventories at December 31, 2012 and September 30, 2013, consisted of the following: | |||||||||||||
(Dollars in thousands) | December 31, | September 30, | |||||||||||
2012 | 2013 | ||||||||||||
Raw materials | $ | 1,032 | $ | 1,198 | |||||||||
Work in process | 145 | 621 | |||||||||||
Finished goods | 1,204 | 1,688 | |||||||||||
Total | $ | 2,381 | $ | 3,507 | |||||||||
Property and equipment – | |||||||||||||
Property and equipment at December 31, 2012 and September 30, 2013, consisted of the following: | |||||||||||||
(Dollars in thousands) | December 31, | September 30, | |||||||||||
2012 | 2013 | ||||||||||||
Leasehold improvements | $ | 438 | $ | 442 | |||||||||
Production and lab equipment | 3,852 | 4,173 | |||||||||||
Office and computer equipment | 475 | 542 | |||||||||||
Construction-in-progress | — | 254 | |||||||||||
4,765 | 5,411 | ||||||||||||
Less accumulated depreciation and amortization | (3,892 | ) | (4,510 | ) | |||||||||
Total | $ | 873 | $ | 901 | |||||||||
Goodwill – Goodwill is not amortized. The Company reviews goodwill for impairment annually during the fourth quarter or more often if conditions warrant. There was no change in goodwill for the nine months ended September 30, 2013. | |||||||||||||
Accrued liabilities – | |||||||||||||
Accrued liabilities at December 31, 2012 and September 30, 2013, consisted of the following: | |||||||||||||
(Dollars in thousands) | December 31, | September 30, | |||||||||||
2012 | 2013 | ||||||||||||
Accrued payroll, vacation and employee-related expenses | $ | 741 | $ | 571 | |||||||||
Accrued incentive compensation | — | 888 | |||||||||||
Accrued unbilled professional fees | 315 | 709 | |||||||||||
Accrued royalties | 500 | 193 | |||||||||||
Accrued quarterly consulting fees | 76 | 76 | |||||||||||
Accrued incentives for sales staff | 128 | 115 | |||||||||||
Other | 70 | 154 | |||||||||||
Total | $ | 1,830 | $ | 2,706 | |||||||||
Deferred revenue – Deferred revenue represents payments received, but not yet earned. The entire balance of deferred revenue of $570,000 at December 31, 2012 related to a multiple element arrangement with Eli Lilly and Company (Lilly). As of September 30, 2013, the deferred revenue balance included $344,000 related to the Lilly arrangement as well as several smaller balances related to ongoing MyCell projects. | |||||||||||||
Debt discounts – The Company recorded the fair value of the warrants issued in connection with the Credit Agreement, see Note 4, as a debt discount. The debt discount is amortized to interest expense over a period ending on the earlier of the maturity date of the notes or the date on which the notes are repaid. | |||||||||||||
Net loss per share of common stock – The Company’s basic net loss per share of common stock is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period. The diluted net loss per share of common stock is computed by dividing the net loss by the weighted-average number of potential common shares outstanding for the period determined using the treasury-stock method. For purposes of this calculation, the following potential common shares were excluded because including them would have been anti-dilutive: | |||||||||||||
September 30, | |||||||||||||
2012 | 2013 | ||||||||||||
Preferred series A | 2,914,187 | — | |||||||||||
Preferred series B | 5,572,000 | — | |||||||||||
Common stock warrants | 8,208 | 28,406 | |||||||||||
Common stock options | 1,518,688 | 2,305,863 | |||||||||||
10,013,083 | 2,334,269 | ||||||||||||
Comprehensive loss – Comprehensive loss is equal to net loss as presented in the accompanying statements of operations. | |||||||||||||
Segment reporting – ASC 280, “Segment Reporting” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. The Company determined it has one operating segment. Disaggregation of the Company’s operating results is impracticable, because the Company’s research and development activities and its assets overlap, and management reviews its business as a single operating segment. Thus, discrete financial information is not available by more than one operating segment. | |||||||||||||
Product information – The following table provides Product sales revenue by product: | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
(Dollars in thousands) | 2012 | 2013 | 2012 | 2013 | |||||||||
iCell Cardiomyocytes | $529 | $1,026 | $1,583 | $3,369 | |||||||||
iCell Neurons | 483 | 648 | 1,169 | 1,624 | |||||||||
MyCell | — | — | — | 170 | |||||||||
Other | 63 | 119 | 140 | 353 | |||||||||
Total | $1,075 | $1,793 | $2,892 | $5,516 | |||||||||
Major customers – During the three and nine month periods ended September 30, 2012 and 2013, the Company had several large biopharmaceutical customers that individually accounted for greater than 10% of its total revenue in one or more of the periods. | |||||||||||||
Lilly accounted for 33% of total revenue for the three months ended September 30, 2012. | |||||||||||||
Lilly and AstraZeneca UK Limited (AstraZeneca) accounted for 15% and 12%, respectively, of total revenue for the three months ended September 30, 2013. | |||||||||||||
Lilly and GlaxoSmithKline plc accounted for 18% and 15%, respectively, of total revenue for the nine months ended September 30, 2012. | |||||||||||||
Lilly and AstraZeneca accounted for 17% and 14%, respectively, of total revenue for the nine months ended September 30, 2013. | |||||||||||||
As of September 30, 2013, receivables from Lilly, AstraZeneca and Merck Sharp & Dohme Corp. (Merck) accounted for 17%, 16% and 13%, respectively, of total accounts receivable. | |||||||||||||
Concentration of credit risk and other risks and uncertainties – As of September 30, 2013 the Company had $59.6 million invested in a 100% U.S. Treasury Securities Money Market Fund and $2.9 million in a U.S. Government Money Market Fund. An investment in a money market fund is not insured or guaranteed. The Company's remaining cash was deposited with one major financial institution. These deposits exceed federally insured limits. The Company has not experienced any losses in such accounts and believes that the Company is not exposed to any significant risk on these balances. | |||||||||||||
The Company is currently not profitable and no assurance can be provided that it will ever be profitable. The Company is subject to risks common to companies in the biotechnology industry including, but not limited to, new technological innovations, dependence on key personnel, dependence on key suppliers, protection of proprietary technology, the validity of and continued access to its owned and licensed intellectual property, compliance with government regulations, uncertainty of widespread market acceptance of products and the need to obtain additional financing. The Company's products include materials subject to rapid technological change. Certain materials used in manufacturing have relatively few alternative sources of supply and establishing additional or replacement suppliers for such materials cannot be accomplished quickly. While the Company has ongoing programs to minimize the adverse effect of such uncertainty, and the Company considers technological change in estimating allowances, uncertainty continues to exist. | |||||||||||||
Fair value of financial instruments – The carrying amounts of financial instruments, which include cash and cash equivalents, accounts receivable and accounts payable, approximate their respective fair values due to the relatively short-term nature of these instruments. The Company believes the carrying values of long-term debt as of September 30, 2013 is also approximately equal to its fair value. | |||||||||||||
ASC Topic 820, Fair Value Measurement, establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include Level 1, defined as observable inputs, such as quoted market prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore, requiring an entity to develop its own assumptions. The Company uses the market approach and Level 1 inputs to value its cash equivalents. | |||||||||||||
Recent accounting pronouncements – There are no recent accounting pronouncements that the Company has not yet adopted that are expected to have a material effect on its financial position, results of operations or cash flows. |
Intangible_assets
Intangible assets | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ' | ||||||||
Intangible assets | ' | ||||||||
Intangible assets | |||||||||
Intangible assets and accumulated amortization balances at December 31, 2012 and September 30, 2013, are as follows: | |||||||||
(Dollars in thousands) | December 31, | September 30, | |||||||
2012 | 2013 | ||||||||
Trade name | $ | 13 | $ | 13 | |||||
Licenses and patents | 4,284 | 4,544 | |||||||
Non-competition agreement | 571 | 641 | |||||||
4,868 | 5,198 | ||||||||
Less accumulated amortization: | |||||||||
Trade name | (13 | ) | (13 | ) | |||||
Licenses and patents | (434 | ) | (727 | ) | |||||
Non-competition agreement | (226 | ) | (316 | ) | |||||
(673 | ) | (1,056 | ) | ||||||
Total, net | $ | 4,195 | $ | 4,142 | |||||
Amortization expense was $70,000 and $132,000 for the three months ended September 30, 2012 and 2013 respectively; and $221,000 and $383,000 for the nine months ended September 30, 2012 and 2013, respectively. | |||||||||
A portion of the July 30, 2013 stock option grants to a scientific founder of the Company were issued in exchange for extending the non-competition agreement from December of 2015 to July of 2016. As of the grant date, the Company increased the value of the non-competition agreement by $70,000 and began amortizing that amount through July of 2016. |
Longterm_debt
Long-term debt | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-term debt | ' | ||||||||
Long-term debt | |||||||||
Long-term debt at December 31, 2012 and September 30, 2013, consists of the following: | |||||||||
(Dollars in thousands) | December 31, | September 30, | |||||||
2012 | 2013 | ||||||||
Term loan credit agreement, net of debt discount | $ | — | $ | 11,808 | |||||
Wisconsin Economic Development Corporation (WEDC) — CDI | 377 | — | |||||||
WEDC — SCP | 657 | — | |||||||
License agreements | 34 | 18 | |||||||
Other | 2 | — | |||||||
1,070 | 11,826 | ||||||||
Less current portion | (336 | ) | (18 | ) | |||||
Total | $ | 734 | $ | 11,808 | |||||
On June 27, 2013, the Company entered into a $20.0 million term loan credit agreement (the “Credit Agreement”) with Sixth Floor Investors LP, as administrative agent, and the other lenders party thereto (the “Lenders”). Under the Credit Agreement, on June 28, 2013, the Company borrowed $12.0 million (“Tranche 1”) and may borrow the remaining $8.0 million (“Tranche 2”) at any time until December 31, 2013, subject to the completion of a public equity offering of over $40.0 million (a “Qualifying Equity Offering”). The Company subsequently closed a Qualifying Equity Offering on July 30, 2013. The Company is not obligated to borrow the Tranche 2 funds. The term of the Credit Agreement is four years. Outstanding loans bear interest at 6.5% per annum plus the greater of 2% or one-month LIBOR. Interest payments will be made monthly in arrears. Principal will be payable in 30 monthly installments, beginning in February 2015. The Credit Agreement provides for an exit fee of 5.0% of the total amount borrowed under the facility, due upon final repayment; a 0.5% facility fee, which was paid upon execution of the Credit Agreement; a quarterly administrative fee of $2,500; and the reimbursement of certain fees and expenses of the Lenders. In the event of prepayment, other than regularly scheduled installments and mandatory prepayments, a premium of 1.0% to 3.0% of the then-outstanding balance, dependent upon the timing of the prepayment, would be incurred. | |||||||||
The Credit Agreement does not allow the Company to incur or permit to exist additional debt, except for liabilities arising with respect to customary indemnification contracts entered into in the ordinary course of business. The Company used a portion of the proceeds of the Tranche 1 loans to repay the remaining balances due to the Wisconsin Economic Development Corporation under the two existing promissory notes. | |||||||||
The Credit Agreement contains customary affirmative and negative covenants and events of default, but does not include financial covenants. The Credit Agreement could restrict the Company’s ability to, among other things, sell certain assets, engage in a merger or change in control transaction, incur debt, pay cash dividends, enter into transactions with affiliates and make investments. The Credit Agreement also contains events of default that are customary for credit facilities of this type, including payment defaults, covenant defaults, defaults related to insolvency and events of default relating to liens, judgments, material misrepresentations and the occurrence of certain material adverse events. | |||||||||
In connection with the Tranche 1 loans, the Lenders were issued detachable warrants to purchase shares of our Series B preferred stock. The warrants have since been converted to warrants to purchase shares of common stock, see Note 5. A total of 28,406 warrants were issued in respect of the Tranche 1 loans, each with an exercise price per share equal to the initial public offering ("IPO") price per share in the Company's initial public offering or $12.68 if an offering was not completed before August 1, 2013. As of the date of our IPO, the strike price on these warrants was established at the IPO price per share of $12.00. | |||||||||
The number of warrants to be issued if the Company borrows the Tranche 2 funds will equal 3.0% of the Tranche 2 amount divided by the average 30-day closing price of its common stock. The warrants have a 10 year term. The warrants contain no mandatory redemption features and no repurchase obligations requiring the transferring of assets and, once issued, will relate to a fixed number of shares, except for customary anti-dilution adjustments. | |||||||||
At the time of issuance, the relative fair value of the warrants was estimated at $261,000 using the Black Scholes method and recorded as a debt discount against the notes. The warrants had a strike price that would have been adjusted if the Company had not completed its initial public offering prior to August 1, 2013. Due to this initial variability in exercise price, the warrants were accounted for as a liability as of June 30, 2013. As of the IPO date, when the exercise price was no longer variable, the Company revalued the warrants and reclassified the remaining value to equity. The revaluation resulted in a $20,000 gain that was recorded to other income in the statements of operation. |
Shareholders_equity
Shareholders' equity | 9 Months Ended |
Sep. 30, 2013 | |
Equity [Abstract] | ' |
Stockholders' equity | ' |
Shareholders' equity | |
On July 30, 2013, the Company closed its IPO of 3,846,000 shares of its common stock. The public offering price of the shares sold in the offering was $12.00 per share. The total gross proceeds from the offering to the Company were $46.2 million. After deducting underwriting discounts and commissions and offering expenses payable by the Company, the aggregate net proceeds received by the Company totaled approximately $40.8 million. | |
Immediately prior to the consummation of the IPO, all outstanding shares of Series A and Series B preferred stock were converted into shares of common stock on a one-for-one basis, and warrants to purchase Series B preferred stock were converted into warrants to purchase shares of common stock on a one-for-one basis. In addition, in connection with the IPO, warrants to purchase 8,208 shares of common stock were exercised at a strike price of $0.10. | |
In connection with the IPO, the Company amended and restated its articles of incorporation to authorize 100,000,000 shares of common stock and 10,000,000 shares of preferred stock. As of September 30, 2013, no shares of preferred stock have been issued. |
Stock_options_and_restricted_c
Stock options and restricted common stock | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||
Stock options and restricted common stock | ' | |||||||||
Stock options and restricted common stock | ||||||||||
The Company's board of directors adopted and its shareholders approved the 2013 Equity Incentive Plan (the “2013 Plan”), under which the Company approved option grants to its directors and executive officers. The 2013 Plan and these option grants became effective on the closing of the IPO. As of that same date, the Company discontinued the granting of options under the 2008 Equity Incentive Plan (the "2008 Plan"). | ||||||||||
The Black-Scholes option-pricing model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable and requires the input of highly subjective assumptions. When the option grants have the characteristics of a "plain-vanilla" grant the expected term is based on the simplified method as prescribed by Staff Accounting Bulletin ("SAB") No. 107 and SAB No. 110. In the event that the options do not have such characteristics the Company bases the expected term on items such as expiration dates and other factors unique to the grantee. The risk-free interest rate assumptions were based on the U.S. Treasury bond rates appropriate for the expected term in effect at the time of grant. The expected volatility is based on calculated enterprise value volatilities for publicly traded companies in the same industry and general stage of development. The forfeiture rates were based on historical experience for similar classes of employees. The dividend yield was based on expected dividends at the time of grant. Prior to the Company's IPO, the determinations of fair values were based on, among other things, valuation analyses, review of historical financial results, business milestones, financial forecasts and business outlook as of the grant dates. Total enterprise value ranges and the total equity value ranges were estimated utilizing both the income approach and the market approach guidelines. | ||||||||||
Assumptions used to value the most recent option grants were as follows: | ||||||||||
Nov-12 | Jul-13 | |||||||||
Estimated expected term | 6 years | 6 to 8 years | ||||||||
Risk-free interest rate | 0.98 | % | 1.72% to 2.22% | |||||||
Expected volatility assumption | 66 | % | 67 | % | ||||||
Forfeiture rate | 0 to 7.0% | 0 | % | |||||||
Dividend yield assumption | — | % | — | % | ||||||
Option awards to consultants, advisors or other independent contractors have been granted with an exercise price equal to the market price of the Company’s stock at the date of the grant, with 10-year contractual terms and vesting dependent upon whether the individual continues to provide services to the Company. The value of stock options to these parties is measured at the then-current market value as of financial reporting dates and compensation cost is recognized for the net change in the fair value of the options for the reporting period, until vesting terms are met. In determining the fair value of options granted to consultants, advisors and other independent contractors, the Company uses the Black-Scholes valuation model in a manner consistent with its use in determining the fair value of options granted to employees and directors. The options that vest are adjusted, for the last time, to the then-current fair value and compensation cost is recognized accordingly. Stock compensation expense related to options accounted for in this manner totaled $9,000 and $59,000, respectively for the three months ended September 30, 2012 and 2013; and $28,000 and $87,000, respectively, for the nine months ended September 30, 2012 and 2013. | ||||||||||
The number of shares available for grant under the Company's Equity Incentive Plans, as amended (the "Plans") were as follows: | ||||||||||
2008 Plan | 2013 Plan | Total | ||||||||
Available for grant — December 31, 2012 | 413,688 | — | 413,688 | |||||||
Plan adoptions and amendments | (421,373 | ) | 831,659 | 410,286 | ||||||
Grants | — | (721,798 | ) | (721,798 | ) | |||||
Forfeitures | 7,685 | 10,327 | 18,012 | |||||||
Available for grant — September 30, 2013 | — | 120,188 | 120,188 | |||||||
A summary of option activity under the Plans as of September 30, 2013 and changes during the period then ended were as follows: | ||||||||||
Options | Weighted- | Weighted- | ||||||||
average | average | |||||||||
exercise | remaining | |||||||||
price | contractual | |||||||||
term | ||||||||||
Outstanding — December 31, 2012 | 1,617,875 | $ | 8.39 | 7.63 | ||||||
Granted | 721,798 | |||||||||
Exercised | (15,798 | ) | ||||||||
Forfeited | (18,012 | ) | ||||||||
Outstanding — September 30, 2013 | 2,305,863 | $ | 9.49 | 7.79 | ||||||
Vested as of September 30, 2013 | 1,200,541 | $ | 7.4 | 6.49 | ||||||
Vested or expected to vest as of September 30, 2013 | 2,304,787 | $ | 9.49 | 7.79 | ||||||
Exercisable as of September 30, 2013 | 1,609,644 | $ | 8.41 | 6.91 | ||||||
At September 30, 2013, the total compensation cost not yet recognized, excluding options issued in exchange for certain licenses and agreements, that related to nonvested awards was $6.4 million, which was expected to be recognized over a weighted-average period of 3.09 years. |
Commitments_and_contingencies
Commitments and contingencies | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and contingencies | ' | ||||
Commitments and contingencies | |||||
Operating leases – Future minimum lease payments at September 30, 2013, under operating leases with initial or remaining terms in excess of one year were as follows (dollars in thousands): | |||||
Years ending December 31, | |||||
2013 (remaining) | $ | 238 | |||
2014 | 853 | ||||
2015 | 843 | ||||
2016 | 850 | ||||
2017 | 766 | ||||
Thereafter | 485 | ||||
$ | 4,035 | ||||
Contingencies – From time to time, the Company may be subject to various legal proceedings and claims arising in the ordinary course of business. The Company assesses contingencies to determine the degree of probability and range of possible loss for potential accrual in its financial statements. An estimated loss contingency is accrued in the financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. No such amounts were accrued at December 31, 2012 or September 30, 2013. |
Relatedparty_transactions
Related-party transactions | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Related-party transactions | ' |
Related-party transactions | |
Robert J. Palay, a director and the Company's Chairman of the Board and Chief Executive Officer, and Dr. Thomas M. Palay, a director and the Company's Vice Chairman of the Board and President, directly or indirectly manage and control shareholder entities which collectively beneficially owned 43% of the Company's outstanding stock as of September 30, 2013. | |
The Company has consulting agreements with scientific advisors who are also shareholders. The total expense recorded to general and administrative expenses for these agreements was $76,000 for both the three months ended September 30, 2012 and 2013 and $227,000 for both the nine months ended September 30, 2012 and 2013. | |
In July 2013, the Company granted stock options in exchange for future services and amendments to consulting and non-competition agreements with a scientific founder of the Company who also serves on the board of directors. As of September 30, 2013, he beneficially owned 5% of the Company's outstanding stock. | |
See Note 4 regarding the Credit Agreement. Based on its most recent SEC filings, Sixth Floor beneficially owned 13% of the Company's outstanding stock as of September 30, 2013. | |
Certain of the Company's existing shareholders, officers, directors, employees, business associates and other affiliates purchased an aggregate of $8.6 million of our common stock in the IPO at the initial public offering price of $12.00 per share. |
Subsequent_events_Subsequent_e
Subsequent events Subsequent events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent events | ' |
Subsequent events | |
On November 4, 2013, the Company announced that it had received the Notice of Grant Award (NGA) from the California Institute of Regenerative Medicine (CIRM) to create a human induced pluripotent stem cell biobank from 3,000 individuals. Receipt of the NGA signifies the entry into a definitive agreement with CIRM and the initiation of funding for the $16 million project. |
Supplemental_financial_informa1
Supplemental financial information (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of presentation | ' |
Basis of presentation – The unaudited interim financial statements have been prepared on the same basis as the annual consolidated statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s financial position and results of operations and cash flows for all interim periods presented herein. The financial data and the other information disclosed in these notes to the financial statements related to the interim periods are unaudited. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the year ending December 31, 2013 or for any other interim period or for any other future year. | |
Use of estimates | ' |
Use of estimates – The accompanying financial statements have been presented in conformity with accounting principles generally accepted in the United States of America (GAAP). The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates primarily include those required in the valuation of impairment analysis of inventory, patents, licenses, goodwill, intangible assets and property and equipment; as well as estimates relating to revenue recognition and stock-based compensation. Management bases its estimates on certain assumptions, which it believes are reasonable in the circumstances, and while actual results could differ from those estimates, management does not believe that any change in those assumptions in the near term would have a significant effect on the Company's financial position, results of operations or cash flows. | |
Significant accounting policies and Recent accounting pronouncements | ' |
Significant accounting policies – There have been no material changes to the Company's significant accounting policies as compared to the significant accounting policies described in the Company's Prospectus filed pursuant to Rule 424(b) under the Securities Act with the Securities and Exchange Commission on July 26, 2013. | |
Recent accounting pronouncements – There are no recent accounting pronouncements that the Company has not yet adopted that are expected to have a material effect on its financial position, results of operations or cash flows. | |
Accounts receivable | ' |
Accounts receivable – The Company establishes an allowance for doubtful accounts based on a customer's ability and likelihood to pay. There was no allowance at December 31, 2012 and an allowance of $29,000 at September 30, 2013. | |
Goodwill | ' |
Goodwill – Goodwill is not amortized. The Company reviews goodwill for impairment annually during the fourth quarter or more often if conditions warrant. There was no change in goodwill for the nine months ended September 30, 2013. | |
Deferred revenue | ' |
Deferred revenue – Deferred revenue represents payments received, but not yet earned. | |
Debt Discounts | ' |
Debt discounts – The Company recorded the fair value of the warrants issued in connection with the Credit Agreement, see Note 4, as a debt discount. The debt discount is amortized to interest expense over a period ending on the earlier of the maturity date of the notes or the date on which the notes are repaid. | |
Net loss per share of common stock | ' |
Net loss per share of common stock – The Company’s basic net loss per share of common stock is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period. The diluted net loss per share of common stock is computed by dividing the net loss by the weighted-average number of potential common shares outstanding for the period determined using the treasury-stock method. | |
Comprehensive loss | ' |
Comprehensive loss – Comprehensive loss is equal to net loss as presented in the accompanying statements of operations. | |
Segment reporting | ' |
Segment reporting – ASC 280, “Segment Reporting” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. The Company determined it has one operating segment. Disaggregation of the Company’s operating results is impracticable, because the Company’s research and development activities and its assets overlap, and management reviews its business as a single operating segment. Thus, discrete financial information is not available by more than one operating segment. | |
Concentration of credit risk and other risks and uncertainties | ' |
Concentration of credit risk and other risks and uncertainties – As of September 30, 2013 the Company had $59.6 million invested in a 100% U.S. Treasury Securities Money Market Fund and $2.9 million in a U.S. Government Money Market Fund. An investment in a money market fund is not insured or guaranteed. The Company's remaining cash was deposited with one major financial institution. These deposits exceed federally insured limits. The Company has not experienced any losses in such accounts and believes that the Company is not exposed to any significant risk on these balances. | |
The Company is currently not profitable and no assurance can be provided that it will ever be profitable. The Company is subject to risks common to companies in the biotechnology industry including, but not limited to, new technological innovations, dependence on key personnel, dependence on key suppliers, protection of proprietary technology, the validity of and continued access to its owned and licensed intellectual property, compliance with government regulations, uncertainty of widespread market acceptance of products and the need to obtain additional financing. The Company's products include materials subject to rapid technological change. Certain materials used in manufacturing have relatively few alternative sources of supply and establishing additional or replacement suppliers for such materials cannot be accomplished quickly. While the Company has ongoing programs to minimize the adverse effect of such uncertainty, and the Company considers technological change in estimating allowances, uncertainty continues to exist. | |
Fair value of financial instruments | ' |
Fair value of financial instruments – The carrying amounts of financial instruments, which include cash and cash equivalents, accounts receivable and accounts payable, approximate their respective fair values due to the relatively short-term nature of these instruments. The Company believes the carrying values of long-term debt as of September 30, 2013 is also approximately equal to its fair value. | |
ASC Topic 820, Fair Value Measurement, establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include Level 1, defined as observable inputs, such as quoted market prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore, requiring an entity to develop its own assumptions. The Company uses the market approach and Level 1 inputs to value its cash equivalents. |
Supplemental_financial_informa2
Supplemental financial information (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Schedule of Inventory | ' | ||||||||||||
Inventories – | |||||||||||||
Inventories at December 31, 2012 and September 30, 2013, consisted of the following: | |||||||||||||
(Dollars in thousands) | December 31, | September 30, | |||||||||||
2012 | 2013 | ||||||||||||
Raw materials | $ | 1,032 | $ | 1,198 | |||||||||
Work in process | 145 | 621 | |||||||||||
Finished goods | 1,204 | 1,688 | |||||||||||
Total | $ | 2,381 | $ | 3,507 | |||||||||
Schedule of Property and equipment | ' | ||||||||||||
Property and equipment – | |||||||||||||
Property and equipment at December 31, 2012 and September 30, 2013, consisted of the following: | |||||||||||||
(Dollars in thousands) | December 31, | September 30, | |||||||||||
2012 | 2013 | ||||||||||||
Leasehold improvements | $ | 438 | $ | 442 | |||||||||
Production and lab equipment | 3,852 | 4,173 | |||||||||||
Office and computer equipment | 475 | 542 | |||||||||||
Construction-in-progress | — | 254 | |||||||||||
4,765 | 5,411 | ||||||||||||
Less accumulated depreciation and amortization | (3,892 | ) | (4,510 | ) | |||||||||
Total | $ | 873 | $ | 901 | |||||||||
Schedule of Accrued liabilities | ' | ||||||||||||
Accrued liabilities – | |||||||||||||
Accrued liabilities at December 31, 2012 and September 30, 2013, consisted of the following: | |||||||||||||
(Dollars in thousands) | December 31, | September 30, | |||||||||||
2012 | 2013 | ||||||||||||
Accrued payroll, vacation and employee-related expenses | $ | 741 | $ | 571 | |||||||||
Accrued incentive compensation | — | 888 | |||||||||||
Accrued unbilled professional fees | 315 | 709 | |||||||||||
Accrued royalties | 500 | 193 | |||||||||||
Accrued quarterly consulting fees | 76 | 76 | |||||||||||
Accrued incentives for sales staff | 128 | 115 | |||||||||||
Other | 70 | 154 | |||||||||||
Total | $ | 1,830 | $ | 2,706 | |||||||||
Schedule of common shares that were excluded from diluted net loss per share | ' | ||||||||||||
he following potential common shares were excluded because including them would have been anti-dilutive: | |||||||||||||
September 30, | |||||||||||||
2012 | 2013 | ||||||||||||
Preferred series A | 2,914,187 | — | |||||||||||
Preferred series B | 5,572,000 | — | |||||||||||
Common stock warrants | 8,208 | 28,406 | |||||||||||
Common stock options | 1,518,688 | 2,305,863 | |||||||||||
10,013,083 | 2,334,269 | ||||||||||||
Schedule of revenue by product | ' | ||||||||||||
Product information – The following table provides Product sales revenue by product: | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
(Dollars in thousands) | 2012 | 2013 | 2012 | 2013 | |||||||||
iCell Cardiomyocytes | $529 | $1,026 | $1,583 | $3,369 | |||||||||
iCell Neurons | 483 | 648 | 1,169 | 1,624 | |||||||||
MyCell | — | — | — | 170 | |||||||||
Other | 63 | 119 | 140 | 353 | |||||||||
Total | $1,075 | $1,793 | $2,892 | $5,516 | |||||||||
Intangible_assets_Tables
Intangible assets (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ' | ||||||||
Schedule of Intangible Assets | ' | ||||||||
Intangible assets and accumulated amortization balances at December 31, 2012 and September 30, 2013, are as follows: | |||||||||
(Dollars in thousands) | December 31, | September 30, | |||||||
2012 | 2013 | ||||||||
Trade name | $ | 13 | $ | 13 | |||||
Licenses and patents | 4,284 | 4,544 | |||||||
Non-competition agreement | 571 | 641 | |||||||
4,868 | 5,198 | ||||||||
Less accumulated amortization: | |||||||||
Trade name | (13 | ) | (13 | ) | |||||
Licenses and patents | (434 | ) | (727 | ) | |||||
Non-competition agreement | (226 | ) | (316 | ) | |||||
(673 | ) | (1,056 | ) | ||||||
Total, net | $ | 4,195 | $ | 4,142 | |||||
Longterm_debt_Tables
Long-term debt (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Long-term Debt | ' | ||||||||
Long-term debt at December 31, 2012 and September 30, 2013, consists of the following: | |||||||||
(Dollars in thousands) | December 31, | September 30, | |||||||
2012 | 2013 | ||||||||
Term loan credit agreement, net of debt discount | $ | — | $ | 11,808 | |||||
Wisconsin Economic Development Corporation (WEDC) — CDI | 377 | — | |||||||
WEDC — SCP | 657 | — | |||||||
License agreements | 34 | 18 | |||||||
Other | 2 | — | |||||||
1,070 | 11,826 | ||||||||
Less current portion | (336 | ) | (18 | ) | |||||
Total | $ | 734 | $ | 11,808 | |||||
Stock_options_and_restricted_c1
Stock options and restricted common stock (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | ' | |||||||||
Assumptions used to value the most recent option grants were as follows: | ||||||||||
Nov-12 | Jul-13 | |||||||||
Estimated expected term | 6 years | 6 to 8 years | ||||||||
Risk-free interest rate | 0.98 | % | 1.72% to 2.22% | |||||||
Expected volatility assumption | 66 | % | 67 | % | ||||||
Forfeiture rate | 0 to 7.0% | 0 | % | |||||||
Dividend yield assumption | — | % | — | % | ||||||
Number of Shares Available for Grant | ' | |||||||||
The number of shares available for grant under the Company's Equity Incentive Plans, as amended (the "Plans") were as follows: | ||||||||||
2008 Plan | 2013 Plan | Total | ||||||||
Available for grant — December 31, 2012 | 413,688 | — | 413,688 | |||||||
Plan adoptions and amendments | (421,373 | ) | 831,659 | 410,286 | ||||||
Grants | — | (721,798 | ) | (721,798 | ) | |||||
Forfeitures | 7,685 | 10,327 | 18,012 | |||||||
Available for grant — September 30, 2013 | — | 120,188 | 120,188 | |||||||
Summary of Option Activity | ' | |||||||||
A summary of option activity under the Plans as of September 30, 2013 and changes during the period then ended were as follows: | ||||||||||
Options | Weighted- | Weighted- | ||||||||
average | average | |||||||||
exercise | remaining | |||||||||
price | contractual | |||||||||
term | ||||||||||
Outstanding — December 31, 2012 | 1,617,875 | $ | 8.39 | 7.63 | ||||||
Granted | 721,798 | |||||||||
Exercised | (15,798 | ) | ||||||||
Forfeited | (18,012 | ) | ||||||||
Outstanding — September 30, 2013 | 2,305,863 | $ | 9.49 | 7.79 | ||||||
Vested as of September 30, 2013 | 1,200,541 | $ | 7.4 | 6.49 | ||||||
Vested or expected to vest as of September 30, 2013 | 2,304,787 | $ | 9.49 | 7.79 | ||||||
Exercisable as of September 30, 2013 | 1,609,644 | $ | 8.41 | 6.91 | ||||||
Commitments_and_contingencies_
Commitments and contingencies (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Future Minimum Payments for Operating Leases | ' | ||||
Future minimum lease payments at September 30, 2013, under operating leases with initial or remaining terms in excess of one year were as follows (dollars in thousands): | |||||
Years ending December 31, | |||||
2013 (remaining) | $ | 238 | |||
2014 | 853 | ||||
2015 | 843 | ||||
2016 | 850 | ||||
2017 | 766 | ||||
Thereafter | 485 | ||||
$ | 4,035 | ||||
Description_of_business_Detail
Description of business - (Details) | 1 Months Ended | 0 Months Ended | ||
Jul. 31, 2008 | Jun. 27, 2013 | Jun. 27, 2013 | Jun. 27, 2013 | |
Cellular Dynamics International, Inc. and Stem Cell Products, Inc. [Member] | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Common Class B [Member] | |
Business | ||||
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' | ' |
Companies acquired | 2 | ' | ' | ' |
Reverse stock split ratio, conversion ratio | ' | 9.75 | 9.75 | 9.75 |
Supplemental_financial_informa3
Supplemental financial information - Textual (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Customer | AstraZeneca [Member] | AstraZeneca [Member] | AstraZeneca [Member] | GlaxoSmithKline plc [Member] | Lilly [Member] | Lilly [Member] | Lilly [Member] | Lilly [Member] | Lilly [Member] | Merck [Member] | US Treasury Securities [Member] | Money Market Funds [Member] | Multiple Element Arrangement [Member] | Multiple Element Arrangement [Member] | ||
Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Lilly [Member] | Lilly [Member] | |||||
Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Accounts Receivable [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | |||||||
Supplemental Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for Doubtful Accounts Receivable, Current | $29,000 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred revenue | 525,000 | 570,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 344,000 | 570,000 |
Concentration risk, percentage | ' | ' | 12.00% | 14.00% | 16.00% | 15.00% | 15.00% | 33.00% | 17.00% | 18.00% | 17.00% | 13.00% | ' | ' | ' | ' |
Number of customers that exceeded concentration risk benchmark | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $59,600,000 | $2,900,000 | ' | ' |
Supplemental_financial_informa4
Supplemental financial information - Inventories (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounting Policies [Abstract] | ' | ' |
Raw materials | $1,198 | $1,032 |
Work in process | 621 | 145 |
Finished goods | 1,688 | 1,204 |
Total | $3,507 | $2,381 |
Supplemental_financial_informa5
Supplemental financial information - Property Plant and Equipment (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $5,411 | $4,765 |
Construction-in-progress | 254 | 0 |
Less accumulated depreciation and amortization | -4,510 | -3,892 |
Total | 901 | 873 |
Leasehold improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 442 | 438 |
Production and lab equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 4,173 | 3,852 |
Office and computer equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $542 | $475 |
Supplemental_financial_informa6
Supplemental financial information - Accrued Liabilities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Related Party Transaction [Line Items] | ' | ' |
Accrued payroll, vacation and employee-related expenses | $571 | $741 |
Accrued incentive compensation | 888 | 0 |
Accrued fees | 709 | 315 |
Accrued royalties | 193 | 500 |
Accrued incentives for sales staff | 115 | 128 |
Other | 154 | 70 |
Total | 2,706 | 1,830 |
Consulting Agreement [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Accrued fees | $76 | $76 |
Supplemental_financial_informa7
Supplemental financial information - Earnings Per Share (Details) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Anti-dilutive shares excluded from the computation of net loss per share | 2,334,269 | 10,013,083 |
Series A Preferred Stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Anti-dilutive shares excluded from the computation of net loss per share | 0 | 2,914,187 |
Series B Preferred Stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Anti-dilutive shares excluded from the computation of net loss per share | 0 | 5,572,000 |
Equity Option [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Anti-dilutive shares excluded from the computation of net loss per share | 2,305,863 | 1,518,688 |
Common Stock Warrants [Member] | Warrant [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Anti-dilutive shares excluded from the computation of net loss per share | 28,406 | 8,208 |
Supplemental_financial_informa8
Supplemental financial information - Product and Geographical Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | $2,523 | $1,233 | $7,725 | $3,639 |
iCell Cardiomyocytes [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 1,026 | 529 | 3,369 | 1,583 |
iCell Neurons [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 648 | 483 | 1,624 | 1,169 |
MyCell [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 0 | 0 | 170 | 0 |
Other Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 119 | 63 | 353 | 140 |
Operating Segments and Other [Domain] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | $1,793 | $1,075 | $5,516 | $2,892 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | $5,198 | $4,868 |
Finite-Lived Intangible Assets, Accumulated Amortization | -1,056 | -673 |
Total, net | 4,142 | 4,195 |
Trade Name [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 13 | 13 |
Finite-Lived Intangible Assets, Accumulated Amortization | -13 | -13 |
Licensing Agreements [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 4,544 | 4,284 |
Finite-Lived Intangible Assets, Accumulated Amortization | -727 | -434 |
Noncompete Agreements [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 641 | 571 |
Finite-Lived Intangible Assets, Accumulated Amortization | ($316) | ($226) |
Intangible_assets_Textual_Deta
Intangible assets - Textual (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ' | ' | ' | ' |
Amortization of licenses, patents and other agreements | $132 | $70 | $383 | $221 |
Finite-Lived Intangible Assets, Period Increase | ' | ' | $70 | ' |
Longterm_debt_Schedule_of_Long
Long-term debt Schedule of Long-term debt (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | $11,826 | $1,070 |
Less current portion | -18 | -336 |
Total | 11,808 | 734 |
Term Loan Credit Agreeement, Net of Debt Discount [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | 11,808 | 0 |
Wisconsin Economic Development Corporation - CDI [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | 0 | 377 |
Wisconsin Economic Development Corporation- SCP [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | 0 | 657 |
Licensing Agreements [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | 18 | 34 |
Other Long-term Debt Obligations [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | $0 | $2 |
Longterm_debt_Longterm_debt_na
Long-term debt Long-term debt narrative (Details) (USD $) | 0 Months Ended | 0 Months Ended | 9 Months Ended | |||||
Jun. 27, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Jun. 28, 2013 | Jun. 30, 2013 | Jun. 27, 2013 | Jun. 27, 2013 | Sep. 30, 2013 | |
Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Maximum [Member] | Minimum [Member] | Other Income [Member] | |
London Interbank Offered Rate (LIBOR) [Member] | Line of Credit [Member] | Line of Credit [Member] | ||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity on term loan credit agreement | $20,000,000 | ' | ' | ' | ' | ' | ' | ' |
Amount borrowed under term loan credit agreement | ' | ' | ' | 12,000,000 | ' | ' | ' | ' |
Amount remaining on term loan credit agreement, tranche 2 | ' | ' | 8,000,000 | ' | ' | ' | ' | ' |
Credit agreement terms for tranche 2, completion of a public equity offering, amount of equity offering | 40,000,000 | ' | ' | ' | ' | ' | ' | ' |
Term of the credit agreement (in years) | ' | '4 years | ' | ' | ' | ' | ' | ' |
Variable rate, reference rate on the credit agreement, percentage | ' | 6.50% | ' | ' | ' | ' | ' | ' |
Variable rate, minimum basis spread on the reference rate, percentage | ' | 2.00% | ' | ' | ' | ' | ' | ' |
Variable rate, maximum basis spread on the reference rate, interest rate index, period | ' | ' | ' | ' | '1 month | ' | ' | ' |
Number of monthly installments under the credit agreement | ' | '30 months | ' | ' | ' | ' | ' | ' |
Credit agreement, terms, exit fee on the total amount borrowed, percentage | ' | 5.00% | ' | ' | ' | ' | ' | ' |
Credit agreement, terms, facility fee due upon execution of the agreement, percentage | ' | 0.50% | ' | ' | ' | ' | ' | ' |
Credit agreement, terms, quarterly administrative fee, amount | ' | 2,500 | ' | ' | ' | ' | ' | ' |
Credit agreement, terms, prepayment premium minimum percentage | ' | 1.00% | ' | ' | ' | ' | ' | ' |
Credit agreement, terms, prepayment premium maximum percentage | ' | 3.00% | ' | ' | ' | ' | ' | ' |
Warrants issued in relation to the credit agreement, tranche 1 | ' | 28,406 | ' | ' | ' | ' | ' | ' |
Warrant, Anticipated Price of Warrant | ' | ' | ' | ' | ' | 12.68 | 12 | ' |
Number of warrants to be issued on credit agreement, tranche 2, fixed % of amount borrowed divided by average closing price of stock, fixed % | ' | 3.00% | ' | ' | ' | ' | ' | ' |
Number of warrants to be issued on credit agreement, tranche 2, fixed % of amount borrowed divided by average closing price of stock, duration of average closing price (in days) | ' | '30 days | ' | ' | ' | ' | ' | ' |
Term of warrants issued in relation to credit agreement (in years) | ' | '10 years | ' | ' | ' | ' | ' | ' |
Fair value of the warrants | ' | ' | 261,000 | ' | ' | ' | ' | ' |
Gain (Loss) from Initial Public Offering after Revaluation of Exercise Price | ' | ' | ' | ' | ' | ' | ' | $20,000 |
Shareholders_equity_Details
Shareholders' equity (Details) (USD $) | 0 Months Ended | 9 Months Ended | |
Jul. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Equity [Abstract] | ' | ' | ' |
Number of shares issued in initial public offering (IPO) (in shares) | 3,846,000 | ' | ' |
Share price of IPO (in dollars per share) | $12 | ' | ' |
Gross proceeds form IPO | $46,200,000 | ' | ' |
Net proceeds from IPO | 40,800,000 | ' | ' |
Debt Instrument, Convertible, Conversion Ratio | ' | 1 | ' |
IPO triggered automatic exercise of warrants, number of warrants | $8,208 | ' | ' |
Automatic exercise of warrants, strike price of each warrant (in dollars per warrant) | 0.1 | ' | ' |
Common Stock Authorized (in shares) | ' | 100,000,000 | 135,715,623 |
Authorized Preferred Stock (in shares) | ' | 10,000,000 | 0 |
Preferred Stock, Shares Issued | ' | 0 | 0 |
Stock_options_and_restricted_c2
Stock options and restricted common stock - Assumptions used to value the most recent option grants (Details) | 1 Months Ended | |
Jul. 31, 2013 | Nov. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Estimated expected term | ' | '6 years |
Risk free interest Rate, minimum | 1.72% | ' |
Risk-free interest rate | ' | 0.98% |
Risk free interest Rate, maximum | 2.22% | ' |
Expected volatility assumption | 67.00% | 66.00% |
Forfeiture rate | 0.00% | ' |
Dividend yield assumption | 0.00% | 0.00% |
Minimum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Estimated expected term | '6 years | ' |
Forfeiture rate | ' | 0.00% |
Maximum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Estimated expected term | '8 years | ' |
Forfeiture rate | ' | 7.00% |
Stock_options_and_restricted_c3
Stock options and restricted common stock - Number of shares available grant (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Available for Grant [Roll Forward] | ' |
Available for grant — December 31, 2012 | 413,688 |
Plan adoptions and amendments | 410,286 |
Grants | -721,798 |
Forfeitures | 18,012 |
Available for grant — September 30, 2013 | 120,188 |
2008 Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Available for Grant [Roll Forward] | ' |
Available for grant — December 31, 2012 | 413,688 |
Plan adoptions and amendments | -421,373 |
Grants | 0 |
Forfeitures | 7,685 |
Available for grant — September 30, 2013 | 0 |
2013 Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Available for Grant [Roll Forward] | ' |
Available for grant — December 31, 2012 | 0 |
Plan adoptions and amendments | 831,659 |
Grants | -721,798 |
Forfeitures | 10,327 |
Available for grant — September 30, 2013 | 120,188 |
Stock_options_and_restricted_c4
Stock options and restricted common stock - Stock Option Activity (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' |
Options Outstanding - Beginning Balance (in shares) | 1,617,875 | ' |
Options Granted (in shares) | 721,798 | ' |
Options Exercised (in shares) | -15,798 | ' |
Options Forfeited (in shares) | -18,012 | ' |
Options Outstanding - Ending Balance (in shares) | 2,305,863 | 1,617,875 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ' | ' |
Options Outstanding - Beginning Balance - Weighted average exercise price (in dollars per share) | $8.39 | ' |
Options Outstanding - Ending Balance - Weighted average exercise price (in dollars per share) | $9.49 | $8.39 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' | ' |
Options Outstanding - Weighted average remaining contractual term | '7 years 9 months 15 days | '7 years 7 months 17 days |
Options Outstanding - Weighted average remaining contractual term | '7 years 9 months 15 days | '7 years 7 months 17 days |
Options Vested (in shares) | 1,200,541 | ' |
Options Vested or expected to vest (in shares) | 2,304,787 | ' |
Options Exercisable (in shares) | 1,609,644 | ' |
Options Vested - Weighted Average Grant Date Fair Value (in dollars per share) | $7.40 | ' |
Options Vested or expected to vest - Weighted Average Exercise Price (in dollars per share) | $9.49 | ' |
Options Exercisable - Weighted Average Exercise Price (in dollars per share) | $8.41 | ' |
Options Vested - Weighted Average Remaining Contractual Term | '6 years 5 months 27 days | ' |
Options Vested or expected to vest - Weighted Average Remaining Contractual Term | '7 years 9 months 15 days | ' |
Options Exercisable - Average Remaining Contractual Term | '6 years 10 months 28 days | ' |
Stock_options_and_restricted_c5
Stock options and restricted common stock - Textual (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Contractual Term | ' | ' | '10 years | ' |
Share-based Compensation Expense | $59,000 | $9,000 | $87,000 | $28,000 |
Nonvested awards, compensation cost not yet recognized | $6,400,000 | ' | $6,400,000 | ' |
Nonvested awards, compensation cost not yet recognized, period for recognition | ' | ' | '3 years 1 month 2 days | ' |
Commitments_and_contingencies_1
Commitments and contingencies (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
2013 (remaining) | $238 |
2014 | 853 |
2015 | 843 |
2016 | 850 |
2017 | 766 |
Thereafter | 485 |
Total | $4,035 |
Relatedparty_transactions_Deta
Related-party transactions (Details) (USD $) | Jul. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Jul. 30, 2013 |
Consulting Agreement [Member] | Consulting Agreement [Member] | Management [Member] | Chief Executive Officer and President [Member] | Scientific Advisor [Member] | Scientific Advisor [Member] | Scientific Founder of the Company and Board of Director [Member] | Investor [Member] | Existing Shareholders, Affiliates, Existing Shareholders, Directors, Officers, Employees, Business Associates, and Other Persons [Member] | ||
Consulting Agreement [Member] | Consulting Agreement [Member] | |||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related party control percentage of outstanding stock | ' | ' | ' | 0.43 | 0.43 | ' | ' | 0.05 | 0.13 | ' |
Related party consulting agreement, general and administrative expense | ' | $76,000 | $76,000 | ' | ' | $227,000 | $227,000 | ' | ' | ' |
Amount raised from related parties in initial public offering (IPO) (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8,600,000 |
Share price of IPO (in dollars per share) | $12 | ' | ' | ' | ' | ' | ' | ' | ' | $12 |
Subsequent_events_Details
Subsequent events (Details) (Notice of Grant Award to Fund Human Induced Pluripotent Stem Cell Biobank [Member], Subsequent Event [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Nov. 04, 2013 |
Donor | |
Notice of Grant Award to Fund Human Induced Pluripotent Stem Cell Biobank [Member] | Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Number of Donors used to Setup Human Induced Pluripotent Stem Cell Biobank | 3,000 |
Project Cost, Anticipated Cost | $16 |