Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 12, 2014 | Jun. 30, 2012 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'DERMA SCIENCES, INC. | ' | ' |
Entity Central Index Key | '0000892160 | ' | ' |
Trading Symbol | 'DSCI | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Type | '10-K | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 25,131,673 | ' |
Entity Public Float | ' | ' | $188,201,000 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current Assets | ' | ' |
Cash and cash equivalents | $6,501,586 | $41,616,657 |
Short-term investments | 15,478,000 | 3,730,000 |
Accounts receivable, net | 7,332,756 | 7,085,713 |
Inventories | 16,472,640 | 13,670,588 |
Prepaid expenses and other current assets | 3,746,753 | 3,209,031 |
Total current assets | 49,531,735 | 69,311,989 |
Long-term investments | 7,858,140 | 498,000 |
Equipment and improvements, net | 2,953,469 | 3,304,852 |
Identifiable intangible assets, net | 14,635,998 | 17,128,883 |
Goodwill | 13,457,693 | 13,457,693 |
Other assets | 139,318 | 141,213 |
Total Assets | 88,576,353 | 103,842,630 |
Current Liabilities | ' | ' |
Accounts payable | 4,522,508 | 3,993,687 |
Accrued expenses and other current liabilities | 4,969,225 | 4,132,934 |
Total current liabilities | 9,491,733 | 8,126,621 |
Long-term liabilities | 242,325 | 268,517 |
Deferred tax liability | 1,694,147 | 1,736,299 |
Total Liabilities | 11,428,205 | 10,131,437 |
Commitments and Contingencies (note 14) | ' | ' |
Stockholders' Equity | ' | ' |
Convertible preferred stock, $.01 par value; 1,468,750 shares authorized; issued and outstanding 73,332 at December 31, 2013 and December 31, 2012 (liquidation preference of $3,222,368 at December 31, 2013) | 733 | 733 |
Common stock, $.01 par value; 35,000,000 shares authorized; issued and outstanding 17,347,071 at December 31, 2013 and 16,524,723 at December 31, 2012 | 173,471 | 165,247 |
Additional paid-in capital | 140,064,607 | 132,163,083 |
Accumulated other comprehensive income | 1,080,148 | 1,588,888 |
Accumulated deficit | -64,170,811 | -40,206,758 |
Total Stockholders' Equity | 77,148,148 | 93,711,193 |
Total Liabilities and Stockholders' Equity | $88,576,353 | $103,842,630 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Balance Sheets [Abstract] | ' | ' |
Convertible preferred stock, par value per share | $0.01 | $0.01 |
Convertible preferred stock, shares authorized | 1,468,750 | 1,468,750 |
Convertible preferred stock, shares issued | 73,332 | 73,332 |
Convertible preferred stock, shares outstanding | 73,332 | 73,332 |
Convertible preferred stock, liquidation preference | $3,222,368 | ' |
Common stock, par value per share | $0.01 | $0.01 |
Common stock, shares authorized | 35,000,000 | 25,000,000 |
Common stock, shares issued | 17,347,071 | 16,524,723 |
Common stock, shares outstanding | 17,347,071 | 16,524,723 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Consolidated Statements of Comprehensive Loss [Abstract] | ' | ' |
Net Sales | $79,710,980 | $72,648,198 |
Cost of sales | 50,320,506 | 47,507,349 |
Gross Profit | 29,390,474 | 25,140,849 |
Operating Expenses | ' | ' |
Selling, general and administrative | 42,044,484 | 32,485,368 |
Research and development | 11,335,672 | 7,123,123 |
Total operating expenses | 53,380,156 | 39,608,491 |
Operating loss | -23,989,682 | -14,467,642 |
Other income, net | -185,740 | -26,729 |
Loss before income taxes | -23,803,942 | -14,440,913 |
Income tax provision (benefit) | 160,111 | -2,370,482 |
Net Loss | -23,964,053 | -12,070,431 |
Other Comprehensive (Loss) Income | ' | ' |
Foreign currency translation adjustment | -370,880 | 86,357 |
Unrealized loss on equity securities | -137,860 | ' |
Total other comprehensive (loss) income | -508,740 | 86,357 |
Comprehensive Loss | ($24,472,793) | ($11,984,074) |
Net loss per common share - basic and diluted | ($1.40) | ($0.97) |
Shares used in computing net loss per common share - basic and diluted | 17,056,632 | 12,488,263 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Convertible preferred stock [Member] | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit |
Beginning balance at Dec. 31, 2011 | $50,847,534 | $733 | $105,776 | $77,374,821 | $1,502,531 | ($28,136,327) |
Beginning balance, shares at Dec. 31, 2011 | ' | 73,332 | 10,577,632 | ' | ' | ' |
Net loss | -12,070,431 | ' | ' | ' | ' | -12,070,431 |
Foreign currency translation adjustment | 86,357 | ' | ' | ' | 86,357 | ' |
Unrealized loss on investment | ' | ' | ' | ' | ' | ' |
Issuance of common stock, net of issuance costs | 51,461,053 | ' | 56,463 | 51,404,590 | ' | ' |
Issuance of common stock, net of issuance costs, shares | 5,646,300 | ' | 5,646,300 | ' | ' | ' |
Shares withheld for minimum payroll taxes | -80,550 | ' | ' | -80,550 | ' | ' |
Exercise of warrants and options, net of issuance costs | 1,225,620 | ' | 2,552 | 1,223,068 | ' | ' |
Exercise of warrants and options, net of issuance costs, shares | 255,210 | ' | 255,210 | ' | ' | ' |
Vesting of restricted stock units | ' | ' | 431 | -431 | ' | ' |
Vesting of restricted stock units, shares | 43,081 | ' | 43,081 | ' | ' | ' |
Issuance of common stock | ' | ' | 25 | -25 | ' | ' |
Issuance of common stock, shares | 2,500 | ' | 2,500 | ' | ' | ' |
Stock-based compensation | 2,241,610 | ' | ' | 2,241,610 | ' | ' |
Ending balance at Dec. 31, 2012 | 93,711,193 | 733 | 165,247 | 132,163,083 | 1,588,888 | -40,206,758 |
Ending balance, shares at Dec. 31, 2012 | ' | 73,332 | 16,524,723 | ' | ' | ' |
Net loss | -23,964,053 | ' | ' | ' | ' | -23,964,053 |
Foreign currency translation adjustment | -370,880 | ' | ' | ' | -370,880 | ' |
Unrealized loss on investment | -137,860 | ' | ' | ' | -137,860 | ' |
Shares withheld for minimum payroll taxes | -228,149 | ' | ' | -228,149 | ' | ' |
Exercise of warrants and options, net of issuance costs | 2,817,001 | ' | 5,568 | 2,811,433 | ' | ' |
Exercise of warrants and options, net of issuance costs, shares | 556,855 | ' | 556,855 | ' | ' | ' |
Vesting of restricted stock units | ' | ' | 1,210 | -1,210 | ' | ' |
Vesting of restricted stock units, shares | 120,957 | ' | 120,957 | ' | ' | ' |
Issuance of common stock | ' | ' | 45 | -45 | ' | ' |
Issuance of common stock, shares | 4,450 | ' | 4,450 | ' | ' | ' |
Stock-based compensation | 5,320,896 | ' | ' | 5,320,896 | ' | ' |
Preferred stock reset (note 10) | ' | ' | 1,401 | -1,401 | ' | ' |
Preferred stock reset (note 10), shares | 140,086 | ' | 140,086 | ' | ' | ' |
Ending balance at Dec. 31, 2013 | $77,148,148 | $733 | $173,471 | $140,064,607 | $1,080,148 | ($64,170,811) |
Ending balance, shares at Dec. 31, 2013 | ' | 73,332 | 17,347,071 | ' | ' | ' |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Consolidated Statements of Stockholders' Equity [Abstract] | ' | ' |
Issuance of common stock, issuance costs | ' | $4,605,439 |
Exercise of warrants and options, issuance costs | $45,368 | $10,560 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Activities | ' | ' |
Net loss | ($23,964,053) | ($12,070,431) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation of equipment and improvements | 878,151 | 1,021,402 |
Amortization of identifiable intangible assets | 2,842,885 | 2,274,161 |
Provision for bad debts | 43,930 | 49,492 |
Allowance for sales adjustments | 38,257 | 69,091 |
Provision for inventory obsolescence | 7,317 | 350,798 |
Loss on disposal of equipment | 11,917 | 31,424 |
Deferred rent | -13,215 | 9,491 |
Stock based compensation | 5,320,896 | 2,241,610 |
Deferred income taxes | 132,156 | -2,507,355 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -266,828 | -329,962 |
Inventories | -3,042,090 | -3,265,213 |
Prepaid expenses and other current assets | -589,842 | -812,983 |
Other assets | -77,023 | -4,535 |
Accounts payable | 574,347 | -399,919 |
Accrued expenses and other current liabilities | 901,038 | 1,438,656 |
Net cash used in operating activities | -17,202,157 | -11,904,273 |
Investing Activities | ' | ' |
Investment in acquired business, net of cash acquired | ' | -14,357,578 |
Purchase of investments | -33,723,000 | -6,469,000 |
Proceeds from sale of investments | 14,477,000 | 7,715,000 |
Purchase of equipment and improvements | -695,776 | -826,208 |
Purchase of intangible assets | -350,000 | -2,300,000 |
Proceeds from sale of equipment | ' | 47,215 |
Net cash used in investing activities | -20,291,776 | -16,190,571 |
Financing Activities | ' | ' |
Proceeds from the sale of common stock, net of costs | ' | 51,461,053 |
Proceeds from exercise of stock options and warrants, net of costs | 2,817,001 | 1,225,620 |
Payment of withholding taxes related to employee stock compensation | -228,149 | -80,550 |
Net cash provided by financing activities | 2,588,852 | 52,606,123 |
Effect of exchange rate changes on cash | -209,990 | -4,972 |
Net (decrease) increase in cash and cash equivalents | -35,115,071 | 24,506,307 |
Cash and cash equivalents | ' | ' |
Beginning of year | 41,616,657 | 17,110,350 |
End of year | 6,501,586 | 41,616,657 |
Cash paid during the year for: | ' | ' |
Interest | 893 | 2,200 |
Taxes | ' | ' |
Description_of_Business
Description of Business | 12 Months Ended | |
Dec. 31, 2013 | ||
Description of Business [Abstract] | ' | |
Description of Business | ' | |
1 | Description of Business | |
Derma Sciences, Inc. and its subsidiaries (the "Company") is a tissue regeneration company focused on three segments of the wound care marketplace: advanced wound care, traditional wound care and pharmaceutical wound care products. The Company has one drug candidate that initiated its Phase 3 study during the first quarter of 2013. The Company markets its products principally through direct sales representatives in the United States ("U.S."), Canada and the United Kingdom ("U.K."), and through independent distributors within other select international markets. The Company's U.S. distribution facilities are located in St. Louis, Missouri and Houston, Texas. The Company utilizes third party distributors for distribution in Canada, Europe and the Far East. The Company has manufacturing facilities in Toronto, Canada and Nantong, China. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||
Summary of Significant Accounting Policies | ' | ||||||||
2 | Summary of Significant Accounting Policies | ||||||||
Principles of Consolidation - The consolidated financial statements include the accounts of Derma Sciences, Inc. and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. | |||||||||
Use of Estimates - The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on knowledge of current events and actions which may be undertaken in the future, actual results may ultimately differ from these estimates. Estimates and assumptions are required in the determination of sales deductions for trade rebates, sales incentives, discounts and allowances. Significant estimates and assumptions are also required in determining the appropriateness of amortization periods for identifiable intangible assets, the potential impairment of goodwill and the valuation of inventory. | |||||||||
Foreign Currency Translation - Assets and liabilities are translated using the exchange rates in effect at the balance sheet date, while income and expenses are translated using average rates during the period. Translation adjustments are reported as a component of stockholders' equity in accumulated other comprehensive income. For the Company's foreign subsidiaries, exchange rate fluctuations on foreign currency denominated assets and liabilities other than the functional currency resulted in income of $140,721 and $47,738 for the years ended December 31, 2013 and 2012, respectively, which is included in the Consolidated Statement of Comprehensive Loss as follows: | |||||||||
2013 | 2012 | ||||||||
Cost of sales | $ | 57,894 | $ | 7,031 | |||||
Other income, net | (198,615 | ) | (54,769 | ) | |||||
Total | $ | (140,721 | ) | $ | (47,738 | ) | |||
Exchange rate fluctuations of foreign currency denominated assets and liabilities associated with inventory are included in cost of sales, while all other such fluctuations are included in other income, net. | |||||||||
Concentration of Credit Risk - Financial instruments that subject the Company to a concentration of credit risk consist principally of cash and cash equivalents, investments in debt securities and accounts receivable. The Company maintains cash and cash equivalents with various financial institutions in amounts which at times may exceed federally insured limits. Accounts are guaranteed by the Federal Deposit Insurance Corporation up to $250,000. The Company has not experienced any losses in such accounts. The Company does not require collateral or other security to support credit sales, but provides an allowance for doubtful accounts based on historical experience and specifically identified risks. Accounts receivable are charged off against the allowance for doubtful accounts when management determines that recovery is unlikely and the Company ceases collection efforts. | |||||||||
Inventories - Inventories consist of raw materials, packaging materials, work in process and finished goods valued at the lower of cost or market. Cost is determined on the basis of the first-in, first-out method. | |||||||||
Equipment and improvements - Equipment and improvements are stated at cost and are depreciated on a straight-line basis over the estimated useful lives of the assets ranging from three to 10 years. Leasehold improvements are amortized over the lesser of their useful lives or the remaining lease term. | |||||||||
Fair Value of Financial Instruments - The carrying value of cash equivalents, accounts receivable, prepaid expenses and other current assets, and accounts payable reported in the consolidated balance sheets equal or approximate fair value due to their short term nature. | |||||||||
Identifiable Intangible Assets - Identifiable intangible assets, which consist of product license rights, developed technology and supply agreements, and other identifiable intangible assets, are amortized over one to 13 years on a straight-line basis. | |||||||||
Long Lived Assets -The Company reviews its long-lived assets with definitive lives whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If the carrying amount of the asset or group of assets exceeds its net realizable value, the asset will be written down to its fair value. | |||||||||
Goodwill - The Company tests goodwill for impairment using a two-step process. The first step tests for potential impairment, while the second step measures the amount of impairment, if any. The Company uses a discounted cash flow analysis to complete the first step in this process. If the first step indicates an impairment, i.e. when the carrying value exceeds the fair value, then the second step is required to determine the implied fair value of goodwill. The implied fair value of goodwill is calculated in the same manner that goodwill is calculated in a business combination. The allocation is to be performed as if the reporting unit had just been acquired and the fair value of the unit was the purchase price. The goodwill impairment equals the carrying value of goodwill less the implied fair value of goodwill. The Company performs its goodwill impairment test as of December 31st of each year, or more frequently if impairment indicators are present. | |||||||||
Stock-Based Compensation - Stock-based compensation for share-based awards with employees and non-employee directors, such as grants of stock options and restricted share units, are recognized in the consolidated financial statements based on the fair value of the award at the grant date on a straight-line basis over the requisite service or performance periods. Stock-based compensation for share-based awards granted to consultants are recognized based on the fair value of the award on a straight-line basis over the requisite service or performance periods and are revalued at the end of each period until the award vests. The Company estimates the fair value of stock options using the Black-Scholes option-pricing model for service and performance based awards. The fair value of restricted share units is based on the quoted market price for service and performance based awards, and by using a binomial/lattice pricing model for market based awards. The Company issues new common stock shares upon exercise of share-based awards. | |||||||||
Income Taxes - Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and the respective tax bases. Deferred tax assets, including tax loss and credit carryforwards, and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The effect of income tax positions is recognized only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. | |||||||||
The Company measures and recognizes the tax implications of positions taken or expected to be taken in its tax returns on an ongoing basis. In 2013 and 2012, the Company had no unrecognized tax benefits or liabilities, and no adjustment to its financial position, results of operations or cash flows were required. The Company records interest and penalties related to tax matters within other income, net on the accompanying Consolidated Statements of Comprehensive Loss. These amounts are not material to the consolidated financial statements for the periods presented. The Company's U.S. tax returns are subject to examination by federal and state taxing authorities. Tax years prior to 2010 are no longer subject to federal examination. However, the Company's federal net operating losses for tax years 1999 through 2009 will remain subject to examination until the losses are utilized or expire. State tax years 2009 to 2013 remain open to examination by the various state jurisdictions in which the Company is subject to tax. Tax years prior to 2005 are no longer subject to examination in Canada. The U.K. tax returns since the inception of the subsidiary in 2010 are subject to examination. | |||||||||
Revenue Recognition - Sales are recorded when product is shipped or title passes to customers and collectability is reasonably assured. Gross sales are adjusted for cash discounts, returns and allowances, trade rebates, distribution fees (in Canada) and other sales deductions in the same period that the related sales are recorded. Freight costs billed to and reimbursed by customers are recorded as a component of revenue. Freight costs to ship product to customers are recorded as a component of cost of sales. | |||||||||
Advertising and Promotion Costs - Advertising and promotion costs are charged to expense as incurred and were $3,082,221 and $2,243,387 in 2013 and 2012, respectively. | |||||||||
Royalties - The Company recognizes royalty expenses associated with the products sold at the time the related sale occurs and records them as a component of cost of sales. Royalty expense for the years ended December 31, 2013 and 2012 was $1,741,742 and $1,395,567, respectively. | |||||||||
Net Loss per Share - Net loss per common share - basic is computed by dividing net loss by the weighted average number of common shares outstanding for the period. Net loss per common share - diluted reflects the potential dilution of earnings by including the effects of the assumed exercise, conversion or issuance of potentially issuable shares of common stock ("potentially dilutive securities"), including those attributable to stock options, warrants, convertible preferred stock and restricted share units in the weighted average number of common shares outstanding for a period, if dilutive. The effects of the assumed exercise of warrants and stock options are determined using the treasury stock method. Potentially dilutive securities have not been included in the computation of diluted loss per share for the years ended December 31, 2013 and 2012 as the effect would be anti-dilutive. | |||||||||
Potentially dilutive shares excluded as a result of the effects being anti-dilutive are as follows: | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Excluded dilutive shares: | |||||||||
Convertible preferred stock | 73,332 | 73,332 | |||||||
Additional stock issuable related | |||||||||
to conversion of preferred stock | 49,154 | - | |||||||
Restricted share units | 720,550 | 786,900 | |||||||
Stock options | 1,814,233 | 1,639,985 | |||||||
Warrants | 2,305,272 | 2,930,154 | |||||||
Total dilutive shares | 4,962,541 | 5,430,371 | |||||||
Recently Issued Accounting Pronouncements - In February 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires companies to present information about reclassifications out of accumulated other comprehensive income in a single note or on the face of the financial statements. The updated standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012, with early adoption permitted. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. |
Acquisition
Acquisition | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Acquisition [Abstract] | ' | ||||
Acquisition | ' | ||||
3 | Acquisition | ||||
On April 16, 2012, the Company acquired all of the outstanding stock of MedEfficiency, Inc. ("MedEfficiency") pursuant to the terms of an Agreement and Plan of Merger. The purchase price was $14,475,000 and was funded by the Company with cash on hand. The Company incurred transaction and transition related costs totaling $1,256,853 related to the purchase, which were charged to selling, general and administrative expense in the 2012 Consolidated Statement of Comprehensive Loss. | |||||
MedEfficiency develops, manufactures and markets medical devices for treating chronic wounds and lower extremity injuries, specializing in total contact casting ("TCC") products. The TCC-EZ total contact cast system is MedEfficiency's lead product, in addition to a line of traditional and specialized contact casts and related equipment. The Company has distributed MedEfficiency's TCC products since 2008 under an exclusive distribution agreement. | |||||
The acquisition has been accounted for as a purchase. Accordingly, the results of operations of MedEfficiency have been included in the consolidated financial statements commencing April 17, 2012. The allocation of the purchase price to the estimated fair value of the assets acquired and the liabilities assumed is outlined below: | |||||
Current assets | $ | 925,817 | |||
Equipment | 29,579 | ||||
Acquired intangible assets | 10,700,000 | ||||
Goodwill | 6,337,967 | ||||
Total assets acquired | 17,993,363 | ||||
Current liabilities | 653,315 | ||||
Deferred tax liability | 2,982,470 | ||||
Total liabilities assumed | 3,635,785 | ||||
Net assets acquired | $ | 14,357,578 | |||
Purchase price | $ | 14,475,000 | |||
Less cash acquired | 117,422 | ||||
Net cash paid | $ | 14,357,578 | |||
The allocation of the purchase price to the assets acquired and liabilities assumed was based on an independent valuation study to establish the fair value of the identifiable intangible assets acquired. The identifiable intangible assets acquired consist of developed technology and patents, customer relationships, a supply agreement, trade names and trademarks and non-compete agreements. The Company recorded the excess of the purchase price over the fair values of the identifiable assets acquired and liabilities assumed as goodwill. While the acquired intangible assets are amortizable for financial reporting purposes, the acquired intangible assets and goodwill are not deductible for tax purposes. Deferred taxes have been recorded associated with the acquisition for the basis differences for financial reporting and income tax purposes for the acquired identifiable intangible assets at the effective tax rates for the period in which the deferred tax asset and liability are expected to reverse. All of the assets acquired, including goodwill, and liabilities assumed are included in the Advanced Wound Care segment. | |||||
The unaudited pro forma information below presents combined results of operations as if the acquisition had occurred at the beginning of the periods presented instead of April 16, 2012. The pro forma information is based on historical results adjusted for the effect of purchase accounting and is not necessarily indicative of the results of operations of the combined entity had the acquisition occurred at the beginning of the periods presented, nor is it necessarily indicative of future results. | |||||
Year ended, | |||||
31-Dec-12 | |||||
(Unaudited) | |||||
Net Sales | $ | 74,035,688 | |||
Net Loss | $ | (12,762,551 | ) | ||
Net Loss per common share - | |||||
basic and diluted | $ | (1.02 | ) | ||
Weighted average number of shares - | |||||
basic and diluted | 12,488,263 |
Cash_and_Cash_Equivalents_and_
Cash and Cash Equivalents and Investments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Cash and Cash Equivalents and Investments [Abstract] | ' | ||||||||||||||||
Cash and Cash Equivalents and Investments | ' | ||||||||||||||||
4 | Cash and Cash Equivalents and Investments | ||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
The Company considers cash and cash equivalents as amounts on hand, on deposit in financial institutions and highly liquid investments purchased with an original maturity of three months or less. Money market mutual funds consist of funds deposited into mutual funds investing in U.S. government and non-government obligations. The Company maintains cash and cash equivalents and money market mutual funds with various domestic and foreign financial institutions within the ordinary course of business, which at times may exceed jurisdictional insurance limits. | |||||||||||||||||
Investments in debt securities | |||||||||||||||||
Investments in debt securities includes certificates of deposit purchased with an original maturity greater than three months which are deposited in various U.S. financial institutions and are fully insured by the Federal Deposit Insurance Corporation. The Company intends to hold the certificates of deposit to maturity and accordingly these investments are carried at amortized cost. Investments in debt securities with maturities greater than one year from the balance sheet date are classified as a long-term asset. | |||||||||||||||||
Investment in equity securities | |||||||||||||||||
In 2013, the Company purchased 2,272,277 shares of Comvita Limited ("Comvita") common stock for $7,000,000. The equity investment represented 7.3% of Comvita's outstanding shares on the date of purchase. In conjunction with this investment, the Company's chairman and chief executive officer was named to Comvita's board of directors. Comvita will use the proceeds from this investment to purchase additional apiaries and upgrade and expand its Manuka honey processing capabilities. This investment will assist Comvita in its effort to better ensure supply for the Company's medical-grade honey requirements in an environment of growing global demand for Manuka honey. | |||||||||||||||||
The investment in Comvita common stock is classified as an available-for-sale investment carried at fair value, with any unrealized gains and losses associated with the investment included in accumulated other comprehensive income and any dividends received recorded in other income. The investment is classified as a long term asset. As of December 31, 2013, the fair value of the Comvita common stock was $6,862,140 as determined by the quoted market price of the outstanding stock on the New Zealand stock exchange. The $137,860 decrease in fair value from cost was recorded in accumulated other comprehensive income. In December 2013, Comvita declared a dividend, the Company's share of which was $75,421, net of taxes. | |||||||||||||||||
Cash and cash equivalents and investments at December 31, 2013 and 2012 consisted of the following: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Cash | $ | 5,265,903 | $ | 4,909,663 | |||||||||||||
Money market mutual funds | 1,235,683 | 36,706,994 | |||||||||||||||
Cash and cash equivalents | 6,501,586 | 41,616,657 | |||||||||||||||
Investments in debt securities | 16,474,000 | 4,228,000 | |||||||||||||||
Investment in equity securities | 6,862,140 | - | |||||||||||||||
Total investments | 23,336,140 | 4,228,000 | |||||||||||||||
Total cash and cash equivalents and investments | $ | 29,837,726 | $ | 45,844,657 | |||||||||||||
The following table provides fair value information as of December 31, 2013: | |||||||||||||||||
Fair Value Measurements, Using | |||||||||||||||||
Total carrying | Quoted prices | Significant other | Significant | ||||||||||||||
value as of | in active | observable | unobservable | ||||||||||||||
31-Dec-13 | markets | inputs | inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Cash and cash equivalents | $ | 6,501,586 | $ | 6,501,586 | $ | - | $ | - | |||||||||
Investments in debt securities | 16,474,000 | 16,463,473 | - | - | |||||||||||||
Investment in equity securities | 6,862,140 | 6,862,140 | - | - | |||||||||||||
Total Investments | 23,336,140 | 23,325,613 | - | - | |||||||||||||
Total | $ | 29,837,726 | $ | 29,827,199 | $ | - | $ | - | |||||||||
The following table provides fair value information as of December 31, 2012: | |||||||||||||||||
Fair Value Measurements, Using | |||||||||||||||||
Total carrying | Quoted prices | Significant other | Significant | ||||||||||||||
value as of | in active | observable | unobservable | ||||||||||||||
31-Dec-12 | markets | inputs | inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Cash and cash equivalents | $ | 41,616,657 | $ | 41,616,657 | $ | - | $ | - | |||||||||
Investments in debt securities | 4,228,000 | 4,216,156 | - | - | |||||||||||||
Total | $ | 45,844,657 | $ | 45,832,813 | $ | - | $ | - | |||||||||
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets. Level 2 inputs are quoted prices for similar assets in active markets or inputs that are observable for the asset, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on management's own assumptions used to measure assets at fair value. A financial asset's classification is determined based on the lowest level input that is significant to the fair value measurement. |
Accounts_Receivable_net
Accounts Receivable, net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounts Receivable, net [Abstract] | ' | ||||||||
Accounts receivable, net | ' | ||||||||
5 | Accounts Receivable, net | ||||||||
Accounts receivable, net includes the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Accounts receivable | $ | 7,781,482 | $ | 7,557,862 | |||||
Less: Allowance for doubtful accounts | (97,729 | ) | (147,843 | ) | |||||
Allowance for trade rebates | (218,700 | ) | (197,650 | ) | |||||
Allowance for cash discounts and returns | (132,297 | ) | (126,656 | ) | |||||
Accounts receivable, net | $ | 7,332,756 | $ | 7,085,713 |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventories [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
6 | Inventories | ||||||||
Inventories include the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Finished goods | $ | 11,044,746 | $ | 9,574,685 | |||||
Work in process | 1,009,315 | 554,129 | |||||||
Packaging materials | 1,408,521 | 991,157 | |||||||
Raw materials | 3,010,058 | 2,550,617 | |||||||
Total inventory | $ | 16,472,640 | $ | 13,670,588 |
Equipment_and_Improvements_net
Equipment and Improvements, net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Equipment and Improvements, net [Abstract] | ' | ||||||||
Equipment and Improvements, net | ' | ||||||||
7 | Equipment and Improvements, net | ||||||||
Equipment and improvements, net include the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Machinery and equipment | $ | 7,102,144 | $ | 7,135,714 | |||||
Furniture and fixtures | 911,879 | 843,149 | |||||||
Leasehold improvements | 2,300,500 | 2,226,022 | |||||||
10,314,523 | 10,204,885 | ||||||||
Less: accumulated depreciation | (7,361,054 | ) | (6,900,033 | ) | |||||
Total equipment and improvements, net | $ | 2,953,469 | $ | 3,304,852 |
Identifiable_Intangible_Assets
Identifiable Intangible Assets, net | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Identifiable Intangible Assets, net [Abstract] | ' | ||||||||||||||||
Identifiable Intangible Assets, net | ' | ||||||||||||||||
8 | Identifiable Intangible Assets, net | ||||||||||||||||
Costs of identifiable intangible assets associated with previous acquisitions, as well as payments in connection with obtaining product license rights, are included as identifiable intangible assets. During 2013, the Company paid $250,000 associated with Medihoney developed technology and $100,000 associated with the international TCC-EZ supply agreement. | |||||||||||||||||
Identifiable intangible assets, net include the following: | |||||||||||||||||
December 31, | Amortization Period | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Product license rights | $ | 8,217,126 | $ | 7,967,126 | 6-10 years | ||||||||||||
Developed technology and supply agreements | 7,700,000 | 7,600,000 | 5-7 years | ||||||||||||||
Other | 6,400,000 | 6,400,000 | 1-10 years | ||||||||||||||
22,317,126 | 21,967,126 | ||||||||||||||||
Less accumulated amortization | (7,681,128 | ) | (4,838,243 | ) | |||||||||||||
Total identifiable intangible assets, net | $ | 14,635,998 | $ | 17,128,883 | |||||||||||||
During the years ended December 31, 2013 and 2012, amortization expense was recorded as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Cost of sales | $ | 2,009,472 | $ | 1,461,411 | |||||||||||||
Selling, general and administrative expenses | 833,413 | 812,750 | |||||||||||||||
Total amortization expense | $ | 2,842,885 | $ | 2,274,161 | |||||||||||||
Amortization expense for product license rights and developed technology and supply agreements is included as a component of cost of sales and amortization of other identifiable intangible assets is included in selling, general and administrative expense in the Consolidated Statement of Comprehensive Loss. | |||||||||||||||||
Amortization expense for 2013 and 2012 and estimated amounts thereafter by year are as follows: | |||||||||||||||||
Product License Rights | Developed | Other | Total | ||||||||||||||
Technology and Supply Agreements | |||||||||||||||||
Amortization expense for | $ | 908,758 | $ | 1,100,714 | $ | 833,413 | $ | 2,842,885 | |||||||||
year ended December 31, 2013 | |||||||||||||||||
Weighted Average Useful Life | 6 | 5.3 | 3.2 | 4.8 | |||||||||||||
Amortization expense for | $ | 692,363 | $ | 769,048 | $ | 812,750 | $ | 2,274,161 | |||||||||
year ended December 31, 2012 | |||||||||||||||||
Estimated amortization expense for years ending December 31, | |||||||||||||||||
2014 | $ | 946,613 | $ | 1,105,715 | $ | 775,000 | $ | 2,827,328 | |||||||||
2015 | 946,613 | 1,105,715 | 775,000 | 2,827,328 | |||||||||||||
2016 | 946,613 | 1,105,715 | 626,250 | 2,678,578 | |||||||||||||
2017 | 946,613 | 1,105,715 | 281,667 | 2,333,995 | |||||||||||||
2018 | 946,613 | 1,025,295 | 165,000 | 2,136,908 | |||||||||||||
Thereafter | 987,990 | 382,083 | 461,788 | 1,831,861 | |||||||||||||
$ | 5,721,055 | $ | 5,830,238 | $ | 3,084,705 | $ | 14,635,998 |
Accrued_Expenses_and_Other_Cur
Accrued Expenses and Other Current Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accrued Expenses and Other Current Liabilities [Abstract] | ' | ||||||||
Accrued Expenses and Other Current Liabilities | ' | ||||||||
9 | Accrued Expenses and Other Current Liabilities | ||||||||
Accrued expenses and other current liabilities include the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Accrued compensation and related taxes | $ | 2,529,211 | $ | 1,929,524 | |||||
Accrued Canadian sales rebate, net (note 14) | 252,671 | 636,633 | |||||||
Accrued royalties | 361,559 | 427,075 | |||||||
Accrued sales incentives and other fees | 546,296 | 316,209 | |||||||
Other | 1,279,488 | 823,493 | |||||||
Total accrued expenses and other current liabilities | $ | 4,969,225 | $ | 4,132,934 | |||||
At December 31, 2013 and 2012, the amount of the Canadian accrued sales rebate and other reserves exceeded the amount of the underlying trade receivables outstanding. The net credit balance in trade receivables was reclassified for financial reporting purposes to accrued expense to recognize it as a net liability. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Stockholders' Equity [Abstract] | ' | ||||||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||||||
10 | Stockholders' Equity | ||||||||||||||||||||
Preferred Stock | |||||||||||||||||||||
There are 18,598 shares of series A convertible preferred stock outstanding at December 31, 2013. The series A preferred stock is convertible into common stock on a one-for-one basis, bears no dividend, has a liquidation preference of $32.00 per share, votes as a class on matters affecting the series A preferred stock and has voting rights identical to the common stock on all other matters. | |||||||||||||||||||||
There are 54,734 shares of series B convertible preferred stock outstanding at December 31, 2013. The series B preferred stock is convertible into common stock on a one-for-one basis, bears no dividend, has a liquidation preference of $48.00 per share, votes as a class on matters affecting the series B preferred stock and has voting rights identical to the common stock on all other matters. | |||||||||||||||||||||
The certificates of designations, voting powers, preferences and rights of the Company's series A and B and former C and D convertible preferred stock provide, among other items, that the 1:1 preferred stock to common stock conversion ratio will be adjusted as of the closing date of any offering of common stock issued at less than the prevailing market price. In the event the market price exceeds the offering price of the common stock, the conversion ratios of any series of preferred stock then outstanding are to be adjusted in accordance with a prescribed formula. | |||||||||||||||||||||
Subsequent to the issuances of the preferred stock, the Company has undertaken a number of common stock offerings that would impact the above described adjustments to the preferred stock conversion ratios. As of December 31, 2013, current series A and B preferred stockholders holding 73,332 preferred shares are entitled to receive an aggregate of 121,089 shares (47,757 additional shares) of common stock upon conversion of their holdings, as a result of the conversion ratio adjustments. The number of shares issuable upon conversion is subject to further adjustment should the Company in the future undertake one or more offerings of its common stock at less than the prevailing market price. Previous preferred stockholders who have converted their preferred shares will receive an additional 1,397 shares of common stock as a result of the conversion ratio adjustments. In 2013 the Company issued 140,086 common shares to prior holders of the preferred stock based on the adjustment of the conversion ratios. | |||||||||||||||||||||
The 49,154 incremental shares associated with the conversion ratio adjustment will be recorded to common stock at par with the offset to additional paid in capital as all of the convertible preferred stock was issued prior to the November 16, 2000 effective date of certain provisions of ASC 470 (formerly, EITF 00-27 Application of Issue No. 98-5 to Certain Convertible Instruments). | |||||||||||||||||||||
Common Stock | |||||||||||||||||||||
On May 22, 2013, stockholders of the Company approved the proposal to increase the number of authorized shares of common stock from 25,000,000 to 35,000,000. On May 29, 2013, the Company amended its Articles of Incorporation to reflect the increase in the number of authorized shares of common stock. | |||||||||||||||||||||
During 2013, the Company issued 822,348 shares of common stock consisting of 556,855 shares upon the exercise of stock purchase warrants and options for which the Company received $2,817,001 (net of $45,368 in expenses), 140,086 shares in connection with the preferred stock ratio adjustments, 120,957 shares in connection with the vesting of 145,650 shares of restricted common stock units net of the shares withheld for payment of withholding taxes, and 4,450 shares to a retired director of the Company for consulting services. | |||||||||||||||||||||
In 2012, the Company received net cash proceeds of $51,461,053 (net of $4,605,439 in commission and other offering expenses) from the sale of 5,646,300 shares of common stock. On April 5, 2012, 2,125,000 common stock shares were sold at $9.25 per share and on December 5, 2012, 3,521,300 common stock shares were sold at $10.34 per share. The Company used and intends to continue to use the net proceeds from the offerings for the continued development of its pharmaceutical product DSC127 and for general corporate purposes. | |||||||||||||||||||||
During 2012, the Company issued 255,210 shares of common stock upon the exercise of stock purchase warrants and options and received $1,225,620 (net of $10,560 in issuance costs); 43,081 net shares of common stock in connection with the vesting of 51,500 shares of restricted stock units, net of the shares withheld for payment of minimum withholding taxes; and 2,500 shares of common stock to a retiring director of the Company for past services. | |||||||||||||||||||||
Stock Purchase Warrants | |||||||||||||||||||||
At December 31, 2013, the Company had warrants outstanding to purchase shares of the Company's common stock consisting of the following: | |||||||||||||||||||||
Series | Number of Warrants | Exercise Price | Expiration Date | ||||||||||||||||||
L | 6,250 | $ | 3.12 | 31-Mar-14 | |||||||||||||||||
N | 100,000 | $ | 6.25 | 22-Feb-15 | |||||||||||||||||
O | 230,900 | $ | 5.5 | 22-Feb-15 | |||||||||||||||||
P | 2,187 | $ | 6.25 | 16-Feb-15 | |||||||||||||||||
Q | 133,333 | $ | 5.5 | 22-Feb-15 | |||||||||||||||||
R | 1,832,602 | $ | 9.9 | 22-Jun-16 | |||||||||||||||||
Total | $ | 2,305,272 | |||||||||||||||||||
During 2013, a total of 624,882 warrants were exercised on a for cash and cashless basis consisting of 367,814 Series K, 200,893 Series J, 53,667 Series O, and 2,508 Series P warrants. A total of 421,465 shares of common stock were issued in connection with the 2013 warrant exercises. In 2012 a total of 135,548 warrants were exercised on a cash basis consisting of 47,333 series O, 66,965 series J and 21,250 series K warrants. A total of 135,548 shares of common stock were issued in connection with the 2012 warrant exercises. | |||||||||||||||||||||
Equity Based Compensation | |||||||||||||||||||||
Under the Derma Sciences, Inc. 2012 Equity Incentive Plan (the "EIP Plan") the Company is authorized to issue shares of common stock. On May 22, 2013, stockholders of the Company approved the proposal to increase the number of authorized shares of common stock the Company can issue from 2,812,500 to 4,500,000. The EIP Plan authorizes the Company to grant equity-based and cash-based incentive compensation in the form of stock options, stock appreciation rights, restricted shares, restricted share units, other share-based awards and cash-based awards, for the purpose of providing the Company's employees, non-employee directors and consultants with incentives and rewards for performance. At December 31, 2013, options to purchase 1,814,233 shares and 720,550 restricted share units were issued and outstanding under the EIP Plan and 1,394,480 shares were available for grant. | |||||||||||||||||||||
Stock Options | |||||||||||||||||||||
The EIP Plan permits the granting of both incentive and nonqualified stock options to employees and nonqualified stock options to non-employee directors and consultants of the Company. The option exercise price may not be less than the fair market value of the stock on the date of the grant of the option. The duration of each option may not exceed 10 years from the date of grant. | |||||||||||||||||||||
For the years ended December 31, 2013 and 2012, the fair value of each option award was estimated at the date of grant using the Black-Scholes option-pricing model. The weighted-average assumptions for the years ended December 31, 2013 and 2012 were as follows: | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Risk-free interest rate | 1.22 | % | 1.11 | % | |||||||||||||||||
Volatility factor | 69.9 | % | 73.6 | % | |||||||||||||||||
Dividend yield | 0 | % | 0 | % | |||||||||||||||||
Expected option life (years) | 6.14 | 6.25 | |||||||||||||||||||
The risk-free rate utilized represents the U.S. treasury yield curve rate for the expected option life at the time of grant. The volatility factor was calculated based on the Company's historical stock price volatility equal to the expected life of the option at the grant date. The dividend yield is 0% since the Company does not anticipate paying dividends in the near future. The simplified expected option life method is used to determine the expected option life for Company employees and directors while the contractual option life period is utilized for consultants. | |||||||||||||||||||||
Based on the Company's historical experience of options that were forfeited before becoming fully vested, the Company has assumed an annualized forfeiture rate of 1.0% for all options. The Company will record additional expense if the actual forfeiture rate is lower than estimated, and will record a recovery of prior expense if the actual forfeiture rate is higher than estimated. | |||||||||||||||||||||
A summary of the Company's stock option activity and related information for the years ended December 31, 2013 and 2012 follows: | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Options | Weighted Average Exercise Price | Options | Weighted Average Exercise Price | ||||||||||||||||||
Outstanding - beginning of year | 1,639,985 | $ | 6.38 | 1,582,683 | $ | 5.82 | |||||||||||||||
Granted | 421,480 | $ | 12.14 | 268,160 | $ | 8.93 | |||||||||||||||
Forfeited | (36,878 | ) | $ | 10.99 | (61,825 | ) | $ | 7.53 | |||||||||||||
Exercised | (184,824 | ) | $ | 5.5 | (149,033 | ) | $ | 4.37 | |||||||||||||
Expired | (25,530 | ) | $ | 13.16 | - | - | |||||||||||||||
Outstanding - end of year | 1,814,233 | $ | 7.67 | 1,639,985 | $ | 6.38 | |||||||||||||||
Expected to vest - end of year | 1,796,091 | $ | 7.67 | 1,623,585 | $ | 6.38 | |||||||||||||||
Exercisable at end of year | 1,443,409 | $ | 6.84 | 1,208,077 | $ | 5.86 | |||||||||||||||
During 2013 and 2012, the Company granted 300,880 and 199,460 service based options and 120,600 and 68,700 performance based options to Company employees, directors and consultants, respectively. The weighted average fair value per share of options granted during the years ended December 31, 2013 and 2012 was $8.30 and $5.93, respectively. | |||||||||||||||||||||
During 2013, 184,824 stock options were exercised on a for cash and cashless basis. A total of 135,390 shares of common stock were issued in connection with the 2013 stock option exercises. During 2012, 149,033 stock options were exercised on a for cash or cashless basis. A total of 119,662 common stock shares were issued in connection with the 2012 stock option exercises. | |||||||||||||||||||||
The aggregate intrinsic value of outstanding and exercisable stock options was $6,287,268 and $5,967,544, respectively, at December 31, 2013. The intrinsic value represents the difference between the Company's closing stock price on the last trading day of the year of $10.82 and the exercise price of the options, multiplied by the number of in-the-money stock options that would have been received by the option holders had all exercised their options on December 31, 2013. The intrinsic value of options exercised in 2013 and 2012 was $1,286,818 and $792,315, respectively. | |||||||||||||||||||||
The following table summarizes information related to stock options outstanding and exercisable at December 31, 2013: | |||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||
Range of | Number Outstanding | Weighted-Average Remaining Contractual Life | Weighted-Average Exercise Price | Number Exercisable | Weighted-Average Exercise Price | ||||||||||||||||
Exercise Prices | |||||||||||||||||||||
$2.88 - $4.00 | 251,961 | 3.38 | $ | 3.43 | 251,961 | $ | 3.43 | ||||||||||||||
$4.01 - $6.00 | 473,412 | 5.18 | $ | 5.13 | 463,912 | $ | 5.13 | ||||||||||||||
$6.01 - $10.00 | 610,470 | 6.77 | $ | 8.03 | 500,799 | $ | 7.95 | ||||||||||||||
$10.01 - $13.99 | 478,390 | 8.59 | $ | 11.97 | 226,737 | $ | 11.66 | ||||||||||||||
1,814,233 | 6.36 | $ | 7.67 | 1,443,409 | $ | 6.84 | |||||||||||||||
During the years ended December 31, 2013 and 2012, stock option compensation expense was recorded as follows: | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Cost of sales | $ | 95,726 | $ | 39,789 | |||||||||||||||||
Selling, general and administrative expenses | 2,087,827 | 1,470,269 | |||||||||||||||||||
Research and development | 165,581 | 103,289 | |||||||||||||||||||
Total stock option compensation expense | $ | 2,349,134 | $ | 1,613,347 | |||||||||||||||||
As of December 31, 2013, there was $1,645,272 of unrecognized compensation cost related to non-vested service based awards granted under the plan. These costs are expected to be recognized over the options' remaining weighted average vesting period of 1.91 years. There was no unrecognized compensation cost related to non-vested performance based awards at December 31, 2013. | |||||||||||||||||||||
Restricted Share Units | |||||||||||||||||||||
The Company has issued service, performance and market based restricted share units to employees and directors of the Company. Expense for restricted share awards is amortized on a straight-line basis over the awards' vesting period. | |||||||||||||||||||||
The following table summarizes the restricted share unit activity for the period: | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Number of | Weighted | Number of | Weighted | ||||||||||||||||||
Units | Average Fair Value | Units | Average Fair Value | ||||||||||||||||||
Unvested - beginning of year | 786,900 | $ | 8.78 | 51,500 | $ | 7.07 | |||||||||||||||
Granted | 79,300 | 13.65 | 786,900 | 8.78 | |||||||||||||||||
Vested | (145,650 | ) | 10.18 | (51,500 | ) | 7.07 | |||||||||||||||
Unvested - end of year | 720,550 | $ | 9.03 | 786,900 | $ | 8.78 | |||||||||||||||
In May 2013, the Company granted 38,200 restricted share units to members of the board of directors which will vest one year from the grant date. The fair market value at the grant date determined by the quoted market price was $525,632, or $13.76 per share. In February 2013, the Company granted 26,100 performance based restricted share units to executives which vested on December 31, 2013. The fair market value at the grant date was $359,136, or $13.76 per share. | |||||||||||||||||||||
Also during 2013, the Company granted 10,000 service-based restricted share units to a new board member vesting 25% each year beginning one year from grant date and 5,000 restricted share units to a former member of the board for past services, which were immediately vested. The aggregate fair market value at the grant date determined by the quoted market price of these awards was $198,000. | |||||||||||||||||||||
In December 2012, the Company granted 330,000 service-based restricted share units to employees and members of the board of directors which will vest 25% annually over a four year period from the grant date. The fair market value at the grant date determined by the quoted market price was $3,544,200, or $10.74 per share. Also in December 2012, the Company granted 405,000 market-based restricted share units to employees which will vest three years from the grant date based on the achievement of certain market conditions. The fair market value at the grant date determined by the binomial/lattice pricing model was $2,904,700, or $7.17 per share. | |||||||||||||||||||||
Also during 2012, the Company granted 27,900 performance-based restricted share units to employees vesting one year from grant date and 24,000 service based restricted share units to members of the board of directors vesting one year from grant date. The aggregate fair market value at the grant date determined by the quoted market price of these awards was $459,205. | |||||||||||||||||||||
In connection with the vesting of restricted share unit awards during the year ended Decmeber 31, 2013, 24,693 common stock shares with a fair value of $228,149 were withheld in satisfaction of employee tax withholding obligations. In connection with the vesting of restricted share unit awards during the year ended December 31, 2012, 8,419 common stock shares with a fair value of $80,550 were withheld in satisfaction of employee minimum tax withholding obligations. | |||||||||||||||||||||
During 2013 and 2012, restricted share unit compensation expense was $2,634,340 and $490,870, respectively, and included in selling, general and administrative expense. | |||||||||||||||||||||
As of December 31, 2013, the intrinsic value of the non-vested awards was $7,796,351 and there was $4,702,124 of unrecognized compensation cost related to unvested restricted share unit awards. These costs are expected to be recognized over the restricted shares units' remaining weighted average vesting period of 2.11 years. | |||||||||||||||||||||
During 2013, in consideration of prior service to the Company, a retiring director received 5,000 restricted share units, accelerated vesting of any unvested stock options and restricted share units and extended the date to exercise vested stock options to the earlier of 36 months or the awards original expiration date (versus 90 days) from the date of the retirement. Also, during 2013, the Company granted 4,450 shares of common stock to a former director for consulting services. An additional $337,422 of stock based compensation expense was recognized during 2013 and included in selling, general and administrative expense in connection with these activities. During 2012, in consideration of prior service to the Company, a retiring director received 2,500 shares of common stock, acceleration of vesting of any unvested restricted share units and extension of the date to exercise vested stock options to 36 months (versus 90 days) as of that date. Included in stock based compensation is a charge of $137,393 in connection with these benefits. | |||||||||||||||||||||
Shares Reserved for Future Issuance | |||||||||||||||||||||
At December 31, 2013, the Company had reserved the following shares of common stock for future issuance: | |||||||||||||||||||||
Convertible preferred shares (Series A - B) | 73,332 | ||||||||||||||||||||
Additional stock issuable related to conversion of | |||||||||||||||||||||
preferred stock | 49,154 | ||||||||||||||||||||
Common stock options outstanding | 1,814,233 | ||||||||||||||||||||
Common stock warrants outstanding | 2,305,272 | ||||||||||||||||||||
Restricted share units outstanding | 720,550 | ||||||||||||||||||||
Common stock equivalents available for grant | 1,394,480 | ||||||||||||||||||||
Total common stock shares reserved | 6,357,021 |
Operating_Segments
Operating Segments | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Operating Segments [Abstract] | ' | ||||||||||||||||||||
Operating Segments | ' | ||||||||||||||||||||
11 | Operating Segments | ||||||||||||||||||||
The Company operates in three segments: advanced wound care, traditional wound care and pharmaceutical wound care products. They are managed separately as each segment requires different technology, marketing and sales strategies. Advanced wound care products principally consist of both novel and otherwise differentiated dressings, bandages and ointments designed to promote wound healing and/or prevent infection. Traditional wound care products principally consist of commodity related dressings, ointments, gauze bandages, adhesive bandages, wound closer strips, catheter fasteners and skin care products. Pharmaceutical wound care products consist of DSC127, a novel product for the treatment of a variety of dermal applications. | |||||||||||||||||||||
Advanced and traditional wound care products are marketed globally to acute care, extended care, home health care, wound and burn care clinics and physician offices. The Company utilizes a broad network of well-established distributors to deploy the majority of its products to end users. A smaller portion of the Company's sales are sold directly to care providers and through retail. The advanced and traditional wound care products are both manufactured internally and sourced from third party suppliers. The majority of marketing expenses are deployed in support of advanced wound care products with traditional wound care products requiring limited support. The Company utilizes direct sales representatives, distributor relationships and contractual relationships with buying groups and wound care service providers to sell its products. Direct sales representatives are used solely in support of advanced wound care sales in the U.S. and the U.K. and for both advanced and traditional wound care products in Canada. | |||||||||||||||||||||
The pharmaceutical wound care segment is presently limited to the development of DSC127 for diabetic foot ulcers and pre-clinical work on scar prevention. | |||||||||||||||||||||
Each operating segment is managed at the segment contribution level consisting of gross profit minus direct expense consisting of distribution, marketing, sales, research and development and intangible amortization expenses. Expenses are allocated directly by segment to the extent possible. Expenses common to all three operating segments are allocated consistently using activity based assumptions. The aggregation or allocation of indirect expenses by segment is not practical. | |||||||||||||||||||||
Operating segment sales, gross profit, segment contribution and other related information for 2013 and 2012 are as follows: | |||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Advanced Wound Care | Traditional Wound Care | Pharmaceutical Wound Care | Other | Total | |||||||||||||||||
Company | |||||||||||||||||||||
Net sales | $ | 33,928,535 | $ | 45,782,445 | $ | - | $ | - | $ | 79,710,980 | |||||||||||
Gross profit | 16,837,797 | 12,552,677 | - | - | 29,390,474 | ||||||||||||||||
Direct expense | (21,404,045 | ) | (5,059,141 | ) | (11,434,557 | ) | - | (37,897,743 | ) | ||||||||||||
Segment contribution | $ | (4,566,248 | ) | $ | 7,493,536 | $ | (11,434,557 | ) | - | (8,507,269 | ) | ||||||||||
Indirect expenses | $ | (15,456,784 | ) | (15,456,784 | ) | ||||||||||||||||
Net loss | $ | (23,964,053 | ) | ||||||||||||||||||
Depreciation | $ | 477,118 | $ | 264,841 | $ | - | $ | 136,192 | $ | 878,151 | |||||||||||
Amortization | $ | 2,557,805 | $ | 285,080 | $ | - | $ | - | $ | 2,842,885 | |||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Equipment and improvements, net | $ | 2,188,389 | $ | 562,480 | $ | - | $ | 202,600 | $ | 2,953,469 | |||||||||||
Identifiable intangible assets, net | $ | 13,614,210 | $ | 1,021,788 | $ | - | $ | - | $ | 14,635,998 | |||||||||||
Goodwill | $ | 6,337,967 | $ | 7,119,726 | $ | - | $ | - | $ | 13,457,693 | |||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Advanced Wound Care | Traditional Wound Care | Pharmaceutical Wound Care | Other | Total | |||||||||||||||||
Company | |||||||||||||||||||||
Net sales | $ | 24,832,722 | $ | 47,815,476 | $ | - | $ | - | $ | 72,648,198 | |||||||||||
Gross profit | 12,458,920 | 12,681,929 | - | - | 25,140,849 | ||||||||||||||||
Direct expense | (17,658,759 | ) | (4,246,714 | ) | (7,177,823 | ) | - | (29,083,296 | ) | ||||||||||||
Segment contribution | $ | (5,199,839 | ) | $ | 8,435,215 | $ | (7,177,823 | ) | - | (3,942,447 | ) | ||||||||||
Indirect expenses | $ | (8,127,984 | ) | (8,127,984 | ) | ||||||||||||||||
Net loss | $ | (12,070,431 | ) | ||||||||||||||||||
Depreciation | $ | 629,466 | $ | 246,780 | $ | - | $ | 145,156 | $ | 1,021,402 | |||||||||||
Amortization | $ | 1,950,161 | $ | 324,000 | $ | - | $ | - | $ | 2,274,161 | |||||||||||
As of December 31, 2012 | |||||||||||||||||||||
Equipment and improvements, net | $ | 2,194,498 | $ | 708,653 | $ | - | $ | 401,701 | $ | 3,304,852 | |||||||||||
Identifiable intangible assets, net | $ | 15,822,016 | $ | 1,306,867 | $ | - | $ | - | $ | 17,128,883 | |||||||||||
Goodwill | $ | 6,337,967 | $ | 7,119,726 | $ | - | $ | - | $ | 13,457,693 | |||||||||||
A geographical breakdown of the Company's sales, gross profit and equipment and improvements, net are as follows: | |||||||||||||||||||||
United States | Canada | Other | Total | ||||||||||||||||||
2013 | |||||||||||||||||||||
Net sales | $ | 61,234,755 | $ | 11,084,430 | $ | 7,391,795 | $ | 79,710,980 | |||||||||||||
Gross profit | $ | 23,956,554 | $ | 2,371,054 | $ | 3,062,866 | $ | 29,390,474 | |||||||||||||
Equipment and improvements, | $ | 459,859 | $ | 2,258,544 | $ | 235,066 | $ | 2,953,469 | |||||||||||||
net | |||||||||||||||||||||
2012 | |||||||||||||||||||||
Net sales | $ | 51,325,289 | $ | 14,758,829 | $ | 6,564,080 | $ | 72,648,198 | |||||||||||||
Gross profit | $ | 18,609,115 | $ | 3,747,557 | $ | 2,784,177 | $ | 25,140,849 | |||||||||||||
Equipment and improvements, | $ | 390,925 | $ | 2,610,462 | $ | 303,465 | $ | 3,304,852 | |||||||||||||
net |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||||||
Income Taxes | ' | ||||||||||||||||
12 | Income Taxes | ||||||||||||||||
Loss before income taxes for the year ended December 31, 2013 and 2012 consist of the following components: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Domestic | $ | (23,145,554 | ) | $ | (14,590,416 | ) | |||||||||||
Foreign | (658,388 | ) | 149,503 | ||||||||||||||
Loss before income taxes | $ | (23,803,942 | ) | $ | (14,440,913 | ) | |||||||||||
The components of income taxes (benefit) for the year ended December 31 are as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Current: | |||||||||||||||||
Federal | $ | - | $ | - | |||||||||||||
State | 5,365 | - | |||||||||||||||
Foreign | 22,590 | 136,873 | |||||||||||||||
Total current | 27,955 | 136,873 | |||||||||||||||
Deferred: | |||||||||||||||||
Federal | 149,108 | (2,291,057 | ) | ||||||||||||||
State | (34,143 | ) | (219,463 | ) | |||||||||||||
Foreign | 17,191 | 3,165 | |||||||||||||||
Total deferred | 132,156 | (2,507,355 | ) | ||||||||||||||
Total income taxes | $ | 160,111 | $ | (2,370,482 | ) | ||||||||||||
In 2013, the Company recognized a $160,111 income tax expense consisting of a $120,330 U.S. income tax expense and a foreign income tax expense of $39,781. The U.S. income tax expense consists of a current tax expense of $5,365 and a deferred tax expense of $114,965. The deferred tax expense is due to differences in financial reporting and tax treatment of goodwill of $153,619 net of amortization for financial reporting but not tax purposes of acquired MedEfficiency identified intangible assets of $38,654. | |||||||||||||||||
The reconciliation of income tax computed at the U.S. federal statutory tax rates to income tax expense along with percentage of loss before income taxes for the year ended December 31, 2013 and 2012 is as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Tax benefit at federal statutory rate | $ | (8,093,340 | ) | 34 | % | $ | (4,909,912 | ) | 34 | % | |||||||
State tax, net of federal benefit | (750,351 | ) | 3.2 | (578,855 | ) | 4 | |||||||||||
Foreign tax | 74,612 | (0.3 | ) | - | - | ||||||||||||
Nondeductible expenses | 637,797 | (2.7 | ) | 781,791 | (5.4 | ) | |||||||||||
Other | (50,860 | ) | 0.2 | (220,266 | ) | 1.5 | |||||||||||
Change in valuation allowance | 8,342,253 | (35.1 | ) | 2,556,760 | (17.7 | ) | |||||||||||
Income taxes | $ | 160,111 | (0.7 | %) | $ | (2,370,482 | ) | 16.4 | % | ||||||||
Significant components of the Company's deferred tax assets and liabilities are as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Deferred tax assets: | |||||||||||||||||
Net operating loss carryforwards | $ | 17,327,134 | $ | 10,077,826 | |||||||||||||
Equity based compensation | 1,281,192 | 798,701 | |||||||||||||||
Allowance for sales deductions | 165,142 | 182,002 | |||||||||||||||
Amortization of identified intangibles | 1,698,913 | 1,698,492 | |||||||||||||||
Inventory adjustments | 619,189 | 689,307 | |||||||||||||||
Other | 776,549 | 502,479 | |||||||||||||||
Deferred tax assets | 21,868,119 | 13,948,807 | |||||||||||||||
Deferred tax liabilities: | |||||||||||||||||
Prepaid expenses | (152,489 | ) | (135,914 | ) | |||||||||||||
Goodwill | (1,181,379 | ) | (1,027,760 | ) | |||||||||||||
Depreciation | (299,541 | ) | (192,438 | ) | |||||||||||||
Indentified Intangibles | (2,780,224 | ) | (3,365,512 | ) | |||||||||||||
Other | (654 | ) | (552 | ) | |||||||||||||
Deferred tax liabilities | (4,414,287 | ) | (4,722,176 | ) | |||||||||||||
Valuation allowance | (19,119,723 | ) | (10,777,470 | ) | |||||||||||||
Net deferred tax liabilities | $ | (1,665,891 | ) | $ | (1,550,839 | ) | |||||||||||
The net deferred tax liability of $1,665,891 consists of a net noncurrent deferred tax liability of $1,694,147 and a net current deferred tax asset of $28,256 as of December 31, 2013. The net deferred tax liability includes a U.S. deferred tax liability of $1,181,379 related to differences in the basis for financial reporting and tax purposes for goodwill, a deferred liability of $225,309 related to intangible assets acquired from MedEfficiency and a $259,203 net deferred tax liability related to the Company's Canadian operations. The deferred tax asset is included in prepaid expenses and other current assets in the Consolidated Balance Sheet. | |||||||||||||||||
At December 31, 2013, the Company has U.S. federal net operating loss carry forwards of approximately $46,343,000 that begin to expire in 2018. For U.S. state income tax purposes, the Company has net operating loss carry forwards in a number of jurisdictions in varying amounts and with varying expiration dates. Federal and state net operating loss carryforwards include excess stock-based compensation benefit deductions of which, if recognized in the future, will be recorded as additional paid in capital in the Consolidated Balance Sheet. The Company also has $1,015,000 in research and development tax credit carry forwards and $179,000 in foreign tax credit carry forwards which begin to expire in 2031and 2019, respectively. | |||||||||||||||||
The Company has determined that the amount by which the U.S. federal net operating loss carryforwards can be utilized in any year is limited under the Internal Revenue Code Section 382 regarding changes in ownership of corporations. Due to uncertainties surrounding the Company's ability to use its net operating loss carryforwards, foreign tax credit and realize the other net deferred tax assets based on historical operating results and ownership change limitations a full valuation allowance has been provided as of December 31, 2013 and 2012 for the deferred tax assets for the U.S. and U.K. |
Retirement_Benefits
Retirement Benefits | 12 Months Ended | |
Dec. 31, 2013 | ||
Retirement Benefits [Abstract] | ' | |
Retirement Benefits | ' | |
13 | Retirement Benefits | |
The Company maintains a profit sharing 401(k) plan for eligible full-time U.S. employees. Participants may contribute a fixed percentage of their salary to the plan, subject to IRS limitations. The Company makes a matching contribution up to a maximum amount of each participant's annual base salary earnings contributed to the plan. During 2013 and 2012, the Company matched 100% on the first 4% of each participant's contributed annual base salary. Company contributions to the plan for the years ended December 31, 2013 and 2012 were $303,913 and $208,654, respectively. | ||
The Company's Canadian subsidiary maintains a group retirement savings plan (Registered Retirement Savings Plan) for eligible full time Canadian employees. The Canadian subsidiary makes a matching contribution to the plan based on a percentage of each participant's contributed annual gross earnings. Employee contribution limits to the group retirement savings plan are set by the Canada Customs and Revenue Agency. During 2013 and 2012, the Company matched 100% on the first 4% of each participant's contributed annual gross earnings. The Company's Canadian subsidiary's contributions to the plan for the year ended December 31, 2013 and 2012 were $133,319 and $109,442, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
14 | Commitments and Contingencies | ||||
Operating Leases | |||||
The Company has non-cancelable operating lease agreements for its facilities and equipment expiring in various years through 2019. Total lease expense under these lease agreements was $1,227,718 and $1,544,575 in 2013 and 2012, respectively. Total minimum lease payments under each lease are recorded on a straight-line basis to lease expense over the lease term. Differences between the recognition of lease expense on a straight-line basis and payments owed and/or free rent are recorded as deferred rent. Tenant improvement allowances are recorded as deferred lease expense as received, and amortized to lease expense over the lesser of the corresponding asset life or the lease term. At December 31, 2013 and 2012, the Company had deferred rent of $242,325 and $268,517, respectively, recorded in long-term liabilities on the Consolidated Balance Sheet. | |||||
The leases generally provide for scheduled increases in future minimum annual lease payments over the life of the lease and for renewal options consistent with the terms of the existing lease. It is expected that these leases will be renewed or replaced by leases on other property and equipment, as needed. | |||||
Minimum future lease payments under existing operating leases as of December 31, 2013 are: | |||||
Minimum Future Rental Payments | |||||
Year Ending December 31, | Amount | ||||
2014 | $ | 1,289,799 | |||
2015 | 1,043,225 | ||||
2016 | 940,565 | ||||
2017 | 804,561 | ||||
2018 | 490,598 | ||||
Thereafter | 4,014 | ||||
Net minimum future rental payments | $ | 4,572,762 | |||
Comvita Licensing Agreement | |||||
In February 2010, the Company entered into a new agreement with Comvita under which the Company received perpetual and exclusive worldwide licensing rights for Manuka Honey based Medihoney wound and skin care products for all markets outside of the consumer market (the "Comvita Agreement"). The Comvita Agreement supersedes the prior agreement, which was terminated as of the effective date. The Comvita Agreement also provides that Comvita will serve as the Company's exclusive supplier for Manuka Honey and will not provide Manuka Honey to any other entities for use in the professional medical-surgical marketplace. The Comvita Agreement calls for graduated royalty payments based on sales and milestone payments of up to $20,000,000 based on achievement of specified net sales objectives of which $2,000,000 has been incurred and paid through December 31, 2013. The license rights may be terminated or rendered non-exclusive by Comvita if the Company fails to meet certain minimum royalty requirements. | |||||
In October 2012, the Company met the criteria for payment of the second Medihoney milestone payment under the Comvita Agreement based on achieving Medihoney sales in excess of $10,000,000 for the trailing twelve month period. During the year, the $1,000,000 milestone payment was recorded as an addition to the Medihoney license intangible asset and is being amortized to cost of sales. Another milestone payment of $1,000,000 was made in a prior year. | |||||
Comvita is a major stockholder of the Company and its Chief Executive Officer serves on the Company's Board of Directors. The Company purchased $2,266,964 and $1,653,075 of medical grade honey from Comvita in 2013 and 2012, respectively. In addition, the Company incurred Medihoney royalties of $1,240,818 and $901,826 in 2013 and 2012, respectively. Amounts due to Comvita for raw material purchases and royalties totaled $421,578 and $288,596 at December 31, 2013 and 2012, respectively. During 2013, the Company also purchased an equity investment in Comvita stock for $7,000,000 (note 4). | |||||
Quick-Med Technologies, Inc. - License Agreement | |||||
In July 2012, the Company entered into a new patent and technology license agreement (the "QMT Agreement") with Quick-Med Technologies, Inc. ("QMT") relating to QMT's proprietary anti-microbial technology (the "Technology") utilized in the Company's Bioguard products. The QMT Agreement supersedes a prior agreement, which had been in effect since March 2007. | |||||
Under the QMT Agreement, QMT granted to the Company an exclusive, royalty-bearing right and license to make, use and sell products incorporating the Technology worldwide, except for India (the "Territory"). If the Company does not achieve the first commercial sale of a product incorporating the Technology in Europe and in Asia and Central and South America by certain dates, or in the event that, for a given calendar year, the Company fails to meet a minimum net sales requirement under the QMT Agreement, QMT has the right, as its sole remedy within each geographic area affected, to either terminate the QMT Agreement or convert the exclusive license in that geographic area to a non-exclusive license. Unless otherwise terminated pursuant to the QMT Agreement, the term of the QMT Agreement continues, with respect to each country in the Territory, until the expiration of the patent rights in that country. | |||||
In 2012, the Company paid QMT an upfront license fee of $1,300,000. This upfront fee has been capitalized as an identifiable intangible asset and is being amortized over its estimated useful life of seven years. In addition to the upfront license fee, royalties are payable to QMT based upon a sliding scale of the Company's net sales of products incorporating the Technology and declining as net sales increase. The QMT Agreement also requires the Company to make certain milestone payments of up to $3,500,000 to QMT based upon the achievement of certain net sales levels for four consecutive calendar quarters. In 2013 and 2012, the Company incurred QMT royalties of $202,377 and $279,537, respectively. | |||||
In the event that QMT desires to sell the Technology, patent rights and improvements or QMT receives a bona fide offer from an unaffiliated third party to purchase the same during the term of the QMT Agreement, the Company has the right of first negotiations or right of first refusal, respectively, relating to any such sale. | |||||
USC License Agreement | |||||
In November 2007, the Company entered into a license agreement (the "License Agreement") with the University of Southern California ("USC") pursuant to which the Company acquired exclusive rights to a number of U.S. and foreign patents and non-exclusive rights to one patent, together with trade secrets and know-how, related to an angiotensin analog (the patents, trade secrets and know-how, collectively, the "Angiotensin Analog Technology"). The Angiotensin Analog Technology relates to all dermal applications including applications for the treatment of chronic wounds such as diabetic ulcers, leg ulcers associated with venous insufficiency, pressure ulcers (bed sores), burns and surgical scars. | |||||
The Company paid to or on behalf of USC an initial license fee which was charged to expense. The Company will pay USC royalties relative to sales of products employing the Angiotensin Analog Technology (the "Angiotensin Products") at specified rates in respect of revenues less than $100 million and revenues equal to or greater than $100 million, respectively, together with milestone payments of up to $9,625,000 predicated upon obtaining FDA approval of the various indications for the Angiotensin Products, as well as the attainment of various sales objectives. | |||||
The compound employing the Angiotensin Analog Technology is classified as a "drug," the sale of which is conditioned upon FDA approval. The process of obtaining FDA approval for the compound consists of subjecting the compound to a series of pre-clinical and clinical studies, these latter known as Phase 1, Phase 2 and Phase 3 studies. | |||||
Our first product, DSC 127, utilizing this compound for the treatment of diabetic foot ulcers has successfully undergone pre-clinical, Phase 1 and Phase 2 clinical studies for use in the treatment of diabetic foot ulcers. The first of two Phase 3 clinical trials commenced in the first quarter of 2013, with the second commencing during the second quarter of 2013. | |||||
The Company is under no obligation to undertake or complete further studies in respect of the Angiotensin Analog Technology. Should it not do so, the Company may either sublicense the Angiotensin Analog Technology to one or more third parties or release the Angiotensin Analog Technology to USC. In this latter event, USC would reimburse the Company for certain of its costs incident to clinical studies that have heretofore been performed. | |||||
Canadian Distribution Agreement | |||||
In May 2005, the Company entered into a distribution agreement with a Canadian company to serve as the exclusive distributor of its products in Canada. The agreement also appoints the distributor as the Company's servicing agent to fulfill supply contracts held directly by the Company. The agreement was most recently amended in January 2011, extending it through April 2016. The Company recognizes revenue under the agreement when title and risk of loss pass to the distributor and collectability is reasonably assured, which is at the time product is shipped to the distributor. Payment terms from the distributor are 30 days. Either party has the right to terminate the agreement when an event of default (as defined) has occurred with respect to the other party. The distributor is entitled to continue to sell or otherwise dispose of all inventory owned by it from and after the date of contract expiration or termination. If termination of the agreement is not occasioned by breach by the distributor, the distributor will be entitled on notice to the Company to return saleable inventory (as defined) to the Company. Estimated returns are reserved at the time of sale. Since the inception of the agreement, sales returns have been minimal. | |||||
The distributor assumes responsibility for customer service, product delivery and maintenance and warehousing of sufficient inventory to meet agreed upon order fulfillment requirements. On an ongoing basis, the distributor places inventory replenishment orders with the Company at agreed upon prices, 120 days in advance of scheduled delivery. Unless amended, each order becomes non-cancelable 90 days in advance of scheduled delivery. | |||||
With respect to sales made by the distributor, the Company pays the distributor an agreed upon distribution fee. The Company reimburses the distributor for the difference between the price paid by the distributor and the Company's contract price with the end customer, upon submission by the distributor of an agreed upon rebate report. The distribution fee is recorded as a reduction of revenue under this agreement. | |||||
Executive Employment Agreements | |||||
The five executive officers of the Company are appointed by and serve at the discretion of the Board of Directors pursuant to one year employment agreements that are subject to renewal annually as of April 1st. The agreements were renewed in March 2013. The agreements provide for annual salary and provision for bonus and equity based compensation assuming financial and personal objectives are met. The agreements also outline certain obligations that may be triggered by a change in control and severance for failure to renew an agreement other than for cause. | |||||
New Cast Industry Co., Ltd. Supply Agreement | |||||
On March 27, 2013, the Company entered into a supply agreement (the "International Agreement") with New Cast Industry Co., Ltd. ("NCIC") relating to NCIC's proprietary technology for the casting element within the TCC-EZ total contact casting system (the "Technology"). The Company has been purchasing product from NCIC utilizing the Technology in the TCC-EZ series of total contact casting system products for TCC-EZ product sales within North America pursuant to the supply agreement dated April 17, 2012 (the "North America Agreement"), and intends to continue to do so. | |||||
Under the International Agreement, NCIC agreed to exclusively supply the Company with its product utilizing the Technology and granted the Company the exclusive right to sell products incorporating the Technology outside North America. If the Company does not achieve the first commercial sale of a product incorporating the Technology in Latin America, Europe, Middle East, Australia, Asia and India (the "Territory") by certain dates, NCIC has the right, as its sole remedy, to convert the exclusive license in the Territory to a non-exclusive license. Unless otherwise terminated pursuant to the terms of the International Agreement, the term is for five years with automatic five year renewals. | |||||
In consideration for the exclusive international rights set forth above, the Company paid NCIC $200,000. Provided this agreement has not been terminated as a result of a breach by the Company, NCIC will refund $100,000 to the Company on the first anniversary of the International Agreement. The initial cost of $100,000 has been capitalized as an identifiable intangible asset and is being amortized over the initial five year term of the agreement, and a $100,000 deposit has been recorded. Further, the International Agreement includes milestone payments of up to $1,000,000 to NCIC based upon achievement of international net sales levels during a calendar year. | |||||
Contingencies | |||||
On occasion, the Company is involved in claims and other legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company's consolidated financial position, results of operations, or liquidity. |
Subsequent_Events
Subsequent Events | 12 Months Ended | |
Dec. 31, 2013 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events | ' | |
15 | Subsequent Events | |
BioDLogics, LLC License Agreement | ||
On January 14, 2014, the Company entered into a license, market development and commercialization agreement (the "Agreement") with BioDLogics, LLC ("BioD") relating to BioD's human placental based products (the "Licensed Products") and intellectual property related thereto. | ||
Under the Agreement, BioD granted to the Company an exclusive, perpetual, royalty-bearing license to use, offer for sale and sell, the Licensed Products in North America (the "Territory"), including the rights to sublicense solely as provided in the Agreement, for a broad range of dermal applications, (the "Field"). During the term of the Agreement, the Company must use diligent efforts, and will be responsible for the sale and marketing of the Licensed Products in the Field throughout the Territory. As part of its commercialization efforts, the Company will fund clinical studies in support of the Field pursuant to the Agreement. | ||
The Company agreed to pay to BioD an initial license fee of $1,250,000 and granted BioD a warrant to purchase 100,000 shares of the Company's common stock. One quarter (25%) of the warrant is exerciseable immediately at a price of $11.81, while the remaining 75% of the warrant becomes exercisable, if at all, upon the achievement of certain milestones. The warrant expires five years from the date of issuance in January 2019. In addition to the initial license fee and warrant, royalties are payable to BioD based upon a sliding scale of the Company's net sales of Licensed Products within the Territory and declining as net sales increase. The Agreement also requires the Company to make milestone payments to BioD of up to $19,750,000 based upon the achievement of certain development events and annual net sales levels. | ||
The Agreement may be terminated as follows: (i) upon mutual agreement of the parties; (ii) by BioD if the Company challenges certain BioD patents or trade secrets; (iii) by BioD if the Company fails to meet the annual minimum net sales requirement under the Agreement, unless the Company pays the difference between the amount of royalties that would have been due had the minimum annual net sales for such year been achieved and royalty payments made by the Company with respect to net sales during such year plus any milestone payments payable; or (iv) by either party in the event of a material breach or certain events of bankruptcy. | ||
Equity Offering | ||
On January 29, 2014, the Company raised $80,675,000 (net of $5,575,000 in estimated commission and other offering expenses) from the sale of 7,500,000 shares of the Company's common stock at $11.50 per share. The Company plans to use the net proceeds from the offering for the continued development of its pharmaceutical product DSC127, for sales force expansion and for general corporate purposes. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policy) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||
Principles of Consolidation | ' | ||||||||
Principles of Consolidation - The consolidated financial statements include the accounts of Derma Sciences, Inc. and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. | |||||||||
Use of Estimates | ' | ||||||||
Use of Estimates - The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on knowledge of current events and actions which may be undertaken in the future, actual results may ultimately differ from these estimates. Estimates and assumptions are required in the determination of sales deductions for trade rebates, sales incentives, discounts and allowances. Significant estimates and assumptions are also required in determining the appropriateness of amortization periods for identifiable intangible assets, the potential impairment of goodwill and the valuation of inventory. | |||||||||
Foreign Currency Translation | ' | ||||||||
Foreign Currency Translation - Assets and liabilities are translated using the exchange rates in effect at the balance sheet date, while income and expenses are translated using average rates during the period. Translation adjustments are reported as a component of stockholders' equity in accumulated other comprehensive income. For the Company's foreign subsidiaries, exchange rate fluctuations on foreign currency denominated assets and liabilities other than the functional currency resulted in income of $140,721 and $47,738 for the years ended December 31, 2013 and 2012, respectively, which is included in the Consolidated Statement of Comprehensive Loss as follows: | |||||||||
2013 | 2012 | ||||||||
Cost of sales | $ | 57,894 | $ | 7,031 | |||||
Other income, net | (198,615 | ) | (54,769 | ) | |||||
Total | $ | (140,721 | ) | $ | (47,738 | ) | |||
Exchange rate fluctuations of foreign currency denominated assets and liabilities associated with inventory are included in cost of sales, while all other such fluctuations are included in other income, net. | |||||||||
Concentration of Credit Risk | ' | ||||||||
Concentration of Credit Risk - Financial instruments that subject the Company to a concentration of credit risk consist principally of cash and cash equivalents, investments in debt securities and accounts receivable. The Company maintains cash and cash equivalents with various financial institutions in amounts which at times may exceed federally insured limits. Accounts are guaranteed by the Federal Deposit Insurance Corporation up to $250,000. The Company has not experienced any losses in such accounts. The Company does not require collateral or other security to support credit sales, but provides an allowance for doubtful accounts based on historical experience and specifically identified risks. Accounts receivable are charged off against the allowance for doubtful accounts when management determines that recovery is unlikely and the Company ceases collection efforts. | |||||||||
Inventories | ' | ||||||||
Inventories - Inventories consist of raw materials, packaging materials, work in process and finished goods valued at the lower of cost or market. Cost is determined on the basis of the first-in, first-out method. | |||||||||
Equipment and improvements | ' | ||||||||
Equipment and improvements - Equipment and improvements are stated at cost and are depreciated on a straight-line basis over the estimated useful lives of the assets ranging from three to 10 years. Leasehold improvements are amortized over the lesser of their useful lives or the remaining lease term. | |||||||||
Fair Value of Financial Instruments | ' | ||||||||
Fair Value of Financial Instruments - The carrying value of cash equivalents, accounts receivable, prepaid expenses and other current assets, and accounts payable reported in the consolidated balance sheets equal or approximate fair value due to their short term nature. | |||||||||
Identifiable Intangible Assets | ' | ||||||||
Identifiable Intangible Assets - Identifiable intangible assets, which consist of product license rights, developed technology and supply agreements, and other identifiable intangible assets, are amortized over one to 13 years on a straight-line basis. | |||||||||
Long-Lived Assets | ' | ||||||||
Long Lived Assets -The Company reviews its long-lived assets with definitive lives whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If the carrying amount of the asset or group of assets exceeds its net realizable value, the asset will be written down to its fair value. | |||||||||
Goodwill | ' | ||||||||
Goodwill - The Company tests goodwill for impairment using a two-step process. The first step tests for potential impairment, while the second step measures the amount of impairment, if any. The Company uses a discounted cash flow analysis to complete the first step in this process. If the first step indicates an impairment, i.e. when the carrying value exceeds the fair value, then the second step is required to determine the implied fair value of goodwill. The implied fair value of goodwill is calculated in the same manner that goodwill is calculated in a business combination. The allocation is to be performed as if the reporting unit had just been acquired and the fair value of the unit was the purchase price. The goodwill impairment equals the carrying value of goodwill less the implied fair value of goodwill. The Company performs its goodwill impairment test as of December 31st of each year, or more frequently if impairment indicators are present. | |||||||||
Stock-Based Compensation | ' | ||||||||
Stock-Based Compensation - Stock-based compensation for share-based awards with employees and non-employee directors, such as grants of stock options and restricted share units, are recognized in the consolidated financial statements based on the fair value of the award at the grant date on a straight-line basis over the requisite service or performance periods. Stock-based compensation for share-based awards granted to consultants are recognized based on the fair value of the award on a straight-line basis over the requisite service or performance periods and are revalued at the end of each period until the award vests. The Company estimates the fair value of stock options using the Black-Scholes option-pricing model for service and performance based awards. The fair value of restricted share units is based on the quoted market price for service and performance based awards, and by using a binomial/lattice pricing model for market based awards. The Company issues new common stock shares upon exercise of share-based awards. | |||||||||
Income Taxes | ' | ||||||||
Income Taxes - Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and the respective tax bases. Deferred tax assets, including tax loss and credit carryforwards, and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The effect of income tax positions is recognized only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. | |||||||||
The Company measures and recognizes the tax implications of positions taken or expected to be taken in its tax returns on an ongoing basis. In 2013 and 2012, the Company had no unrecognized tax benefits or liabilities, and no adjustment to its financial position, results of operations or cash flows were required. The Company records interest and penalties related to tax matters within other income, net on the accompanying Consolidated Statements of Comprehensive Loss. These amounts are not material to the consolidated financial statements for the periods presented. The Company's U.S. tax returns are subject to examination by federal and state taxing authorities. Tax years prior to 2010 are no longer subject to federal examination. However, the Company's federal net operating losses for tax years 1999 through 2009 will remain subject to examination until the losses are utilized or expire. State tax years 2009 to 2013 remain open to examination by the various state jurisdictions in which the Company is subject to tax. Tax years prior to 2005 are no longer subject to examination in Canada. The U.K. tax returns since the inception of the subsidiary in 2010 are subject to examination. | |||||||||
Revenue Recognition | ' | ||||||||
Revenue Recognition - Sales are recorded when product is shipped or title passes to customers and collectability is reasonably assured. Gross sales are adjusted for cash discounts, returns and allowances, trade rebates, distribution fees (in Canada) and other sales deductions in the same period that the related sales are recorded. Freight costs billed to and reimbursed by customers are recorded as a component of revenue. Freight costs to ship product to customers are recorded as a component of cost of sales. | |||||||||
Advertising and Promotion Costs | ' | ||||||||
Advertising and Promotion Costs - Advertising and promotion costs are charged to expense as incurred and were $3,082,221 and $2,243,387 in 2013 and 2012, respectively. | |||||||||
Royalties | ' | ||||||||
Royalties - The Company recognizes royalty expenses associated with the products sold at the time the related sale occurs and records them as a component of cost of sales. Royalty expense for the years ended December 31, 2013 and 2012 was $1,741,742 and $1,395,567, respectively. | |||||||||
Net Loss per Share | ' | ||||||||
Net Loss per Share - Net loss per common share - basic is computed by dividing net loss by the weighted average number of common shares outstanding for the period. Net loss per common share - diluted reflects the potential dilution of earnings by including the effects of the assumed exercise, conversion or issuance of potentially issuable shares of common stock ("potentially dilutive securities"), including those attributable to stock options, warrants, convertible preferred stock and restricted share units in the weighted average number of common shares outstanding for a period, if dilutive. The effects of the assumed exercise of warrants and stock options are determined using the treasury stock method. Potentially dilutive securities have not been included in the computation of diluted loss per share for the years ended December 31, 2013 and 2012 as the effect would be anti-dilutive. | |||||||||
Potentially dilutive shares excluded as a result of the effects being anti-dilutive are as follows: | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Excluded dilutive shares: | |||||||||
Convertible preferred stock | 73,332 | 73,332 | |||||||
Additional stock issuable related | |||||||||
to conversion of preferred stock | 49,154 | - | |||||||
Restricted share units | 720,550 | 786,900 | |||||||
Stock options | 1,814,233 | 1,639,985 | |||||||
Warrants | 2,305,272 | 2,930,154 | |||||||
Total dilutive shares | 4,962,541 | 5,430,371 | |||||||
Recently Issued Accounting Pronouncements | ' | ||||||||
Recently Issued Accounting Pronouncements - In February 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires companies to present information about reclassifications out of accumulated other comprehensive income in a single note or on the face of the financial statements. The updated standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012, with early adoption permitted. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. | |||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Description of Business [Abstract] | ' | ||||||||
Schedule of Foreign Currency Income | ' | ||||||||
2013 | 2012 | ||||||||
Cost of sales | $ | 57,894 | $ | 7,031 | |||||
Other income, net | (198,615 | ) | (54,769 | ) | |||||
Total | $ | (140,721 | ) | $ | (47,738 | ) | |||
Potentially Dilutive Shares Excluded as Result of Effects Being Anti-dilutive | ' | ||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Excluded dilutive shares: | |||||||||
Convertible preferred stock | 73,332 | 73,332 | |||||||
Additional stock issuable related | |||||||||
to conversion of preferred stock | 49,154 | - | |||||||
Restricted share units | 720,550 | 786,900 | |||||||
Stock options | 1,814,233 | 1,639,985 | |||||||
Warrants | 2,305,272 | 2,930,154 | |||||||
Total dilutive shares | 4,962,541 | 5,430,371 |
Acquisition_Tables
Acquisition (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Acquisition [Abstract] | ' | ||||
Allocation of Purchase Price of Assets Acquired and Liabilities Assumed | ' | ||||
Current assets | $ | 925,817 | |||
Equipment | 29,579 | ||||
Acquired intangible assets | 10,700,000 | ||||
Goodwill | 6,337,967 | ||||
Total assets acquired | 17,993,363 | ||||
Current liabilities | 653,315 | ||||
Deferred tax liability | 2,982,470 | ||||
Total liabilities assumed | 3,635,785 | ||||
Net assets acquired | $ | 14,357,578 | |||
Purchase price | $ | 14,475,000 | |||
Less cash acquired | 117,422 | ||||
Net cash paid | $ | 14,357,578 | |||
Combined Results of Operations as if Acquisition Had Occurred at Beginning of Period | ' | ||||
Year ended, | |||||
31-Dec-12 | |||||
(Unaudited) | |||||
Net Sales | $ | 74,035,688 | |||
Net Loss | $ | (12,762,551 | ) | ||
Net Loss per common share - | |||||
basic and diluted | $ | (1.02 | ) | ||
Weighted average number of shares - | |||||
basic and diluted | 12,488,263 |
Cash_and_Cash_Equivalents_and_1
Cash and Cash Equivalents and Investments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Cash and Cash Equivalents and Investments [Abstract] | ' | ||||||||||||||||
Schedule of Cash and Cash Equivalents and Investments | ' | ||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Cash | $ | 5,265,903 | $ | 4,909,663 | |||||||||||||
Money market mutual funds | 1,235,683 | 36,706,994 | |||||||||||||||
Cash and cash equivalents | 6,501,586 | 41,616,657 | |||||||||||||||
Investments in debt securities | 16,474,000 | 4,228,000 | |||||||||||||||
Investment in equity securities | 6,862,140 | - | |||||||||||||||
Total investments | 23,336,140 | 4,228,000 | |||||||||||||||
Total cash and cash equivalents and investments | $ | 29,837,726 | $ | 45,844,657 | |||||||||||||
Fair Value of Cash and Cash Equivalents and Investments | ' | ||||||||||||||||
The following table provides fair value information as of December 31, 2013: | |||||||||||||||||
Fair Value Measurements, Using | |||||||||||||||||
Total carrying | Quoted prices | Significant other | Significant | ||||||||||||||
value as of | in active | observable | unobservable | ||||||||||||||
31-Dec-13 | markets | inputs | inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Cash and cash equivalents | $ | 6,501,586 | $ | 6,501,586 | $ | - | $ | - | |||||||||
Investments in debt securities | 16,474,000 | 16,463,473 | - | - | |||||||||||||
Investment in equity securities | 6,862,140 | 6,862,140 | - | - | |||||||||||||
Total Investments | 23,336,140 | 23,325,613 | - | - | |||||||||||||
Total | $ | 29,837,726 | $ | 29,827,199 | $ | - | $ | - | |||||||||
The following table provides fair value information as of December 31, 2012: | |||||||||||||||||
Fair Value Measurements, Using | |||||||||||||||||
Total carrying | Quoted prices | Significant other | Significant | ||||||||||||||
value as of | in active | observable | unobservable | ||||||||||||||
31-Dec-12 | markets | inputs | inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Cash and cash equivalents | $ | 41,616,657 | $ | 41,616,657 | $ | - | $ | - | |||||||||
Investments in debt securities | 4,228,000 | 4,216,156 | - | - | |||||||||||||
Total | $ | 45,844,657 | $ | 45,832,813 | $ | - | $ | - |
Accounts_Receivable_net_Tables
Accounts Receivable, net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounts Receivable, net [Abstract] | ' | ||||||||
Schedule of Accounts Receivable | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Accounts receivable | $ | 7,781,482 | $ | 7,557,862 | |||||
Less: Allowance for doubtful accounts | (97,729 | ) | (147,843 | ) | |||||
Allowance for trade rebates | (218,700 | ) | (197,650 | ) | |||||
Allowance for cash discounts and returns | (132,297 | ) | (126,656 | ) | |||||
Accounts receivable, net | $ | 7,332,756 | $ | 7,085,713 |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventories [Abstract] | ' | ||||||||
Schedule of Inventories | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Finished goods | $ | 11,044,746 | $ | 9,574,685 | |||||
Work in process | 1,009,315 | 554,129 | |||||||
Packaging materials | 1,408,521 | 991,157 | |||||||
Raw materials | 3,010,058 | 2,550,617 | |||||||
Total inventory | $ | 16,472,640 | $ | 13,670,588 |
Equipment_and_Improvements_net1
Equipment and Improvements, net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Equipment and Improvements, net [Abstract] | ' | ||||||||
Schedule of Equipment and Improvements | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Machinery and equipment | $ | 7,102,144 | $ | 7,135,714 | |||||
Furniture and fixtures | 911,879 | 843,149 | |||||||
Leasehold improvements | 2,300,500 | 2,226,022 | |||||||
10,314,523 | 10,204,885 | ||||||||
Less: accumulated depreciation | (7,361,054 | ) | (6,900,033 | ) | |||||
Total equipment and improvements, net | $ | 2,953,469 | $ | 3,304,852 |
Identifiable_Intangible_Assets1
Identifiable Intangible Assets, net (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Identifiable Intangible Assets, net [Abstract] | ' | ||||||||||||||||
Schedule of Identifiable Intangible Assets | ' | ||||||||||||||||
December 31, | Amortization Period | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Product license rights | $ | 8,217,126 | $ | 7,967,126 | 6-10 years | ||||||||||||
Developed technology and supply agreements | 7,700,000 | 7,600,000 | 5-7 years | ||||||||||||||
Other | 6,400,000 | 6,400,000 | 1-10 years | ||||||||||||||
22,317,126 | 21,967,126 | ||||||||||||||||
Less accumulated amortization | (7,681,128 | ) | (4,838,243 | ) | |||||||||||||
Total identifiable intangible assets, net | $ | 14,635,998 | $ | 17,128,883 | |||||||||||||
Schedule of Amortization Expense | ' | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Cost of sales | $ | 2,009,472 | $ | 1,461,411 | |||||||||||||
Selling, general and administrative expenses | 833,413 | 812,750 | |||||||||||||||
Total amortization expense | $ | 2,842,885 | $ | 2,274,161 | |||||||||||||
Schedule of Estimated Future Amortization Expense | ' | ||||||||||||||||
Product License Rights | Developed | Other | Total | ||||||||||||||
Technology and Supply Agreements | |||||||||||||||||
Amortization expense for | $ | 908,758 | $ | 1,100,714 | $ | 833,413 | $ | 2,842,885 | |||||||||
year ended December 31, 2013 | |||||||||||||||||
Weighted Average Useful Life | 6 | 5.3 | 3.2 | 4.8 | |||||||||||||
Amortization expense for | $ | 692,363 | $ | 769,048 | $ | 812,750 | $ | 2,274,161 | |||||||||
year ended December 31, 2012 | |||||||||||||||||
Estimated amortization expense for years ending December 31, | |||||||||||||||||
2014 | $ | 946,613 | $ | 1,105,715 | $ | 775,000 | $ | 2,827,328 | |||||||||
2015 | 946,613 | 1,105,715 | 775,000 | 2,827,328 | |||||||||||||
2016 | 946,613 | 1,105,715 | 626,250 | 2,678,578 | |||||||||||||
2017 | 946,613 | 1,105,715 | 281,667 | 2,333,995 | |||||||||||||
2018 | 946,613 | 1,025,295 | 165,000 | 2,136,908 | |||||||||||||
Thereafter | 987,990 | 382,083 | 461,788 | 1,831,861 | |||||||||||||
$ | 5,721,055 | $ | 5,830,238 | $ | 3,084,705 | $ | 14,635,998 |
Accrued_Expenses_and_Other_Cur1
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accrued Expenses and Other Current Liabilities [Abstract] | ' | ||||||||
Schedule of Accrued Expenses and Other Current Liabilities | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Accrued compensation and related taxes | $ | 2,529,211 | $ | 1,929,524 | |||||
Accrued Canadian sales rebate, net (note 14) | 252,671 | 636,633 | |||||||
Accrued royalties | 361,559 | 427,075 | |||||||
Accrued sales incentives and other fees | 546,296 | 316,209 | |||||||
Other | 1,279,488 | 823,493 | |||||||
Total accrued expenses and other current liabilities | $ | 4,969,225 | $ | 4,132,934 |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Stockholders' Equity [Abstract] | ' | ||||||||||||||||||||
Schedule of Warrants Outstanding | ' | ||||||||||||||||||||
Series | Number of Warrants | Exercise Price | Expiration Date | ||||||||||||||||||
L | 6,250 | $ | 3.12 | 31-Mar-14 | |||||||||||||||||
N | 100,000 | $ | 6.25 | 22-Feb-15 | |||||||||||||||||
O | 230,900 | $ | 5.5 | 22-Feb-15 | |||||||||||||||||
P | 2,187 | $ | 6.25 | 16-Feb-15 | |||||||||||||||||
Q | 133,333 | $ | 5.5 | 22-Feb-15 | |||||||||||||||||
R | 1,832,602 | $ | 9.9 | 22-Jun-16 | |||||||||||||||||
Total | $ | 2,305,272 | |||||||||||||||||||
Weighted Average Assumptions Used in Estimation of Fair Value of Option Awards | ' | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Risk-free interest rate | 1.22 | % | 1.11 | % | |||||||||||||||||
Volatility factor | 69.9 | % | 73.6 | % | |||||||||||||||||
Dividend yield | 0 | % | 0 | % | |||||||||||||||||
Expected option life (years) | 6.14 | 6.25 | |||||||||||||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Options | Weighted Average Exercise Price | Options | Weighted Average Exercise Price | ||||||||||||||||||
Outstanding - beginning of year | 1,639,985 | $ | 6.38 | 1,582,683 | $ | 5.82 | |||||||||||||||
Granted | 421,480 | $ | 12.14 | 268,160 | $ | 8.93 | |||||||||||||||
Forfeited | (36,878 | ) | $ | 10.99 | (61,825 | ) | $ | 7.53 | |||||||||||||
Exercised | (184,824 | ) | $ | 5.5 | (149,033 | ) | $ | 4.37 | |||||||||||||
Expired | (25,530 | ) | $ | 13.16 | - | - | |||||||||||||||
Outstanding - end of year | 1,814,233 | $ | 7.67 | 1,639,985 | $ | 6.38 | |||||||||||||||
Expected to vest - end of year | 1,796,091 | $ | 7.67 | 1,623,585 | $ | 6.38 | |||||||||||||||
Exercisable at end of year | 1,443,409 | $ | 6.84 | 1,208,077 | $ | 5.86 | |||||||||||||||
Schedule of Information about Stock Options Outstanding and Exercisable by Exercise Price Range | ' | ||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||
Range of | Number Outstanding | Weighted-Average Remaining Contractual Life | Weighted-Average Exercise Price | Number Exercisable | Weighted-Average Exercise Price | ||||||||||||||||
Exercise Prices | |||||||||||||||||||||
$2.88 - $4.00 | 251,961 | 3.38 | $ | 3.43 | 251,961 | $ | 3.43 | ||||||||||||||
$4.01 - $6.00 | 473,412 | 5.18 | $ | 5.13 | 463,912 | $ | 5.13 | ||||||||||||||
$6.01 - $10.00 | 610,470 | 6.77 | $ | 8.03 | 500,799 | $ | 7.95 | ||||||||||||||
$10.01 - $13.99 | 478,390 | 8.59 | $ | 11.97 | 226,737 | $ | 11.66 | ||||||||||||||
1,814,233 | 6.36 | $ | 7.67 | 1,443,409 | $ | 6.84 | |||||||||||||||
Allocation of Stock Option Compensation Expense | ' | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Cost of sales | $ | 95,726 | $ | 39,789 | |||||||||||||||||
Selling, general and administrative expenses | 2,087,827 | 1,470,269 | |||||||||||||||||||
Research and development | 165,581 | 103,289 | |||||||||||||||||||
Total stock option compensation expense | $ | 2,349,134 | $ | 1,613,347 | |||||||||||||||||
Summary of Restricted Share Unit Activity | ' | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Number of | Weighted | Number of | Weighted | ||||||||||||||||||
Units | Average Fair Value | Units | Average Fair Value | ||||||||||||||||||
Unvested - beginning of year | 786,900 | $ | 8.78 | 51,500 | $ | 7.07 | |||||||||||||||
Granted | 79,300 | 13.65 | 786,900 | 8.78 | |||||||||||||||||
Vested | (145,650 | ) | 10.18 | (51,500 | ) | 7.07 | |||||||||||||||
Unvested - end of year | 720,550 | $ | 9.03 | 786,900 | $ | 8.78 | |||||||||||||||
Common Stock Shares Reserved for Future Issuance | ' | ||||||||||||||||||||
Convertible preferred shares (Series A - B) | 73,332 | ||||||||||||||||||||
Additional stock issuable related to conversion of | |||||||||||||||||||||
preferred stock | 49,154 | ||||||||||||||||||||
Common stock options outstanding | 1,814,233 | ||||||||||||||||||||
Common stock warrants outstanding | 2,305,272 | ||||||||||||||||||||
Restricted share units outstanding | 720,550 | ||||||||||||||||||||
Common stock equivalents available for grant | 1,394,480 | ||||||||||||||||||||
Total common stock shares reserved | 6,357,021 |
Operating_Segments_Tables
Operating Segments (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Operating Segments [Abstract] | ' | ||||||||||||||||||||
Schedule of Operating Segment Sales, Gross Profit, Segment Contribution and Other Related Information | ' | ||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Advanced Wound Care | Traditional Wound Care | Pharmaceutical Wound Care | Other | Total | |||||||||||||||||
Company | |||||||||||||||||||||
Net sales | $ | 33,928,535 | $ | 45,782,445 | $ | - | $ | - | $ | 79,710,980 | |||||||||||
Gross profit | 16,837,797 | 12,552,677 | - | - | 29,390,474 | ||||||||||||||||
Direct expense | (21,404,045 | ) | (5,059,141 | ) | (11,434,557 | ) | - | (37,897,743 | ) | ||||||||||||
Segment contribution | $ | (4,566,248 | ) | $ | 7,493,536 | $ | (11,434,557 | ) | - | (8,507,269 | ) | ||||||||||
Indirect expenses | $ | (15,456,784 | ) | (15,456,784 | ) | ||||||||||||||||
Net loss | $ | (23,964,053 | ) | ||||||||||||||||||
Depreciation | $ | 477,118 | $ | 264,841 | $ | - | $ | 136,192 | $ | 878,151 | |||||||||||
Amortization | $ | 2,557,805 | $ | 285,080 | $ | - | $ | - | $ | 2,842,885 | |||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Equipment and improvements, net | $ | 2,188,389 | $ | 562,480 | $ | - | $ | 202,600 | $ | 2,953,469 | |||||||||||
Identifiable intangible assets, net | $ | 13,614,210 | $ | 1,021,788 | $ | - | $ | - | $ | 14,635,998 | |||||||||||
Goodwill | $ | 6,337,967 | $ | 7,119,726 | $ | - | $ | - | $ | 13,457,693 | |||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Advanced Wound Care | Traditional Wound Care | Pharmaceutical Wound Care | Other | Total | |||||||||||||||||
Company | |||||||||||||||||||||
Net sales | $ | 24,832,722 | $ | 47,815,476 | $ | - | $ | - | $ | 72,648,198 | |||||||||||
Gross profit | 12,458,920 | 12,681,929 | - | - | 25,140,849 | ||||||||||||||||
Direct expense | (17,658,759 | ) | (4,246,714 | ) | (7,177,823 | ) | - | (29,083,296 | ) | ||||||||||||
Segment contribution | $ | (5,199,839 | ) | $ | 8,435,215 | $ | (7,177,823 | ) | - | (3,942,447 | ) | ||||||||||
Indirect expenses | $ | (8,127,984 | ) | (8,127,984 | ) | ||||||||||||||||
Net loss | $ | (12,070,431 | ) | ||||||||||||||||||
Depreciation | $ | 629,466 | $ | 246,780 | $ | - | $ | 145,156 | $ | 1,021,402 | |||||||||||
Amortization | $ | 1,950,161 | $ | 324,000 | $ | - | $ | - | $ | 2,274,161 | |||||||||||
As of December 31, 2012 | |||||||||||||||||||||
Equipment and improvements, net | $ | 2,194,498 | $ | 708,653 | $ | - | $ | 401,701 | $ | 3,304,852 | |||||||||||
Identifiable intangible assets, net | $ | 15,822,016 | $ | 1,306,867 | $ | - | $ | - | $ | 17,128,883 | |||||||||||
Goodwill | $ | 6,337,967 | $ | 7,119,726 | $ | - | $ | - | $ | 13,457,693 | |||||||||||
Schedule of Sales, Gross Profit and Net Equipment and Improvements | ' | ||||||||||||||||||||
United States | Canada | Other | Total | ||||||||||||||||||
2013 | |||||||||||||||||||||
Net sales | $ | 61,234,755 | $ | 11,084,430 | $ | 7,391,795 | $ | 79,710,980 | |||||||||||||
Gross profit | $ | 23,956,554 | $ | 2,371,054 | $ | 3,062,866 | $ | 29,390,474 | |||||||||||||
Equipment and improvements, | $ | 459,859 | $ | 2,258,544 | $ | 235,066 | $ | 2,953,469 | |||||||||||||
net | |||||||||||||||||||||
2012 | |||||||||||||||||||||
Net sales | $ | 51,325,289 | $ | 14,758,829 | $ | 6,564,080 | $ | 72,648,198 | |||||||||||||
Gross profit | $ | 18,609,115 | $ | 3,747,557 | $ | 2,784,177 | $ | 25,140,849 | |||||||||||||
Equipment and improvements, | $ | 390,925 | $ | 2,610,462 | $ | 303,465 | $ | 3,304,852 | |||||||||||||
net |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||||||
Schedule of Loss before Income Taxes | ' | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Domestic | $ | (23,145,554 | ) | $ | (14,590,416 | ) | |||||||||||
Foreign | (658,388 | ) | 149,503 | ||||||||||||||
Loss before income taxes | $ | (23,803,942 | ) | $ | (14,440,913 | ) | |||||||||||
Schedule of Income Tax Expense (Benefit) | ' | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Current: | |||||||||||||||||
Federal | $ | - | $ | - | |||||||||||||
State | 5,365 | - | |||||||||||||||
Foreign | 22,590 | 136,873 | |||||||||||||||
Total current | 27,955 | 136,873 | |||||||||||||||
Deferred: | |||||||||||||||||
Federal | 149,108 | (2,291,057 | ) | ||||||||||||||
State | (34,143 | ) | (219,463 | ) | |||||||||||||
Foreign | 17,191 | 3,165 | |||||||||||||||
Total deferred | 132,156 | (2,507,355 | ) | ||||||||||||||
Total income taxes | $ | 160,111 | $ | (2,370,482 | ) | ||||||||||||
Schedule of Income Tax Reconciliation | ' | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Tax benefit at federal statutory rate | $ | (8,093,340 | ) | 34 | % | $ | (4,909,912 | ) | 34 | % | |||||||
State tax, net of federal benefit | (750,351 | ) | 3.2 | (578,855 | ) | 4 | |||||||||||
Foreign tax | 74,612 | (0.3 | ) | - | - | ||||||||||||
Nondeductible expenses | 637,797 | (2.7 | ) | 781,791 | (5.4 | ) | |||||||||||
Other | (50,860 | ) | 0.2 | (220,266 | ) | 1.5 | |||||||||||
Change in valuation allowance | 8,342,253 | (35.1 | ) | 2,556,760 | (17.7 | ) | |||||||||||
Income taxes | $ | 160,111 | (0.7 | %) | $ | (2,370,482 | ) | 16.4 | % | ||||||||
Schedule of Deferred Tax Assets and Liabilities | ' | ||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Deferred tax assets: | |||||||||||||||||
Net operating loss carryforwards | $ | 17,327,134 | $ | 10,077,826 | |||||||||||||
Equity based compensation | 1,281,192 | 798,701 | |||||||||||||||
Allowance for sales deductions | 165,142 | 182,002 | |||||||||||||||
Amortization of identified intangibles | 1,698,913 | 1,698,492 | |||||||||||||||
Inventory adjustments | 619,189 | 689,307 | |||||||||||||||
Other | 776,549 | 502,479 | |||||||||||||||
Deferred tax assets | 21,868,119 | 13,948,807 | |||||||||||||||
Deferred tax liabilities: | |||||||||||||||||
Prepaid expenses | (152,489 | ) | (135,914 | ) | |||||||||||||
Goodwill | (1,181,379 | ) | (1,027,760 | ) | |||||||||||||
Depreciation | (299,541 | ) | (192,438 | ) | |||||||||||||
Indentified Intangibles | (2,780,224 | ) | (3,365,512 | ) | |||||||||||||
Other | (654 | ) | (552 | ) | |||||||||||||
Deferred tax liabilities | (4,414,287 | ) | (4,722,176 | ) | |||||||||||||
Valuation allowance | (19,119,723 | ) | (10,777,470 | ) | |||||||||||||
Net deferred tax liabilities | $ | (1,665,891 | ) | $ | (1,550,839 | ) |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies [Abstract] | ' | ||||
Schedule of Future Minimum Lease Payments | ' | ||||
Minimum Future Rental Payments | |||||
Year Ending December 31, | Amount | ||||
2014 | $ | 1,289,799 | |||
2015 | 1,043,225 | ||||
2016 | 940,565 | ||||
2017 | 804,561 | ||||
2018 | 490,598 | ||||
Thereafter | 4,014 | ||||
Net minimum future rental payments | $ | 4,572,762 |
Description_of_Business_Detail
Description of Business (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Description of Business [Abstract] | ' |
Number of operating segments | 3 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of Significant Accounting Policies [Abstract] | ' | ' |
FDIC Insured limits | $250,000 | ' |
Advertising and promotion costs | 3,082,221 | 2,243,387 |
Royalty expense | $1,741,742 | $1,395,567 |
Minimum [Member] | ' | ' |
Depreciation and Amortization, Useful Life [Line Items] | ' | ' |
Equipment and improvements | '3 years | ' |
Identifiable intangible assets | '1 year | ' |
Maximum [Member] | ' | ' |
Depreciation and Amortization, Useful Life [Line Items] | ' | ' |
Equipment and improvements | '10 years | ' |
Identifiable intangible assets | '13 years | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Summary of Foreign Currency (Income) Expense) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Foreign Currency Transactions [Line Items] | ' | ' |
Foreign currency (income) expense | ($140,721) | ($47,738) |
Cost of sales [Member] | ' | ' |
Foreign Currency Transactions [Line Items] | ' | ' |
Foreign currency (income) expense | 57,894 | 7,031 |
Other income, net [Member] | ' | ' |
Foreign Currency Transactions [Line Items] | ' | ' |
Foreign currency (income) expense | ($198,615) | ($54,769) |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Potentially Dilutive Shares Excluded as Result of Effects Being Anti-dilutive) (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Excluded dilutive shares | 4,962,541 | 5,430,371 |
Convertible preferred stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Excluded dilutive shares | 73,332 | 73,332 |
Additional stock issuable related to conversion of preferred stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Excluded dilutive shares | 49,154 | ' |
Restricted share units [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Excluded dilutive shares | 720,550 | 786,900 |
Stock Options [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Excluded dilutive shares | 1,814,233 | 1,639,985 |
Warrants [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Excluded dilutive shares | 2,305,272 | 2,930,154 |
Acquisition_Preliminary_Alloca
Acquisition (Preliminary Allocation of Purchase Price to Estimated Fair Values of Assets Acquired and Liabilities Assumed) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Apr. 17, 2012 | |
Acquisition [Abstract] | ' | ' | ' |
Current assets | ' | ' | $925,817 |
Equipment | ' | ' | 29,579 |
Acquired intangible assets | ' | ' | 10,700,000 |
Goodwill | 13,457,693 | 13,457,693 | 6,337,967 |
Total assets acquired | ' | ' | 17,993,363 |
Current liabilities | ' | ' | 653,315 |
Deferred tax liability | ' | ' | 2,982,470 |
Total liabilities assumed | ' | ' | 3,635,785 |
Net assets acquired | ' | ' | 14,357,578 |
Purchase price | ' | 14,475,000 | ' |
Less cash acquired | ' | 117,422 | ' |
Net cash paid | ' | 14,357,578 | ' |
Transaction and transition related costs | ' | $1,256,853 | ' |
Acquisition_Combined_Results_o
Acquisition (Combined Results of Operations as if Acquisition Had Occurred at Beginning of Period) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2012 | |
Acquisition [Abstract] | ' |
Net Sales | $74,035,688 |
Net Loss | ($12,762,551) |
Net Loss per common share - basic and diluted | ($1.02) |
Weighted average number of shares - basic and diluted | 12,488,263 |
Cash_and_Cash_Equivalents_and_2
Cash and Cash Equivalents and Investments (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash and Cash Equivalents and Investments [Abstract] | ' | ' |
Equity securities | 2,272,277 | ' |
Ownership percentage | 7.30% | ' |
Payments to acquire equity securities | $7,000,000 | ' |
Fair value of equity investment | 6,862,140 | ' |
Unrealized loss recorded in accumulated other comprehensive income | 137,860 | ' |
Dividend income | $75,421 | ' |
Cash_and_Cash_Equivalents_and_3
Cash and Cash Equivalents and Investments (Schedule of Cash and Cash Equivalents and Investments) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash and Cash Equivalents and Investments [Abstract] | ' | ' | ' |
Cash | $5,265,903 | $4,909,663 | ' |
Money market mutual funds | 1,235,683 | 36,706,994 | ' |
Cash and cash equivalents | 6,501,586 | 41,616,657 | 17,110,350 |
Investments in debt securities | 16,474,000 | 4,228,000 | ' |
Investment in equity securities | 6,862,140 | ' | ' |
Total investments | 23,336,140 | 4,228,000 | ' |
Total cash and cash equivalents and investments | $29,837,726 | $45,844,657 | ' |
Cash_and_Cash_Equivalents_and_4
Cash and Cash Equivalents and Investments (Fair Value of Cash and Cash Equivalents and Investments) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash and cash equivalents | $6,501,586 | $41,616,657 |
Investments in debt securities | 16,474,000 | 4,228,000 |
Investment in equity securities | 6,862,140 | ' |
Total Investments | 23,336,140 | ' |
Total | 29,837,726 | 45,844,657 |
Quoted prices in active markets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash and cash equivalents | 6,501,586 | 41,616,657 |
Investments in debt securities | 16,463,473 | 4,216,156 |
Investment in equity securities | 6,862,140 | ' |
Total Investments | 23,325,613 | ' |
Total | 29,827,199 | 45,832,813 |
Significant other observable inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash and cash equivalents | ' | ' |
Investments in debt securities | ' | ' |
Investment in equity securities | ' | ' |
Total Investments | ' | ' |
Total | ' | ' |
Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash and cash equivalents | ' | ' |
Investments in debt securities | ' | ' |
Investment in equity securities | ' | ' |
Total Investments | ' | ' |
Total | ' | ' |
Accounts_Receivable_net_Detail
Accounts Receivable, net (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts Receivable, net [Abstract] | ' | ' |
Accounts receivable | $7,781,482 | $7,557,862 |
Allowance for doubtful accounts | -97,729 | -147,843 |
Allowance for trade rebates | -218,700 | -197,650 |
Allowance for cash discounts and returns | -132,297 | -126,656 |
Accounts receivable, net | $7,332,756 | $7,085,713 |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Inventories [Abstract] | ' | ' |
Finished goods | $11,044,746 | $9,574,685 |
Work in process | 1,009,315 | 554,129 |
Packaging materials | 1,408,521 | 991,157 |
Raw materials | 3,010,058 | 2,550,617 |
Total inventory | $16,472,640 | $13,670,588 |
Equipment_and_Improvements_net2
Equipment and Improvements, net (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Equipment and improvements | $10,314,523 | $10,204,885 |
Less: accumulated depreciation | -7,361,054 | -6,900,033 |
Total equipment and improvements, net | 2,953,469 | 3,304,852 |
Machinery and equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Equipment and improvements | 7,102,144 | 7,135,714 |
Furniture and fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Equipment and improvements | 911,879 | 843,149 |
Leasehold improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Equipment and improvements | $2,300,500 | $2,226,022 |
Identifiable_Intangible_Assets2
Identifiable Intangible Assets, net (Narrative) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2012 | |
Development technology [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Acquired intangible assets | $250,000 |
NCIC International Agreement [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Acquired intangible assets | $100,000 |
Identifiable_Intangible_Assets3
Identifiable Intangible Assets, net (Schedule of Intangible Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
Minimum [Member] | Maximum [Member] | Product license rights [Member] | Product license rights [Member] | Product license rights [Member] | Product license rights [Member] | Developed technology and supply agreements [Member] | Developed technology and supply agreements [Member] | Developed technology and supply agreements [Member] | Developed technology and supply agreements [Member] | Other [Member] | Other [Member] | Other [Member] | Other [Member] | |||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||||||||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Indentifiable intangible assets | $22,317,126 | $21,967,126 | ' | ' | $8,217,126 | $7,967,126 | ' | ' | $7,700,000 | $7,600,000 | ' | ' | $6,400,000 | $6,400,000 | ' | ' |
Less accumulated amortization | -7,681,128 | -4,838,243 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total identifiable intangible assets, net | $14,635,998 | $17,128,883 | ' | ' | $5,721,055 | ' | ' | ' | $5,830,238 | ' | ' | ' | $3,084,705 | ' | ' | ' |
Amortization period | ' | ' | '1 year | '13 years | ' | ' | '6 years | '10 years | ' | ' | '5 years | '7 years | ' | ' | '1 year | '10 years |
Identifiable_Intangible_Assets4
Identifiable Intangible Assets, net (Schedule of Amortization Expense) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortization expense | $2,842,885 | $2,274,161 |
Cost of sales [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortization expense | 2,009,472 | 1,461,411 |
Selling, general and administrative expenses [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortization expense | $833,413 | $812,750 |
Identifiable_Intangible_Assets5
Identifiable Intangible Assets, net (Schedule of Future Amortization Expense) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortization expense | $2,842,885 | $2,274,161 |
Weighted Average Useful Life | '4 years 9 months 18 days | ' |
Estimated amortization expense for years ending December 31, | ' | ' |
2014 | 2,827,328 | ' |
2015 | 2,827,328 | ' |
2016 | 2,678,578 | ' |
2017 | 2,333,995 | ' |
2018 | 2,136,908 | ' |
Thereafter | 1,831,861 | ' |
Total identifiable intangible assets, net | 14,635,998 | 17,128,883 |
Product license rights [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortization expense | 908,758 | 692,363 |
Weighted Average Useful Life | '6 years | ' |
Estimated amortization expense for years ending December 31, | ' | ' |
2014 | 946,613 | ' |
2015 | 946,613 | ' |
2016 | 946,613 | ' |
2017 | 946,613 | ' |
2018 | 946,613 | ' |
Thereafter | 987,990 | ' |
Total identifiable intangible assets, net | 5,721,055 | ' |
Developed technology and supply agreements [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortization expense | 1,100,714 | 769,048 |
Weighted Average Useful Life | '5 years 3 months 18 days | ' |
Estimated amortization expense for years ending December 31, | ' | ' |
2014 | 1,105,715 | ' |
2015 | 1,105,715 | ' |
2016 | 1,105,715 | ' |
2017 | 1,105,715 | ' |
2018 | 1,025,295 | ' |
Thereafter | 382,083 | ' |
Total identifiable intangible assets, net | 5,830,238 | ' |
Other [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortization expense | 833,413 | 812,750 |
Weighted Average Useful Life | '3 years 2 months 12 days | ' |
Estimated amortization expense for years ending December 31, | ' | ' |
2014 | 775,000 | ' |
2015 | 775,000 | ' |
2016 | 626,250 | ' |
2017 | 281,667 | ' |
2018 | 165,000 | ' |
Thereafter | 461,788 | ' |
Total identifiable intangible assets, net | $3,084,705 | ' |
Accrued_Expenses_and_Other_Cur2
Accrued Expenses and Other Current Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accrued Expenses and Other Current Liabilities [Abstract] | ' | ' |
Accrued compensation and related taxes | $2,529,211 | $1,929,524 |
Accrued Canadian sales rebate, net (note 14) | 252,671 | 636,633 |
Accrued royalties | 361,559 | 427,075 |
Accrued sales incentives and other fees | 546,296 | 316,209 |
Other | 1,279,488 | 823,493 |
Total accrued expenses and other current liabilities | $4,969,225 | $4,132,934 |
Stockholders_Equity_Preferred_
Stockholders' Equity (Preferred and Common Stock) (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Dec. 05, 2012 | Apr. 05, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stockholders' Equity [Abstract] | ' | ' | ' | ' |
Common stock, shares authorized | ' | ' | 35,000,000 | 25,000,000 |
Shares issued during the period | ' | ' | 822,348 | ' |
Issuance of common stock, net of issuance costs | ' | ' | ' | $51,461,053 |
Issuance of common stock, issuance costs | ' | ' | ' | 4,605,439 |
Issuance of common stock, net of issuance costs, shares | 3,521,300 | 2,125,000 | ' | 5,646,300 |
Common stock, price per share | $10.34 | $9.25 | ' | ' |
Shares of common stock issued upon the exercise of stock purchase warrants and options | ' | ' | 556,855 | 255,210 |
Amount received upon the exercise of stock purchase warrants and options | ' | ' | 2,817,001 | 1,225,620 |
Issuance costs associated with the exercise of stock purchase warrants and options | ' | ' | $45,368 | $10,560 |
Common stock issuable upon conversion of preferred stock | ' | ' | 121,089 | ' |
Additional shares issuable | ' | ' | 47,757 | ' |
Shares issued for preferred stock adjustments, per previous shareholder | ' | ' | 1,397 | ' |
Shares issued for preferred stock adjustments | ' | ' | 140,086 | ' |
Shares issued for restricted common stock units | ' | ' | 120,957 | 43,081 |
Shares withheld in satisfaction of employee tax withholding obligations | ' | ' | 145,650 | ' |
Issuance of common stock in exchange for services rendered | ' | ' | 4,450 | 2,500 |
Class of Stock [Line Items] | ' | ' | ' | ' |
Convertible preferred stock, shares outstanding | ' | ' | 73,332 | 73,332 |
Series A Convertible Preferred Stock [Member] | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' |
Convertible preferred stock, shares outstanding | ' | ' | 18,598 | ' |
Liquidation preference per share | ' | ' | $32 | ' |
Series B Convertible Preferred Stock [Member] | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' |
Convertible preferred stock, shares outstanding | ' | ' | 54,734 | ' |
Liquidation preference per share | ' | ' | $48 | ' |
Stockholders_Equity_Stock_Purc
Stockholders' Equity (Stock Purchase Warrants) (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Class of Warrant or Right [Line Items] | ' | ' |
Number of Warrants | 2,305,272 | ' |
Warrants exercised | 624,882 | 135,548 |
Shares issued for warrants exercised | 421,465 | 135,548 |
J [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants exercised | 200,893 | 66,965 |
K [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants exercised | 367,814 | 21,250 |
L [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Number of Warrants | 6,250 | ' |
Exercise Price | 3.12 | ' |
Expiration Date | 31-Mar-14 | ' |
N [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Number of Warrants | 100,000 | ' |
Exercise Price | 6.25 | ' |
Expiration Date | 22-Feb-15 | ' |
O [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Number of Warrants | 230,900 | ' |
Exercise Price | 5.5 | ' |
Expiration Date | 22-Feb-15 | ' |
Warrants exercised | 53,667 | 47,333 |
P [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Number of Warrants | 2,187 | ' |
Exercise Price | 6.25 | ' |
Expiration Date | 16-Feb-15 | ' |
Warrants exercised | 2,508 | ' |
Q [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Number of Warrants | 133,333 | ' |
Exercise Price | 5.5 | ' |
Expiration Date | 22-Feb-15 | ' |
R [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Number of Warrants | 1,832,602 | ' |
Exercise Price | 9.9 | ' |
Expiration Date | 22-Jun-16 | ' |
Stockholders_Equity_Equity_Bas
Stockholders' Equity (Equity Based Compensation) (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 05, 2012 | Apr. 05, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Number of shares authorized | 4,500,000 | ' | ' | ' | ' |
Number of shares available for grant | 1,394,480 | ' | ' | ' | ' |
Outstanding options to purchase shares | 1,814,233 | 1,639,985 | ' | ' | 1,582,683 |
Outstanding restricted share units | 720,550 | 786,900 | ' | ' | 51,500 |
Expiration period | '10 years | ' | ' | ' | ' |
Options granted | 421,480 | 268,160 | ' | ' | ' |
Common stock, price per share | ' | ' | $10.34 | $9.25 | ' |
Units granted | 79,300 | 786,900 | ' | ' | ' |
Weighted average fair value per share of units granted | $13.65 | $8.78 | ' | ' | ' |
Shares withheld in satisfaction of employee tax withholding obligations | 145,650 | ' | ' | ' | ' |
Fair value of shares withheld in satisfaction of employee tax withholding obligations | $228,149 | $80,550 | ' | ' | ' |
Board of Directors [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Units granted | 38,200 | 24,000 | ' | ' | ' |
Fair value | 525,632 | ' | ' | ' | ' |
Weighted average fair value per share of units granted | $13.76 | ' | ' | ' | ' |
Vesting period | '1 year | '1 year | ' | ' | ' |
Employees and Board of Directors [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Fair value | ' | 459,205 | ' | ' | ' |
Employees [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Units granted | ' | 405,000 | ' | ' | ' |
Fair value | ' | 2,904,700 | ' | ' | ' |
Weighted average fair value per share of units granted | ' | $7.17 | ' | ' | ' |
Vesting period | ' | '3 years | ' | ' | ' |
Retiring director [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Expiration period | ' | '36 months | ' | ' | ' |
Stock option compensation expense | ' | 137,393 | ' | ' | ' |
Shares issued for services | ' | 2,500 | ' | ' | ' |
Former director [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Units granted | 5,000 | ' | ' | ' | ' |
Shares issued for services | 4,450 | ' | ' | ' | ' |
Stock options [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Shares issued for options exercised | 135,390 | 149,033 | ' | ' | ' |
Outstanding, intrinsic value | 6,287,268 | ' | ' | ' | ' |
Exercisable, intrinsic value | 5,967,544 | ' | ' | ' | ' |
Common stock, price per share | $10.82 | ' | ' | ' | ' |
Exercised, intrinsic value | 1,286,818 | 792,315 | ' | ' | ' |
Stock option compensation expense | 2,349,134 | 1,613,347 | ' | ' | ' |
Unrecognized compensation cost | 1,645,272 | ' | ' | ' | ' |
Unrecognized compensation cost, period for recognition | '1 year 10 months 28 days | ' | ' | ' | ' |
Restricted share units [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Nonvested, intrinsic value | 7,796,351 | ' | ' | ' | ' |
Stock option compensation expense | 2,634,340 | 490,870 | ' | ' | ' |
Unrecognized compensation cost | 4,702,124 | ' | ' | ' | ' |
Unrecognized compensation cost, period for recognition | '2 years 1 month 10 days | ' | ' | ' | ' |
Shares withheld in satisfaction of employee tax withholding obligations | 24,693 | 8,419 | ' | ' | ' |
Fair value of shares withheld in satisfaction of employee tax withholding obligations | 228,149 | 80,550 | ' | ' | ' |
Restricted share units [Member] | Retiring director [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Expiration period | '36 months | ' | ' | ' | ' |
Shares issued for services | 5,000 | ' | ' | ' | ' |
Service based options [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Options granted | 300,880 | 199,460 | ' | ' | ' |
Weighted average fair value per share of options granted | $8.30 | $5.93 | ' | ' | ' |
Units granted | 10,000 | 330,000 | ' | ' | ' |
Fair value | 198,000 | 3,544,200 | ' | ' | ' |
Weighted average fair value per share of units granted | ' | $10.74 | ' | ' | ' |
Vesting period | '1 year | '4 years | ' | ' | ' |
Vesting rate | 25.00% | 25.00% | ' | ' | ' |
Performance based options [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Options granted | 120,600 | 68,700 | ' | ' | ' |
Weighted average fair value per share of options granted | $8.30 | $5.93 | ' | ' | ' |
Units granted | 26,100 | 27,900 | ' | ' | ' |
Fair value | 359,136 | ' | ' | ' | ' |
Weighted average fair value per share of units granted | $13.76 | ' | ' | ' | ' |
Vesting period | ' | '1 year | ' | ' | ' |
Prior service awards [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Stock option compensation expense | $337,422 | $137,393 | ' | ' | ' |
Stockholders_Equity_Weighted_A
Stockholders' Equity (Weighted Average Assumptions Used in Estimation of Fair Value of Option Awards) (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Stockholders' Equity [Abstract] | ' | ' |
Risk free interest rate | 1.22% | 1.11% |
Volatility factor | 69.90% | 73.60% |
Dividend yield | 0.00% | 0.00% |
Expected option life (years) | '6 years 1 month 21 days | '6 years 3 months |
Forfeiture rate | 1.00% | 1.00% |
Stockholders_Equity_Summary_of
Stockholders' Equity (Summary of Stock Option Activity) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Number of Shares | ' | ' |
Outstanding - beginning of year | 1,639,985 | 1,582,683 |
Granted | 421,480 | 268,160 |
Forfeited | -36,878 | -61,825 |
Exercised | -184,824 | -149,033 |
Expired | -25,530 | ' |
Outstanding - end of year | 1,814,233 | 1,639,985 |
Expected to vest - end of year | 1,796,091 | 1,623,585 |
Exercisable at end of year | 1,443,409 | 1,208,077 |
Weighted Average Exercise Price Per Share | ' | ' |
Outstanding - beginnig of year | $6.38 | $5.82 |
Granted | $12.14 | $8.93 |
Forfeited | $10.99 | $7.53 |
Exercised | $5.50 | $4.37 |
Expired | $13.16 | ' |
Outstanding - end of year | $7.67 | $6.38 |
Expected to vest - end of year | $7.67 | $6.38 |
Exercisable at end of year | $6.84 | $5.86 |
Shareholders_Equity_Summary_of
Shareholders' Equity (Summary of Options Outstanding and Exercisable by Exercise Price Range) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Prices, minimum | $2.88 |
Exercise Prices, maximum | $13.99 |
Number Outstanding | 1,814,233 |
Weighted-Average Remaining Contractual Life | '6 years 4 months 10 days |
Weighted-Average Exercise Price | $7.67 |
Number Exercisable | 1,443,409 |
Weighted Average Exercise Price | $6.84 |
$2.88 - $4.00 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Prices, minimum | $2.88 |
Exercise Prices, maximum | $4 |
Number Outstanding | 251,961 |
Weighted-Average Remaining Contractual Life | '3 years 4 months 17 days |
Weighted-Average Exercise Price | $3.43 |
Number Exercisable | 251,961 |
Weighted Average Exercise Price | $3.43 |
$4.01 - $6.00 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Prices, minimum | $4.01 |
Exercise Prices, maximum | $6 |
Number Outstanding | 473,412 |
Weighted-Average Remaining Contractual Life | '5 years 2 months 5 days |
Weighted-Average Exercise Price | $5.13 |
Number Exercisable | 463,912 |
Weighted Average Exercise Price | $5.13 |
$6.01 - $10.00 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Prices, minimum | $6.01 |
Exercise Prices, maximum | $10 |
Number Outstanding | 610,470 |
Weighted-Average Remaining Contractual Life | '6 years 9 months 7 days |
Weighted-Average Exercise Price | $8.03 |
Number Exercisable | 500,799 |
Weighted Average Exercise Price | $7.95 |
$10.01 - $13.99 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Prices, minimum | $10.01 |
Exercise Prices, maximum | $13.99 |
Number Outstanding | 478,390 |
Weighted-Average Remaining Contractual Life | '8 years 7 months 2 days |
Weighted-Average Exercise Price | $11.97 |
Number Exercisable | 226,737 |
Weighted Average Exercise Price | $11.66 |
Stockholders_Equity_Allocation
Stockholders' Equity (Allocation of Stock Option Compensation Expense) (Details) (Stock options [Member], USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock option compensation expense | $2,349,134 | $1,613,347 |
Cost of sales [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock option compensation expense | 95,726 | 39,789 |
Selling, general and administrative expenses [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock option compensation expense | 2,087,827 | 1,470,269 |
Research and development [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock option compensation expense | $165,581 | $103,289 |
Stockholders_Equity_Summary_of1
Stockholders' Equity (Summary of Restricted Share Unit Activity) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Number of Shares | ' | ' |
Unvested - beginning of year | 786,900 | 51,500 |
Granted | 79,300 | 786,900 |
Vested | -145,650 | -51,500 |
Unvested - end of year | 720,550 | 786,900 |
Weighted Average Fair Value | ' | ' |
Unvested - beginning of year | $8.78 | $7.07 |
Granted | $13.65 | $8.78 |
Vested | $10.18 | $7.07 |
Unvested - end of year | $9.03 | $8.78 |
Stockholders_Equity_Common_Sto
Stockholders' Equity (Common Stock Shares Reserved for Future Issuance) (Details) | Dec. 31, 2013 |
Class of Stock [Line Items] | ' |
Common stock shares reserved for future issuance | 6,357,021 |
Convertible preferred shares [Member] | ' |
Class of Stock [Line Items] | ' |
Common stock shares reserved for future issuance | 73,332 |
Additional stock issuable related to conversion of preferred stock [Member] | ' |
Class of Stock [Line Items] | ' |
Common stock shares reserved for future issuance | 49,154 |
Common stock options outstanding [Member] | ' |
Class of Stock [Line Items] | ' |
Common stock shares reserved for future issuance | 1,814,233 |
Common stock warrants outstanding [Member] | ' |
Class of Stock [Line Items] | ' |
Common stock shares reserved for future issuance | 2,305,272 |
Restricted share units outstanding [Member] | ' |
Class of Stock [Line Items] | ' |
Common stock shares reserved for future issuance | 720,550 |
Common stock equivalents available for grant [Member] | ' |
Class of Stock [Line Items] | ' |
Common stock shares reserved for future issuance | 1,394,480 |
Operating_Segments_Narrative_D
Operating Segments (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Operating Segments [Abstract] | ' |
Number of operating segments | 3 |
Operating_Segments_Schedule_of
Operating Segments (Schedule of Operating Segment Sales, Gross Profit, Segment Contribution and Other Related Information) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Apr. 17, 2012 | |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | $79,710,980 | $72,648,198 | ' |
Gross profit | 29,390,474 | 25,140,849 | ' |
Direct expense | -37,897,743 | -29,083,296 | ' |
Segment contribution | -8,507,269 | -3,942,447 | ' |
Indirect expenses | -15,456,784 | -8,127,984 | ' |
Net Loss | -23,964,053 | -12,070,431 | ' |
Depreciation | 878,151 | 1,021,402 | ' |
Amortization expense | 2,842,885 | 2,274,161 | ' |
Equipment and improvements, net | 2,953,469 | 3,304,852 | ' |
Identifiable intangible assets, net | 14,635,998 | 17,128,883 | ' |
Goodwill | 13,457,693 | 13,457,693 | 6,337,967 |
Advanced Wound Care [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 33,928,535 | 24,832,722 | ' |
Gross profit | 16,837,797 | 12,458,920 | ' |
Direct expense | -21,404,045 | -17,658,759 | ' |
Segment contribution | -4,566,248 | -5,199,839 | ' |
Depreciation | 477,118 | 629,466 | ' |
Amortization expense | 2,557,805 | 1,950,161 | ' |
Equipment and improvements, net | 2,188,389 | 2,194,498 | ' |
Identifiable intangible assets, net | 13,614,210 | 15,822,016 | ' |
Goodwill | 6,337,967 | 6,337,967 | ' |
Traditional Wound Care [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 45,782,445 | 47,815,476 | ' |
Gross profit | 12,552,677 | 12,681,929 | ' |
Direct expense | -5,059,141 | -4,246,714 | ' |
Segment contribution | 7,493,536 | 8,435,215 | ' |
Depreciation | 264,841 | 246,780 | ' |
Amortization expense | 285,080 | 324,000 | ' |
Equipment and improvements, net | 562,480 | 708,653 | ' |
Identifiable intangible assets, net | 1,021,788 | 1,306,867 | ' |
Goodwill | 7,119,726 | 7,119,726 | ' |
Pharmaceutical Wound Care [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | ' | ' | ' |
Gross profit | ' | ' | ' |
Direct expense | -11,434,557 | -7,177,823 | ' |
Segment contribution | -11,434,557 | -7,177,823 | ' |
Depreciation | ' | ' | ' |
Amortization expense | ' | ' | ' |
Equipment and improvements, net | ' | ' | ' |
Identifiable intangible assets, net | ' | ' | ' |
Goodwill | ' | ' | ' |
Other [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | ' | ' | ' |
Gross profit | ' | ' | ' |
Direct expense | ' | ' | ' |
Segment contribution | ' | ' | ' |
Indirect expenses | -15,456,784 | -8,127,984 | ' |
Depreciation | 136,192 | 145,156 | ' |
Amortization expense | ' | ' | ' |
Equipment and improvements, net | 202,600 | 401,701 | ' |
Identifiable intangible assets, net | ' | ' | ' |
Goodwill | ' | ' | ' |
Operating_Segments_Schedule_of1
Operating Segments (Schedule of Sales, Gross Profit and Net Equipment and Improvements) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Net sales | $79,710,980 | $72,648,198 |
Gross profit | 29,390,474 | 25,140,849 |
Equipment and improvements, net | 2,953,469 | 3,304,852 |
Unites States [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Net sales | 61,234,755 | 51,325,289 |
Gross profit | 23,956,554 | 18,609,115 |
Equipment and improvements, net | 459,859 | 390,925 |
Canada [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Net sales | 11,084,430 | 14,758,829 |
Gross profit | 2,371,054 | 3,747,557 |
Equipment and improvements, net | 2,258,544 | 2,610,462 |
Other [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Net sales | 7,391,795 | 6,564,080 |
Gross profit | 3,062,866 | 2,784,177 |
Equipment and improvements, net | $235,066 | $303,465 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Line Items] | ' | ' |
Income tax expense | $160,111 | ($2,370,482) |
Current tax expense | 27,955 | 136,873 |
Deferred tax expense | 132,156 | -2,507,355 |
Change in valuation allowance | 8,342,253 | 2,556,760 |
Net deferred tax liability | -1,665,891 | -1,550,839 |
Net noncurrent deferred tax liability | 1,694,147 | ' |
Net current deferred tax asset | 28,256 | ' |
Goodwill net deferred tax liability | 1,181,379 | 1,027,760 |
Intangible assets deferred liability | 2,780,224 | 3,365,512 |
Research and development tax credit [Member] | ' | ' |
Income Taxes [Line Items] | ' | ' |
Tax credit carryforwards | 1,015,000 | ' |
US [Member] | ' | ' |
Income Taxes [Line Items] | ' | ' |
Income tax expense | 120,330 | ' |
Current tax expense | 5,365 | ' |
Deferred tax expense | 114,965 | ' |
Tax treatment of goodwill | 153,619 | ' |
Amortization of intangible assets | 38,654 | ' |
Goodwill net deferred tax liability | 1,181,379 | ' |
Intangible assets deferred liability | 225,309 | ' |
Foreign net deferred tax liability | 259,203 | ' |
Net operating loss carry forwards | 46,343,000 | ' |
Foreign [Member] | ' | ' |
Income Taxes [Line Items] | ' | ' |
Income tax expense | 39,781 | ' |
Tax credit carryforwards | $179,000 | ' |
Income_Taxes_Schedule_of_Loss_
Income Taxes (Schedule of Loss Before Income Taxes) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Abstract] | ' | ' |
Domestic | ($23,145,554) | ($14,590,416) |
Foreign | -658,388 | 149,503 |
Loss before income taxes | ($23,803,942) | ($14,440,913) |
Income_Taxes_Schedule_of_Incom
Income Taxes (Schedule of Income Tax (Benefit)) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Current: | ' | ' |
Federal | ' | ' |
State | 5,365 | ' |
Foreign | 22,590 | 136,873 |
Total current | 27,955 | 136,873 |
Deferred: | ' | ' |
Federal | 149,108 | -2,291,057 |
State | -34,143 | -219,463 |
Foreign | 17,191 | 3,165 |
Total deferred | 132,156 | -2,507,355 |
Income taxes | $160,111 | ($2,370,482) |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of Income Tax) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Reconciliation | ' | ' |
Tax benefit at federal statutory rate | ($8,093,340) | ($4,909,912) |
State tax, net of federal benefit | -750,351 | -578,855 |
Foreign tax | 74,612 | ' |
Nondeductible expenses | 637,797 | 781,791 |
Other | -50,860 | -220,266 |
Change in valuation allowance | 8,342,253 | 2,556,760 |
Income taxes | $160,111 | ($2,370,482) |
Income Tax Rate Reconciliation | ' | ' |
Tax benefit at federal statutory rate, rate | 34.00% | 34.00% |
State tax, net of federal benefit | 3.20% | 4.00% |
Foreign tax | -0.30% | ' |
Nondeductable expenses | -2.70% | -5.40% |
Other | 0.20% | 1.50% |
Change in valuation allowance | -35.10% | -17.70% |
Income taxes | -0.70% | 16.40% |
Income_Taxes_Schedule_of_Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets: | ' | ' |
Net operating loss carryforwards | $17,327,134 | $10,077,826 |
Equity based compensation | 1,281,192 | 798,701 |
Allowance for sales deductions | 165,142 | 182,002 |
Amortization of identified intangibles | 1,698,913 | 1,698,492 |
Inventory adjustments | 619,189 | 689,307 |
Other | 776,549 | 502,479 |
Deferred tax assets | 21,868,119 | 13,948,807 |
Deferred tax liabilities: | ' | ' |
Prepaid expenses | -152,489 | -135,914 |
Goodwill | -1,181,379 | -1,027,760 |
Depreciation | -299,541 | -192,438 |
Indentified Intangibles | -2,780,224 | -3,365,512 |
Other | -654 | -552 |
Deferred tax liabilities | -4,414,287 | -4,722,176 |
Valuation allowance | -19,119,723 | -10,777,470 |
Net deferred tax liabilities | ($1,665,891) | ($1,550,839) |
Retirement_Benefits_Details
Retirement Benefits (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Employer matching percentage | 100.00% | 100.00% |
percentage of participant's contributed annual base salary | 4.00% | 4.00% |
Contributions by company | $303,913 | $208,654 |
Canadian subsidiary [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Employer matching percentage | 100.00% | 100.00% |
percentage of participant's contributed annual base salary | 4.00% | 4.00% |
Contributions by company | $133,319 | $109,442 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Operating Leases) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments and Contingencies [Abstract] | ' | ' |
Lease expense | $1,227,718 | $1,544,575 |
Deferred rent | 242,325 | 268,517 |
Minimum Future Rental Payments | ' | ' |
2013 | 1,289,799 | ' |
2014 | 1,043,225 | ' |
2015 | 940,565 | ' |
2016 | 804,561 | ' |
2017 | 490,598 | ' |
Thereafter | 4,014 | ' |
Net minimum future rental payments | $4,572,762 | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies (Agreements) (Details) (USD $) | 12 Months Ended | 47 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | |
Licensing Agreements [Line Items] | ' | ' | ' | ' |
Royalties | $1,741,742 | $1,395,567 | ' | ' |
Payments to acquire equity securities | 7,000,000 | ' | ' | ' |
Comvita Agreement [Member] | ' | ' | ' | ' |
Licensing Agreements [Line Items] | ' | ' | ' | ' |
Milestone sales | ' | 10,000,000 | ' | ' |
Maximum milestone payments | 20,000,000 | ' | ' | 20,000,000 |
Cash paid for agreement | ' | 1,000,000 | 1,000,000 | 2,000,000 |
Purchases from related party | 2,266,964 | 1,653,075 | ' | ' |
Due to related party | 421,578 | 288,596 | ' | 421,578 |
Royalties | 1,240,818 | 901,826 | ' | ' |
QMT Agreement [Member] | ' | ' | ' | ' |
Licensing Agreements [Line Items] | ' | ' | ' | ' |
Maximum milestone payments | 3,500,000 | ' | ' | 3,500,000 |
Royalties | 202,377 | 279,537 | ' | ' |
Initial fee | ' | 1,300,000 | ' | ' |
Amortization period | ' | '7 years | ' | ' |
USC Agreement [Member] | ' | ' | ' | ' |
Licensing Agreements [Line Items] | ' | ' | ' | ' |
Maximum milestone payments | 9,625,000 | ' | ' | 9,625,000 |
Royalties payable, revenue threshold | 100,000,000 | ' | ' | ' |
NCIC International Agreement [Member] | ' | ' | ' | ' |
Licensing Agreements [Line Items] | ' | ' | ' | ' |
Maximum milestone payments | 1,000,000 | ' | ' | 1,000,000 |
Cash paid for agreement | 200,000 | ' | ' | ' |
Refundable deposit | 100,000 | ' | ' | 100,000 |
Initial fee | $100,000 | ' | ' | ' |
Amortization period | '5 years | ' | ' | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||||
Dec. 05, 2012 | Apr. 05, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 14, 2014 | Jan. 14, 2014 | Jan. 14, 2014 | Jan. 29, 2014 | |
BioDLogics, LLC [Member] | BioDLogics, LLC [Member] | BioDLogics, LLC [Member] | Subsequent Event [Member] | |||||
Immediately [Member] | Milestones [Member] | |||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Initial fee | ' | ' | ' | ' | $1,250,000 | ' | ' | ' |
Number of shares called by warrants | ' | ' | ' | ' | 100,000 | ' | ' | ' |
Exercise price | ' | ' | ' | ' | 11.81 | ' | ' | ' |
Vesting rate | ' | ' | ' | ' | ' | 25.00% | 75.00% | ' |
Expiration period | ' | ' | '10 years | ' | '5 years | ' | ' | ' |
Maximum milestone payments | ' | ' | ' | ' | 19,750,000 | ' | ' | ' |
Proceeds from sale of common stock | ' | ' | ' | 51,461,053 | ' | ' | ' | 80,675,000 |
Payments for commission and other offering expenses | ' | ' | ' | ' | ' | ' | ' | $5,575,000 |
Issuance of common stock | 3,521,300 | 2,125,000 | ' | 5,646,300 | ' | ' | ' | 7,500,000 |
Price per share | $10.34 | $9.25 | ' | ' | ' | ' | ' | $11.50 |