Vericel (VCEL) 10-Q 15 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	Apr. 30, 2014
Document and Entity Information	'	'
Entity Registrant Name	'AASTROM BIOSCIENCES INC	'
Entity Central Index Key	'0000887359	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	6,497,127
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2014	Dec. 31, 2013
Current assets:	'	'
Cash	$8,836,000	$8,059,000
Other current assets	400,000	417,000
Total current assets	9,236,000	8,476,000
Property and equipment, net	642,000	739,000
Total assets	9,878,000	9,215,000
Current liabilities:	'	'
Accounts payable and accrued expenses	2,475,000	2,676,000
Accrued employee benefits	406,000	620,000
Current portion of long-term debt	2,000	6,000
Warrant liabilities	3,226,000	2,019,000
Total current liabilities	6,109,000	5,321,000
Shareholders' equity:	'	'
Common stock, no par value; shares authorized - 15,000; shares issued and outstanding - 4,723 and 6,245, respectively	259,140,000	253,270,000
Deficit accumulated during the development stage	-293,760,000	-287,765,000
Total shareholders' equity	3,769,000	3,894,000
Total liabilities and shareholders' equity	9,878,000	9,215,000
Series B-2 voting convertible preferred stock	'	'
Shareholders' equity:	'	'
Total convertible preferred stock	$38,389,000	$38,389,000

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Par value of common stock (in dollars per share)	'	'
Common Stock, shares authorized	15,000	15,000
Common Stock, shares issued	6,245	4,723
Common Stock, shares outstanding	6,245	4,723
Series B-2 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	12	12
Convertible preferred stock, shares outstanding	12	12

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		300 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014
Revenues:	'	'	'
Product sales and rentals	'	$8	$1,917
Research and development agreements	'	'	2,105
Grants	'	'	9,901
Total revenues	'	8	13,923
Costs and expenses:	'	'	'
Cost of product sales and rentals	'	2	3,051
Research and development	3,271	5,538	235,105
Selling, general and administrative	1,374	1,633	99,847
Total costs and expenses	4,645	7,173	338,003
Loss from operations	-4,645	-7,165	-324,080
Other income (expense):	'	'	'
(Increase) decrease in fair value of warrants	-1,352	1,619	20,522
Other income	'	'	1,249
Interest income	4	5	10,842
Interest expense	-2	-3	-504
Total other income (expense)	-1,350	1,621	32,109
Net loss	($5,995)	($5,544)	($291,971)
Net loss per share attributable to common shareholders (Basic and Diluted) (see note 7) (in dollars per share)	($1.26)	($3)	'
Weighted average number of common shares outstanding (Basic and Diluted)	5,868	2,243	'

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended		300 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014
Operating activities:	'	'	'
Net loss	($5,995)	($5,544)	($291,971)
Adjustments to reconcile net loss to net cash used for operating activities:	'	'	'
Depreciation and amortization	97	150	8,733
Loss on property held for resale	'	'	110
Amortization of discounts and premiums on investments	'	'	-1,704
Stock compensation expense	270	-43	18,691
Change in fair value of warrants	1,352	-1,619	-20,522
Inventory write downs	'	'	2,240
Stock issued pursuant to license agreement	'	'	3,300
Provision for losses on accounts receivable	'	'	204
Changes in operating assets and liabilities:	'	'	'
Inventories	'	'	-2,335
Other current assets	17	52	-629
Accounts payable and accrued expenses	-201	-232	2,243
Accrued employee benefits	-214	475	406
Net cash used for operating activities	-4,674	-6,761	-281,234
Investing activities:	'	'	'
Organizational costs	'	'	-73
Purchase of short-term investments	'	'	-217,041
Maturities of short-term investments	'	'	218,745
Property and equipment purchases	'	-18	-7,530
Proceeds from sale of property held for resale	'	'	400
Net cash used for investing activities	'	-18	-5,499
Financing activities:	'	'	'
Net proceeds from issuance of preferred stock	'	'	89,267
Net proceeds from issuance of common stock and warrants	5,455	2,378	204,947
Payments received for stock purchase rights and other, net	'	'	3,500
Proceeds from long-term debt	'	'	751
Principal payments under long-term debt obligations	-4	-11	-2,878
Other, net	'	'	-18
Net cash provided by financing activities	5,451	2,367	295,569
Net increase (decrease) in cash	777	-4,412	8,836
Cash at beginning of period	8,059	13,638	'
Cash at end of period	8,836	9,226	8,836
Supplemental cash flow information (non-cash):	'	'	'
Accretion of convertible preferred stock	'	1,263	6,224
Warrants exchanged for common stock	($145)	'	($10,527)

Organization_and_Summary_of_Si

Organization and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2014
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 March 31, 2014, the Company had $8,836,000 of cash.  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, 2014 and beyond.  The Company could sell common shares through an At the Market Sales Agreement (ATM) or direct Lincoln Park Capital Fund, LLC (Lincoln Park) to purchase up to $15,000,000 worth of shares of common shares under the Purchase Agreement between the Company and Lincoln Park 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, 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 condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Basis_of_Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2014
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 three months ended March 31, 2014, are not necessarily indicative of the results to be expected for the full year or for any other period.  The December 31, 2013 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, 2013, 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 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 has ceased operations.

StockBased_Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2014
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 quarter ended March 31, 2014, the Company granted 114,025 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 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 quarter ended March 31, 2013 and 2014 was $17.00 and $2.55, respectively.
	The net compensation expense recorded for the service-based stock options related to employees and directors was ($43,000) and $270,000 for the quarter ended March 31, 2013 and 2014, respectively.  The March 31, 2013 compensation cost includes forfeiture adjustments, primarily due to restructuring activities announced on March 27, 2013, which reduced expense by $938,000.
	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.
		Quarter Ended March 31,
	Service-Based Stock Options	2013		2014
	Expected dividend rate	0	%	0%
	Expected stock price volatility	74	%	82.4 – 83.3%
	Risk-free interest rate	1.4	%	2.1 - 2.2%
	Expected life (years)	6.3		6.1 - 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, 2013	297,860		$	39.53	7.9	$	—
	Granted	114,025		$	3.57
	Exercised	—		$	—		$	—
	Expired	—		$	—
	Forfeited	(12,350	)	$	38
	Outstanding at March 31, 2014	399,535		$	29.31	8.1	$	92,000
	Exercisable at March 31, 2014	179,240		$	42.92	6.8	$	—
	As of March 31, 2014 there was $1,329,000 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 2.9 years.
	The total fair value of options vested during the three months ended March 31, 2013 and 2014 was $917,000 and $693,000, respectively.

Stock_Purchase_Warrants

Stock Purchase Warrants	3 Months Ended
	Mar. 31, 2014
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 March 31, 2014, 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 2010 Class			December 2010			August 2013
		A Warrants			Warrants			Warrants
	Exercise price	$	19.63		$	3.3		$	4.8
	Expiration date	July 21, 2015			December 15, 2015			August 16, 2018
	Total shares issuable on exercise	226,299			15,405			1,089,200
	The exercise price per share for the January 2010 warrants were adjusted for the anti-dilution provisions triggered by the issuance of common stock during the quarter ended March 31, 2014.
	The fair value of the Class A warrants and the December 2010 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 and the December 2010 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 and fundamental transactions.  The other assumptions used by the Company are summarized in the following tables:
	January 2010 Class A Warrants	December 31, 2013			March 31, 2014
	Closing stock price	$	3.23		$	4.39
	Expected dividend rate	0		%	0		%
	Expected stock price volatility	84.6		%	118.8		%
	Risk-free interest rate	0.3		%	0.2		%
	Expected life (years)	1.5			1.25
	December 2010 Warrants	December 31, 2013			March 31, 2014
	Closing stock price	$	3.23		$	4.39
	Expected dividend rate	0		%	0		%
	Expected stock price volatility	80.4		%	103.7		%
	Risk-free interest rate	0.4		%	0.3		%
	Expected life (years)	1.96			1.71
	August 2013 Warrants	December 31, 2013			March 31, 2014
	Closing stock price	$	3.23		$	4.39
	Expected dividend rate	0		%	0		%
	Expected stock price volatility	77.5		%	87.1		%
	Risk-free interest rate	1.6		%	1.5		%
	Expected life (years)	4.63			4.38
	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, 2013	$	2,019
	Warrant exercise	(145		)
	Increase in fair value	1,352
	Balance at March 31, 2014	$	3,226
	The following table presents the Company’s liabilities that are measured at fair value on a recurring basis at December 31, 2013 and March 31, 2014:
		December 31, 2013
		Level 1		Level 2			Level 3
	Warrant liabilities	—		$	1,934,000		$	85,000
		March 31, 2014
		Level 1		Level 2			Level 3
	Warrant liabilities	—		$	3,030,000		$	196,000
	A reconciliation of beginning and ending balances for the Company’s fair value measurements using Level 3 inputs is as follows:
	Warrants (in thousands):
		March 31, 2014
	Beginning balance	$	85
	Increase in fair value	111
	Ending balance	$	196

Series_B_Convertible_Preferred

Series B Convertible Preferred Stock	3 Months Ended
	Mar. 31, 2014
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 March 31, 2014, there are approximately 164,501 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 initially 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 total amount of $38,389,000 Series B preferred stock has been reclassified from mezzanine into shareholders’ equity.

Shareholders_Equity

Shareholders' Equity	3 Months Ended
	Mar. 31, 2014
Shareholders' Equity	'
Shareholders' Equity	'
	6.  Shareholders’ Equity
	On January 21, 2014, the Company entered into a purchase agreement  (the “Purchase Agreement”), together with a registration rights agreement (the “Registration Rights Agreement”), with Lincoln Park to sell to Lincoln Park up to $15,000,000 in shares of its common stock, subject to certain limitations, from time to time over a 30-month period commencing on the date that a registration statement (the “Initial Registration Statement”), which the Company agreed to file with the Securities and Exchange Commission (“SEC”) pursuant to the Registration Rights Agreement, is declared effective by the SEC and a final prospectus in connection therewith is filed. The Company filed the Initial Registration Statement with the SEC on February 10, 2014, and it became effective on April 3, 2014. The final prospectus was filed with the SEC on April 3, 2014.
	The Company may direct Lincoln Park, at its sole discretion, to purchase up to 50,000 shares of common stock in regular purchases, increasing to amounts of up to 100,000 shares depending upon the closing sale price of the common stock.  In addition, the Company may direct Lincoln Park to purchase additional amounts as accelerated purchases if on the date of a regular purchase the closing sale price of the common stock equals or exceeds $3.00 per share.  The purchase price of shares of common stock related to the future funding will be based on the prevailing market prices of such shares at the time of sales (or over a period of up to 10 business days leading up to such time), but in no event will shares be sold to Lincoln Park on a day the common stock closing price is less than the floor price of $2.50, subject to adjustment.  The Company controls the timing and amount of any sales of common stock to Lincoln Park. The Company’s sales of shares of common stock to Lincoln Park under the Purchase Agreement are limited to no more than the number of shares that would result in the beneficial ownership by Lincoln Park and its affiliates, at any single point in time, of more than 9.99% of the then outstanding shares of the common stock.
	In connection with the Purchase Agreement, the Company issued to Lincoln Park 48,063 shares of common stock.  As of March 31, 2014, no sales had been made under the Purchase Agreement. Subsequent to March 31, 2014, the Company raised nets proceeds of $1,042,000 under the Purchase Agreement.  Additionally, during the quarter ended March 31, 2014, the Company raised net proceeds of $5,286,000 utilizing the ATM.

Net_Loss_Per_Common_Share

Net Loss Per Common Share	3 Months Ended
	Mar. 31, 2014
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 March 31,
	(Amounts in thousands except per share amounts)	2013			2014
	Numerator:
	Net loss	$	(5,544	)	$	(5,995	)
	Less: earnings attributable to convertible preferred stock	1,263			1,418
	Numerator of basic and diluted EPS	$	(6,807	)	$	(7,413	)
	Denominator:
	Denominator for basic and diluted EPS:
	Weighted-average common shares outstanding	2,243			5,868
	Net loss per share attributable to common shareholders (basic and diluted)	$	(3.00	)	$	(1.26	)
	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 March 31, 2013 and 2014 were 1,528,000 and 2,510,000, respectively.

Subsequent_Event

Subsequent Event	3 Months Ended
	Mar. 31, 2014
Subsequent Event	'
Subsequent Event	'
	8.   Subsequent Event
	On April 19, 2014, the Company entered into an Asset Purchase Agreement (Agreement), by and between the Company and Sanofi (Seller). Pursuant to the Agreement, the Company has agreed to acquire certain assets, including all of the outstanding equity interests of Genzyme Biosurgery ApS, a wholly-owned subsidiary of Seller, and over 250 patents and patent applications, of the Seller and certain of its Subsidiaries and assume certain liabilities of the Seller for purposes of acquiring the portions of the cell therapy and regenerative medicine business of the Seller currently operated through Genzyme Biosurgery ApS, which researches, develops, manufactures, markets and sells the Carticel®, Epicel® and MACI®  products. The Company will also acquire global manufacturing and production centers located in the United States and Denmark. As consideration, the Company will, on the closing date of the Transaction pay to the Seller $6,500,000, subject to certain post-closing adjustments based upon working capital of Seller or Genzyme Biosurgery ApS on the transaction closing date, of which $4,000,000 will be paid in cash and the remaining $2,500,000 will be payable in the form of a promissory note to be held by the Seller. The promissory note will accrue interest at the short term applicable federal rate in effect on the Closing Date, be prepayable without prepayment penalty, and be due upon the earliest to occur of (i) July 12, 2014, (ii) a liquidation, dissolution or winding up of the Company, or a (iii) or closing of: (i) a merger of the Company or any other transaction or series of related transactions (other than a future equity financing of the Company) in which, in any of the foregoing cases, at least 50% of the outstanding equity securities of the Company or the surviving or resulting entity.  In connection with the sale of the business, the Seller intends to transfer substantially all of the Seller’s employees primarily engaged in the Business to the Company prior to or after the Closing Date.  The transaction is expected to close in the second quarter of 2014.

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2014
Stock-Based Compensation	'
Schedule of weighted average assumptions used to estimate fair value of each service-based stock option grant	'
		Quarter Ended March 31,
	Service-Based Stock Options	2013		2014
	Expected dividend rate	0	%	0%
	Expected stock price volatility	74	%	82.4 – 83.3%
	Risk-free interest rate	1.4	%	2.1 - 2.2%
	Expected life (years)	6.3		6.1 - 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, 2013	297,860		$	39.53	7.9	$	—
	Granted	114,025		$	3.57
	Exercised	—		$	—		$	—
	Expired	—		$	—
	Forfeited	(12,350	)	$	38
	Outstanding at March 31, 2014	399,535		$	29.31	8.1	$	92,000
	Exercisable at March 31, 2014	179,240		$	42.92	6.8	$	—

Stock_Purchase_Warrants_Tables

Stock Purchase Warrants (Tables)	3 Months Ended
	Mar. 31, 2014
Stock Purchase Warrants	'
Schedule of warrants outstanding	'
		January 2010 Class			December 2010			August 2013
		A Warrants			Warrants			Warrants
	Exercise price	$	19.63		$	3.3		$	4.8
	Expiration date	July 21, 2015			December 15, 2015			August 16, 2018
	Total shares issuable on exercise	226,299			15,405			1,089,200
Schedule of assumptions used in calculating estimated fair value of warrants	'
	January 2010 Class A Warrants	December 31, 2013			March 31, 2014
	Closing stock price	$	3.23		$	4.39
	Expected dividend rate	0		%	0		%
	Expected stock price volatility	84.6		%	118.8		%
	Risk-free interest rate	0.3		%	0.2		%
	Expected life (years)	1.5			1.25
	December 2010 Warrants	December 31, 2013			March 31, 2014
	Closing stock price	$	3.23		$	4.39
	Expected dividend rate	0		%	0		%
	Expected stock price volatility	80.4		%	103.7		%
	Risk-free interest rate	0.4		%	0.3		%
	Expected life (years)	1.96			1.71
	August 2013 Warrants	December 31, 2013			March 31, 2014
	Closing stock price	$	3.23		$	4.39
	Expected dividend rate	0		%	0		%
	Expected stock price volatility	77.5		%	87.1		%
	Risk-free interest rate	1.6		%	1.5		%
	Expected life (years)	4.63			4.38
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, 2013	$	2,019
	Warrant exercise	(145		)
	Increase in fair value	1,352
	Balance at March 31, 2014	$	3,226
Schedule of Company's liabilities that are measured at fair value on a recurring basis	'
		December 31, 2013
		Level 1		Level 2			Level 3
	Warrant liabilities	—		$	1,934,000		$	85,000
		March 31, 2014
		Level 1		Level 2			Level 3
	Warrant liabilities	—		$	3,030,000		$	196,000
Schedule of reconciliation of beginning and ending balances for the Company's fair value measurements using Level 3 inputs	'
	Warrants (in thousands):
		March 31, 2014
	Beginning balance	$	85
	Increase in fair value	111
	Ending balance	$	196

Net_Loss_Per_Common_Share_Tabl

Net Loss Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2014
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 March 31,
	(Amounts in thousands except per share amounts)	2013			2014
	Numerator:
	Net loss	$	(5,544	)	$	(5,995	)
	Less: earnings attributable to convertible preferred stock	1,263			1,418
	Numerator of basic and diluted EPS	$	(6,807	)	$	(7,413	)
	Denominator:
	Denominator for basic and diluted EPS:
	Weighted-average common shares outstanding	2,243			5,868
	Net loss per share attributable to common shareholders (basic and diluted)	$	(3.00	)	$	(1.26	)

Organization_and_Summary_of_Si1

Organization and Summary of Significant Accounting Policies (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013	Dec. 31, 2012
	segment
Organization and summary of significant accounting policies	'	'	'	'
Number of reportable segments	1	'	'	'
Cash	$8,836,000	$8,059,000	$9,226,000	$13,638,000
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	'	'	'
Lincoln Park | Maximum	'	'	'	'
Organization and summary of significant accounting policies	'	'	'	'
Value of shares of common stock under obligation to purchase	$15,000,000	'	'	'

StockBased_Compensation_Detail

Stock-Based Compensation (Details) (Service-based stock options, USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Stock-Based Compensation	'	'	'
Vesting period	'4 years	'	'
Expiration period	'10 years	'	'
Weighted average grant-date fair value (in dollars per share)	$2.55	$17	'
Net compensation expense related to employees and directors (in dollars)	$270,000	($43,000)	'
Forfeiture adjustments included in compensation costs due to restructuring activities (in dollars)	'	938,000	'
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%	'
Expected stock price volatility (as a percent)	'	74.00%	'
Risk-free interest rate (as a percent)	'	1.40%	'
Expected life	'	'6 years 3 months 18 days	'
Options	'	'	'
Outstanding at the beginning of the period (in shares)	297,860	'	'
Granted (in shares)	114,025	'	'
Forfeited (in shares)	-12,350	'	'
Outstanding at the end of the period (in shares)	399,535	'	297,860
Exercisable at the end of the period (in shares)	179,240	'	'
Weighted Average Exercise Price	'	'	'
Outstanding at the beginning of the period (in dollars per share)	$39.53	'	'
Granted (in dollars per share)	$3.57	'	'
Forfeited (in dollars per share)	$38	'	'
Outstanding at the end of the period (in dollars per share)	$29.31	'	$39.53
Exercisable at the end of the period (in dollars per share)	$42.92	'	'
Weighted Average Remaining Contractual Term (Years)	'	'	'
Outstanding at the beginning of the period	'8 years 1 month 6 days	'	'7 years 10 months 24 days
Outstanding at the end of the period	'8 years 1 month 6 days	'	'7 years 10 months 24 days
Exercisable at the end of the period	'6 years 9 months 18 days	'	'
Aggregate Intrinsic Value	'	'	'
Outstanding at the end of the period	92,000	'	'
Additional disclosures	'	'	'
Total unrecognized compensation cost (in dollars)	1,329,000	'	'
Weighted average period over which unrecognized compensation is expected to be recognized	'2 years 10 months 24 days	'	'
Total fair value of options vested (in dollars)	$693,000	$917,000	'
Minimum	'	'	'
Weighted average assumptions used to estimate fair value of each service-based stock option grant	'	'	'
Expected stock price volatility (as a percent)	82.40%	'	'
Risk-free interest rate (as a percent)	2.10%	'	'
Expected life	'6 years 1 month 6 days	'	'
Maximum	'	'	'
Weighted average assumptions used to estimate fair value of each service-based stock option grant	'	'	'
Expected stock price volatility (as a percent)	83.30%	'	'
Risk-free interest rate (as a percent)	2.20%	'	'
Expected life	'6 years 3 months 18 days	'	'

Stock_Purchase_Warrants_Detail

Stock Purchase Warrants (Details) (USD $)	3 Months Ended		300 Months Ended	3 Months Ended	12 Months Ended	3 Months Ended	12 Months Ended	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2014	Dec. 31, 2013
				January 2010 Class A Warrants	January 2010 Class A Warrants	December 2010 Warrants	December 2010 Warrants	August 2013 warrants	August 2013 warrants
Stock Purchase Warrants	'	'	'	'	'	'	'	'	'
Exercise price per share (in dollars per share)	'	'	'	$19.63	'	$3.30	'	$4.80	'
Total shares issuable on exercise	'	'	'	226,299	'	15,405	'	1,089,200	'
Assumptions used in calculating the estimated fair value of the warrants	'	'	'	'	'	'	'	'	'
Closing stock price (in dollars per share)	'	'	'	$4.39	$3.23	$4.39	$3.23	$4.39	$3.23
Expected dividend rate (as a percent)	'	'	'	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Expected stock price volatility (as a percent)	'	'	'	118.80%	84.60%	103.70%	80.40%	87.10%	77.50%
Risk-free interest rate (as a percent)	'	'	'	0.20%	0.30%	0.30%	0.40%	1.50%	1.60%
Expected life	'	'	'	'1 year 3 months	'1 year 6 months	'1 year 8 months 16 days	'1 year 11 months 16 days	'4 years 4 months 17 days	'4 years 7 months 17 days
Change in the estimated fair value of warrant liabilities	'	'	'	'	'	'	'	'	'
Balance at the beginning of the period	$2,019,000	'	'	'	'	'	'	'	'
Warrant exercise	-145,000	'	'	'	'	'	'	'	'
Increase in fair value	1,352,000	-1,619,000	-20,522,000	'	'	'	'	'	'
Balance at the end of the period	$3,226,000	'	$3,226,000	'	'	'	'	'	'

Stock_Purchase_Warrants_Detail1

Stock Purchase Warrants (Details 2) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Liabilities that are measured at fair value on a recurring basis	'	'
Warrant liabilities	$3,226,000	$2,019,000
Recurring | Level 2	'	'
Liabilities that are measured at fair value on a recurring basis	'	'
Warrant liabilities	3,030,000	1,934,000
Recurring | Level 3	'	'
Liabilities that are measured at fair value on a recurring basis	'	'
Warrant liabilities	$196,000	$85,000

Stock_Purchase_Warrants_Detail2

Stock Purchase Warrants (Details 3) (Warrants, USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014
Warrants	'
Reconciliation of beginning and ending balances for the company's fair value measurements using Level 3 inputs	'
Beginning balance	$85
Increase in fair value	111
Ending balance	$196

Series_B_Convertible_Preferred1

Series B Convertible Preferred Stock (Details) (USD $)	0 Months Ended	3 Months Ended	0 Months Ended	1 Months Ended
	Aug. 12, 2013	Mar. 31, 2014	Mar. 09, 2012	Mar. 31, 2012	Mar. 31, 2014	Aug. 12, 2013
	Series B preferred stock	Series B preferred stock	Series B-1 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	'	'	'	'	$164,501	'
Redemption price (in dollars per share)	'	'	'	'	'	$7,430
Reclassification of Series B preferred stock	($38,389,000)	'	'	'	'	'

Shareholders_Equity_Details

Shareholders' Equity (Details) (USD $)	3 Months Ended		0 Months Ended		3 Months Ended		0 Months Ended	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Jan. 21, 2014	Mar. 31, 2014	Mar. 31, 2014	Jan. 21, 2014	Jan. 21, 2014	Mar. 31, 2014
			Lincoln Park	Lincoln Park	Lincoln Park	Lincoln Park	Lincoln Park	Lincoln Park
					Subsequent event	Minimum	Maximum	Maximum
Shareholders' Equity	'	'	'	'	'	'	'	'
Value of shares of common stock to be sold	'	'	'	'	'	'	$15,000,000	'
Period over which shares of common stock to be purchased	'	'	'30 months	'	'	'	'	'
Number of shares of common stock to be purchased in regular purchases	'	'	'	'	'	'	50,000	'
Number of shares of common stock to be purchased depending upon the closing sale price of the common stock	'	'	'	'	'	'	100,000	'
Threshold closing sale price of the common stock on the date of a regular purchase to trigger purchase of additional amounts as accelerated purchases (in dollars per share)	'	'	'	'	'	$3	'	'
Period of business days over which purchase price of shares of common stock will be determined	'	'	'	'	'	'	'10 days	'
Floor price for sale of shares of common stock (in dollars per share)	'	'	$2.50	'	'	'	'	'
Threshold on percentage of outstanding shares of the common stock that can be beneficially owned by counterparty	'	'	'	'	'	'	'	9.99%
Number of shares of common stock sold	6,245,000	4,723,000	48,063,000	0	'	'	'	'
Net Proceeds raised by utilizing Equity Line	$5,286,000	'	'	'	$1,042,000	'	'	'

Net_Loss_Per_Common_Share_Deta

Net Loss Per Common Share (Details) (USD $)	3 Months Ended		300 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014
Numerator:	'	'	'
Net loss	($5,995)	($5,544)	($291,971)
Less: earnings attributable to convertible preferred stock	1,418	1,263	'
Numerator of basic and diluted EPS	($7,413)	($6,807)	'
Denominator:	'	'	'
Denominator for basic and diluted EPS: Weighted-average common shares outstanding	5,868,000	2,243,000	'
Net loss per share attributable to common shareholders (basic and diluted) (in dollars per share)	($1.26)	($3)	'
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	2,510,000	1,528,000	'

Subsequent_Event_Details

Subsequent Event (Details) (Subsequent event, USD $)	0 Months Ended
	Apr. 19, 2014
Minimum	'
Subsequent Event	'
Percentage of outstanding equity securities	50.00%
Sanofi	'
Subsequent Event	'
Total consideration	6,500,000
Amount of consideration to be paid in cash	4,000,000
Amount of consideration payable in the form of a promissory note	2,500,000
Sanofi | Minimum	'
Subsequent Event	'
Number of patents and patents applications to be acquired	250