Vericel (VCEL) 10-Q12 Nov 132013 Q3 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2013	Oct. 31, 2013
Document and Entity Information	'	'
Entity Registrant Name	'AASTROM BIOSCIENCES INC	'
Entity Central Index Key	'0000887359	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	4,380,302
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Current assets:	'	'
Cash and cash equivalents	$10,816	$13,638
Other current assets	545	352
Total current assets	11,361	13,990
Property and equipment, net	841	1,188
Total assets	12,202	15,178
Current liabilities:	'	'
Accounts payable and accrued expenses	2,918	3,247
Accrued employee benefits	299	383
Current portion of long-term debt	10	34
Warrant liabilities	4,025	1,995
Total current liabilities	7,252	5,659
Long-term debt	'	6
Total liabilities	7,252	5,665
Total convertible preferred stock	'	41,613
Shareholders' equity (deficit):	'	'
Common stock, no par value; shares authorized - 150,000; shares issued and outstanding - 43,784 and 86,443, respectively	251,358	243,215
Deficit accumulated during the development stage	-284,797	-275,315
Total shareholders' equity (deficit)	4,950	-32,100
Total liabilities, convertible preferred stock and shareholders' equity (deficit)	12,202	15,178
Series B-1 non-voting convertible preferred stock	'	'
Current liabilities:	'	'
Total convertible preferred stock	'	3,923
Series B-2 voting convertible preferred stock	'	'
Current liabilities:	'	'
Total convertible preferred stock	'	37,690
Series B-2 voting convertible preferred stock	'	'
Shareholders' equity (deficit):	'	'
Total convertible preferred stock	$38,389	'

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Par value of common stock (in dollars per share)	'	'
Common Stock, shares authorized	150,000	150,000
Common Stock, shares issued	86,443	43,784
Common Stock, shares outstanding	86,443	43,784
Series B-1 non-voting convertible preferred stock	'	'
Par value of convertible preferred stock (in dollars per share)	'	'
Convertible preferred stock, shares authorized	39	39
Convertible preferred stock, shares reserved	39	39
Convertible preferred stock, shares issued	0	0
Convertible preferred stock, shares outstanding	0	0
Series B-2 voting convertible preferred stock	'	'
Par value of convertible preferred stock (in dollars per share)	'	'
Convertible preferred stock, shares reserved	39	39
Convertible preferred stock, shares authorized	39	39
Convertible preferred stock, shares issued	12	12
Convertible preferred stock, shares outstanding	0	0

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended		294 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013
Revenues:	'	'	'	'	'
Product sales and rentals	'	'	$11	$2	$1,909
Research and development agreements	'	'	'	'	2,105
Grants	'	'	'	'	9,901
Total revenues	'	'	11	2	13,915
Costs and expenses:	'	'	'	'	'
Cost of product sales and rentals	'	'	3	2	3,050
Research and development	2,575	6,147	11,789	20,012	228,519
Selling, general and administrative	1,066	2,138	4,259	6,131	96,857
Total costs and expenses	3,641	8,285	16,051	26,145	328,426
Loss from operations	-3,641	-8,285	-16,040	-26,143	-314,511
Other income (expense):	'	'	'	'	'
Decrease in fair value of warrants	1,367	2,241	3,331	3,289	19,868
Other income	'	'	'	'	1,249
Interest income	4	14	12	40	10,834
Interest expense	-3	-4	-9	-10	-500
Total other income	1,368	2,251	3,334	3,319	31,451
Net loss	($2,273)	($6,034)	($12,706)	($22,824)	($283,060)
Net loss per share attributable to common shareholders (Basic and Diluted) (in dollars per share)	($0.06)	($0.17)	($0.33)	($0.63)	'
Weighted average number of common shares outstanding (Basic and Diluted)	60,847	43,336	50,517	40,331	'

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended		294 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013
Operating activities:	'	'	'
Net loss	($12,706,000)	($22,824,000)	($283,060,000)
Adjustments to reconcile net loss to net cash used for operating activities:	'	'	'
Depreciation and amortization	387,000	487,000	8,534,000
Loss on property held for resale	'	'	110,000
Amortization of discounts and premiums on investments	'	'	-1,704,000
Stock compensation expense	528,000	3,166,000	18,023,000
Change in fair value of warrants	-3,331,000	-3,289,000	-19,868,000
Inventory write downs	'	'	2,240,000
Stock issued pursuant to license agreement	'	'	3,300,000
Provision for losses on accounts receivable	'	'	204,000
Changes in operating assets and liabilities:	'	'	'
Inventories	'	'	-2,335,000
Other current assets	-65,000	272,000	-646,000
Accounts payable and accrued expenses	-329,000	281,000	2,686,000
Accrued employee benefits	-84,000	-300,000	299,000
Net cash used for operating activities	-15,600,000	-22,207,000	-272,217,000
Investing activities:	'	'	'
Organizational costs	'	'	-73,000
Purchase of short-term investments	'	'	-217,041,000
Maturities of short-term investments	'	'	218,745,000
Property and equipment purchases	-40,000	-169,000	-7,530,000
Proceeds from sale of property held for resale	'	'	400,000
Net cash used for investing activities	-40,000	-169,000	-5,499,000
Financing activities:	'	'	'
Net proceeds from issuance of preferred stock	'	37,620,000	89,267,000
Net proceeds from issuance of common stock and warrants	12,848,000	346,000	197,902,000
Payments received for stock purchase rights and other, net	'	'	3,500,000
Proceeds from long-term debt	'	'	751,000
Principal payments under long-term debt obligations	-30,000	-31,000	-2,870,000
Other, net	'	'	-18,000
Net cash provided by financing activities	12,818,000	37,935,000	288,532,000
Net increase (decrease) in cash and cash equivalents	-2,822,000	15,559,000	10,816,000
Cash and cash equivalents at beginning of period	13,638,000	5,530,000	'
Cash and cash equivalents at end of period	10,816,000	21,089,000	10,816,000
Supplemental cash flow information (non-cash):	'	'	'
Accretion of convertible preferred stock	1,263,000	2,738,000	6,224,000
Warrants exchanged for common stock	'	$10,382,000	$10,382,000

Organization_and_Summary_of_Si

Organization and Summary of Significant Accounting Policies	9 Months Ended
Organization and Summary of Significant Accounting Policies	Sep. 30, 2013
Organization and Summary of Significant Accounting Policies	'
Organization and Summary of Significant Accounting Policies	'
	1. Organization and Summary of Significant Accounting Policies

	Aastrom Biosciences, Inc. was incorporated in March 1989 (Inception), began employee-based operations in 1991, and is in the development stage. The Company operates its business in one reportable segment — research and product development involving the development of patient-specific, expanded multicellular therapies for use in the treatment of severe, chronic ischemic cardiovascular diseases.

	Successful future operations are subject to several technical hurdles and risk factors, including satisfactory product development, timely initiation and completion of clinical trials, regulatory approval and market acceptance of the Company’s products and the Company’s continued ability to obtain future funding.

	The Company is subject to certain risks related to the operation of its business and development of its products and product candidates. As of September 30, 2013, the Company had $10,816,000 of cash and cash equivalents. This is not sufficient to sustain operations for one year. In light of its financial position, the Company is evaluating strategic financial opportunities in the short-term in order to maintain adequate liquidity through December 31, 2013 and beyond. The Company could sell common shares through an At the Market Sales Agreement (ATM) in order to raise additional capital, though there are certain factors, such as volume of trading in the stock, the stock price and the ability to terminate the agreement with notice, which could limit the amount the Company could raise in a short period of time. On a longer-term basis, the Company will need to raise additional funds in order to complete product development programs and complete clinical trials needed to market and commercialize its products. The Company cannot be certain that such funding will be available on favorable terms, if at all. Some of the factors that will impact the Company’s ability to raise additional capital and our overall success include: the rate and degree of progress for product development, the rate of regulatory approval to proceed with clinical trial programs, the level of success achieved in clinical trials, the requirements for marketing authorization from regulatory bodies in the United States and other countries, the liquidity and market volatility of the Company’s equity securities, regulatory and manufacturing requirements and uncertainties, technological developments by competitors, and other factors. If the Company cannot raise such funds, the Company will not be able to develop or enhance products, take advantage of future opportunities, or respond to competitive pressures or unanticipated requirements, which would have a material adverse impact on the business, financial condition and results of operations. As a result of the need to raise additional capital and a net capital deficiency, there is uncertainty regarding the Company’s ability to maintain liquidity sufficient to operate the business effectively over at least the next twelve months, which raises substantial doubt as to the ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Basis_of_Presentation

Basis of Presentation	9 Months Ended
Basis of Presentation	Sep. 30, 2013
Basis of Presentation	'
Basis of Presentation	'
	2. Basis of Presentation

	The condensed consolidated financial statements included herein have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP) have been omitted pursuant to such rules and regulations. The financial statements reflect, in the opinion of management, all adjustments (consisting only of normal, recurring adjustments) necessary to state fairly the financial position and results of operations as of and for the periods indicated. The results of operations for the nine months ended September 30, 2013, are not necessarily indicative of the results to be expected for the full year or for any other period. The December 31, 2012 condensed consolidated balance sheet data was derived from audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP.

	These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the period ended December 31, 2012, as filed with the SEC.

	The consolidated financial statements include the accounts of Aastrom and its wholly-owned subsidiaries, Aastrom Biosciences GmbH, located in Berlin, Germany, Aastrom Biosciences, SL, located in Barcelona, Spain and Marrow Donation, LLC, located in San Diego, California (collectively, the Company). All inter-company transactions and accounts have been eliminated in consolidation. The subsidiaries are not a significant component of the consolidated financial statements as each has limited operations historically and Aastrom Biosciences GmbH and Aastrom Biosciences, SL have ceased operations.

StockBased_Compensation

Stock-Based Compensation	9 Months Ended
Stock-Based Compensation	Sep. 30, 2013
Stock-Based Compensation	'
Stock-Based Compensation	'
	3. Stock-Based Compensation

	The Company issues nonqualified and incentive stock options as well as other equity awards pursuant to its 2009 Omnibus Incentive Plan, as amended (Option Plan). Such awards pursuant to the Option Plan may be granted by the Company’s Board of Directors to certain of the Company’s employees, directors and consultants.

	During the nine months ended September 30, 2013, the Company granted 1,515,000 service-based options to purchase common stock. These options were granted with exercise prices equal to the fair market value of the Company’s stock at the grant date, generally vest over four years (other than 285,000 non-employee options which vest over one year) and expire after ten years. The weighted average grant-date fair value of service-based options granted under the Company’s Option Plan during the nine months ended September 30, 2012 and 2013 was $1.25 and $0.70, respectively.

	The net compensation expense recorded for the service-based stock options related to employees and directors was $145,000 and $528,000 for the quarter and nine months ended September 30, 2013, respectively, compared to $1,127,000 and $3,166,000 for the corresponding periods ended September 30, 2012. The September 30, 2013 compensation cost includes forfeiture adjustments, primarily due to restructuring activities announced on March 27, 2013, which reduced expense by $1,125,000.

	The fair value of each service-based stock option grant for the reported periods is estimated on the date of the grant using the Black-Scholes option-pricing model using the weighted average assumptions noted in the following table.

		Nine Months Ended
		September 30,
	Service-Based Stock Options	2012		2013
	Expected dividend rate	0%		0%
	Expected stock price volatility	72.9 – 74.9%		74.0 – 87.9%
	Risk-free interest rate	0.9 - 1.5%		0.1 - 2.1%
	Expected life (years)	6.0 - 6.3		5.0 - 6.3

	The following table summarizes the activity for service-based stock options for the indicated periods:

	Service-Based Stock Options	Options		Weighted		Weighted Average	Aggregate
				Average		Remaining	Intrinsic Value
				Exercise Price		Contractual Term
						(Years)
	Outstanding at December 31, 2012	9,987,468		$	2.38	7.5	$	—
	Granted	1,515,000		$	1.07
	Exercised	—		$	—		$	—
	Expired	(2,787,259	)	$	2.64
	Forfeited	(2,275,186	)	$	2.27
	Outstanding at September 30, 2013	6,440,023		$	1.99	7.6	$	—
	Exercisable at September 30, 2013	2,982,001		$	2.35	6.1	$	—

	As of September 30, 2013 there was $2,155,000 of total unrecognized compensation cost related to non-vested service-based stock options granted under the Option Plan. That cost is expected to be recognized over a weighted-average period of 2.7 years.

	The total fair value of options vested during the nine months ended September 30, 2012 and 2013 was $2,136,000 and $1,861,000, respectively.

Stock_Purchase_Warrants

Stock Purchase Warrants	9 Months Ended
Stock Purchase Warrants	Sep. 30, 2013
Stock Purchase Warrants	'
Stock Purchase Warrants	'
	4. Stock Purchase Warrants

	The Company has historically issued warrants to purchase shares of the Company’s common stock in connection with certain of its common stock offerings. The following warrants were outstanding at September 30, 2013, and include provisions that could require cash settlement of the warrants or have anti-dilution price protection provisions requiring each to be recorded as liabilities of the Company at the estimated fair value at the date of issuance, with changes in estimated fair value recorded as non-cash income or expense in the Company’s statement of operations in each subsequent period:

		January 21, 2010			December 15, 2010			August 16, 2013
		Class A Warrants			Warrants			Warrants
	Exercise price	$	1.27		$	0.28		$	0.375
	Expiration date	July 21, 2015			December 15, 2015			August 16, 2018
	Warrants outstanding	6,034,637			308,100			22,667,000
	Total shares issuable on exercise	4,525,978			308,100			22,667,000


	The 740,131 warrants issued on October 17, 2007 in connection with the Company’s registered direct offering, at an exercise price of $12.72 per share expired unexercised as of April 17, 2013. The exercise price per share for the January 15, 2010 and December 15, 2010 warrants were adjusted for the anti-dilution provisions triggered by the August 16, 2013 public offering and usage of the Company’s ATM. During the nine months ended September 30, 2013, the Company raised net proceeds of $3,337,000 utilizing the ATM.

	On September 24, 2013, the Company entered into Warrant Exercise Agreements with two holders of the Company’s warrants, which were issued on August 16, 2013. These agreements allowed the warrant holders to exercise their warrants for 7,333,000 shares of the Company’s common stock at an exercise price of $0.375 per share, in exchange for 7,333,000 shares of the Company’s common stock and $1,209,945 of cash. Proceeds from this arrangement net of $1,209,945 cash paid and issuance costs were approximately $1,470,000.

	The fair value of the Class A warrants, the December 2010 warrants and the August 2013 warrants are measured using the Monte Carlo valuation model. The methodology is based, in part, upon inputs for which there is little or no observable market data, requiring the Company to develop its own assumptions. The assumptions used in calculating the estimated fair value of the warrants represent the Company’s best estimates, however; these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and different assumptions are used, the warrant liabilities and the change in estimated fair value of the warrants could be materially different.

	Inherent in the Monte Carlo valuation model are assumptions related to expected stock-price volatility, expected life, risk-free interest rate and dividend yield. The Company estimates the volatility of its common stock based on historical volatility that matches the expected remaining life of the warrants. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining life of the warrants. The expected life of the warrants is assumed to be equivalent to their remaining contractual term. The dividend rate is based on the historical rate, which the Company anticipates to remain at zero.

	The Monte Carlo model is used for the Class A warrants, the December 2010 warrants and the August 2013 warrants to value the potential future exercise price adjustments triggered by the anti-dilution provisions as well as the value of the put feature of the December 2010 warrants. These require Level 3 inputs which are based on the Company’s estimates of the probability and timing of potential future financings, reverse stock split and fundamental transactions. The other assumptions used by the Company are summarized in the following tables:

	January 2010 Class A Warrants	December 31, 2012			September 30, 2013
	Closing stock price	$	1.26		$	0.28
	Expected dividend rate	0		%	0		%
	Expected stock price volatility	74		%	78.8		%
	Risk-free interest rate	0.4		%	0.3		%
	Expected life (years)	2.5			1.75


	December 2010 Warrants	December 31, 2012			September 30, 2013
	Closing stock price	$	1.26		$	0.28
	Expected dividend rate	0		%	0		%
	Expected stock price volatility	70.1		%	73		%
	Risk-free interest rate	0.4		%	0.4		%
	Expected life (years)	2.96			2.21


	August 2013 Warrants	December 31, 2012			September 30, 2013
	Closing stock price	$	—		$	0.28
	Expected dividend rate	—			0		%
	Expected stock price volatility	—			80.1		%
	Risk-free interest rate	—			1.6		%
	Expected life (years)	—			4.88


	The following table summarizes the change in the estimated fair value of the Company’s warrant liabilities (in thousands):

	Warrant Liabilities
	Balance at December 31, 2012	$	1,995
	Warrant issuance	5,874
	Warrant exercise	(513		)
	Decrease in fair value	(3,331		)
	Balance at September 30, 2013	$	4,025

Series_B_Convertible_Preferred

Series B Convertible Preferred Stock	9 Months Ended
Series B Convertible Preferred Stock	Sep. 30, 2013
Series B Convertible Preferred Stock	'
Series B Convertible Preferred Stock	'
	5. Series B Convertible Preferred Stock

	On March 9, 2012, the Company completed the sale of 12,308 shares of Series B-1 Non-Voting Convertible Preferred Stock (Series B-1 preferred stock) at an offering price of $3,250 per share. In addition to the Series B-1 preferred stock, which was issued at the closing, the Company also authorized Series B-2 Voting Convertible preferred Stock (Series B-2 preferred stock). The Series B-1 preferred stock and Series B-2 preferred stock collectively are referred to as the Series B preferred stock. The Series B preferred stock is convertible, at the option of the holder thereof at any time after the five year anniversary of the closing of the offering, into shares of common stock at a conversion price of $3.25 per share of common stock. At any time after the five year anniversary of issuance, the Company may elect to convert any or all outstanding shares of Series B preferred stock into shares of common stock, subject to certain limitations. Dividends on the Series B preferred stock will be cumulative and compound daily, at a rate of 11.5% per annum, payable upon conversion, liquidation, redemption or other similar events, and payable in cash or Series B-1 preferred stock until the five year anniversary of issuance. As of September 30, 2013, there are approximately 2,421,000 accumulated but undeclared Series B-1 dividends. Unless prohibited by Michigan law governing distributions to shareholders, the Series B-1 preferred stock shall be redeemable at the option of holder of the Series B-1 preferred stock commencing at any time after the five year anniversary of issuance, liquidation, winding up, dissolution or other similar events, subject to certain terms and limitations.

	The Series B preferred stock does not, in its entirety, require liability classification and was evaluated for embedded features to determine if those features require bifurcation and separate classification as derivative liabilities. The Series B preferred stock host contract was evaluated for equity or mezzanine classification based upon the nature of the redemption and conversion features. Generally, any feature that could require cash redemption for matters not within the Company’s control, irrespective of probability of the event occurring, requires classification outside of shareholders’ equity. The Series B preferred stock was recorded as mezzanine in the Condensed Consolidated Balance Sheets and was accreted to its redemption value through charges to Deficit accumulated during the development stage using the effective interest method.

	On August 12, 2013, the Company amended the Series B preferred stock agreement to remove the cash redemption provision, modify the liquidation preferences for the Series B-2 preferred stock and to increase the redemption price for the Series B-1 preferred stock. The redemption price, prior to the five year anniversary, is now equal to $7,430 multiplied by the number of Series B-1 preferred shares redeemed minus the Company’s closing stock price multiplied by the number of common shares into which the outstanding Series B-2 preferred stock are convertible. The redemption price, after the five year anniversary, is the amount equal to the greater of the Series B offering price plus accrued dividends or the conversion value in common stock. As a result of the amendment to the agreement, the Series B preferred stock has been reclassified from mezzanine into shareholders’ equity (deficit).

	The total reclassification amount includes a correction of a classification error the Company discovered regarding its previous reporting for the accretion of the Series B-1 preferred stock carrying value. The error resulted in an overstatement of the carrying value of the Series B-1 preferred stock in mezzanine and a corresponding overstatement of deficit accumulated during the development stage by $4,487,000. In accordance with the SEC’s staff Accounting Bulletin Nos. 99 and 108 (SAB 99 and SAB 108), the Company evaluated this error and, based on an analysis of quantitative and qualitative factors determined that the error was immaterial to the prior reporting periods affected, therefore, the Company corrected the error in the current filing.

Shareholders_Equity

Shareholders' Equity	9 Months Ended
Shareholders' Equity	Sep. 30, 2013
Shareholders' Equity	'
Shareholders' Equity	'
	6. Shareholders’ Equity

	On August 16, 2013, the Company completed the sale of 30,000,000 shares of common stock and warrants to purchase up to an aggregate of 30,000,000 shares of common stock (including 1,000,000 shares of common stock and warrants sold to the underwriter pursuant to the exercise of its over-allotment option). Each share of common stock and its associated warrant was sold at a public offering price of $0.30 per share. The Company received approximately $8,169,000 in net proceeds from the sale of the shares of common stock and warrants (including the partial exercise of the over-allotment option), after underwriting discounts, commissions and other offering expenses. The total fair market value of the warrants at the date of issuance was approximately $5,874,000. The sales proceeds were first allocated to the warrants based on the total fair market value and the residual amount of the sales proceeds were allocated to common stock.

Net_Loss_Per_Common_Share

Net Loss Per Common Share	9 Months Ended
	Sep. 30, 2013
Net Loss Per Common Share	'
Net Loss Per Common Share	'
	7. Net Loss Per Common Share

	Basic earnings (loss) per share is calculated using the two-class method, which is an earnings allocation formula that determines earnings (loss) per share for the holders of the Company’s common shares and holders of the Series B preferred stock. The Series B preferred stock shares contain participation rights in undistributed earnings, but do not share in the losses of the Company. The dividends on the Series B preferred stock are treated as a reduction of earnings attributable to common shareholders.

	The following reflects the net loss attributable to common shareholders and share data used in the basic and diluted earnings per share computations using the two class method:

		Quarter Ended September 30,						Nine Months Ended September 30,
	(Amounts in thousands except per share amounts)	2012			2013			2012			2013
	Numerator:
	Net loss	$	(6,034	)	$	(2,273	)	$	(22,824	)	$	(12,706	)
	Less: earnings attributable to convertible preferred stock	1,218			1,368			2,738			3,945
	Numerator of basic and diluted EPS	$	(7,252	)	$	(3,641	)	$	(25,562	)	$	(16,651	)

	Denominator:
	Denominator for basic and diluted EPS: weighted-average common shares outstanding	43,336			60,847			40,331			50,517
	Net loss per share attributable to common shareholders (basic and diluted)	$	(0.17	)	$	(0.06	)	$	(0.63	)	$	(0.33	)

	Common equivalent shares are not included in the diluted per share calculation where the effect of their inclusion would be anti-dilutive. The aggregate number of common equivalent shares (related to options, warrants and preferred stock) that have been excluded from the computations of diluted net loss per common share at September 30, 2012 and 2013 were 29,260,000 and 48,671,000, respectively.

	Net loss per share attributable to common shareholders (Basic and Diluted) during the quarter and six months ended June 30, 2013 should have been $(0.14) and $(0.29), respectively, as compared to the as reported amounts of $(0.11) and $(0.26). During the quarter ended June 30, 2013, the Company did not adjust earnings attributable to common shareholders for the undeclared dividends that accumulated on the Series B preferred stock. The Company evaluated this error and, based on an analysis of quantitative and qualitative factors determined that the error was immaterial to the prior reporting periods.

Restructuring

Restructuring	9 Months Ended
Restructuring	Sep. 30, 2013
Restructuring	'
Restructuring	'
	8. Restructuring

	On March 27, 2013, the Company announced a strategic change in its research and development programs to focus on the clinical development of ixmyelocel-T for the treatment of advanced heart failure due to ischemic dilated cardiomyopathy (DCM). The Company, which recently initiated the Phase 2b ixCELL-DCM clinical trial, previously received a U.S. orphan drug designation for the use of ixmyelocel-T in the treatment of DCM. As a result of the strategic change, the Company stopped enrollment of the Phase 3 REVIVE clinical trial in patients with critical limb ischemia (CLI). In addition, the Company executed a corporate restructuring that reduced staff and operating expenses. Employees directly affected by the restructuring plan were provided with severance payments and outplacement assistance.

	As a result of the ceasing of enrollment in the Phase 3 REVIVE clinical trial, the Company recorded a one-time restructuring charge of $408,000 in the first quarter of 2013. The restructuring accrual decreased to $83,000 as of September 30, 2013 as a result of cash payments made for severance and other personnel-related expenses.

Subsequent_Event

Subsequent Event	9 Months Ended
Subsequent Event	Sep. 30, 2013
Subsequent Event	'
Subsequent Event	'
	9. Subsequent Event

	On October 8, 2013, the Company’s board of directors, authorized a one-for-twenty reverse stock split effective as of October 16, 2013. The Company will record the change in the period consummated and will adjust all references to numbers of common stock and per share data for the reverse stock split on a retroactive basis in the fourth quarter.

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	9 Months Ended
Stock-Based Compensation (Tables)	Sep. 30, 2013
Stock-Based Compensation	'
Schedule of weighted average assumptions used to estimate fair value of each service-based stock option grant	'


		Nine Months Ended
		September 30,
	Service-Based Stock Options	2012		2013
	Expected dividend rate	0%		0%
	Expected stock price volatility	72.9 – 74.9%		74.0 – 87.9%
	Risk-free interest rate	0.9 - 1.5%		0.1 - 2.1%
	Expected life (years)	6.0 - 6.3		5.0 - 6.3
Summary of activity for service-based stock options	'


	Service-Based Stock Options	Options		Weighted		Weighted Average	Aggregate
				Average		Remaining	Intrinsic Value
				Exercise Price		Contractual Term
						(Years)
	Outstanding at December 31, 2012	9,987,468		$	2.38	7.5	$	—
	Granted	1,515,000		$	1.07
	Exercised	—		$	—		$	—
	Expired	(2,787,259	)	$	2.64
	Forfeited	(2,275,186	)	$	2.27
	Outstanding at September 30, 2013	6,440,023		$	1.99	7.6	$	—
	Exercisable at September 30, 2013	2,982,001		$	2.35	6.1	$	—

Stock_Purchase_Warrants_Tables

Stock Purchase Warrants (Tables)	9 Months Ended
Stock Purchase Warrants (Tables)	Sep. 30, 2013
Stock Purchase Warrants	'
Schedule of warrants outstanding	'


		January 21, 2010			December 15, 2010			August 16, 2013
		Class A Warrants			Warrants			Warrants
	Exercise price	$	1.27		$	0.28		$	0.375
	Expiration date	July 21, 2015			December 15, 2015			August 16, 2018
	Warrants outstanding	6,034,637			308,100			22,667,000
	Total shares issuable on exercise	4,525,978			308,100			22,667,000

Schedule of assumptions used in calculating estimated fair value of warrants	'


	January 2010 Class A Warrants	December 31, 2012			September 30, 2013
	Closing stock price	$	1.26		$	0.28
	Expected dividend rate	0		%	0		%
	Expected stock price volatility	74		%	78.8		%
	Risk-free interest rate	0.4		%	0.3		%
	Expected life (years)	2.5			1.75


	December 2010 Warrants	December 31, 2012			September 30, 2013
	Closing stock price	$	1.26		$	0.28
	Expected dividend rate	0		%	0		%
	Expected stock price volatility	70.1		%	73		%
	Risk-free interest rate	0.4		%	0.4		%
	Expected life (years)	2.96			2.21


	August 2013 Warrants	December 31, 2012			September 30, 2013
	Closing stock price	$	—		$	0.28
	Expected dividend rate	—			0		%
	Expected stock price volatility	—			80.1		%
	Risk-free interest rate	—			1.6		%
	Expected life (years)	—			4.88

Summary of change in estimated fair value of warrant liabilities	'
	The following table summarizes the change in the estimated fair value of the Company’s warrant liabilities (in thousands):

	Warrant Liabilities
	Balance at December 31, 2012	$	1,995
	Warrant issuance	5,874
	Warrant exercise	(513		)
	Decrease in fair value	(3,331		)
	Balance at September 30, 2013	$	4,025

Net_Loss_Per_Common_Share_Tabl

Net Loss Per Common Share (Tables)	9 Months Ended
Net Loss Per Common Share (Tables)	Sep. 30, 2013
Net Loss Per Common Share	'
Schedule of net loss attributable to common shareholders and share data used in the basic and diluted earnings per share computations using the two class method	'


		Quarter Ended September 30,						Nine Months Ended September 30,
	(Amounts in thousands except per share amounts)	2012			2013			2012			2013
	Numerator:
	Net loss	$	(6,034	)	$	(2,273	)	$	(22,824	)	$	(12,706	)
	Less: earnings attributable to convertible preferred stock	1,218			1,368			2,738			3,945
	Numerator of basic and diluted EPS	$	(7,252	)	$	(3,641	)	$	(25,562	)	$	(16,651	)

	Denominator:
	Denominator for basic and diluted EPS: weighted-average common shares outstanding	43,336			60,847			40,331			50,517
	Net loss per share attributable to common shareholders (basic and diluted)	$	(0.17	)	$	(0.06	)	$	(0.63	)	$	(0.33	)

Organization_and_Summary_of_Si1

Organization and Summary of Significant Accounting Policies (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011
	item	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011
Organization and Summary of Significant Accounting Policies	'	'	'	'
Number of reportable segments	1	'	'	'
Cash and cash equivalents	$10,816	$13,638	$21,089	$5,530
Maximum period before cash and cash equivalents are not sufficient to sustain operations	'1 year	'	'	'
Minimum period of uncertainty regarding the entity's ability to maintain liquidity sufficient to operate business effectively	'12 months	'	'	'

StockBased_Compensation_Detail

Stock-Based Compensation (Details) (Service-based stock options, USD $)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Stock-Based Compensation	'	'	'	'	'
Vesting period	'	'	'4 years	'	'
Expiration period	'	'	'10 years	'	'
Weighted average grant-date fair value (in dollars per share)	'	'	$0.70	$1.25	'
Net compensation expense related to employees and directors (in dollars)	$145,000	$1,127,000	$528,000	$3,166,000	'
Forfeiture adjustments included in compensation costs due to restructuring activities (in dollars)	'	'	1,125,000	'	'
Weighted average assumptions used to estimate fair value of each service-based stock option grant	'	'	'	'	'
Expected dividend rate (as a percent)	'	'	0.00%	0.00%	'
Options	'	'	'	'	'
Outstanding at the beginning of the period (in shares)	'	'	9,987,468	'	'
Granted (in shares)	'	'	1,515,000	'	'
Expired (in shares)	'	'	-2,787,259	'	'
Forfeited (in shares)	'	'	-2,275,186	'	'
Outstanding at the end of the period (in shares)	6,440,023	'	6,440,023	'	9,987,468
Exercisable at the end of the period (in shares)	2,982,001	'	2,982,001	'	'
Weighted Average Exercise Price	'	'	'	'	'
Outstanding at the beginning of the period (in dollars per share)	'	'	$2.38	'	'
Granted (in dollars per share)	'	'	$1.07	'	'
Expired (in dollars per share)	'	'	$2.64	'	'
Forfeited (in dollars per share)	'	'	$2.27	'	'
Outstanding at the end of the period (in dollars per share)	$1.99	'	$1.99	'	$2.38
Exercisable at the end of the period (in dollars per share)	$2.35	'	$2.35	'	'
Weighted Average Remaining Contractual Term	'	'	'	'	'
Outstanding at the beginning of the period	'	'	'7 years 7 months 6 days	'	'7 years 6 months
Outstanding at the end of the period	'	'	'7 years 7 months 6 days	'	'7 years 6 months
Exercisable at the end of the period	'	'	'6 years 1 month 6 days	'	'
Additional disclosures	'	'	'	'	'
Total unrecognized compensation cost (in dollars)	2,155,000	'	2,155,000	'	'
Weighted average period over which unrecognized compensation is expected to be recognized	'	'	'2 years 8 months 12 days	'	'
Total fair value of options vested (in dollars)	'	'	$1,861,000	$2,136,000	'
Minimum	'	'	'	'	'
Weighted average assumptions used to estimate fair value of each service-based stock option grant	'	'	'	'	'
Expected stock price volatility (as a percent)	'	'	74.00%	72.90%	'
Risk-free interest rate (as a percent)	'	'	0.10%	0.90%	'
Expected life	'	'	'5 years	'6 years	'
Maximum	'	'	'	'	'
Weighted average assumptions used to estimate fair value of each service-based stock option grant	'	'	'	'	'
Expected stock price volatility (as a percent)	'	'	87.90%	74.90%	'
Risk-free interest rate (as a percent)	'	'	2.10%	1.50%	'
Expected life	'	'	'6 years 3 months 18 days	'6 years 3 months 18 days	'
Non-employee	'	'	'	'	'
Stock-Based Compensation	'	'	'	'	'
Vesting period	'	'	'1 year	'	'
Options	'	'	'	'	'
Granted (in shares)	'	'	285,000	'	'

Stock_Purchase_Warrants_Detail

Stock Purchase Warrants (Details) (USD $)

3 Months Ended

9 Months Ended

294 Months Ended

9 Months Ended

12 Months Ended

9 Months Ended

12 Months Ended

0 Months Ended

9 Months Ended

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 24, 2013

Sep. 30, 2013

Apr. 17, 2013

Oct. 17, 2007

January 2010 Class A Warrants

December 2010 Warrants

August 2013 warrants

October 2007 Warrants

item

Stock Purchase Warrants

Number of warrants issued

740,131

Exercise price per share (in dollars per share)

$1.27

$0.28

$0.38

$12.72

Warrants outstanding

6,034,637

308,100

22,667,000

Total shares issuable on exercise

4,525,978

308,100

7,333,000

22,667,000

Number of warrant holders

Cash paid for warrant exercise

$1,209,945

Net proceeds from exercise of warrants

1,470,000

Net proceeds raised from sale of shares under ATM

3,337,000

Assumptions used in calculating the estimated fair value of the warrants

Closing stock price (in dollars per share)

$0.28

$1.26

$0.28

$1.26

$0.28

Expected dividend rate (as a percent)

0.00%

Expected stock price volatility (as a percent)

78.80%

74.00%

73.00%

70.10%

80.10%

Risk-free interest rate (as a percent)

0.30%

0.40%

1.60%

Expected life

'1 year 9 months

'2 years 6 months

'2 years 2 months 16 days

'2 years 11 months 16 days

'4 years 10 months 17 days

Change in the estimated fair value of warrant liabilities

Balance at the beginning of the period

1,995,000

Warrant issuance

5,874,000

Warrant exercise

-513,000

Decrease in fair value of warrants

-1,367,000

-2,241,000

-3,331,000

-3,289,000

-19,868,000

Balance at the end of the period

$4,025,000

Series_B_Convertible_Preferred1

Series B Convertible Preferred Stock (Details) (USD $)	9 Months Ended	1 Months Ended
	Sep. 30, 2013	Mar. 31, 2012	Sep. 30, 2013	Aug. 12, 2013
	Series B preferred stock	Series B-1 preferred stock	Series B-1 preferred stock	Series B-1 preferred stock
Series B Convertible Preferred Stock	'	'	'	'
Number of shares sold	'	12,308	'	'
Offering price per share (in dollars per share)	'	$3,250	'	'
Period of closing of offering after which shares are convertible	'5 years	'5 years	'	'
Conversion price per share (in dollars per share)	$3.25	'	'	'
Percentage of cumulative dividend rate	11.50%	'	'	'
Period for accrual of dividend	'5 years	'	'	'
Accumulated but undeclared dividends	'	'	$2,421,000	'
Redemption price (in dollars per share)	'	'	'	$7,430

Series_B_Convertible_Preferred2

Series B Convertible Preferred Stock (Details 2) (Classification error for Series B-1 preferred stock carrying value, USD $)	9 Months Ended
	Sep. 30, 2013
Classification error for Series B-1 preferred stock carrying value	'
Correction of error	'
Amount of error corrected	$4,487,000
Correction of a classification error	'The error resulted in an overstatement of the carrying value of the Series B-1 preferred stock in mezzanine and a corresponding overstatement of deficit accumulated during the development stage.

Shareholders_Equity_Details

Shareholders' Equity (Details) (USD $)	0 Months Ended	9 Months Ended		294 Months Ended
Shareholders' Equity (Details) (USD $)	Aug. 16, 2013	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013
Shareholders' Equity	'	'	'	'
Net proceeds from issuance of common stock and warrants	$8,169,000	$12,848,000	$346,000	$197,902,000
Fair market value of the warrants	'	5,874,000	'	'
Common Stock [Member]	'	'	'	'
Shareholders' Equity	'	'	'	'
Shares of common stock sold	30,000,000	'	'	'
Common stock issued to the underwriter pursuant to the exercise of its over-allotment option (in shares)	1,000,000	'	'	'
Public offering price (in dollars per share)	$0.30	'	'	'
Warrant [Member]	'	'	'	'
Shareholders' Equity	'	'	'	'
Warrants sold (in shares)	30,000,000	'	'	'
Warrants issued to the underwriter pursuant to the exercise of its over-allotment option	1,000,000	'	'	'
Fair market value of the warrants	$5,874,000	'	'	'
Public offering price per share (in dollars per share)	$0.30	'	'	'

Net_Loss_Per_Common_Share_Deta

Net Loss Per Common Share (Details) (USD $)	3 Months Ended			6 Months Ended	9 Months Ended		294 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Jun. 30, 2013	Sep. 30, 2012	Jun. 30, 2013	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013
Numerator:	'	'	'	'	'	'	'
Net loss	($2,273)	'	($6,034)	'	($12,706)	($22,824)	($283,060)
Less: earnings attributable to convertible preferred stock	1,368	'	1,218	'	3,945	2,738	'
Numerator of basic and diluted EPS	($3,641)	'	($7,252)	'	($16,651)	($25,562)	'
Denominator:	'	'	'	'	'	'	'
Denominator for basic and diluted EPS: weighted-average common shares outstanding	60,847,000	'	43,336,000	'	50,517,000	40,331,000	'
Net loss per share attributable to common shareholders (basic and diluted) (in dollars per share)	($0.06)	($0.11)	($0.17)	($0.26)	($0.33)	($0.63)	'
Aggregate number of common equivalent shares (related to options, warrants and preferred stock) that have been excluded from computations of diluted net loss per common share	'	'	'	'	48,671,000	29,260,000	'

Net_Loss_Per_Common_Share_Deta1

Net Loss Per Common Share (Details 2) (USD $)	3 Months Ended			6 Months Ended	9 Months Ended
Net Loss Per Common Share (Details 2) (USD $)	Sep. 30, 2013	Jun. 30, 2013	Sep. 30, 2012	Jun. 30, 2013	Sep. 30, 2013	Sep. 30, 2012
Net Loss Per Common Share	'	'	'	'	'	'
Net loss per share attributable to common shareholders (Basic and Diluted) (in dollars per share)	($0.06)	($0.11)	($0.17)	($0.26)	($0.33)	($0.63)
Correction of error \| Actual	'	'	'	'	'	'
Net Loss Per Common Share	'	'	'	'	'	'
Net loss per share attributable to common shareholders (Basic and Diluted) (in dollars per share)	'	($0.14)	'	($0.29)	'	'

Restructuring_Details

Restructuring (Details) (USD $)	3 Months Ended
Restructuring (Details) (USD $)	Mar. 31, 2013	Sep. 30, 2013
Restructuring	'	'
Restructuring charge	$408,000	'
Restructuring reserve related to severance payments	'	$83,000

Subsequent_Event_Details

Subsequent Event (Details) (Subsequent event)	0 Months Ended
Subsequent Event (Details) (Subsequent event)	Oct. 16, 2013
Subsequent event	'
Subsequent event	'
Reverse stock split ratio	0.05