Vericel (VCEL) 10-Q 13 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 06, 2015
Document and Entity Information
Entity Registrant Name	Vericel Corp
Entity Central Index Key	887,359
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		23,789,219
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash	$ 18,724	$ 30,343
Accounts receivable (net of allowance for doubtful accounts of $54 and $40, respectively)	7,639	8,191
Inventory	1,639	1,920
Other current assets	514	1,036
Total current assets	28,516	41,490
Property and equipment, net	4,315	2,892
Intangible assets	2,987	3,197
Total assets	35,818	47,579
Current liabilities:
Accounts payable	4,995	5,824
Accrued expenses	3,311	4,714
Warrant liabilities	825	1,081
Other	130	210
Total current liabilities	9,261	11,829
Long term debt	81	109
Other long-term liabilities	66	0
Total liabilities	$ 9,408	$ 11,938
COMMITMENTS AND CONTINGENCIES (Note 14)
Shareholders' equity:
Series B-2 voting convertible preferred stock, no par value: shares authorized and reserved — 39, shares issued and outstanding — 12	$ 38,389	$ 38,389
Common stock, no par value; shares authorized — 75,000; shares issued and outstanding — 23,789 and 23,786, respectively.	307,207	305,008
Other comprehensive loss	(71)	(71)
Accumulated deficit	(319,115)	(307,685)
Total shareholders’ equity	26,410	35,641
Total liabilities and shareholders’ equity	$ 35,818	$ 47,579

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Allowance for doubtful accounts	$ 54	$ 40
Par value of common stock (in dollars per share)	$ 0	$ 0
Common Stock, shares authorized	75,000	75,000
Common Stock, shares issued	23,789	23,789
Common Stock, shares outstanding	23,786	23,786
Convertible Preferred Stock
Par value of convertible preferred stock (in dollars per share)	$ 0	$ 0
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 STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues:
Product sales	$ 11,309	$ 9,658	$ 35,748	$ 14,090
Total revenues	11,309	9,658	35,748	14,090
Costs and expenses:
Cost of product sales	6,772	5,532	19,241	10,541
Gross profit	4,537	4,126	16,507	3,549
Research and development	3,740	7,835	11,486	15,470
Selling, general and administrative	5,674	4,313	16,735	9,267
Total operating expenses	9,414	12,148	28,221	24,737
Loss from operations	(4,877)	(8,022)	(11,714)	(21,188)
Other income (expense):
Decrease (increase) in fair value of warrants	461	949	256	(155)
Bargain purchase gain	0	0	0	3,634
Foreign currency translation gain (loss)	(5)	154	5	154
Interest income	7	3	29	9
Interest expense	(2)	(1)	(6)	(4)
Total other income (expense)	461	1,105	284	3,638
Net loss	$ (4,416)	$ (6,917)	$ (11,430)	$ (17,550)
Net loss per share attributable to common shareholders (Basic and Diluted) (see note 11)	$ (0.26)	$ (0.82)	$ (0.69)	$ (2.90)
Weighted average number of common shares outstanding (Basic and Diluted)	23,788	10,273	23,786	7,569

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net loss	$ (4,416)	$ (6,917)	$ (11,430)	$ (17,550)
Other comprehensive loss
Foreign currency translation	0	(75)	0	(70)
Comprehensive loss	$ (4,416)	$ (6,992)	$ (11,430)	$ (17,620)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating activities:
Net loss	$ (11,430)	$ (17,550)
Adjustments to reconcile net loss to net cash used for operating activities:
Depreciation and amortization	1,182	496
Stock compensation expense	2,188	653
Change in fair value of warrants	(256)	155
Asset retirement obligation	(267)	0
Inventory provision	621	55
Bargain purchase gain	0	(3,634)
Foreign currency translation gain	5	(154)
Gain on sales of fixed assets	(35)	0
Changes in operating assets and liabilities:
Inventory	(339)	434
Accounts receivable	552	(3,930)
Other current assets	521	(855)
Accounts payable	(899)	(69)
Accrued expenses	(1,109)	1,071
Verigen liability payment	0	3,158
Restructuring reserve	0	1,004
Other non-current assets and liabilities, net	(43)	0
Net cash used for operating activities	(9,309)	(19,166)
Investing activities:
Acquisition of CTRM business, net of cash acquired	0	(1,450)
Expenditures for property, plant and equipment	(2,330)	(82)
Other	35	0
Net cash (used for) provided by investing activities	(2,295)	(1,532)
Financing activities:
Net proceeds from issuance of common stock and warrants	11	50,236
Payments on long-term debt	(26)	(6)
Net cash provided by (used in) financing activities	(15)	50,230
Effect of exchange rate changes on cash	0	(13)
Net (decrease) increase in cash	(11,619)	29,519
Cash at beginning of period	30,343	8,059
Cash at end of period	18,724	37,578
Supplemental cash flow information (non-cash):
Acquisition of business through issuance of promissory note	0	2,500
Additions to equipment in process included in accounts payable	65	0
Warrants exchanged for common stock	0	965
Equipment acquired under capital lease obligations	$ 0	$ 153

ORGANIZATION

ORGANIZATION	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION	Organization Vericel Corporation a Michigan corporation, which was formerly known as Aastrom Biosciences, Inc. (the Company, Vericel, we, us or our), was incorporated in March 1989 and began employee-based operations in 1991. On May 30, 2014, Vericel completed the acquisition of certain assets and assumed certain liabilities of Sanofi, a French société anonyme (Sanofi), including all of the outstanding equity interests of Genzyme Biosurgery ApS (Genzyme Denmark or the Danish subsidiary) (now known as Vericel Denmark ApS), a wholly-owned subsidiary of Sanofi, and over 250 patents and patent applications of Sanofi and certain of its subsidiaries for purposes of acquiring the portion of the cell therapy and regenerative medicine business (the CTRM Business), which researches, develops, manufactures, markets and sells the Carticel ® , MACI™, and Epicel ® products. The Company is a fully integrated, commercial-stage biopharmaceutical company dedicated to the identification, development and commercialization of innovative therapies that enable the body to repair and regenerate damaged tissues and organs to restore normal structure and function. Vericel has marketed products as well as developmental stage product candidates and the Company’s goal is to become the leader in cell therapy and regenerative medicine by developing, manufacturing and marketing best-in-class therapies for patients with significant unmet medical needs. The Company operates its business primarily in the U.S. in one reportable segment — the research, product development, manufacture and distribution of patient-specific, expanded cellular therapies for use in the treatment of specific 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.

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2015
BASIS OF PRESENTATION
BASIS OF PRESENTATION	Basis of Presentation The condensed consolidated financial statements included herein have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (SEC). The preparation of condensed consolidated financial statements in conformity with generally accepted accounting principles in the United States of America (U.S. GAAP) requires management to make estimates, judgments, and assumptions that may affect the reported amounts of assets, liabilities, equity, revenues and expenses. Certain information and footnote disclosures normally included in financial statements prepared in accordance with 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 and nine months ended September 30, 2015 , are not necessarily indicative of the results to be expected for the full year or for any other period. The December 31, 2014 condensed consolidated balance sheet data was derived from the Company’s 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 year ended December 31, 2014 , as filed with the SEC on March 25, 2015 (Annual Report). The condensed consolidated financial statements include the accounts of Vericel and its wholly-owned subsidiaries, Marrow Donation, LLC, located in San Diego, California, and Vericel Denmark ApS, in Kastrup, Demark (collectively, the Company). All inter-company transactions and accounts have been eliminated in consolidation. Aastrom Biosciences GmbH ceased operations in 2014.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	Recent Accounting Pronouncements Revenue Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued authoritative guidance requiring entities to apply a new model for recognizing revenue from contracts with customers. The guidance will supersede the current revenue recognition guidance and require entities to evaluate their revenue recognition arrangements using a five step model to determine when a customer obtains control of a transferred good or service. The guidance is currently effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted for annual reporting periods beginning after December 15, 2016, and may be adopted using a full or modified retrospective application. The Company is currently in the process of evaluating its revenue arrangements under the issued guidance and has not yet determined the impact to its consolidated financial statements.

ACQUISITIONS

ACQUISITIONS	9 Months Ended
	Sep. 30, 2015
Business Combinations [Abstract]
ACQUISITIONS	Acquisitions CTRM Business acquisition On May 30, 2014, Vericel completed its acquisition of certain assets of Sanofi, including all of the outstanding equity interests of Genzyme Denmark, a wholly-owned subsidiary of Sanofi, and over 250 patents and patent applications and assumed certain liabilities for purposes of acquiring portions of the CTRM Business. Vericel is a leader in developing patient-specific expanded cellular therapies for use in the treatment of patients with severe diseases and conditions. The CTRM Business, also a leader in developing patient-specific expanded cellular therapies, expands the Company’s portfolio of cellular therapies to include products which treat severe burns and as well as cartilage defects. The CTRM Business is a commercial business, with manufacturing, marketing and sales capabilities. Pursuant to the terms of the asset purchase agreement, the Company paid a total purchase price of $6.5 million , including $4.0 million in cash and a $2.5 million promissory note which was repaid on July 30, 2014. The total purchase price consideration was as follows: Acquisition consideration (In thousands): Fair Value Cash payment $ 4,000 Promissory note 2,500 Total acquisition consideration $ 6,500 The Company recognized tangible and intangible assets and liabilities acquired based upon their respective estimated fair values as of the acquisition date. The table below shows the fair values assigned to the assets acquired and liabilities assumed. Based on this analysis, the transaction resulted in a bargain purchase gain. The final purchase price allocation is as follows: Purchase price allocation (In thousands): Fair Value Cash $ 5,050 Accounts receivable 53 Inventory 2,039 Other current assets 192 Accounts payable and accrued expenses (939 ) Asset retirement obligation (1,600 ) Property and equipment 1,818 Intangible assets 3,360 Bargain purchase gain (3,473 ) Total consideration $ 6,500 As part of the acquisition, $5.0 million in cash was received from Sanofi in order to fund the restructuring of the Denmark operations and close the facility. In 2014, the Company implemented its restructuring plans for the Danish subsidiary after the consummation of the acquisition of the CTRM Business and recorded restructuring charges in the US and Denmark of $3.0 million and do not expect to incur additional costs. See Note 7 “Restructuring” below for additional information. The intangible assets acquired represent commercial use rights for certain products acquired in the transaction. This fair value of $3.4 million was determined using the income approach based on projected cash flows attributed to the commercial rights. The calculated value of the commercial rights intangible assets are amortized using the straight line method over an estimated useful life of 12 years .

SELECTED BALANCE SHEET COMPONEN

SELECTED BALANCE SHEET COMPONENTS	9 Months Ended
	Sep. 30, 2015
Balance Sheet Related Disclosures [Abstract]
SELECTED BALANCE SHEET COMPONENTS	Selected Balance Sheet Components Inventory as of September 30, 2015 and December 31, 2014 : (In thousands) September 30, 2015 December 31, 2014 Raw materials $ 1,273 $ 1,078 Work-in-process 202 458 Finished goods 164 384 $ 1,639 $ 1,920 Property and equipment, net as of September 30, 2015 and December 31, 2014 : (In thousands) September 30, 2015 December 31, 2014 Machinery and equipment $ 3,280 $ 3,135 Furniture, fixtures and office equipment 931 777 Computer equipment and software 2,631 667 Leasehold improvements 2,380 1,691 Construction in process 391 1,019 Total property and equipment, gross 9,613 7,289 Less: Accumulated depreciation (5,298 ) (4,397 ) $ 4,315 $ 2,892 Depreciation expense for the three and nine months ended September 30, 2015 was $0.4 million and $1.0 million , respectively, compared to $0.2 million and $0.4 million , respectively, for the same periods in 2014. Intangible assets, net as of September 30, 2015 and December 31, 2014 : (In thousands) September 30, 2015 December 31, 2014 Commercial rights $ 3,360 $ 3,360 Less: Accumulated amortization (373 ) (163 ) $ 2,987 $ 3,197 Amortization expense was $0.1 million and $0.2 million for the three and nine months ended September 30, 2015 , respectively, compared to less than $0.1 million and $0.1 million for the three and nine months ended September 30, 2014 , respectively. Estimated future amortization expense is as follows: Calendar Years Ending December 31, (In thousands) 2015 $ 70 2016 280 2017 280 2018 280 2019 280 Thereafter 1,797 Total $ 2,987 Accrued expenses as of September 30, 2015 and December 31, 2014 : (In thousands) September 30, 2015 December 31, 2014 Bonus $ 1,483 $ 2,044 Employee related accruals 1,340 1,281 Accrued expenses 85 605 Asset retirement obligation (a) 53 348 Other 350 436 $ 3,311 $ 4,714 (a) The reduction in the asset retirement obligation is based on final estimate of the obligation to restore the Denmark facility to its original state. Accumulated other comprehensive loss in 2014 consisted entirely of foreign currency translation activity. Foreign currency translation loss recorded in 2014 was the result of the weakening U.S. dollar and its impact on intercompany balances with the Denmark subsidiary. No changes related to unrealized gains or losses in foreign currency translation were recorded during the three and nine months ended September 30, 2015 due to a change in the functional currency of the Denmark subsidiary from the Danish Krone to the U.S. dollar.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	Stock-based Compensation The Company can issue nonqualified and incentive stock options as well as other equity awards pursuant to its Amended and Restated 2009 Omnibus Incentive Plan, (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 three and nine months ended September 30, 2015 , the Company granted 162,250 and 2,181,100 service-based options to purchase common stock, respectively. The options were granted with exercise prices equal to the fair market value of the Company’s stock at the grant date; and other than those granted to non-employee directors, generally vest over four years , under a graded-vesting methodology, following the date of grant, and expire after ten years . The Company issues new shares upon the exercise of stock options. The weighted average grant-date fair value of service-based options granted under the Option Plan during the three months ended September 30, 2015 was $2.26 . There were no service-based options granted for the three months ended September 30, 2014. The weighted average grant-date fair value of service-based options granted under the Option Plan during the nine months ended September 30, 2015 and 2014 was $2.23 and $2.85 , respectively. The net compensation expense recorded for the service-based stock options related to employees and directors was $0.6 million and $2.2 million for the three and nine months ended September 30, 2015 and $0.2 million and $0.7 million for the three and nine months ended September 30, 2014 , respectively. The compensation cost includes forfeiture adjustments. 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 2015 2014 Expected dividend yield — % — % Expected stock price volatility 77.6 – 88.1% 82.4 – 88.2% Risk-free interest rate 1.5 – 2.0% 1.7 – 2.2% Expected life (years) 5.5 – 6.3 5.5 – 6.3 The following table summarizes the activity for service-based stock options for the indicated periods: Service-Based Stock Options Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at December 31, 2014 477,530 $ 21.74 8.0 $ — Granted 2,181,100 $ 3.12 Exercised 3,566 $ 3.02 $ 1,343 Expired 13,217 $ 40.89 Forfeited 125,326 $ 3.41 Outstanding at September 30, 2015 2,516,521 $ 6.44 9.0 $ 240 Exercisable at September 30, 2015 537,756 $ 16.72 8.0 $ — As of September 30, 2015 there was approximately $3.2 million 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 3.2 years. The total fair value of options vested during the nine months ended September 30, 2015 and 2014 was $1.3 million for both periods. In addition, our board of directors and shareholders approved the Vericel Corporation Employee Stock Purchase Plan (ESPP), which we implemented effective October 1, 2015 for the first offering period. The ESPP allows for the issuance of an aggregate of 1,000,000 shares of our common stock. Participation in this plan is available to substantially all full-time employees.

RESTRUCTURING

RESTRUCTURING	9 Months Ended
	Sep. 30, 2015
Restructuring and Related Activities [Abstract]
RESTRUCTURING	Restructuring In June 2014, the Company announced a strategic plan to maximize the profitability and growth potential of the CTRM Business (the Plan). Under the Plan, the Company discontinued manufacturing MACI in Denmark, temporarily suspended sales of MACI in Europe, and significantly reduced research and development expenses associated with MACI. Furthermore, the Company eliminated approximately 80 full time employee positions, which represented approximately 30% of the Company’s current total workforce. Employees terminated as part the Plan were provided with severance payments and outplacement assistance. As a result of the Plan, the Company recorded a restructuring charge of $0.1 million and $3.1 million for the three and nine months ended September 30, 2014 , related to the operations in the United States and Denmark, primarily representing cash payments for severance and other personnel-related expenses. Of the total restructuring charge, $2.5 million was recorded in cost of product sales, and $0.6 million was recorded in selling, general and administrative expenses. There was no restructuring reserve as of September 30, 2015 as a result of cash payments made for severance and other personnel-related expenses.

STOCK PURCHASE WARRANTS

STOCK PURCHASE WARRANTS	9 Months Ended
	Sep. 30, 2015
Warrants and Rights Note Disclosure [Abstract]
STOCK PURCHASE WARRANTS	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, 2015 , 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 other income or expense (non-cash) in the Company’s statement of operations in each subsequent period: December 2010 Warrants August 2013 Warrants Exercise price $ 2.55 $ 4.80 Expiration date December 15, 2015 August 16, 2018 Total shares issuable on exercise 15,405 724,950 In July 2015, the January 2010 Class A warrants convertible into 226,299 shares of common stock expired unexercised. The fair values of the remaining two classes of warrants are measured using the Black-Scholes valuation model. Inherent in the Black-Scholes 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 yield is based on the historical rate, which the Company anticipates to remain at zero . The assumptions used by the Company are summarized in the following tables: December 2010 Warrants September 30, 2015 December 31, 2014 Closing stock price $ 2.71 $ 3.04 Expected dividend yield — — Expected stock price volatility 32.8 % 99.7 % Risk-free interest rate — % 0.2 % Expected life (years) 0.21 0.96 August 2013 Warrants September 30, 2015 December 31, 2014 Closing stock price $ 2.71 $ 3.04 Expected dividend yield — — Expected stock price volatility 87.9 % 83.2 % Risk-free interest rate 0.9 % 1.2 % Expected life (years) 2.88 3.63

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	Fair Value Measurements The Company’s fair value measurements are classified and disclosed in one of the following three categories: • 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; and • 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). For the nine months ended September 30, 2015 and year-ended December 31, 2014 , there were no transfers between levels. The following table summarizes the valuation of the Company’s investments and financial instruments that are measured at fair value on a recurring basis: September 30, 2015 December 31, 2014 Fair value measurement category Fair value measurement category (In thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Liabilities: Warrant liabilities $ 825 $ — $ 821 $ 4 $ 1,081 $ — $ 1,061 $ 20 The following table summarizes the change in the estimated fair value of the Company’s warrant liabilities: Warrant Liabilities (In thousands) Balance at December 31, 2014 $ 1,081 Decrease in fair value (256 ) Balance at September 30, 2015 $ 825 A reconciliation of beginning and ending balances for the Company’s fair value measurements using Level 3 inputs is as follows: (In thousands) September 30, 2015 Balance at December 31, 2014 $ 20 Decrease in fair value (16 ) Balance at September 30, 2015 $ 4

PREFERRED STOCK

PREFERRED STOCK	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
PREFERRED STOCK	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 5 years anniversary of the closing of the offering, (the Conversion date) into shares of common stock at a conversion price of $3.25 per share of common stock. At any time after the Conversion date, 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. Stock 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 Conversion date. As of September 30, 2015 , there are approximately 311,455 shares of accumulated but undeclared Series B-1 Stock dividends. This increases the net loss attributable to common shareholders in the net loss per common share for the three and nine months ended September 30, 2015 by $1.7 million and $5.0 million , respectively. 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 Conversion date, 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 accumulated deficit 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 years 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 years 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 $38.4 million Series B preferred stock was reclassified from mezzanine into shareholders’ equity.

NET LOSS PER COMMON SHARE

NET LOSS PER COMMON SHARE	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
NET LOSS PER COMMON SHARE	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: Three Months Ended September 30, Nine Months Ended September 30, (Amounts In thousands except per share amounts) 2015 2014 2015 2014 Numerator: Net loss $ (4,416 ) $ (6,917 ) $ (11,430 ) $ (17,550 ) Less: dividends accumulated on convertible preferred stock 1,721 1,534 4,965 4,426 Numerator of basic and diluted EPS $ (6,137 ) $ (8,451 ) $ (16,395 ) $ (21,976 ) Denominator: Denominator for basic and diluted EPS: Weighted-average common shares outstanding 23,788 10,273 23,786 7,569 Net loss per share attributable to common shareholders (basic and diluted) $ (0.26 ) $ (0.82 ) $ (0.69 ) $ (2.90 ) 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, 2015 and 2014 were 4.2 million and 2.3 million , respectively.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2015
Stockholders' Equity Note [Abstract]
SHAREHOLDERS' EQUITY	Shareholders' Equity On January 21, 2014, the Company entered into a purchase agreement (Purchase Agreement), together with a registration rights agreement, for the sale of up to $15.0 million of shares of its common stock to Lincoln Park, subject to certain limitations, from time to time over a 30 months period, which began on April 3, 2014 and ends on October 3, 2016. 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. The remaining capacity under this agreement is $11.3 million . At September 30, 2015 there was approximately $7.8 million of net capacity remaining on the At-the-Market Sales Agreement with MLV & Co. LLC (formerly McNicoll, Lewis & Vlak) which allowed us to sell shares of our common stock from time to time under a registration statement on Form S-3 filed in June 2011, pursuant to which we registered $100 million of our securities for public sale. The Form S-3 registration statement filed in June 2011 expired in July 2014.

CONCENTRATION OF CREDIT RISK

CONCENTRATION OF CREDIT RISK	9 Months Ended
	Sep. 30, 2015
Risks and Uncertainties [Abstract]
CONCENTRATION OF CREDIT RISK	Concentration of Credit Risk Revenue from one customer, a distributor in the U.S., represented approximately 66% and 75% of total revenue during the nine months ended September 30, 2015 and 2014, respectively, and 67% and 75% for the three months ended September 30, 2015 and 2014, respectively. Accounts receivable from the same customer accounted for 66% and 70% of the outstanding accounts receivable as of September 30, 2015 and December 31, 2014, respectively. The next largest customer represented approximately 14% of revenue for the nine months ended September 30, 2015 . No other customer accounted for more than 10% of revenue for the three months ended September 30, 2015 or for any period in 2014.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	Commitments and Contingencies The Company leases facilities in Ann Arbor, Michigan; Cambridge, Massachusetts and Kastrup, Denmark. In March 2015, the Company amended a portion of the property lease in Ann Arbor which is reflected in the future minimum payments below. In addition to the property leases, the Company also leases various vehicles and computer equipment. As of September 30, 2015 , future minimum payments related to leases are as follows: (In thousands) Total 2015 2016 2017 2018 More than 5 Years Operating leases $ 6,916 $ 1,006 $ 4,113 $ 1,450 $ 347 $ — Capital leases 129 11 43 43 32 — Total $ 7,045 $ 1,017 $ 4,156 $ 1,493 $ 379 $ — Rent expense for the three and nine months ended September 30, 2015 was $1.3 million and $3.8 million , respectively, compared to $1.4 million and $2.2 million for the same periods in 2014.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	Subsequent Events On October 26, 2015, the Company signed a long-term supply agreement with Matricel GmbH for the ACI-Maix collagen membrane used in the manufacture of MACI™. Matricel supplied ACI-Maix membranes used in the production of MACI when it was previously marketed outside the U.S. by Genzyme Corporation, a Sanofi company. Under the agreement, the Company has committed to purchase $0.3 million of material in 2016. In the event that the Biologics License Application is approved for MACI, annual purchase commitments would equal approximately $0.6 million per year. The agreement is effective until December 31, 2022 and contains a 5 -year renewal option by the Company and an additional 5 -year automatic renewal, unless otherwise terminated.

RECENT ACCOUNTING PRONOUNCEME22

RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Revenue Recognition	Revenue Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued authoritative guidance requiring entities to apply a new model for recognizing revenue from contracts with customers. The guidance will supersede the current revenue recognition guidance and require entities to evaluate their revenue recognition arrangements using a five step model to determine when a customer obtains control of a transferred good or service. The guidance is currently effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted for annual reporting periods beginning after December 15, 2016, and may be adopted using a full or modified retrospective application. The Company is currently in the process of evaluating its revenue arrangements under the issued guidance and has not yet determined the impact to its consolidated financial statements.

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	9 Months Ended
	Sep. 30, 2015
Business Combinations [Abstract]
Schedule of total purchase price allocation	The total purchase price consideration was as follows: Acquisition consideration (In thousands): Fair Value Cash payment $ 4,000 Promissory note 2,500 Total acquisition consideration $ 6,500
Schedule of preliminary purchase price allocation	The final purchase price allocation is as follows: Purchase price allocation (In thousands): Fair Value Cash $ 5,050 Accounts receivable 53 Inventory 2,039 Other current assets 192 Accounts payable and accrued expenses (939 ) Asset retirement obligation (1,600 ) Property and equipment 1,818 Intangible assets 3,360 Bargain purchase gain (3,473 ) Total consideration $ 6,500

SELECTED BALANCE SHEET COMPON24

SELECTED BALANCE SHEET COMPONENTS (Tables)	9 Months Ended
	Sep. 30, 2015
Balance Sheet Related Disclosures [Abstract]
Schedule of inventory	Inventory as of September 30, 2015 and December 31, 2014 : (In thousands) September 30, 2015 December 31, 2014 Raw materials $ 1,273 $ 1,078 Work-in-process 202 458 Finished goods 164 384 $ 1,639 $ 1,920
Schedule of property and equipment, net	Property and equipment, net as of September 30, 2015 and December 31, 2014 : (In thousands) September 30, 2015 December 31, 2014 Machinery and equipment $ 3,280 $ 3,135 Furniture, fixtures and office equipment 931 777 Computer equipment and software 2,631 667 Leasehold improvements 2,380 1,691 Construction in process 391 1,019 Total property and equipment, gross 9,613 7,289 Less: Accumulated depreciation (5,298 ) (4,397 ) $ 4,315 $ 2,892
Schedule of intangible assets, net	Intangible assets, net as of September 30, 2015 and December 31, 2014 : (In thousands) September 30, 2015 December 31, 2014 Commercial rights $ 3,360 $ 3,360 Less: Accumulated amortization (373 ) (163 ) $ 2,987 $ 3,197
Schedule of estimated future amortization expense	Estimated future amortization expense is as follows: Calendar Years Ending December 31, (In thousands) 2015 $ 70 2016 280 2017 280 2018 280 2019 280 Thereafter 1,797 Total $ 2,987
Schedule of accounts payable and accrued expenses	Accrued expenses as of September 30, 2015 and December 31, 2014 : (In thousands) September 30, 2015 December 31, 2014 Bonus $ 1,483 $ 2,044 Employee related accruals 1,340 1,281 Accrued expenses 85 605 Asset retirement obligation (a) 53 348 Other 350 436 $ 3,311 $ 4,714 (a) The reduction in the asset retirement obligation is based on final estimate of the obligation to restore the Denmark facility to its original state.

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of weighted average assumptions used to estimate fair value of each service-based stock option grant	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 2015 2014 Expected dividend yield — % — % Expected stock price volatility 77.6 – 88.1% 82.4 – 88.2% Risk-free interest rate 1.5 – 2.0% 1.7 – 2.2% Expected life (years) 5.5 – 6.3 5.5 – 6.3
Summary of activity for service-based stock options	The following table summarizes the activity for service-based stock options for the indicated periods: Service-Based Stock Options Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at December 31, 2014 477,530 $ 21.74 8.0 $ — Granted 2,181,100 $ 3.12 Exercised 3,566 $ 3.02 $ 1,343 Expired 13,217 $ 40.89 Forfeited 125,326 $ 3.41 Outstanding at September 30, 2015 2,516,521 $ 6.44 9.0 $ 240 Exercisable at September 30, 2015 537,756 $ 16.72 8.0 $ —

STOCK PURCHASE WARRANTS (Tables

STOCK PURCHASE WARRANTS (Tables)	9 Months Ended
	Sep. 30, 2015
Warrants and Rights Note Disclosure [Abstract]
Schedule of warrants outstanding	The following warrants were outstanding at September 30, 2015 , 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 other income or expense (non-cash) in the Company’s statement of operations in each subsequent period: December 2010 Warrants August 2013 Warrants Exercise price $ 2.55 $ 4.80 Expiration date December 15, 2015 August 16, 2018 Total shares issuable on exercise 15,405 724,950
Schedule of assumptions used in calculating estimated fair value of warrants	The assumptions used by the Company are summarized in the following tables: December 2010 Warrants September 30, 2015 December 31, 2014 Closing stock price $ 2.71 $ 3.04 Expected dividend yield — — Expected stock price volatility 32.8 % 99.7 % Risk-free interest rate — % 0.2 % Expected life (years) 0.21 0.96 August 2013 Warrants September 30, 2015 December 31, 2014 Closing stock price $ 2.71 $ 3.04 Expected dividend yield — — Expected stock price volatility 87.9 % 83.2 % Risk-free interest rate 0.9 % 1.2 % Expected life (years) 2.88 3.63

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Summary of valuation of the Company's investments and financial instruments that are measured at fair value on a recurring basis	The following table summarizes the valuation of the Company’s investments and financial instruments that are measured at fair value on a recurring basis: September 30, 2015 December 31, 2014 Fair value measurement category Fair value measurement category (In thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Liabilities: Warrant liabilities $ 825 $ — $ 821 $ 4 $ 1,081 $ — $ 1,061 $ 20
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: Warrant Liabilities (In thousands) Balance at December 31, 2014 $ 1,081 Decrease in fair value (256 ) Balance at September 30, 2015 $ 825
Schedule of reconciliation of beginning and ending balances for the Company's fair value measurements using Level 3 inputs	A reconciliation of beginning and ending balances for the Company’s fair value measurements using Level 3 inputs is as follows: (In thousands) September 30, 2015 Balance at December 31, 2014 $ 20 Decrease in fair value (16 ) Balance at September 30, 2015 $ 4

NET LOSS PER COMMON SHARE (Tabl

NET LOSS PER COMMON SHARE (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
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	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: Three Months Ended September 30, Nine Months Ended September 30, (Amounts In thousands except per share amounts) 2015 2014 2015 2014 Numerator: Net loss $ (4,416 ) $ (6,917 ) $ (11,430 ) $ (17,550 ) Less: dividends accumulated on convertible preferred stock 1,721 1,534 4,965 4,426 Numerator of basic and diluted EPS $ (6,137 ) $ (8,451 ) $ (16,395 ) $ (21,976 ) Denominator: Denominator for basic and diluted EPS: Weighted-average common shares outstanding 23,788 10,273 23,786 7,569 Net loss per share attributable to common shareholders (basic and diluted) $ (0.26 ) $ (0.82 ) $ (0.69 ) $ (2.90 )

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of future minimum payments related to leases	As of September 30, 2015 , future minimum payments related to leases are as follows: (In thousands) Total 2015 2016 2017 2018 More than 5 Years Operating leases $ 6,916 $ 1,006 $ 4,113 $ 1,450 $ 347 $ — Capital leases 129 11 43 43 32 — Total $ 7,045 $ 1,017 $ 4,156 $ 1,493 $ 379 $ —

ORGANIZATION (Details)

ORGANIZATION (Details)	9 Months Ended
	Sep. 30, 2015segment	May. 30, 2014patent
Organization
Number of reportable segments	1
CTRM Business
Organization
Number of patents and patents applications acquired | patent		250

ACQUISITIONS (Details)

ACQUISITIONS (Details) $ in Thousands	May. 30, 2014USD ($)patent	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Total purchase price allocation
Asset retirement obligation		$ (53)		$ (53)		$ (348)
Bargain purchase gain		0	$ 0	0	$ (3,634)
Identifiable intangible assets acquired and their estimated useful lives
Restructuring expenses		$ 100		$ 3,100
CTRM Business
Acquisitions
Number of patents and patents applications acquired | patent	250
Total purchase price consideration
Cash payment	$ 4,000
Promissory note	2,500
Total acquisition consideration	6,500
Total purchase price allocation
Cash	5,050
Accounts receivable	53
Inventory	2,039
Other current assets	192
Accounts payable and accrued expenses	(939)
Asset retirement obligation	(1,600)
Property and equipment	1,818
Intangible assets	3,360
Bargain purchase gain	(3,473)
Total consideration	$ 6,500
Identifiable intangible assets acquired and their estimated useful lives
Restructuring expenses						$ 3,000
CTRM Business | Commercial rights
Identifiable intangible assets acquired and their estimated useful lives
Useful Life	12 years
CTRM Business | Sanofi | Denmark
Identifiable intangible assets acquired and their estimated useful lives
Cash received in order to fund the restructuring of the Denmark operations and close the facility	$ 5,000

SELECTED BALANCE SHEET COMPON32

SELECTED BALANCE SHEET COMPONENTS - INVENTORY (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Inventory:
Raw materials	$ 1,273	$ 1,078
Work-in-process	202	458
Finished goods	164	384
Inventory	$ 1,639	$ 1,920

SELECTED BALANCE SHEET COMPON33

SELECTED BALANCE SHEET COMPONENTS - PROPERTY PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Property and equipment, net:
Amortization of Intangible Assets	$ 100		$ 200
Total property and equipment, gross	9,613		9,613		$ 7,289
Less: Accumulated depreciation	(5,298)		(5,298)		(4,397)
Total, net	4,315		4,315		2,892
Depreciation	400	$ 200	1,000	$ 400
Equipment and computers
Property and equipment, net:
Total property and equipment, gross	3,280		3,280		3,135
Furniture and fixtures
Property and equipment, net:
Total property and equipment, gross	931		931		777
Computer Equipment
Property and equipment, net:
Total property and equipment, gross	2,631		2,631		667
Building improvements and leasehold improvements
Property and equipment, net:
Total property and equipment, gross	2,380		2,380		1,691
Construction in progress
Property and equipment, net:
Total property and equipment, gross	$ 391		$ 391		$ 1,019

SELECTED BALANCE SHEET COMPON34

SELECTED BALANCE SHEET COMPONENTS - INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Balance Sheet Related Disclosures [Abstract]
Amortization of Intangible Assets	$ 100		$ 200
Immaterial amortization amount (less than $0.1 million)		$ 100		$ 100
Intangible assets, net
Total	2,987		2,987
Estimated future amortization expense
2,015	70		70
2,016	280		280
2,017	280		280
2,018	280		280
2,019	280		280
Thereafter	1,797		1,797
Total	2,987		2,987
Commercial rights
Intangible assets, net
Commercial rights	3,360		3,360		$ 3,360
Less: Accumulated amortization	(373)		(373)		(163)
Total	2,987		2,987		3,197
Estimated future amortization expense
Total	$ 2,987		$ 2,987		$ 3,197

SELECTED BALANCE SHEET COMPON35

SELECTED BALANCE SHEET COMPONENTS - ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Accounts payable and accrued expenses:
Bonus	$ 1,483	$ 2,044
Employee related accruals	1,340	1,281
Accrued expenses	85	605
Asset retirement obligation	53	348
Other	350	436
Total	$ 3,311	$ 4,714

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Oct. 01, 2015
Service-based stock options
Stock-Based Compensation
Vesting period					4 years
Expiration period					10 years
Grant date fair value			$ 2.26		$ 2.23	$ 2.85
Net compensation expense related to employees and directors (in dollars)			$ 600	$ 200	$ 2,200	$ 700
Weighted average assumptions used to estimate fair value of each service-based stock option grant
Expected dividend yield (as a percent)					0.00%	0.00%
Options
Outstanding at the beginning of the period (in shares)					477,530
Granted (in shares)			162,250		2,181,100
Exercised (in shares)					3,566
Expired (in shares)					(13,217)
Forfeited (in shares)					(125,326)
Outstanding at the end of the period (in shares)	2,516,521	477,530	2,516,521		2,516,521
Exercisable at the end of the period (in shares)	537,756		537,756		537,756
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)					$ 21.74
Granted (in dollars per share)					3.12
Exercised (in dollars per share)					3.02
Expired (in dollars per share)					40.89
Forfeited (in dollars per share)					3.41
Outstanding at the end of the period (in dollars per share)	$ 6.44	$ 21.74	$ 6.44		6.44
Exercisable at the end of the period (in dollars per share)	$ 16.72		$ 16.72		$ 16.72
Weighted Average Remaining Contractual Term (Years)
Outstanding at the beginning of the period	9 years 1 day	8 years 15 days
Exercisable at the end of the period	8 years 15 days
Aggregate Intrinsic Value
Exercised					$ 1,343
Outstanding at the end of the period	$ 240		$ 240		240
Exercisable at end of period	0		0		0
Additional disclosures
Total unrecognized compensation cost (in dollars)	$ 3,200		$ 3,200		$ 3,200
Weighted average period over which unrecognized compensation is expected to be recognized (in years)					3 years 2 months 12 days
Total fair value of options vested (in dollars)					$ 1,300	$ 1,300
Service-based stock options | Minimum
Weighted average assumptions used to estimate fair value of each service-based stock option grant
Expected stock price volatility (as a percent)					77.60%	82.40%
Risk-free interest rate (as a percent)					1.50%	1.70%
Expected life (in years)					5 years 6 months	5 years 6 months
Service-based stock options | Maximum
Weighted average assumptions used to estimate fair value of each service-based stock option grant
Expected stock price volatility (as a percent)					88.10%	88.20%
Risk-free interest rate (as a percent)					2.00%	2.20%
Expected life (in years)					6 years 3 months 18 days	6 years 3 months 18 days
Subsequent Event | Employee stock
Additional disclosures
Aggregate shares available for issuance under the Employee Stock Purchase Plan (in shares)							1,000,000

RESTRUCTURING (Details)

RESTRUCTURING (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2014position
Restructuring and Related Activities [Abstract]
Number of full time employee positions eliminated | position			80
Percentage of full time employee positions eliminated			30.00%
Restructuring
Restructuring charge	$ 100,000	$ 3,100,000
Restructuring reserve related to severance payments	$ 0	0
Cost of product sales
Restructuring
Restructuring charge		2,500,000
Selling, general and administrative expenses
Restructuring
Restructuring charge		$ 600,000

STOCK PURCHASE WARRANTS (Detail

STOCK PURCHASE WARRANTS (Details) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014	Jul. 31, 2015
December 2010 Warrants
Stock Purchase Warrants
Exercise price per share (in dollars per share)	$ 2.55
Total shares issuable on exercise	15,405
Assumptions used in calculating the estimated fair value of the warrants
Closing stock price (in dollars per share)	$ 2.71	$ 3.04
Expected dividend rate (as a percent)	0.00%	0.00%
Expected stock price volatility (as a percent)	32.80%	99.70%
Risk-free interest rate (as a percent)	0.00%	0.20%
Expected life (in years)	2 months 16 days	11 months 16 days
August 2013 warrants
Stock Purchase Warrants
Exercise price per share (in dollars per share)	$ 4.80
Total shares issuable on exercise	724,950		226,299
Assumptions used in calculating the estimated fair value of the warrants
Closing stock price (in dollars per share)	$ 2.71	$ 3.04
Expected dividend rate (as a percent)	0.00%	0.00%
Expected stock price volatility (as a percent)	87.90%	83.20%
Risk-free interest rate (as a percent)	0.90%	1.20%
Expected life (in years)	2 years 10 months 17 days	3 years 7 months 17 days

FAIR VALUE MEASUREMENTS - RECUR

FAIR VALUE MEASUREMENTS - RECURRING BASIS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Liabilities that are measured at fair value on a recurring basis
Warrant liabilities	$ 825		$ 1,081
Change in the estimated fair value of warrant liabilities
Balance at December 31, 2014			1,081
Decrease in fair value	(461)	$ (949)	(256)	$ 155
Balance at September 30, 2015	825		825
Recurring
Liabilities that are measured at fair value on a recurring basis
Warrant liabilities	825		1,081
Change in the estimated fair value of warrant liabilities
Balance at December 31, 2014			1,081
Balance at September 30, 2015	825		825
Recurring | Level 2
Liabilities that are measured at fair value on a recurring basis
Warrant liabilities	821		1,061
Change in the estimated fair value of warrant liabilities
Balance at December 31, 2014			1,061
Balance at September 30, 2015	821		821
Recurring | Level 3
Liabilities that are measured at fair value on a recurring basis
Warrant liabilities	4		20
Change in the estimated fair value of warrant liabilities
Balance at December 31, 2014			20
Balance at September 30, 2015	$ 4		$ 4

FAIR VALUE MEASUREMENTS - LEVEL

FAIR VALUE MEASUREMENTS - LEVEL 3 INPUTS (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance at December 31, 2014	$ 20
Warrant [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Decrease in fair value	(16)
Balance at September 30, 2015	$ 4

PREFERRED STOCK (Details)

PREFERRED STOCK (Details) - USD ($) $ / shares in Units, $ in Thousands	Aug. 12, 2013	Mar. 09, 2012	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Series B Convertible Preferred Stock
Conversion period		5 years
Increase in net loss attributable to common shareholders in net loss per common share			$ 1,721	$ 1,534	$ 4,965	$ 4,426
Series B-1 non-voting convertible preferred stock
Series B Convertible Preferred Stock
Number of shares sold		12,308
Offering price per share (in dollars per share)		$ 3,250
Accumulated but undeclared dividends (in shares)			311,455		311,455
Period of closing of offering after which shares are convertible	5 years
Redemption price (in dollars per share)	$ 7,430
Series B voting convertible preferred stock
Series B Convertible Preferred Stock
Conversion price per share (in dollars per share)		$ 3.25
Percentage of cumulative dividend rate		11.50%
Period of closing of offering after which shares are convertible	5 years
Reclassification of Series B preferred stock	$ 38,400

NET LOSS PER COMMON SHARE (Deta

NET LOSS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Numerator:
Net loss	$ (4,416)	$ (6,917)	$ (11,430)	$ (17,550)
Less: dividends accumulated on convertible preferred stock	1,721	1,534	4,965	4,426
Numerator of basic and diluted EPS	$ (6,137)	$ (8,451)	$ (16,395)	$ (21,976)
Denominator:
Weighted-average common shares outstanding	23,788	10,273	23,786	7,569
Net loss per share attributable to common shareholders (basic and diluted) (in dollars per share)	$ (0.26)	$ (0.82)	$ (0.69)	$ (2.90)
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			4,200	2,300

SHAREHOLDERS' EQUITY (Details)

SHAREHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions	Jan. 21, 2014	Jul. 31, 2011	Sep. 30, 2015
Shareholders' Equity
Amount of net capacity remaining on the ATM			$ 7.8
Common Stock, Value, Registered on Form S-3		$ 100
Lincoln Park
Shareholders' Equity
Period over which shares of common stock to be purchased (in months)	30 months
Floor price for sale of shares of common stock (in dollars per share)	$ 2.50
Value of remaining shares of common stock to be sold	$ 11.3
Lincoln Park | Minimum
Shareholders' Equity
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
Lincoln Park | Maximum
Shareholders' Equity
Value of shares of common stock to be sold	$ 15
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
Period of business days over which purchase price of shares of common stock will be determined	10 days
Threshold on percentage of outstanding shares of the common stock that can be beneficially owned by counterparty	9.99%

CONCENTRATION OF CREDIT RISK (D

CONCENTRATION OF CREDIT RISK (Details) - Customer concentration - customer	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
One distributor in the U.S
CONCENTRATION
Number of customers			1	1
Revenue | One distributor in the U.S
CONCENTRATION
Concentration risk (as a percent)	67.00%	75.00%	66.00%	75.00%
Revenue | Second Largest Customer
CONCENTRATION
Concentration risk (as a percent)			14.00%
Accounts Receivable | One distributor in the U.S
CONCENTRATION
Concentration risk (as a percent)			66.00%	70.00%

COMMITMENTS AND CONTINGENCIES45

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Operating Leases
Total	$ 6,916		$ 6,916
2,015	1,006		1,006
2,016	4,113		4,113
2,017	1,450		1,450
2,018	347		347
More than five years	0		0
Capital Leases
Total	129		129
2,015	11		11
2,016	43		43
2,017	43		43
2,018	32		32
More than five years	0		0
Total
Total	7,045		7,045
2,015	1,017		1,017
2,016	4,156		4,156
2,017	1,493		1,493
2,018	379		379
More than five years	0		0
Rent expense	$ 1,300	$ 1,400	$ 3,800	$ 2,200

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Oct. 26, 2015
Subsequent Event [Line Items]
Purchase commitment, Due in next twelve months	$ 0.3
Purchase commitment, Due in second year	$ 0.6
Purchase commitment, Renewal option (in years)	5 years
Purchase Obligation, Automatic Renewal, Term	5 years
Subsequent Event
Subsequent Event [Line Items]
Purchase commitment, Due in third year		$ 0.6
Purchase commitment, Due in fourth year		0.6
Purchase commitment, Due in fifth year		0.6
Purchase commitment, Due after fifth year		$ 0.6