Fibrocell Science (FCSC) 10-Q 3 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 01, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	Fibrocell Science, Inc.
Entity Central Index Key	357,097
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	fcsc
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		43,978,326

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 21,283	$ 29,268
Inventory, net	0	482
Prepaid expenses and other current assets	374	1,244
Total current assets	21,657	30,994
Property and equipment, net of accumulated depreciation of $1,486 and $1,242, respectively	1,492	1,582
Intangible assets, net of accumulated amortization of $0 and $2,204, respectively	0	4,136
Other assets	64	0
Total assets	23,213	36,712
Current liabilities:
Accounts payable	361	499
Related party payable	341	10,720
Accrued expenses	1,715	1,779
Interest payable	46	0
Deferred revenue	0	457
Warrant liability, current	0	1,910
Total current liabilities	2,463	15,365
Convertible promissory notes, net of debt discount of $18,088 and $0, respectively (see Note 5)	0	0
Warrant liability, long term	7,400	6,365
Derivative liability	1,524	0
Deferred rent	788	779
Total liabilities	12,175	22,509
Stockholders’ equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares outstanding as of September 30, 2016 and December 31, 2015	0	0
Common stock, $0.001 par value; 150,000,000 shares authorized, 43,898,785 shares issued and outstanding as of September 30, 2016; 100,000,000 shares authorized, 43,898,785 shares issued and outstanding as of December 31, 2015	44	44
Additional paid-in capital	170,063	161,330
Accumulated deficit	(159,069)	(147,171)
Total stockholders’ equity	11,038	14,203
Total liabilities and stockholders’ equity	$ 23,213	$ 36,712

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Property and equipment, accumulated depreciation (in dollars)	$ 1,486	$ 1,242
Intangible assets, accumulated amortization (in dollars)	0	2,204
Debt discount (in dollars)	$ 18,088	$ 0
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (shares)	5,000,000	5,000,000
Preferred stock, shares outstanding (shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (shares)	150,000,000	100,000,000
Common stock, shares issued (shares)	43,898,785	43,898,785
Common stock, shares outstanding (shares)	43,898,785	43,898,785

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenue from product sales	$ 215	$ 49	$ 300	$ 217
Collaboration revenue	0	30	18	193
Total revenue	215	79	318	410
Cost of product sales	287	62	696	283
Cost of collaboration revenue	0	142	1	230
Total cost of revenue	287	204	697	513
Gross loss	(72)	(125)	(379)	(103)
Research and development expense	1,645	2,394	6,599	7,208
Selling, general and administrative expense	2,723	2,477	8,003	9,041
Intangible asset impairment expense	0	0	3,905	0
Restructuring costs	43	0	335	0
Operating loss	(5,017)	(6,823)	(22,004)	(21,046)
Other income (expense):
Warrant revaluation income	3,007	5,301	10,518	4,240
Derivative revaluation expense	(251)	0	(251)	0
Interest expense	(46)	0	(46)	0
Other income (expense), net	8	1	(15)	4
Loss before income taxes	(2,299)	(1,521)	(11,798)	(16,802)
Income tax benefit	0	0	0	0
Net loss	$ (2,299)	$ (1,521)	$ (11,798)	$ (16,802)
Per Share Information:
Basic net loss (usd per share)	$ (0.05)	$ (0.04)	$ (0.27)	$ (0.40)
Diluted net loss (usd per share)	$ (0.05)	$ (0.07)	$ (0.31)	$ (0.44)
Weighted average number of common shares outstanding:
Basic weighted average number of common shares outstanding, shares	43,898,785	43,021,121	43,898,785	41,598,632
Diluted weighted average number of common shares outstanding, shares	43,898,785	43,712,918	43,922,808	41,829,231
Affiliated Entity
Research and development expense	$ 534	$ 1,827	$ 2,783	$ 4,694

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional paid-in capital	Accumulated deficit
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect from adoption of new accounting standard			$ 100	$ (100)
Balance at Dec. 31, 2015	$ 14,203	$ 44	161,330	(147,171)
Balance (shares) at Dec. 31, 2015	43,898,785	43,898,785
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Intrinsic value of beneficial conversion feature, net of issuance costs	$ 7,017		7,017
Stock-based compensation expense	1,616		1,616
Net loss	(11,798)			(11,798)
Balance at Sep. 30, 2016	$ 11,038	$ 44	$ 170,063	$ (159,069)
Balance (shares) at Sep. 30, 2016	43,898,785	43,898,785

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net loss	$ (11,798)	$ (16,802)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	1,616	1,550
Warrant liability revaluation income	(10,518)	(4,240)
Derivative liability revaluation expense	251	0
Depreciation and amortization of long-lived assets	476	554
Recovery of doubtful accounts	(12)	(5)
Intangible asset impairment	3,905	0
Loss on disposal or impairment of property and equipment	64	0
Decrease (increase) in operating assets:
Accounts receivable	12	9
Inventory	482	5
Prepaid expenses and other current assets	1,045	812
Other assets	(64)	0
Increase (decrease) in operating liabilities:
Accounts payable	(212)	898
Related party payable	(10,379)	434
Accrued expenses and deferred rent	(53)	248
Interest payable	46	0
Deferred revenue	(457)	57
Net cash used in operating activities	(25,596)	(16,480)
Cash flows from investing activities:
Purchase of property and equipment	(187)	(208)
Proceeds from the sale of property and equipment	1	0
Net cash used in investing activities	(186)	(208)
Cash flows from financing activities:
Proceeds from private placement offering, net	17,933	0
Proceeds from common stock offering, net	0	15,872
Payment of deferred offering costs	(134)	0
Proceeds from the exercise of stock options	0	255
Principle payments on capital lease obligations	(2)	(3)
Net cash provided by financing activities	17,797	16,124
Net decrease in cash and cash equivalents	(7,985)	(564)
Cash and cash equivalents, beginning of period	29,268	37,495
Cash and cash equivalents, end of period	21,283	36,931
Supplemental Cash Flow Disclosures:
Property and equipment in accounts payable	33	31
Deferred offering costs in accounts payable	41	0
Reduction of warrant liability upon issuance of shares	$ 0	$ 82

Business and Organization

Business and Organization	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business and Organization	Business and Organization Organization Fibrocell Science, Inc. (as used herein, “we,” “us,” “our,” “Fibrocell” or the “Company”) is the parent company of Fibrocell Technologies, Inc. (Fibrocell Tech). Fibrocell Tech is the parent company of Isolagen International, S.A., a company organized under the laws of Switzerland (Isolagen Switzerland). The Company’s international activities are currently immaterial. Effective April 1, 2016, Fibrocell Science Hong Kong Limited (Fibrocell Hong Kong), a company organized under the laws of Hong Kong and former subsidiary of Fibrocell, was dissolved. As this entity had no historical financial or operational activities, the impact of the dissolution did not, and is not expected to have, a material impact on the Company’s present or future consolidated financial statements. Business Overview Fibrocell is an autologous cell and gene therapy company translating personalized biologics into medical breakthroughs. The Company is focused on discovering and developing therapies for the localized treatment of diseases affecting the skin and connective tissue. All of the Company’s product candidates incorporate its proprietary autologous fibroblast technology. The Company’s research and development efforts focus on gaining regulatory approvals of its product candidates in the United States. Liquidity and Financial Condition The Company expects to continue to incur losses and will require additional capital to advance its product candidates through development to commercialization. As of September 30, 2016 , the Company had cash and cash equivalents of approximately $ 21.3 million and working capital of approximately $ 19.2 million . The Company believes that its cash and cash equivalents at September 30, 2016 will be sufficient to fund operations into the fourth quarter of 2017. The Company will require additional capital to fund operations beyond that point. To meet its capital needs, the Company intends to raise additional capital through debt or equity financings, collaborations, partnerships or other strategic transactions. However, there can be no assurance that the Company will be able to complete any such transaction on acceptable terms or otherwise. The failure of the Company to obtain sufficient funds on acceptable terms when needed could have a material adverse effect on the Company’s business, results of operations and financial condition. These conditions raise substantial doubt about its ability to continue as a going concern. Consequently, the audit report prepared by the Company’s independent registered public accounting firm related to its Consolidated Financial Statements for the year ended December 31, 2015 included a going concern explanatory paragraph. On October 5, 2016, the Company received a notice (the Notice) from The Nasdaq Stock Market LLC (NASDAQ) that the Company is not currently in compliance with the $1.00 minimum closing bid requirements of NASDAQ Listing Rule 5550(a)(2). The Notice indicated that, consistent with NASDAQ Listing Rule 5810(c)(3)(A), the Company has until April 3, 2017 to regain compliance with the minimum bid price requirement by having the closing bid price of the Company’s common stock meet or exceed $1.00 per share for at least ten consecutive business days. During that time, the Company’s common stock will continue to trade on The Nasdaq Capital Market under the symbol “FCSC”.

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2016
Basis of Presentation [Abstract]
Basis of Presentation	Basis of Presentation General The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnote disclosures required by GAAP for complete consolidated financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. These financial statements and accompanying notes should be read in conjunction with the Consolidated Financial Statements and accompanying Notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 (2015 Form 10-K), filed with the Securities and Exchange Commission (SEC). The Company’s significant accounting policies are described in the Notes to Consolidated Financial Statements in the 2015 Form 10-K and updated, as necessary, in Note 3 in this Form 10-Q. The results of the Company’s operations for any interim period are not necessarily indicative of the results of operations for any other interim period or full year. All intercompany accounts and transactions have been eliminated in consolidation. The Company's international operations are immaterial and it has no unrealized gains or losses from the sale of investments. As a result, it does not have any items that would be classified as other comprehensive income in such a statement. Reclassifications The prior year Condensed Consolidated Balance Sheet, Condensed Consolidated Statement of Operations and Condensed Consolidated Statement of Cash Flows presented in this Form 10-Q contain certain reclassifications for purposes of disclosing related party transactions and balances separately.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Intangible Assets Intangible assets were research and development assets related to the Company’s primary study on azficel-T that were capitalized on the balance sheet upon emergence from bankruptcy. The portion of the reorganization value which was attributed to identifiable intangible assets was $6.3 million . Azficel-T had two current or target indications: the Company's FDA-approved product LAVIV ® and a clinical development program for azficel-T for the treatment of vocal cord scarring resulting in chronic or severe dysphonia. Effective January 1, 2012, the Company launched LAVIV and as a result, the research and development intangible assets related to the Company’s primary study were considered to be finite-lived intangible assets and began amortizing over 12 years , the estimated useful life of the assets which is analogous with the exclusivity period granted to the Company under the BLA. Finite-lived intangible assets are recorded at cost, net of accumulated amortization and, if applicable, impairment charges. Amortization of finite-lived intangible assets is provided over their estimated useful lives on a straight-line basis. The Company reviews the estimated remaining useful life of its intangible assets on an annual basis with any changes, if applicable, accounted for prospectively. In accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 360-10-35, Impairment or Disposal of Long-Lived Assets , the Company reviews its finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In June 2016, based on its failure to achieve primary efficacy endpoints for its Phase II clinical trial of azficel-T for the treatment of vocal cord scarring, the Company determined to wind-down its azficel-T operations as more fully described in Note 10. As a result, management concluded that the Company’s intangible assets had become fully impaired. Accordingly, a non-cash impairment charge of approximately $3.9 million was recorded during the second quarter of 2016 and is included in the Condensed Consolidated Statement of Operations for the nine months ended September 30, 2016. Warrant Liability The Company accounts for stock warrants as either equity instruments, derivative liabilities, or liabilities in accordance with ASC 480, Distinguishing Liabilities from Equity (ASC 480), depending on the specific terms of the warrant agreement. Stock warrants are accounted for as a derivative in accordance with ASC 815, Derivatives and Hedging (ASC 815) if the stock warrants contain “down-round protection” or other terms that could potentially require “net cash settlement” and therefore, do not meet the scope exception for treatment as a derivative. Since “down-round protection” is not an input into the calculation of the fair value of the warrants, the warrants cannot be considered indexed to the Company’s own stock which is a requirement for the scope exception as outlined under ASC 815. Warrant instruments that could potentially require “net cash settlement” in the absence of express language precluding such settlement and those which include “down-round provisions” are initially classified as derivative liabilities at their estimated fair values, regardless of the likelihood that such instruments will ever be settled in cash. The Company will continue to classify the fair value of the warrants that contain “down-round protection” and “net cash settlement” as a liability until the warrants are exercised, expire or are amended in a way that would no longer require these warrants to be classified as a liability. Warrants that the Company may be required to redeem through payment of cash or other assets outside its control are classified as liabilities pursuant to ASC 480 and are initially and subsequently measured at their estimated fair values. For additional discussion on warrants, see Note 6. Debt Issued with Warrants The Company considers guidance within ASC 470-20, Debt (ASC 470), ASC 480, and ASC 815 when accounting for the issuance of convertible debt with detachable warrants. As described above under the caption “Warrant Liability” , the Company classifies stock warrants as either equity instruments, derivative liabilities, or liabilities depending on the specific terms of the warrant agreement. In circumstances in which debt is issued with liability-classified warrants, the proceeds from the issuance of convertible debt are first allocated to the warrants at their full estimated fair value and established as both a liability and a debt discount. The remaining proceeds, as further reduced by discounts created by the bifurcation of embedded derivatives and a beneficial conversion feature, is allocated to the debt. The Company accounts for debt as liabilities measured at amortized cost and amortizes the resulting debt discount from the allocation of proceeds, to interest expense using the effective interest method over the expected term of the debt instrument pursuant to ASC 835, Interest (ASC 835). Embedded Derivatives. The Company considers whether there are any embedded features in debt instruments that require bifurcation and separate accounting as derivative financial instruments pursuant to ASC 815. Embedded derivatives are initially and subsequently measured at fair value. See Note 5 for additional discussion on the embedded derivatives associated with the Company’s convertible notes. Beneficial Conversion Feature. If the amount allocated to the convertible debt results in an effective per share conversion price less than the fair value of the Company’s common stock on the commitment date, the intrinsic value of this beneficial conversion feature is recorded as a discount to the convertible debt with a corresponding increase to additional paid-in capital. The beneficial conversion feature discount is equal to the difference between the effective conversion price and the fair value of the Company’s common stock at the commitment date, unless limited by the remaining proceeds allocated to the debt. See Note 5 for additional discussion on the beneficial conversion feature associated with the Company’s convertible notes. Debt Issuance Costs. The Company follows the guidance under ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03) for accounting for debt issuance costs. The Company allocates debt issuance costs between the debt and the warrants on the same basis as proceeds were allocated. The Company expenses issuance costs allocated to the warrants and presents the issuance costs allocated to the debt as a direct reduction from the carrying amount of the debt liability in the balance sheet. However, if debt issuance costs exceed the carrying amount of the debt, issuance costs are recorded to additional paid-in capital as a reduction of the beneficial conversion feature. As of September 30, 2016, the Company’s debt issuance costs are presented in additional paid-in capital as a reduction of the beneficial conversion feature and will be amortized to interest expense (despite their classification in additional paid-in capital) using the effective interest rate method over the expected term of the debt pursuant to ASC 835. Stock-Based Compensation The Company follows ASC 718, Compensation – Stock Compensation (ASC 718) , or ASC 505-50, Equity – Equity Based Payments to Non-Employees, where applicable. The Company accounts for stock-based awards to employees using the fair value based method to determine compensation for all arrangements where shares of stock or equity instruments are issued for compensation. In addition, the Company accounts for stock-based compensation to non-employees in accordance with the accounting guidance for equity instruments that are issued to entities or persons other than employees. The Company uses a Black-Scholes option-pricing model to determine the fair value of each option grant as of the date of grant for expense incurred. The Black-Scholes model requires inputs for risk-free interest rate, dividend yield, expected stock price volatility and expected term of the options. The value of the award that is ultimately expected to vest based on the achievement of a performance condition (i.e., service period) is recognized as expense on a straight-line basis over the requisite service period. See Note 8 for additional details. Previously, ASC 718 required forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differed from those estimates. In the first quarter of 2016, the Company adopted FASB Accounting Standards Update (ASU) 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which allows an entity to elect as an accounting policy either to continue to estimate the total number of awards for which the requisite service period will not be rendered or to account for forfeitures when they occur. In connection with the adoption of this ASU, the Company made an accounting policy election to account for forfeitures as they occur and applied this change in accounting policy on a modified retrospective basis. As a result, the Company recorded a cumulative-effect adjustment to retained earnings which resulted in an increase to accumulated deficit of $0.1 million with an offsetting increase to additional paid-in capital (zero net total equity impact) as of the date of adoption, principally related to additional stock compensation expense that would have been recognized on unvested outstanding options unadjusted for estimated forfeitures. Restructuring Costs Restructuring charges are primarily comprised of severance costs related to workforce reductions, contract termination and wind-down costs, asset impairments and costs of decommissioning the Company’s azficel-T manufacturing facility. In accordance with ASC 420, Exit or Disposal Cost Obligations , the Company recognizes restructuring charges when the liability has been incurred, except for one-time employee termination benefits that are incurred over time. Generally, one-time employee termination benefits (i.e., severance costs) are accrued at the date management has committed to a plan of termination and employees have been notified of their termination dates and expected severance payments. Other costs, including but not limited to, contract termination and wind-down costs and manufacturing facility decommissioning costs, will be recorded as incurred. Asset impairment charges have been, and will be, recognized when management has concluded that the assets have been impaired in accordance with ASC 360-10-35, Impairment or Disposal of Long-Lived Assets , or other applicable authoritative guidance. See Note 10 for additional details. Income Taxes In accordance with ASC 270, Interim Reporting, and ASC 740, Income Taxes , the Company is required at the end of each interim period to determine the best estimate of its annual effective tax rate and then apply that rate in providing for income taxes on a current year-to-date (interim period) basis. For the three and nine months ended September 30, 2016 and 2015 , the Company recorded no tax expense or benefit due to the expected current year loss and its historical losses. The Company has not recorded its net deferred tax asset as of either September 30, 2016 or December 31, 2015 because it maintains a full valuation allowance against all deferred tax assets as management has determined that it is not more likely than not that the Company will realize these future tax benefits. As of September 30, 2016 and December 31, 2015 , the Company had no uncertain tax positions. Recently Adopted Accounting Pronouncements In April 2015, the FASB issued ASU 2015-03 , to simplify the presentation of debt issuance costs. The new standard requires entities to present debt issuance costs related to a recognized liability in the balance sheet as a direct deduction from that liability, or contra-liability, rather than an asset, consistent with the existing presentation of a debt discount. For public business entities, the amendments in ASU 2015-03 are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The Company has adopted this guidance during the third quarter of 2016 in connection with the issuance of convertible notes as discussed above under the subheading “ Debt Issued with Warrants” within Note 3 and also Note 5. Recently Issued Accounting Pronouncements In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which provides guidance on the treatment of cash receipts and cash payments for certain types of cash transactions, to eliminate diversity in practice in the presentation of the cash flow statement. For public business entities, the amendments in ASU 2016-15 are effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Earlier application is permitted. While this ASU is not currently material to the Company, given the recent issuance of convertible notes discussed above and in Note 5, this ASU may be applicable in the future. From time to time, new accounting pronouncements are issued by the FASB and rules are issued by the SEC that we adopt as of the specified date. Unless otherwise noted, management does not believe that any other recently issued accounting pronouncements issued by the FASB or guidance issued by the SEC had, or is expected to have, a material impact on the Company’s present or future consolidated financial statements.

Inventory

Inventory	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Inventory	Inventory Inventories consist of raw materials and work in process intended for use in the manufacture of LAVIV, which was approved by the FDA in 2011 for the improvement of nasolabial fold wrinkles in adults. However, raw materials may be used for clinical trials and as such, are charged to research and development (R&D) expense when consumed for such activities. Inventories consisted of the following as of: ($ in thousands) September 30, 2016 December 31, 2015 Raw materials (LAVIV and product candidates) $ — $ 338 Work in process (LAVIV) — 144 Total inventory, gross — 482 Less: Reserve for work in process expiration — — Total inventory, net $ — $ 482 As a result of the wind-down of the Company’s azficel-T operations, more fully described in Note 10, the Company wrote off all remaining raw materials and work-in-process inventories as of September 30, 2016. Total inventory write-offs of approximately $0.4 million are included in cost of goods sold for the nine months ended September 30, 2016. Future raw materials purchased for pre-clinical and clinical trials will be charged to R&D expense as incurred.

Convertible Notes

Convertible Notes	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Convertible Notes	Convertible Notes 2016 Private Placement In September 2016, the Company issued an aggregate of $18,087,500 in principal of convertible promissory notes (each, a Note and collectively, the Notes) and accompanying warrants to purchase an aggregate of 18,087,500 shares of common stock (each a Warrant and collectively, the Warrants) in a private placement to institutional and accredited investors (each an Investor and collectively, the Investors). The Notes bear interest at four percent ( 4% ) per annum. Interest is earned daily and compounded quarterly and, at the election of the Company at the beginning of each quarter, shall accrue or be paid in cash. If the Company elects to have interest accrue, such interest will not be added to the principal amount of the Notes but such interest shall be subject to additional interest at the rate of four percent ( 4% ) per annum, compounded quarterly, and shall be due and payable upon the earliest of the conversion of the Notes, exercise of the Put Right, exercise of the Prepayment Right or the Maturity Date (in each case, as defined below). Additionally, if the Company elects for interest to accrue, then (i) the Company may elect to repay any such accrued and unpaid interest in cash at any time and from time to time and (ii) each Investor may elect to have the Company repay any such accrued and unpaid interest by delivering such number of shares of Common Stock equal to (x) the amount of the accrued and unpaid interest to be repaid, divided by (y) the greater of (i) the last closing bid price of a share of Common Stock as reported on The Nasdaq Capital Market (NASDAQ) on the date of such election and (ii) the Conversion Price (as defined below). As of September 30, 2016, the Company has elected to accrue interest. All unpaid principal of each Investor’s Note is convertible, at any time and from time to time, at the option of such Investor into shares of Common Stock at the greater of (x) $1.13625 and (y) the last closing bid price of a share of Common Stock as reported on NASDAQ at the time of such Investor’s execution of the Purchase Agreement, plus $0.12625 (as subject to adjustment, the “Conversion Price”) which range from $1.13625 to $1.22625 per share. The Notes have a maturity date of the earlier of (i) September 7, 2026 and (ii) one-hundred and eighty ( 180 ) days after the date on which the Company’s product candidate, FCX-007, is approved by the United States Food and Drug Administration for the treatment of recessive dystrophic epidermolysis bullosa (the Maturity Date). Each Investor has the right to require the Company to repay all or any portion of the unpaid principal and accrued and unpaid interest from time to time on or after September 7, 2021 (such right, a Put Right). Such Put Right must be exercised by such Investor by delivering written notice to the Company no later than one-hundred and eighty ( 180 ) days prior to such exercise date of such Put Right. In addition, upon consummation of a specified change of control transaction, each Investor may elect to accelerate the repayment of all unpaid principal and accrued interest under such Investor’s Note. If an Investor does not elect to have the Company prepay its Note upon such change of control transaction, then the Company may prepay the Notes, in an amount equal to one hundred one percent ( 101% ) of the outstanding principal due under the Notes (together with accrued and unpaid interest due thereon) (the Prepayment Right). Additionally, upon the occurrence of certain Events of Default, as defined in the Notes, each Investor may elect to accelerate the repayment of all unpaid principal and accrued interest under each Note and the Notes provide for automatic redemption upon the occurrence of certain bankruptcy related Events of Default, as defined in the Notes. Accounting for Convertible Notes and Embedded Derivatives The Company accounts for debt as liabilities measured at amortized cost and amortizes the resulting debt discount from allocation of proceeds to interest expense using the effective interest method over the expected term of the Notes pursuant to ASC 835, Interest (ASC 835). See Note 3 for discussion of the Company’s policies for accounting for debt with detachable warrants. In connection with the issuance of the Notes and Warrants, the Company recorded a debt discount of approximately $18.1 million based on an allocation of proceeds to the Warrants of approximately $9.6 million , an allocation to bifurcated derivatives (which consist of a contingent put option upon a change of control or acceleration upon event of default (the Contingent Put Option) and a contingent call option upon a change of control (the Contingent Call Option) included in the Notes) of approximately $1.3 million , and a beneficial conversion feature of approximately $7.2 million , before issuance costs, based on the difference between the fair value of the underlying common stock at the commitment date of each Note transaction and the effective conversion price of the Notes, as limited by the proceeds allocated to the Notes. The debt discount and issuance costs are amortized using the effective interest method over the expected term of the Notes. Convertible promissory notes outstanding were: ($ in thousands) September 30, 2016 Convertible promissory notes $ 18,088 Debt discount - warrants (9,643 ) Debt discount - compound bifurcated derivatives (1,273 ) Debt discount - beneficial conversion feature (7,172 ) Convertible promissory notes, net $ — Amortization of the debt discounts included in interest expense in the Condensed Consolidated Statements of Operations for both the three and nine months ended September 30, 2016 was $0 . Assumptions Used in Determining Fair Value of Compound Bifurcated Derivative The Company utilizes a binomial lattice model to value its bifurcated derivatives included in the Notes. ASC 815 does not permit an issuer to account separately for individual derivative terms and features embedded in hybrid financial instruments that require bifurcation and liability classification as derivative financial instruments. Rather, such terms and features must be combined together and fair valued as a single, compound embedded derivative. The Company selected a binomial lattice model to value the compound embedded derivative because it believes this technique is reflective of all significant assumptions that market participants would likely consider in negotiating the transfer of the Notes. Such assumptions include, among other inputs, stock price volatility, risk-free rates, credit risk assumptions, early redemption and conversion assumptions, and the potential for future adjustment of the conversion price due to a future dilutive financing. Additionally, there are other embedded features of the Notes requiring bifurcation, other than the Contingent Put Option and the Contingent Call Option, which had no value at September 30, 2016 due to management’s estimates of the likelihood of certain events, but that may have value in the future should those estimates change. The estimated fair value of the compound bifurcated derivative is determined using Level 2 and Level 3 inputs. Significant inputs and assumptions used in the binomial lattice model for the derivative liability are as follows: ($ in thousands except per share data) September 30, 2016 Calculated aggregate value $ 1,524 Closing price per share of common stock $ 0.72 Contractual remaining term 9 years, 11 months Contractual interest rate 4.0 % Volume-weighted average conversion rate $ 1.13662 Risk-free interest rate (term structure) 0.20% - 1.60% Dividend yield — Credit Rating CC Credit Spread 32.28 % Volatility 99.9 %

Warrants

Warrants	9 Months Ended
	Sep. 30, 2016
Warrants [Abstract]
Warrants	Warrants The Company accounts for common stock warrants as equity instruments, derivative liabilities, or liabilities, depending on the specific terms of the warrant agreement. See Note 3 for further details on accounting policies related to the Company's stock warrants. In connection with various financing transactions, the Company has issued warrants to purchase the Company’s common stock. In September 2016, the Company issued warrants to purchase 18,087,500 shares of its common stock for an exercise price of $1.50 per share to investors in connection with a private placement offering of convertible debt securities as more fully discussed in Note 5. The warrants are exercisable at any time beginning six months after issuance through five years after issuance. The Company classified these warrants as liabilities based on the guidance in ASC 480, as the warrants contain a provision that could result in the Company’s redemption of the warrants outside its control for cash equal to the value of the warrants calculated using a Black-Scholes pricing model. As of September 30, 2016 and December 31, 2015 , all of the Company’s outstanding common stock warrants were classified as either derivative liabilities or liabilities. The following table summarizes outstanding liability-classified warrants to purchase common stock as of: Number of Warrants Liability-classified warrants September 30, 2016 December 31, 2015 Exercise Price Expiration Dates Issued in March 2010 financing — 319,789 $ 6.25 Mar 2016 Issued in June 2011 financing — 6,113 $ 22.50 Jun 2016 Issued in August 2011 financing — 565,759 $ 18.75 Aug 2016 Issued to placement agents in August 2011 financing — 50,123 $ 13.635 Aug 2016 Issued in Series B and D Preferred Stock offerings 1,389,194 1,970,594 $ 6.25 Jul 2016 - Dec 2016 Issued in Series E Preferred Stock offering (1) 132,014 60,000 $ 1.13625 Dec 2017 Issued with June 2012 Convertible Notes 1,125,578 1,125,578 $ 2.50 Jun 2018 Issued in Series E Preferred Stock offering 1,568,823 1,568,823 $ 7.50 Dec 2018 Issued with September 2016 Convertible Notes 18,087,500 — $ 1.50 Sep 2021 Total 22,303,109 5,666,779 (1) As a result of the issuance of the September 2016 Convertible Notes, the exercise price for warrants issued in connection with the Company’s Series E Preferred Stock offering was decreased from $2.50 per warrant share to $1.13625 and the number of warrant shares was increased by 72,014 , due to anti-dilution provisions contained in the warrants for certain investors who did not agree to modifications the Company offered in October 2012. The table below is a summary of the Company’s warrant activity during the nine months ended September 30, 2016 : Number of warrants Weighted- average exercise price Outstanding at December 31, 2015 5,666,779 $ 7.14 Issued 18,087,500 1.50 Adjustments (1) 72,014 1.13625 Exercised — — Expired (1,523,184 ) 11.20 Outstanding at September 30, 2016 22,303,109 $ 2.27 (1) See footnote 1 in table above. Accounting for Liability-classified Warrants The foregoing warrants were recorded as derivative liabilities or liabilities at their estimated fair value at the date of issuance, with subsequent changes in estimated fair value recorded in other income (expense) in the Company’s Condensed Consolidated Statements of Operations in each subsequent period. The change in the estimated fair value of the warrant liability for the three and nine months ended September 30, 2016 resulted in non-cash income of approximately $3.0 million and $10.5 million , respectively. The change in the estimated fair value of the warrant liability for the three and nine months ended September 30, 2015 resulted in non-cash income of approximately $5.3 million and $4.2 million , respectively. The Company utilizes a Monte Carlo simulation valuation method to value its liability-classified warrants. Assumptions Used in Determining Fair Value of Warrants The estimated fair value of warrants is determined using Level 2 and Level 3 inputs. Inherent in the Monte Carlo simulation valuation method are the following assumptions: Volatility. The Company estimates stock price volatility based on the Company’s historical stock price performance over a period of time that matches the expected remaining life of the warrants. Risk-free interest rate . The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the valuation date commensurate with the expected remaining life assumption. Expected remaining life. The expected life of the warrants is assumed to be equivalent to their remaining contractual term. Dividend rate. The dividend rate is based on the historical rate, which the Company anticipates will remain at zero. Scenarios. The probability of complex features of the warrants being triggered is subjective (no observable inputs or available market data) and based on internal and external information known to management at the valuation date. The following table summarizes the calculated aggregate fair values, along with the inputs and assumptions utilized in each calculation: ($ in thousands except per share data) September 30, 2016 December 31, 2015 Calculated aggregate value $ 7,400 $ 8,275 Weighted average exercise price per share $ 2.27 $ 7.14 Closing price per share of common stock $ 0.72 $ 4.55 Volatility 85.3 % 85.2 % Weighted average remaining expected life 4 years, 3 months 1 year, 8 months Risk-free interest rate 1.04 % 0.98 % Dividend yield — —

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis The Company follows the guidance in ASC 820, Fair Value Measurement, to account for financial assets and liabilities measured at fair value on a recurring basis. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The Company uses a fair value hierarchy, which distinguishes between assumptions based on market data (observable inputs) and an entity’s own assumptions (unobservable inputs). The guidance requires fair value measurements be classified and disclosed in one of the following three categories within the hierarchy: • Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. • Level 2: Quoted prices in markets that are not active or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Determining which category an asset or liability falls into within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each reporting period. There were no transfers between Level 1, 2 and 3 during the periods presented. The following fair value hierarchy table presents information about each major category of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of: September 30, 2016 ($ in thousands) Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 21,283 $ — $ — $ 21,283 Total Assets $ 21,283 $ — $ — $ 21,283 Liabilities: Warrant liability $ — $ — $ 7,400 $ 7,400 Derivative liability — — 1,524 1,524 Total Liabilities $ — $ — $ 8,924 $ 8,924 December 31, 2015 ($ in thousands) Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 29,268 $ — $ — $ 29,268 Total Assets $ 29,268 $ — $ — $ 29,268 Liabilities: Warrant liability $ — $ — $ 8,275 $ 8,275 Derivative liability — — — — Total Liabilities $ — $ — $ 8,275 $ 8,275 Changes in Level 3 Liabilities Measured at Fair Value on a Recurring Basis Common Stock Warrants - Warrant Liability The reconciliation of the warrant liability measured at fair value on a recurring basis using unobservable inputs (Level 3) was as follows: Warrant ($ in thousands) Liability Balance at December 31, 2015 $ 8,275 Issuance of warrants (1) 9,643 Expiration of warrants (2) (477 ) Change in fair value of warrant liability (10,041 ) Balance at September 30, 2016 $ 7,400 (1) Represents fair value of warrants on the issuance date. (2) Represents the fair value as of the beginning of the year for warrants expiring during the year and has been recorded to warrant revaluation income or expense in the Condensed Consolidated Statement of Operations for the nine months ended September 30, 2016. Bifurcated Compound Derivative - Derivative Liability The reconciliation of the derivative liability measured at fair value on a recurring basis using unobservable inputs (Level 3) was as follows: Derivative ($ in thousands) Liability Balance at December 31, 2015 $ — Issuance of convertible notes (1) 1,273 Change in fair value of derivative 251 Balance at September 30, 2016 $ 1,524 (1) Represents fair value of embedded derivatives on the issuance date. Effect of Fibrocell’s Stock Price and Assumptions on the Calculation of Fair Value of Financial Instruments Measured on a Recurring Basis Common Stock Warrants - Warrant Liability The fair value of the warrant liability is based on Level 3 inputs. As discussed in Note 6, the Company uses a Monte Carlo simulation valuation method to value its liability-classified warrants. The determination of fair value as of the reporting date is affected by Fibrocell’s stock price as well as assumptions regarding a number of subjective variables that do not have observable inputs or available market data to support the fair value. These variables include, but are not limited to, expected stock price volatility over the term of the warrants and the risk-free interest rate. The primary factors affecting the fair value of the warrant liability are the Company’s stock price and volatility as well as certain assumptions by the Company as to the likelihood of provisions to the underlying warrant agreements being triggered. The methods described above and in Note 6 may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation method is appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value could result in a different fair value measurement at the reporting date. Bifurcated Compound Derivative - Derivative Liability The fair value of the derivative liability is based on Level 3 inputs. As discussed in Note 5, the Company uses a binomial lattice model to value the compound embedded derivative bifurcated from the Notes. The determination of fair value as of the reporting date is affected by Fibrocell’s stock price as well as assumptions regarding a number of subjective variables that do not have observable inputs or available market data to support the fair value. These variables include, but are not limited to, expected stock price volatility, changes in interest rates, assumptions regarding the adjusted conversion prices in the Notes, and early redemption or conversion of the Notes. The methods described above and in Note 5 may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation method is appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value could result in a different fair value measurement at the reporting date. Fair Value of Certain Financial Assets and Liabilities The Company believes that the fair values of the Company’s current assets and liabilities approximate their reported carrying amounts. The fair value of the long-term convertible promissory notes was approximately $14.8 million at September 30, 2016, compared to a carrying value of $0 , as a result of unamortized debt discounts.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation 2009 Equity Incentive Plan The Company’s Board of Directors (the Board) adopted the 2009 Equity Incentive Plan (as amended to date, the Plan) effective September 3, 2009. The Plan is intended to further align the interests of the Company and its stockholders with its employees, including its officers, non-employee directors, consultants and advisers by providing equity-based incentives. The Plan allows for the issuance of up to 7,600,000 shares of the Company’s common stock. In addition, as of September 30, 2016, there were 25,000 options outstanding that were issued outside the Plan to consultants in 2013. The types of awards that may be granted under the Plan include stock options (both non-qualified stock options and incentive stock options), stock appreciation rights, stock awards, stock units and other stock-based awards. The term of each award is determined by the Compensation Committee of the Board at the time each award is granted, provided that the term of the option does not exceed ten years . Vesting schedules for stock options vary, but generally vest 25% per year over four years for employee options and on the one -year anniversary date for non-employee director options. The Plan had 3,179,527 shares available for future grants as of September 30, 2016 . Accounting for Stock-Based Compensation The Company recognizes non-cash compensation expense for stock-based awards based on their grant date fair value, determined using the Black-Scholes option-pricing model. During the nine months ended September 30, 2016 and 2015 , the weighted average fair market value for options granted was $1.37 and $3.59 , respectively. Total stock-based compensation expense recognized using the straight-line attribution method and included in operating expenses in the Condensed Consolidated Statements of Operations was approximately $0.5 million for both the three months ended September 30, 2016 and 2015 , and approximately $1.6 million for both the nine months ended September 30, 2016 and 2015 . Assumptions Used in Determining Fair Value of Stock Options Inherent in the Black-Scholes option-pricing model are the following assumptions: Volatility. The Company estimates stock price volatility based on the Company’s historical stock price performance over a period of time that matches the expected term of the stock options. Risk-free interest rate . The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant commensurate with the expected term assumption. Expected term . The expected term of stock options granted is based on an estimate of when options will be exercised in the future. The Company applied the simplified method of estimating the expected term of the options, described in the SEC’s Staff Accounting Bulletins 107 and 110, as the historical experience is not indicative of the expected behavior in the future. The expected term, calculated under the simplified method, is applied to groups of stock options that have similar contractual terms. Using this method, the expected term is determined using the average of the vesting period and the contractual life of the stock options granted. Dividend rate. The dividend rate is based on the historical rate, which the Company anticipates will remain at zero. Forfeitures. The Company accounts for forfeitures when they occur. Ultimately, the actual expense recognized over the vesting period will be for only those shares that vest. The fair market value of these stock options at the date of grant was estimated using the Black-Scholes option-pricing model with the following weighted average assumptions for the nine months ended: September 30, 2016 September 30, 2015 Expected term 6 years, 2 months 6 years, 1 month Interest rate 1.37 % 1.56 % Dividend yield — — Volatility (1) 92.5 % 103.2 % (1) For the nine months ended September 30, 2016, the Company estimated expected volatility based on the historical volatility of its own common stock on a stand-alone basis. Prior to January 1, 2016, including the nine months ended September 30, 2015, the Company estimated expected volatility based on the historical volatility of a peer group. Stock Option Activity The following table summarizes stock option activity for the nine months ended September 30, 2016 : ($ in thousands except share and per share data) Number of shares Weighted- average exercise price Weighted- average remaining contractual term Aggregate intrinsic value Outstanding at December 31, 2015 3,134,094 $ 6.23 8 years $ 1,630 Granted 1,316,000 1.79 Exercised — — Forfeited (36,334 ) 4.39 Expired (32,534 ) 8.18 Outstanding at September 30, 2016 (1) 4,381,226 $ 4.90 7 years, 11 months $ — Exercisable at September 30, 2016 2,078,808 $ 7.26 6 years, 10 months $ — (1) Includes both vested stock options as well as unvested stock options for which the requisite service period has not been rendered but that are expected to vest based on achievement of a service condition. The total fair value of options vested during the nine months ended September 30, 2016 was approximately $2.1 million . Additionally, as of September 30, 2016 , there was approximately $4.4 million of unrecognized compensation expense related to non-vested stock options which is expected to be recognized over a weighted-average period of 2.6 years.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions The Company and Intrexon Corporation (Intrexon) are parties to two distinct exclusive channel collaboration agreements including the Exclusive Channel Collaboration Agreement entered into in October 2012 and amended in June 2013 and January 2014 (as amended, the 2012 ECC) and the Exclusive Channel Collaboration Agreement entered into in December 2015 (the 2015 ECC). Pursuant to these agreements, the Company engages Intrexon for support services for the research and development of product candidates covered under the respective agreements and reimburses Intrexon for its cost for time and materials for such work. For the three months ended September 30, 2016 and 2015 , the Company incurred total expenses of $0.5 million and $1.8 million , respectively, with Intrexon, for work performed under the 2012 ECC. During the same periods, no expenses were incurred for work performed under the 2015 ECC. Of the $0.5 million incurred during the 2016 period, $0.2 million related to direct expenses for work performed by Intrexon and $0.3 million related to pass-through costs. Of the $1.8 million incurred during the 2015 period, $0.7 million related to direct expenses for work performed by Intrexon and $1.1 million related to pass-through costs. For the nine months ended September 30, 2016 and 2015 , the Company incurred total expenses of $2.8 million and $4.7 million , respectively, with Intrexon, for work performed under the 2012 ECC. During the same periods, no expenses were incurred for work performed under the 2015 ECC. Of the $2.8 million incurred during the 2016 period, $1.0 million related to direct expenses for work performed by Intrexon and $1.8 million related to pass-through costs. Of the $4.7 million incurred during the 2015 period, $2.4 million related to direct expenses for work performed by Intrexon and $2.3 million related to pass-through costs. As of September 30, 2016 and December 31, 2015 , the Company had outstanding payables to Intrexon of $0.3 million and $10.7 million , respectively. In connection with the 2015 ECC, in consideration for the license and the other rights that the Company receives under the agreement, the Company paid Intrexon an up-front technology access fee of $10 million in cash in January 2016. Randal J. Kirk is the chairman of the board and chief executive officer of Intrexon and, together with his affiliates, owns more than 50% of Intrexon’s common stock. Affiliates of Randal J. Kirk (including Intrexon) own approximately 38% of our common stock. Additionally, two of our directors, Julian Kirk (who is the son of Randal J. Kirk) and Marcus Smith, are employees of Third Security, LLC, which is an affiliate of Randal J. Kirk. Affiliates of Randal J. Kirk (including Intrexon) participated in the Company’s private placement offering of convertible debt securities in September 2016, more fully described in Note 5, and were issued an aggregate of $6,762,500 in principal of Notes and accompanying Warrants to purchase an aggregate of 6,762,500 shares of common stock.

Restructuring Costs

Restructuring Costs	9 Months Ended
	Sep. 30, 2016
Restructuring and Related Activities [Abstract]
Restructuring Costs	Restructuring Costs In June 2016, the Company determined to wind-down its azficel-T operations at the Company’s Exton, PA facility and to reduce the workforce that supports such operations. This decision enables the Company to focus its resources towards development of its gene-therapy product candidates. Restructuring-related charges for the three months ended September 30, 2016 totaled less than $0.1 million and were related solely to employee severance and benefit-related charges. Restructuring-related charges for the nine months ended September 30, 2016 were comprised of approximately $0.3 million of employee severance and benefit-related charges and less than $0.1 million of asset impairments. The restructuring and asset impairment activity for the nine months ended September 30, 2016 was as follows: ($ in thousands) Employee Severance and Benefits Asset Impairments Total Accrued restructuring balance as of December 31, 2015 $ — $ — $ — Additional accruals 301 34 335 Cash payments (282 ) — (282 ) Non-cash settlements — (34 ) (34 ) Accrued restructuring balance as of September 30, 2016 $ 19 $ — $ 19 The restructuring-related charges incurred during the nine months ended September 30, 2016 related to employee severance and benefits resulting from the reduction-in-workforce and the impairment of property and equipment. In connection with the reduction-in-workforce, approximately 50% of the Company's employees were terminated, primarily in the areas of manufacturing and quality operations. The accrued restructuring balance as of September 30, 2016 relates to employee severance and benefits which are expected to be paid in the fourth quarter of 2016 and is recorded as a current liability within accrued expenses in the Condensed Consolidated Balance Sheet. Additionally, the Company recognized inventory write-offs in cost of goods sold related to the wind-down of its azficel-T (including LAVIV) operations as described in Note 4. The Company may incur additional charges in the future for contract termination and wind-down costs, asset impairments and costs to decommission the Company’s azficel-T manufacturing facility, but cannot estimate them at this time.

Loss Per Share

Loss Per Share	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Loss Per Share	Loss Per Share Basic loss per share is computed by dividing net loss for the period by the weighted average number of shares of common stock outstanding during that period. The diluted loss per share calculation gives effect to dilutive stock options, warrants, convertible notes and other potentially dilutive common stock equivalents outstanding during the period. Diluted loss per share is based on the if-converted method or the treasury stock method, as applicable, and includes the effect from the potential issuance of common stock, such as shares issuable pursuant to the conversion of convertible notes and the exercise of stock options and warrants, assuming the exercise of all "in-the-money" common stock equivalents based on the average market price during the period. Common stock equivalents have been excluded where their inclusion would be anti-dilutive. Details in the computation of basic and diluted loss per share are as follows: Three months ended September 30, Nine months ended September 30, ($ in thousands, except share and per share data) 2016 2015 2016 2015 Loss per share - basic: Numerator for basic loss per share $ (2,299 ) $ (1,521 ) $ (11,798 ) $ (16,802 ) Denominator for basic loss per share 43,898,785 43,021,121 43,898,785 41,598,632 Basic loss per common share $ (0.05 ) $ (0.04 ) $ (0.27 ) $ (0.40 ) Loss per share - diluted: Numerator for diluted loss per share $ (2,299 ) $ (1,521 ) $ (11,798 ) $ (16,802 ) Adjust: Warrant revaluation income (expense) for dilutive warrants — 1,529 1,958 1,529 Net loss attributable to common share $ (2,299 ) $ (3,050 ) $ (13,756 ) $ (18,331 ) Denominator for basic loss per share 43,898,785 43,021,121 43,898,785 41,598,632 Plus: Incremental shares underlying dilutive warrants outstanding — 691,797 24,023 230,599 Denominator for diluted loss per share 43,898,785 43,712,918 43,922,808 41,829,231 Diluted net loss per common share $ (0.05 ) $ (0.07 ) $ (0.31 ) $ (0.44 ) The following potentially dilutive securities have been excluded from the computations of diluted weighted-average shares outstanding, as their effect would be anti-dilutive: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 “In the money” stock options 441,000 2,733,864 510,667 1,923,926 “Out of the money” stock options 3,940,226 457,480 3,684,407 1,113,960 “In the money” warrants — — — 801,132 “Out of the money” warrants 22,303,109 4,741,725 10,601,799 4,801,476 Shares underlying convertible notes 15,913,612 — 15,913,612 — Shares underlying accrued interest on convertible notes 40,657 — 40,657 — Other securities excluded from the calculation of diluted loss per share: Stock options with performance condition — — — 66,667

Equity

Equity	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Equity	Equity Common Stock - Shares Authorized In July 2016, the Company amended its Restated Certificate of Incorporation, as amended, to increase the number of shares of common stock that the Company is authorized to issue from 100,000,000 to 150,000,000 . Common Stock - “At-The-Market” Equity Program In January 2016, the Company entered into a Controlled Equity Offering™ Sales Agreement (the ATM Agreement) with Cantor Fitzgerald & Co. (Cantor Fitzgerald) to implement an "At-The-Market" (ATM) equity program under which the Company, from time to time, may offer and sell shares of its common stock having an aggregate offering price of up to $50.0 million (the Shares) through Cantor Fitzgerald. Subject to the terms and conditions of the ATM Agreement, Cantor Fitzgerald will use its commercially reasonable efforts to sell the Shares from time to time, based upon the Company’s instructions. The Company has no obligation to sell any of the Shares, and may at any time suspend sales under the ATM Agreement or terminate the ATM Agreement. Cantor Fitzgerald will be entitled to a fixed commission of up to 3.0% of the gross proceeds from Shares sold. Through September 30, 2016 , no Shares have been sold through the ATM equity program.

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
General	General The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnote disclosures required by GAAP for complete consolidated financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. These financial statements and accompanying notes should be read in conjunction with the Consolidated Financial Statements and accompanying Notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 (2015 Form 10-K), filed with the Securities and Exchange Commission (SEC). The Company’s significant accounting policies are described in the Notes to Consolidated Financial Statements in the 2015 Form 10-K and updated, as necessary, in Note 3 in this Form 10-Q. The results of the Company’s operations for any interim period are not necessarily indicative of the results of operations for any other interim period or full year. All intercompany accounts and transactions have been eliminated in consolidation. The Company's international operations are immaterial and it has no unrealized gains or losses from the sale of investments. As a result, it does not have any items that would be classified as other comprehensive income in such a statement.
Reclassifications	Reclassifications The prior year Condensed Consolidated Balance Sheet, Condensed Consolidated Statement of Operations and Condensed Consolidated Statement of Cash Flows presented in this Form 10-Q contain certain reclassifications for purposes of disclosing related party transactions and balances separately.
Intangible Assets	Intangible Assets Intangible assets were research and development assets related to the Company’s primary study on azficel-T that were capitalized on the balance sheet upon emergence from bankruptcy. The portion of the reorganization value which was attributed to identifiable intangible assets was $6.3 million . Azficel-T had two current or target indications: the Company's FDA-approved product LAVIV ® and a clinical development program for azficel-T for the treatment of vocal cord scarring resulting in chronic or severe dysphonia. Effective January 1, 2012, the Company launched LAVIV and as a result, the research and development intangible assets related to the Company’s primary study were considered to be finite-lived intangible assets and began amortizing over 12 years , the estimated useful life of the assets which is analogous with the exclusivity period granted to the Company under the BLA. Finite-lived intangible assets are recorded at cost, net of accumulated amortization and, if applicable, impairment charges. Amortization of finite-lived intangible assets is provided over their estimated useful lives on a straight-line basis. The Company reviews the estimated remaining useful life of its intangible assets on an annual basis with any changes, if applicable, accounted for prospectively. In accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 360-10-35, Impairment or Disposal of Long-Lived Assets , the Company reviews its finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In June 2016, based on its failure to achieve primary efficacy endpoints for its Phase II clinical trial of azficel-T for the treatment of vocal cord scarring, the Company determined to wind-down its azficel-T operations as more fully described in Note 10. As a result, management concluded that the Company’s intangible assets had become fully impaired.
Warrant Liability	Warrant Liability The Company accounts for stock warrants as either equity instruments, derivative liabilities, or liabilities in accordance with ASC 480, Distinguishing Liabilities from Equity (ASC 480), depending on the specific terms of the warrant agreement. Stock warrants are accounted for as a derivative in accordance with ASC 815, Derivatives and Hedging (ASC 815) if the stock warrants contain “down-round protection” or other terms that could potentially require “net cash settlement” and therefore, do not meet the scope exception for treatment as a derivative. Since “down-round protection” is not an input into the calculation of the fair value of the warrants, the warrants cannot be considered indexed to the Company’s own stock which is a requirement for the scope exception as outlined under ASC 815. Warrant instruments that could potentially require “net cash settlement” in the absence of express language precluding such settlement and those which include “down-round provisions” are initially classified as derivative liabilities at their estimated fair values, regardless of the likelihood that such instruments will ever be settled in cash. The Company will continue to classify the fair value of the warrants that contain “down-round protection” and “net cash settlement” as a liability until the warrants are exercised, expire or are amended in a way that would no longer require these warrants to be classified as a liability. Warrants that the Company may be required to redeem through payment of cash or other assets outside its control are classified as liabilities pursuant to ASC 480 and are initially and subsequently measured at their estimated fair values.
Debt Issued with Warrants	Debt Issued with Warrants The Company considers guidance within ASC 470-20, Debt (ASC 470), ASC 480, and ASC 815 when accounting for the issuance of convertible debt with detachable warrants. As described above under the caption “Warrant Liability” , the Company classifies stock warrants as either equity instruments, derivative liabilities, or liabilities depending on the specific terms of the warrant agreement. In circumstances in which debt is issued with liability-classified warrants, the proceeds from the issuance of convertible debt are first allocated to the warrants at their full estimated fair value and established as both a liability and a debt discount. The remaining proceeds, as further reduced by discounts created by the bifurcation of embedded derivatives and a beneficial conversion feature, is allocated to the debt. The Company accounts for debt as liabilities measured at amortized cost and amortizes the resulting debt discount from the allocation of proceeds, to interest expense using the effective interest method over the expected term of the debt instrument pursuant to ASC 835, Interest (ASC 835). Embedded Derivatives. The Company considers whether there are any embedded features in debt instruments that require bifurcation and separate accounting as derivative financial instruments pursuant to ASC 815. Embedded derivatives are initially and subsequently measured at fair value. See Note 5 for additional discussion on the embedded derivatives associated with the Company’s convertible notes. Beneficial Conversion Feature. If the amount allocated to the convertible debt results in an effective per share conversion price less than the fair value of the Company’s common stock on the commitment date, the intrinsic value of this beneficial conversion feature is recorded as a discount to the convertible debt with a corresponding increase to additional paid-in capital. The beneficial conversion feature discount is equal to the difference between the effective conversion price and the fair value of the Company’s common stock at the commitment date, unless limited by the remaining proceeds allocated to the debt. See Note 5 for additional discussion on the beneficial conversion feature associated with the Company’s convertible notes. Debt Issuance Costs. The Company follows the guidance under ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03) for accounting for debt issuance costs. The Company allocates debt issuance costs between the debt and the warrants on the same basis as proceeds were allocated. The Company expenses issuance costs allocated to the warrants and presents the issuance costs allocated to the debt as a direct reduction from the carrying amount of the debt liability in the balance sheet. However, if debt issuance costs exceed the carrying amount of the debt, issuance costs are recorded to additional paid-in capital as a reduction of the beneficial conversion feature. As of September 30, 2016, the Company’s debt issuance costs are presented in additional paid-in capital as a reduction of the beneficial conversion feature and will be amortized to interest expense (despite their classification in additional paid-in capital) using the effective interest rate method over the expected term of the debt pursuant to ASC 835. The Company accounts for debt as liabilities measured at amortized cost and amortizes the resulting debt discount from allocation of proceeds to interest expense using the effective interest method over the expected term of the Notes pursuant to ASC 835, Interest (ASC 835).
Stock-Based Compensation	Stock-Based Compensation The Company follows ASC 718, Compensation – Stock Compensation (ASC 718) , or ASC 505-50, Equity – Equity Based Payments to Non-Employees, where applicable. The Company accounts for stock-based awards to employees using the fair value based method to determine compensation for all arrangements where shares of stock or equity instruments are issued for compensation. In addition, the Company accounts for stock-based compensation to non-employees in accordance with the accounting guidance for equity instruments that are issued to entities or persons other than employees. The Company uses a Black-Scholes option-pricing model to determine the fair value of each option grant as of the date of grant for expense incurred. The Black-Scholes model requires inputs for risk-free interest rate, dividend yield, expected stock price volatility and expected term of the options. The value of the award that is ultimately expected to vest based on the achievement of a performance condition (i.e., service period) is recognized as expense on a straight-line basis over the requisite service period. See Note 8 for additional details. Previously, ASC 718 required forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differed from those estimates. In the first quarter of 2016, the Company adopted FASB Accounting Standards Update (ASU) 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which allows an entity to elect as an accounting policy either to continue to estimate the total number of awards for which the requisite service period will not be rendered or to account for forfeitures when they occur. In connection with the adoption of this ASU, the Company made an accounting policy election to account for forfeitures as they occur and applied this change in accounting policy on a modified retrospective basis. As a result, the Company recorded a cumulative-effect adjustment to retained earnings which resulted in an increase to accumulated deficit of $0.1 million with an offsetting increase to additional paid-in capital (zero net total equity impact) as of the date of adoption, principally related to additional stock compensation expense that would have been recognized on unvested outstanding options unadjusted for estimated forfeitures.
Restructuring Costs	Restructuring Costs Restructuring charges are primarily comprised of severance costs related to workforce reductions, contract termination and wind-down costs, asset impairments and costs of decommissioning the Company’s azficel-T manufacturing facility. In accordance with ASC 420, Exit or Disposal Cost Obligations , the Company recognizes restructuring charges when the liability has been incurred, except for one-time employee termination benefits that are incurred over time. Generally, one-time employee termination benefits (i.e., severance costs) are accrued at the date management has committed to a plan of termination and employees have been notified of their termination dates and expected severance payments. Other costs, including but not limited to, contract termination and wind-down costs and manufacturing facility decommissioning costs, will be recorded as incurred. Asset impairment charges have been, and will be, recognized when management has concluded that the assets have been impaired in accordance with ASC 360-10-35, Impairment or Disposal of Long-Lived Assets , or other applicable authoritative guidance.
Income Taxes	Income Taxes In accordance with ASC 270, Interim Reporting, and ASC 740, Income Taxes , the Company is required at the end of each interim period to determine the best estimate of its annual effective tax rate and then apply that rate in providing for income taxes on a current year-to-date (interim period) basis. For the three and nine months ended September 30, 2016 and 2015 , the Company recorded no tax expense or benefit due to the expected current year loss and its historical losses. The Company has not recorded its net deferred tax asset as of either September 30, 2016 or December 31, 2015 because it maintains a full valuation allowance against all deferred tax assets as management has determined that it is not more likely than not that the Company will realize these future tax benefits.
Recently Adopted/Issued Accounting Pronouncements	Recently Adopted Accounting Pronouncements In April 2015, the FASB issued ASU 2015-03 , to simplify the presentation of debt issuance costs. The new standard requires entities to present debt issuance costs related to a recognized liability in the balance sheet as a direct deduction from that liability, or contra-liability, rather than an asset, consistent with the existing presentation of a debt discount. For public business entities, the amendments in ASU 2015-03 are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The Company has adopted this guidance during the third quarter of 2016 in connection with the issuance of convertible notes as discussed above under the subheading “ Debt Issued with Warrants” within Note 3 and also Note 5. Recently Issued Accounting Pronouncements In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which provides guidance on the treatment of cash receipts and cash payments for certain types of cash transactions, to eliminate diversity in practice in the presentation of the cash flow statement. For public business entities, the amendments in ASU 2016-15 are effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Earlier application is permitted. While this ASU is not currently material to the Company, given the recent issuance of convertible notes discussed above and in Note 5, this ASU may be applicable in the future. From time to time, new accounting pronouncements are issued by the FASB and rules are issued by the SEC that we adopt as of the specified date. Unless otherwise noted, management does not believe that any other recently issued accounting pronouncements issued by the FASB or guidance issued by the SEC had, or is expected to have, a material impact on the Company’s present or future consolidated financial statements.
Assumptions Used in Determining Fair Value of Warrants/Compounded Bifurcated Derivative	Assumptions Used in Determining Fair Value of Compound Bifurcated Derivative The Company utilizes a binomial lattice model to value its bifurcated derivatives included in the Notes. ASC 815 does not permit an issuer to account separately for individual derivative terms and features embedded in hybrid financial instruments that require bifurcation and liability classification as derivative financial instruments. Rather, such terms and features must be combined together and fair valued as a single, compound embedded derivative. The Company selected a binomial lattice model to value the compound embedded derivative because it believes this technique is reflective of all significant assumptions that market participants would likely consider in negotiating the transfer of the Notes. Such assumptions include, among other inputs, stock price volatility, risk-free rates, credit risk assumptions, early redemption and conversion assumptions, and the potential for future adjustment of the conversion price due to a future dilutive financing. Additionally, there are other embedded features of the Notes requiring bifurcation, other than the Contingent Put Option and the Contingent Call Option, which had no value at September 30, 2016 due to management’s estimates of the likelihood of certain events, but that may have value in the future should those estimates change. Assumptions Used in Determining Fair Value of Warrants The estimated fair value of warrants is determined using Level 2 and Level 3 inputs. Inherent in the Monte Carlo simulation valuation method are the following assumptions: Volatility. The Company estimates stock price volatility based on the Company’s historical stock price performance over a period of time that matches the expected remaining life of the warrants. Risk-free interest rate . The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the valuation date commensurate with the expected remaining life assumption. Expected remaining life. The expected life of the warrants is assumed to be equivalent to their remaining contractual term. Dividend rate. The dividend rate is based on the historical rate, which the Company anticipates will remain at zero. Scenarios. The probability of complex features of the warrants being triggered is subjective (no observable inputs or available market data) and based on internal and external information known to management at the valuation date. The Company accounts for common stock warrants as equity instruments, derivative liabilities, or liabilities, depending on the specific terms of the warrant agreement. See Note 3 for further details on accounting policies related to the Company's stock warrants. In connection with various financing transactions, the Company has issued warrants to purchase the Company’s common stock. In September 2016, the Company issued warrants to purchase 18,087,500 shares of its common stock for an exercise price of $1.50 per share to investors in connection with a private placement offering of convertible debt securities as more fully discussed in Note 5. The warrants are exercisable at any time beginning six months after issuance through five years after issuance. The Company classified these warrants as liabilities based on the guidance in ASC 480, as the warrants contain a provision that could result in the Company’s redemption of the warrants outside its control for cash equal to the value of the warrants calculated using a Black-Scholes pricing model. As of September 30, 2016 and December 31, 2015 , all of the Company’s outstanding common stock warrants were classified as either derivative liabilities or liabilities.
Assets and Liabilities Measured at Fair Value on a Recurring Basis	Assets and Liabilities Measured at Fair Value on a Recurring Basis The Company follows the guidance in ASC 820, Fair Value Measurement, to account for financial assets and liabilities measured at fair value on a recurring basis. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The Company uses a fair value hierarchy, which distinguishes between assumptions based on market data (observable inputs) and an entity’s own assumptions (unobservable inputs). The guidance requires fair value measurements be classified and disclosed in one of the following three categories within the hierarchy: • Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. • Level 2: Quoted prices in markets that are not active or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Determining which category an asset or liability falls into within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each reporting period.

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories consisted of the following as of: ($ in thousands) September 30, 2016 December 31, 2015 Raw materials (LAVIV and product candidates) $ — $ 338 Work in process (LAVIV) — 144 Total inventory, gross — 482 Less: Reserve for work in process expiration — — Total inventory, net $ — $ 482

Convertible Notes (Tables)

Convertible Notes (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Convertible Debt	Convertible promissory notes outstanding were: ($ in thousands) September 30, 2016 Convertible promissory notes $ 18,088 Debt discount - warrants (9,643 ) Debt discount - compound bifurcated derivatives (1,273 ) Debt discount - beneficial conversion feature (7,172 ) Convertible promissory notes, net $ —
Derivative Liability Fair Value Inputs and Assumptions	Significant inputs and assumptions used in the binomial lattice model for the derivative liability are as follows: ($ in thousands except per share data) September 30, 2016 Calculated aggregate value $ 1,524 Closing price per share of common stock $ 0.72 Contractual remaining term 9 years, 11 months Contractual interest rate 4.0 % Volume-weighted average conversion rate $ 1.13662 Risk-free interest rate (term structure) 0.20% - 1.60% Dividend yield — Credit Rating CC Credit Spread 32.28 % Volatility 99.9 %

Warrants (Tables)

Warrants (Tables)	9 Months Ended
	Sep. 30, 2016
Warrants [Abstract]
Outstanding Warrants to Purchase Common Stock	The following table summarizes outstanding liability-classified warrants to purchase common stock as of: Number of Warrants Liability-classified warrants September 30, 2016 December 31, 2015 Exercise Price Expiration Dates Issued in March 2010 financing — 319,789 $ 6.25 Mar 2016 Issued in June 2011 financing — 6,113 $ 22.50 Jun 2016 Issued in August 2011 financing — 565,759 $ 18.75 Aug 2016 Issued to placement agents in August 2011 financing — 50,123 $ 13.635 Aug 2016 Issued in Series B and D Preferred Stock offerings 1,389,194 1,970,594 $ 6.25 Jul 2016 - Dec 2016 Issued in Series E Preferred Stock offering (1) 132,014 60,000 $ 1.13625 Dec 2017 Issued with June 2012 Convertible Notes 1,125,578 1,125,578 $ 2.50 Jun 2018 Issued in Series E Preferred Stock offering 1,568,823 1,568,823 $ 7.50 Dec 2018 Issued with September 2016 Convertible Notes 18,087,500 — $ 1.50 Sep 2021 Total 22,303,109 5,666,779 (1) As a result of the issuance of the September 2016 Convertible Notes, the exercise price for warrants issued in connection with the Company’s Series E Preferred Stock offering was decreased from $2.50 per warrant share to $1.13625 and the number of warrant shares was increased by 72,014 , due to anti-dilution provisions contained in the warrants for certain investors who did not agree to modifications the Company offered in October 2012.
Schedule of Warrants Outstanding Roll Forward	The table below is a summary of the Company’s warrant activity during the nine months ended September 30, 2016 : Number of warrants Weighted- average exercise price Outstanding at December 31, 2015 5,666,779 $ 7.14 Issued 18,087,500 1.50 Adjustments (1) 72,014 1.13625 Exercised — — Expired (1,523,184 ) 11.20 Outstanding at September 30, 2016 22,303,109 $ 2.27 (1) See footnote 1 in table above.
Summary of Other Assumptions Used by Entity	The following table summarizes the calculated aggregate fair values, along with the inputs and assumptions utilized in each calculation: ($ in thousands except per share data) September 30, 2016 December 31, 2015 Calculated aggregate value $ 7,400 $ 8,275 Weighted average exercise price per share $ 2.27 $ 7.14 Closing price per share of common stock $ 0.72 $ 4.55 Volatility 85.3 % 85.2 % Weighted average remaining expected life 4 years, 3 months 1 year, 8 months Risk-free interest rate 1.04 % 0.98 % Dividend yield — —

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Company's Financial Assets and Liability Measured at Fair Value on a Recurring Basis	The following fair value hierarchy table presents information about each major category of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of: September 30, 2016 ($ in thousands) Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 21,283 $ — $ — $ 21,283 Total Assets $ 21,283 $ — $ — $ 21,283 Liabilities: Warrant liability $ — $ — $ 7,400 $ 7,400 Derivative liability — — 1,524 1,524 Total Liabilities $ — $ — $ 8,924 $ 8,924 December 31, 2015 ($ in thousands) Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 29,268 $ — $ — $ 29,268 Total Assets $ 29,268 $ — $ — $ 29,268 Liabilities: Warrant liability $ — $ — $ 8,275 $ 8,275 Derivative liability — — — — Total Liabilities $ — $ — $ 8,275 $ 8,275
Reconciliation of Warrant Liability Measured at Fair Value on Recurring Basis	Common Stock Warrants - Warrant Liability The reconciliation of the warrant liability measured at fair value on a recurring basis using unobservable inputs (Level 3) was as follows: Warrant ($ in thousands) Liability Balance at December 31, 2015 $ 8,275 Issuance of warrants (1) 9,643 Expiration of warrants (2) (477 ) Change in fair value of warrant liability (10,041 ) Balance at September 30, 2016 $ 7,400 (1) Represents fair value of warrants on the issuance date. (2) Represents the fair value as of the beginning of the year for warrants expiring during the year and has been recorded to warrant revaluation income or expense in the Condensed Consolidated Statement of Operations for the nine months ended September 30, 2016. Bifurcated Compound Derivative - Derivative Liability The reconciliation of the derivative liability measured at fair value on a recurring basis using unobservable inputs (Level 3) was as follows: Derivative ($ in thousands) Liability Balance at December 31, 2015 $ — Issuance of convertible notes (1) 1,273 Change in fair value of derivative 251 Balance at September 30, 2016 $ 1,524 (1) Represents fair value of embedded derivatives on the issuance date.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions	The fair market value of these stock options at the date of grant was estimated using the Black-Scholes option-pricing model with the following weighted average assumptions for the nine months ended: September 30, 2016 September 30, 2015 Expected term 6 years, 2 months 6 years, 1 month Interest rate 1.37 % 1.56 % Dividend yield — — Volatility (1) 92.5 % 103.2 % (1) For the nine months ended September 30, 2016, the Company estimated expected volatility based on the historical volatility of its own common stock on a stand-alone basis. Prior to January 1, 2016, including the nine months ended September 30, 2015, the Company estimated expected volatility based on the historical volatility of a peer group.
Summary of Stock Option Activity	The following table summarizes stock option activity for the nine months ended September 30, 2016 : ($ in thousands except share and per share data) Number of shares Weighted- average exercise price Weighted- average remaining contractual term Aggregate intrinsic value Outstanding at December 31, 2015 3,134,094 $ 6.23 8 years $ 1,630 Granted 1,316,000 1.79 Exercised — — Forfeited (36,334 ) 4.39 Expired (32,534 ) 8.18 Outstanding at September 30, 2016 (1) 4,381,226 $ 4.90 7 years, 11 months $ — Exercisable at September 30, 2016 2,078,808 $ 7.26 6 years, 10 months $ — (1) Includes both vested stock options as well as unvested stock options for which the requisite service period has not been rendered but that are expected to vest based on achievement of a service condition.

Restructuring Costs (Tables)

Restructuring Costs (Tables)	9 Months Ended
	Sep. 30, 2016
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	Restructuring-related charges for the three months ended September 30, 2016 totaled less than $0.1 million and were related solely to employee severance and benefit-related charges. Restructuring-related charges for the nine months ended September 30, 2016 were comprised of approximately $0.3 million of employee severance and benefit-related charges and less than $0.1 million of asset impairments. The restructuring and asset impairment activity for the nine months ended September 30, 2016 was as follows: ($ in thousands) Employee Severance and Benefits Asset Impairments Total Accrued restructuring balance as of December 31, 2015 $ — $ — $ — Additional accruals 301 34 335 Cash payments (282 ) — (282 ) Non-cash settlements — (34 ) (34 ) Accrued restructuring balance as of September 30, 2016 $ 19 $ — $ 19

Loss Per Share (Tables)

Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	Details in the computation of basic and diluted loss per share are as follows: Three months ended September 30, Nine months ended September 30, ($ in thousands, except share and per share data) 2016 2015 2016 2015 Loss per share - basic: Numerator for basic loss per share $ (2,299 ) $ (1,521 ) $ (11,798 ) $ (16,802 ) Denominator for basic loss per share 43,898,785 43,021,121 43,898,785 41,598,632 Basic loss per common share $ (0.05 ) $ (0.04 ) $ (0.27 ) $ (0.40 ) Loss per share - diluted: Numerator for diluted loss per share $ (2,299 ) $ (1,521 ) $ (11,798 ) $ (16,802 ) Adjust: Warrant revaluation income (expense) for dilutive warrants — 1,529 1,958 1,529 Net loss attributable to common share $ (2,299 ) $ (3,050 ) $ (13,756 ) $ (18,331 ) Denominator for basic loss per share 43,898,785 43,021,121 43,898,785 41,598,632 Plus: Incremental shares underlying dilutive warrants outstanding — 691,797 24,023 230,599 Denominator for diluted loss per share 43,898,785 43,712,918 43,922,808 41,829,231 Diluted net loss per common share $ (0.05 ) $ (0.07 ) $ (0.31 ) $ (0.44 )
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following potentially dilutive securities have been excluded from the computations of diluted weighted-average shares outstanding, as their effect would be anti-dilutive: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 “In the money” stock options 441,000 2,733,864 510,667 1,923,926 “Out of the money” stock options 3,940,226 457,480 3,684,407 1,113,960 “In the money” warrants — — — 801,132 “Out of the money” warrants 22,303,109 4,741,725 10,601,799 4,801,476 Shares underlying convertible notes 15,913,612 — 15,913,612 — Shares underlying accrued interest on convertible notes 40,657 — 40,657 — Other securities excluded from the calculation of diluted loss per share: Stock options with performance condition — — — 66,667

Business and Organization (Deta

Business and Organization (Details) - USD ($) $ / shares in Units, $ in Thousands	Oct. 05, 2016	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Subsequent Event [Line Items]
Cash and cash equivalents		$ 21,283	$ 29,268	$ 36,931	$ 37,495
Working capital		$ 19,200
Subsequent Event
Subsequent Event [Line Items]
NASDAQ Listing Rule, minimum closing bid price (usd per share)	$ 1
NASDAQ Listing Rule, number of consecutive business days at minimum bid price to regain compliance	10 days

Summary of Significant Accoun28

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	Jan. 01, 2012	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015	Sep. 03, 2009
New Accounting Pronouncement, Early Adoption [Line Items]
Intangible assets		$ 0		$ 0		$ 4,136	$ 6,300
Useful life	12 years
Intangible asset impairment		0	$ 0	3,905	$ 0
Income tax expense (benefit)		$ 0	$ 0	$ 0	$ 0
Accumulated deficit
New Accounting Pronouncement, Early Adoption [Line Items]
Cumulative effect from adoption of new accounting standard						(100)
Additional paid-in capital
New Accounting Pronouncement, Early Adoption [Line Items]
Cumulative effect from adoption of new accounting standard						100
Accounting Standards Update 2016-09 | Accumulated deficit | New Accounting Pronouncement, Early Adoption, Effect
New Accounting Pronouncement, Early Adoption [Line Items]
Cumulative effect from adoption of new accounting standard						(100)
Accounting Standards Update 2016-09 | Additional paid-in capital | New Accounting Pronouncement, Early Adoption, Effect
New Accounting Pronouncement, Early Adoption [Line Items]
Cumulative effect from adoption of new accounting standard						$ 100

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials (LAVIV and product candidates)	$ 0	$ 338
Work in process (LAVIV)	0	144
Total inventory, gross	0	482
Less: Reserve for work in process expiration	0	0
Total inventory, net	$ 0	$ 482

Inventory - Narrative (Details)

Inventory - Narrative (Details) $ in Millions	9 Months Ended
	Sep. 30, 2016USD ($)
Cost of Sales
Inventory [Line Items]
Inventory write-down	$ 0.4

Convertible Notes - Narrative (

Convertible Notes - Narrative (Details) - USD ($)	1 Months Ended	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Debt discount	$ 18,088,000	$ 18,088,000	$ 18,088,000	$ 0
Warrants
Debt Instrument [Line Items]
Debt discount	9,643,000	9,643,000	9,643,000
Bifurcated Derivatives
Debt Instrument [Line Items]
Debt discount	1,273,000	1,273,000	1,273,000
Beneficial Conversion Feature
Debt Instrument [Line Items]
Debt discount	$ 7,172,000	$ 7,172,000	$ 7,172,000
Warrants
Debt Instrument [Line Items]
Warrants issued to purchase common stock (shares)	18,087,500	18,087,500	18,087,500
Convertible Debt
Debt Instrument [Line Items]
Convertible debt principal	$ 18,087,500	$ 18,087,500	$ 18,087,500
Interest rate	4.00%	4.00%	4.00%
Period after product candidate FCX-007 is approved to reach maturity date	180 days
Required written notice period prior to exercise of put right	180 days
Prepayment as a percent of outstanding principal	101.00%	101.00%	101.00%
Debt discount	$ 18,100,000	$ 18,100,000	$ 18,100,000
Amortization expense		$ 0	$ 0
Convertible Debt | Option One
Debt Instrument [Line Items]
Conversion price (usd per share)	$ 1.13625	$ 1.13625	$ 1.13625
Convertible Debt | Option Two
Debt Instrument [Line Items]
Additional conversion price (usd per share)	0.12625	0.12625	0.12625
Convertible Debt | Option Two | Minimum
Debt Instrument [Line Items]
Conversion price (usd per share)	1.13625	1.13625	1.13625
Convertible Debt | Option Two | Maximum
Debt Instrument [Line Items]
Conversion price (usd per share)	$ 1.22625	$ 1.22625	$ 1.22625

Convertible Notes - Convertible

Convertible Notes - Convertible Promissory Notes Outstanding (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Debt discount	$ (18,088)	$ 0
Warrants
Debt Instrument [Line Items]
Debt discount	(9,643)
Bifurcated Derivatives
Debt Instrument [Line Items]
Debt discount	(1,273)
Beneficial Conversion Feature
Debt Instrument [Line Items]
Debt discount	(7,172)
Convertible Debt
Debt Instrument [Line Items]
Convertible promissory notes	18,088
Debt discount	(18,100)
Convertible promissory notes, net	$ 0

Convertible Notes - Fair Value

Convertible Notes - Fair Value Inputs and Assumptions (Details) - Bifurcated Derivatives - Binomial Lattice Model $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)$ / shares
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Calculated aggregate value | $	$ 1,524
Closing price per share of common stock (usd per share)	$ 0.72
Contractual remaining term	9 years 11 months
Contractual interest rate	4.00%
Volume-weighted average conversion rate	$ 1.13662
Dividend yield	0.00%
Credit Spread	32.28%
Volatility	99.90%
Minimum
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Risk-free interest rate (term structure)	0.20%
Maximum
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Risk-free interest rate (term structure)	1.60%

Warrants - Narrative (Details)

Warrants - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrant exercise price (in dollars per share)	$ 2.27	$ 2.27		$ 2.27		$ 7.14
Warrant | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non-cash income		$ 3	$ 5.3	$ 10.5	$ 4.2
Issued with September 2016 Convertible Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants issued to purchase common stock (shares)	18,087,500	18,087,500		18,087,500
Warrant exercise price (in dollars per share)	$ 1.50	$ 1.50		$ 1.50
Period of time after issuance for warrants to become exercisable	6 months
Warrant exercise period	5 years

Warrants - Liability-Classified

Warrants - Liability-Classified Warrants Outstanding (Details) - $ / shares	1 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Warrants
Warrants issued to purchase common stock (shares)	22,303,109	22,303,109		5,666,779
Warrant exercise price (in dollars per share)	$ 2.27	$ 2.27		$ 7.14
Increase (decrease) in warrants (shares)	72,014	72,014
Issued in March 2010 financing
Warrants
Warrants issued to purchase common stock (shares)	0	0		319,789
Warrant exercise price (in dollars per share)	$ 6.25	$ 6.25
Issued in June 2011 financing
Warrants
Warrants issued to purchase common stock (shares)	0	0		6,113
Warrant exercise price (in dollars per share)	$ 22.50	$ 22.50
Issued in August 2011 financing
Warrants
Warrants issued to purchase common stock (shares)	0	0		565,759
Warrant exercise price (in dollars per share)	$ 18.75	$ 18.75
Issued to placement agents in August 2011 financing
Warrants
Warrants issued to purchase common stock (shares)	0	0		50,123
Warrant exercise price (in dollars per share)	$ 13.635	$ 13.635
Issued in Series B and D Preferred Stock offerings
Warrants
Warrants issued to purchase common stock (shares)	1,389,194	1,389,194		1,970,594
Warrant exercise price (in dollars per share)	$ 6.25	$ 6.25
Issued in Series E Preferred Stock offering
Warrants
Warrants issued to purchase common stock (shares)	132,014	132,014		60,000
Warrant exercise price (in dollars per share)	$ 1.13625	$ 1.13625	$ 2.50
Issued with June 2012 Convertible Notes
Warrants
Warrants issued to purchase common stock (shares)	1,125,578	1,125,578		1,125,578
Warrant exercise price (in dollars per share)	$ 2.50	$ 2.50
Issued in Series E Preferred Stock offering
Warrants
Warrants issued to purchase common stock (shares)	1,568,823	1,568,823		1,568,823
Warrant exercise price (in dollars per share)	$ 7.50	$ 7.50
Issued with September 2016 Convertible Notes
Warrants
Warrants issued to purchase common stock (shares)	18,087,500	18,087,500		0
Warrant exercise price (in dollars per share)	$ 1.50	$ 1.50

Warrants - Warrant Activity (De

Warrants - Warrant Activity (Details) - $ / shares	1 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016
Increase (Decrease) in Warrants Outstanding [Roll Forward]
Beginning balance, number of warrants outstanding (shares)		5,666,779
Number of warrants granted during the period (shares)		18,087,500
Number of warrants adjusted during the period (shares)	72,014	72,014
Number of warrants exercised during the period (shares)		0
Number of warrants expired during the period (shares)		(1,523,184)
Ending balance, number of warrants outstanding (shares)	22,303,109	22,303,109
Beginning balance, weighted-average exercise price (usd per share)		$ 7.14
Weighted-average exercise price, warrants granted during the period (usd per share)		1.50
Weighted-average exercise price, warrants adjusted during the period (usd per share)		1.13625
Weighted-average exercise price, warrants exercised during the period (usd per share)		0
Weighted-average exercise price, warrants expired during the period (usd per share)		11.20
Ending balance, weighted-average exercise price (usd per share)	$ 2.27	$ 2.27

Warrants - Aggregate Fair Value

Warrants - Aggregate Fair Values, Inputs and Assumptions (Details) - Warrant Liability - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Fair value assumptions
Calculated aggregate value	$ 7,400	$ 8,275
Weighted average exercise price per share (usd per share)	$ 2.27	$ 7.14
Closing price per share of common stock (usd per share)	$ 0.72	$ 4.55
Volatility	85.30%	85.20%
Weighted average remaining expected life	4 years 3 months	1 year 8 months
Risk-free interest rate (term structure)	1.04%	0.98%
Dividend yield	0.00%	0.00%

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value Hierarchy (Details) - Recurring - Measured at fair value - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Assets
Cash and cash equivalents	$ 21,283	$ 29,268
Total Assets	21,283	29,268
Liabilities
Warrant liability	7,400	8,275
Derivative liability	1,524	0
Total Liabilities	8,924	8,275
Level 1
Assets
Cash and cash equivalents	21,283	29,268
Total Assets	21,283	29,268
Liabilities
Warrant liability	0	0
Derivative liability	0	0
Total Liabilities	0	0
Level 2
Assets
Cash and cash equivalents	0	0
Total Assets	0	0
Liabilities
Warrant liability	0	0
Derivative liability	0	0
Total Liabilities	0	0
Level 3
Assets
Cash and cash equivalents	0	0
Total Assets	0	0
Liabilities
Warrant liability	7,400	8,275
Derivative liability	1,524	0
Total Liabilities	$ 8,924	$ 8,275

Fair Value Measurements - Warra

Fair Value Measurements - Warrant Liability Reconciliation (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Warrant
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
December 31, 2015	$ 8,275
Issuance of warrants	9,643
Expiration of warrants	(477)
Change in fair value	(10,041)
September 30, 2016	7,400
Derivative
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
December 31, 2015	0
Issuance of convertible notes	1,273
Change in fair value	251
September 30, 2016	$ 1,524

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details)	Sep. 30, 2016USD ($)
Fair Value Disclosures [Abstract]
Convertible promissory notes, fair value	$ 14,800,000
Convertible promissory notes, carrying value net	$ 0

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	Sep. 03, 2009	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Equity-based compensation
Options issued (in shares)		4,381,226		4,381,226		3,134,094
Weighted average fair market value of options granted (in dollars per share)				$ 1.37	$ 3.59
Stock-based compensation expense		$ 0.5	$ 0.5	$ 1.6	$ 1.6
Fair value of options vested				2.1
Service Based Stock Options
Equity-based compensation
Unrecognized compensation cost		$ 4.4		$ 4.4
Recognition period (years)				2 years 7 months
The Plan
Equity-based compensation
Number of shares allowed for issuance (in shares)	7,600,000
The Plan | Options
Equity-based compensation
Terms of options, not to exceed (in years)	10 years
Vesting percentage per year	25.00%
Vesting period (in years)	4 years
Options available for grant (in shares)		3,179,527		3,179,527
Equity incentive outside of the Plan | Options
Equity-based compensation
Options issued (in shares)		25,000		25,000
Director | The Plan | Options
Equity-based compensation
Vesting period (in years)	1 year

Stock-Based Compensation - Weig

Stock-Based Compensation - Weighted Average Assumptions (Details)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected life	6 years 2 months	6 years 1 month
Interest rate	1.37%	1.56%
Dividend yield	0.00%	0.00%
Volatility	92.50%	103.20%

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Number of shares
Outstanding at beginning of period (in shares)	3,134,094
Granted (in shares)	1,316,000
Exercised (shares)	0
Forfeited (in shares)	(36,334)
Expired (in shares)	(32,534)
Outstanding at end of period (in shares)	4,381,226	3,134,094
Exercisable at end of period (in shares)	2,078,808
Weighted-average exercise price
Outstanding at beginning of period (in dollars per share)	$ 6.23
Granted (in dollars per share)	1.79
Exercised (in dollars per share)	0
Forfeited (in dollars per share)	4.39
Expired (in dollars per share)	8.18
Outstanding at end of period (in dollars per share)	4.90	$ 6.23
Exercisable at end of period (in dollars per share)	$ 7.26
Additional disclosures
Weighted-average remaining contractual term (in years), outstanding	7 years 11 months	8 years
Weighted-average remaining contractual term (in years), exercisable	6 years 10 months
Aggregate intrinsic value, outstanding	$ 0	$ 1,630
Aggregate intrinsic value, exercisable	$ 0

Related Party Transactions (Det

Related Party Transactions (Details)	1 Months Ended	3 Months Ended		9 Months Ended
	Jan. 31, 2016USD ($)	Sep. 30, 2016USD ($)agreementshares	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)directoragreementshares	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Number of exclusive channel collaboration agreements (agreement) | agreement		2		2
Warrants
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Warrants issued to purchase common stock (shares) | shares		18,087,500		18,087,500
Convertible Debt
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Convertible debt principal		$ 18,087,500		$ 18,087,500
Technology Access Fee
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Fees to Intrexon	$ 10,000,000
Affiliated Entity
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Expenses for work performed		500,000	$ 1,800,000	2,800,000	$ 4,700,000
Outstanding payables to Intrexon		$ 300,000		$ 300,000		$ 10,700,000
Shareholder ownership percentage of related party in affiliate, more than		50.00%		50.00%
Shareholder ownership percentage		38.00%		38.00%
Affiliated Entity | Warrants
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Warrants issued to purchase common stock (shares) | shares		6,762,500		6,762,500
Affiliated Entity | Convertible Debt
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Convertible debt principal		$ 6,762,500		$ 6,762,500
Affiliated Entity | Direct Expenses for Work Performed
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Expenses for work performed		200,000	700,000	1,000,000	2,400,000
Affiliated Entity | Pass-through Costs
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Expenses for work performed		$ 300,000	$ 1,100,000	1,800,000	2,300,000
Affiliated Entity | 2015 ECC
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Expenses for work performed				$ 0	$ 0
Director
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Number of directors (director) | director				2

Restructuring Costs (Details)

Restructuring Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ 43	$ 0	$ 335	$ 0
Percent of employee base impacted			50.00%
Employee Severance and Benefits
Restructuring Cost and Reserve [Line Items]
Restructuring costs			$ 301
Asset Impairments
Restructuring Cost and Reserve [Line Items]
Restructuring costs			$ 34

Restructuring Costs - Changes i

Restructuring Costs - Changes in Restructuring Balance (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Restructuring Reserve [Roll Forward]
Accrued restructuring, beginning balance			$ 0
Additional accruals	$ 43	$ 0	335	$ 0
Cash payments			(282)
Non-cash settlements			(34)
Accrued restructuring, ending balance	19		19
Employee Severance and Benefits
Restructuring Reserve [Roll Forward]
Accrued restructuring, beginning balance			0
Additional accruals			301
Cash payments			(282)
Non-cash settlements			0
Accrued restructuring, ending balance	19		19
Asset Impairments
Restructuring Reserve [Roll Forward]
Accrued restructuring, beginning balance			0
Additional accruals			34
Cash payments			0
Non-cash settlements			(34)
Accrued restructuring, ending balance	$ 0		$ 0

Loss Per Share - Earnings Per S

Loss Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Loss per share - basic:
Numerator for basic loss per share	$ (2,299)	$ (1,521)	$ (11,798)	$ (16,802)
Denominator for basic loss per share (shares)	43,898,785	43,021,121	43,898,785	41,598,632
Basic loss per common share (usd per share)	$ (0.05)	$ (0.04)	$ (0.27)	$ (0.40)
Loss per share - diluted:
Numerator for diluted loss per share	$ (2,299)	$ (1,521)	$ (11,798)	$ (16,802)
Adjust: Warrant revaluation income (expense) for dilutive warrants	0	1,529	1,958	1,529
Net loss attributable to common share	$ (2,299)	$ (3,050)	$ (13,756)	$ (18,331)
Denominator for basic loss per share (shares)	43,898,785	43,021,121	43,898,785	41,598,632
Plus: Incremental shares underlying dilutive warrants outstanding (shares)	0	691,797	24,023	230,599
Denominator for diluted loss per share (shares)	43,898,785	43,712,918	43,922,808	41,829,231
Diluted net loss per common share (usd per share)	$ (0.05)	$ (0.07)	$ (0.31)	$ (0.44)

Loss Per Share - Antidilutive S

Loss Per Share - Antidilutive Securities (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Performance based options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from EPS (shares)	0	0	0	66,667
“In the money” stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from EPS (shares)	441,000	2,733,864	510,667	1,923,926
“Out of the money” stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from EPS (shares)	3,940,226	457,480	3,684,407	1,113,960
“In the money” warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from EPS (shares)	0	0	0	801,132
“Out of the money” warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from EPS (shares)	22,303,109	4,741,725	10,601,799	4,801,476
Shares underlying convertible notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from EPS (shares)	15,913,612	0	15,913,612	0
Shares underlying accrued interest on convertible notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from EPS (shares)	40,657	0	40,657	0

Equity (Details)

Equity (Details) - USD ($)	1 Months Ended	9 Months Ended
	Jan. 31, 2016	Sep. 30, 2016	Jul. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Class of Stock [Line Items]
Common stock, shares authorized (shares)		150,000,000	150,000,000	100,000,000	100,000,000
Cantor Fitzgerald & Co.
Class of Stock [Line Items]
Fixed commission (percent)	3.00%
Cantor Fitzgerald & Co. | Common Stock
Class of Stock [Line Items]
Aggregate offering price	$ 50,000,000
Stock issued during the period (shares)		0