Aspira Women's Health (AWH) 10-Q13 Nov 142014 Q3 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2014	Oct. 31, 2014
Document And Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Sep-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'
Entity Registrant Name	'VERMILLION, INC.	'
Entity Central Index Key	'0000926617	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	36,020,987

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Current assets:	'	'
Cash and cash equivalents	$16,762	$29,504
Accounts receivable	179	373
Prepaid expenses and other current assets	936	372
Total current assets	17,877	30,249
Property and equipment, net	530	391
Total assets	18,407	30,640
Current liabilities:	'	'
Accounts payable	1,144	541
Accrued liabilities	2,078	1,283
Short-term debt	1,106	1,106
Deferred revenue	1,504	628
Total current liabilities	5,832	3,558
Deferred revenue	'	316
Total liabilities	5,832	3,874
Commitments and contingencies (Note 4)	'	'
Stockholders' equity:	'	'
Preferred stock, $0.001 par value, 5,000,000 shares authorized, none issued and outstanding at September 30, 2014 and December 31, 2013, respectively	'	'
Common stock, $0.001 par value, 150,000,000 shares authorized at September 30, 2014 and December 31, 2013; 35,962,514 and 35,825,673 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively	36	36
Additional paid-in capital	359,936	358,994
Accumulated deficit	-347,397	-332,264
Total stockholders' equity	12,575	26,766
Total liabilities and stockholders' equity	$18,407	$30,640

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Statement Of Financial Position [Abstract]	'	'
Preferred stock, par value	$0.00	$0.00
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$0.00	$0.00
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	35,962,514	35,825,673
Common stock, shares outstanding	35,962,514	35,825,673

Consolidated_Statements_Of_Ope

Consolidated Statements Of Operations (USD $)	3 Months Ended				9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2014		Sep. 30, 2013
Revenue:	'		'		'		'
Product	$209		$216		$611		$640
License	114		114		341		341
Total revenue	323		330		952		981
Cost of revenue:	'		'		'		'
Product	606		25		749		96
Total cost of revenue	606		25		749		96
Gross profit (loss)	-283		305		203		885
Operating expenses:	'		'		'		'
Research and development	1,263	[1]	553	[1]	3,473	[1]	1,591	[1]
Sales and marketing	2,762	[2]	1,180	[2]	7,632	[2]	3,172	[2]
General and administrative	1,281	[3]	889	[3]	4,240	[3]	3,160	[3]
Total operating expenses	5,306		2,622		15,345		7,923
Loss from operations	-5,589		-2,317		-15,142		-7,038
Interest income	8		7		34		15
Other income (expense), net	-10		-4		-25		21
Loss before income taxes	-5,591		-2,314		-15,133		-7,002
Income tax benefit (expense)	'		'		'		'
Net loss	($5,591)		($2,314)		($15,133)		($7,002)
Net loss per share - basic and diluted	($0.16)		($0.10)		($0.42)		($0.36)
Weighted average common shares used to compute basic and diluted net loss per common share	35,913,580		23,486,496		35,865,089		19,472,105

[1]	Research and development $32, $12, $103, $44
[2]	Sales and marketing $165, $32, $233, $118
[3]	General and administrative $159, $22, $518,$143

Consolidated_Statements_Of_Ope1

Consolidated Statements Of Operations (Parenthetical) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Research And Development [Member]	'	'	'	'
Stock-based compensation expense	$32	$12	$103	$44
Sales And Marketing [Member]	'	'	'	'
Stock-based compensation expense	164	32	233	118
General And Administrative [Member]	'	'	'	'
Stock-based compensation expense	$159	$22	$518	$143

Consolidated_Statements_Of_Cas

Consolidated Statements Of Cash Flows (USD $)	9 Months Ended
Consolidated Statements Of Cash Flows (USD $)	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities:	'	'
Net loss	($15,133,000)	($7,002,000)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Non-cash license revenue	-341,000	-341,000
Depreciation and amortization	93,000	55,000
Stock-based compensation expense	832,000	281,000
Warrants issued for services	22,000	24,000
Changes in operating assets and liabilities:	'	'
Accounts receivable	194,000	-29,000
Prepaid expenses and other assets	-564,000	121,000
Accounts payable, accrued liabilities and other liabilities	1,398,000	308,000
Deferred revenue	901,000	905,000
Net cash used in operating activities	-12,598,000	-5,678,000
Cash flows from investing activities:	'	'
Purchase of property and equipment	-232,000	'
Net cash used in investing activities	-232,000	'
Cash flows from financing activities:	'	'
Proceeds from sale of common stock, net of issuance costs	'	11,751,000
Proceeds from issuance of common stock from exercise of stock options	87,500	524,000
Net cash provided by financing activities	88,000	12,275,000
Net increase (decrease) in cash and cash equivalents	-12,742,000	6,597,000
Cash and cash equivalents, beginning of period	29,504,000	8,007,000
Cash and cash equivalents, end of period	16,762,000	14,604,000
Supplemental disclosure of cash flow information:	'	'
Cash paid during the period for interest	'	'

Organization_Basis_Of_Presenta

Organization, Basis Of Presentation And Significant Accounting And Reporting Policies	9 Months Ended
	Sep. 30, 2014
Organization, Basis Of Presentation And Significant Accounting And Reporting Policies [Abstract]	'
Organization, Basis Of Presentation And Significant Accounting And Reporting Policies	'
	1. ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING AND REPORTING POLICIES
	Organization

	Vermillion, Inc. (“Vermillion”) develops and commercializes diagnostic tests for gynecologic disease. In March 2010, the Company commercially launched the OVA1® ovarian tumor triage test (“OVA1”). The Company distributes OVA1 through Quest Diagnostics Incorporated (“Quest Diagnostics”), a related party (see Note 3) and through our wholly-owned CLIA certified clinical laboratory, ASPiRA LABS, Inc (“ASPiRA”), which opened on June 23, 2014. The terms “Vermillion,” “the Company,” “we,” “us,” and “our” refer to Vermillion and its wholly-owned subsidiaries as a whole, unless the context otherwise requires.
	Liquidity
	There can be no assurance that the Company will achieve or sustain profitability or positive cash flow from operations. In addition, there is no assurance of our ability to generate substantial revenues and cash flows from ASPiRA’s operations.
	Our management believes that the current working capital position will be sufficient to meet the Company’s working capital needs for at least the next 12 months. However, our management also believes that the successful achievement of our business objectives will require additional financing. We expect to raise capital through a variety of sources, which may include the public equity market, private equity financing, collaborative arrangements, licensing arrangements, and/or public or private debt.
	Any additional equity financing may be dilutive to stockholders, and debt financing, if available, may involve restrictive covenants and potential dilution to stockholders. If we obtain additional funds through arrangements with collaborators or strategic partners, we may be required to relinquish our rights to certain technologies or products that we might otherwise seek to retain. Additional funding may not be available when needed or on terms acceptable to us. If we are unable to obtain additional capital, we may not be able to continue our sales and marketing, research and development or other operations on the scope or scale of current activity.
	Our management expects cash from OVA1 sales to be the Company’s only material, recurring source of cash through the balance of 2014 and into 2015.
	Basis of Presentation
	The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management of the Company, all adjustments, consisting of normal recurring adjustments necessary for the fair statement of results for the periods presented, have been included. The results of operations of any interim period are not necessarily indicative of the results of operations for the full year or any other interim period.
	The unaudited consolidated financial statements and related disclosures have been prepared with the presumption that users of the interim unaudited consolidated financial statements have read or have access to the audited consolidated financial statements for the preceding fiscal year. The consolidated balance sheet at December 31, 2013 included in this report has been derived from the audited consolidated financial statements at that date but does not include all the information and footnotes required by GAAP. Accordingly, these unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2013, included in Vermillion’s Annual Report on Form 10-K which was filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2014.
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimated results.
	Significant Accounting and Reporting Policies
	The Company has made no significant changes in its critical accounting policies and estimates from those disclosed in Vermillion’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013 except as discussed below:

	Revenue Recognition
	Product Revenue: The Company derives product revenues from sales of OVA1 through Quest Diagnostics and ASPiRA. Product revenues are recognized for tests performed when the following revenue recognition criteria are met: (1) persuasive evidence that an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured.
	As the Company has not established sufficient payment history with the insurance companies or private payors for the tests performed at ASPiRA, payment is not fixed or determinable and collectability is not reasonably assured, and we will defer recognizing revenues until those criteria are met, which typically coincides with the collection of cash. Once we establish a reliable payment history, we plan to return to normal accrual revenue recognition based on our criteria discussed above.

New_Accounting_Pronouncements

New Accounting Pronouncements	9 Months Ended
New Accounting Pronouncements	Sep. 30, 2014
New Accounting Pronouncements [Abstract]	'
New Accounting Pronouncements	'
	2. NEW ACCOUNTING PRONOUNCEMENTS
	In August 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2014-15, “Presentation of Financial Statements – Going Concern,” (ASU 2014-15). ASU 2014-15 provides guidance with regard to management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. This ASU clarified that management should perform its evaluation whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. The accounting standard is effective for annual periods ending after December 15, 2016 and interim periods thereafter. Early adoption is permitted. The adoption of this standard is not expected to have a material effect on our financial statements.

	In June 2014, the FASB issued ASU No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period,” (ASU 2014-12). ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The amendments in ASU 2014-12 are effective for annual periods and interim periods beginning after December 15, 2015. Early adoption is permitted. Entities may apply the amendments in ASU 2014-12 either: (a) prospectively to all awards granted or modified after the effective date; or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of this standard is not expected to have a material effect on our financial statements.

	In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” (ASU 2014-09), which creates a new Topic, Accounting Standards Codification Topic 606. The standard is principle-based and provides a five-step model to determine when and how revenue is recognized. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The accounting standard is effective for annual and interim periods beginning after December 15, 2016. Early adoption is not permitted. We are currently evaluating the impact of adopting this guidance.

Strategic_Alliance_And_Secured

Strategic Alliance And Secured Line Of Credit With Quest Diagnostics Incorporated	9 Months Ended
	Sep. 30, 2014
Strategic Alliance And Secured Line Of Credit With Quest Diagnostics Incorporated [Abstract]	'
Strategic Alliance And Secured Line Of Credit With Quest Diagnostics Incorporated	'
	3. STRATEGIC ALLIANCE AND SECURED LINE OF CREDIT WITH QUEST DIAGNOSTICS INCORPORATED
	Quest Diagnostics is a holder of the Company’s common stock. In July 2005, the Company entered into a Strategic Alliance Agreement (as amended, the “Strategic Alliance Agreement”) with Quest Diagnostics to develop and commercialize up to three diagnostic tests from the Company’s product pipeline. In connection with the Strategic Alliance Agreement, the Company entered into a credit agreement with Quest Diagnostics, pursuant to which Quest Diagnostics provided the Company with a $10,000,000 secured line of credit collateralized by certain intellectual property assets of the Company. Pursuant to the Strategic Alliance Agreement, Quest Diagnostics selected two diagnostic tests to be commercialized, a peripheral arterial disease diagnostic test and OVA1. The credit agreement provided for the forgiveness of portions of the amounts borrowed under the secured line of credit upon the achievement of certain milestones related to the development, regulatory approval and commercialization of certain diagnostic tests. If not otherwise forgiven, the $10,000,000 principal amount outstanding under this secured line of credit became due and payable in October 2012. Through September 30, 2014, a total of $3,000,000 has been acknowledged as forgiven by Quest Diagnostics based upon milestone achievement.
	The Company believes that, in September 2009, when the United States Food and Drug Administration (the “FDA”) cleared the Company’s application for a licensed laboratory test of OVA1 to be commercialized, the Company achieved a milestone under the credit agreement, resulting in a $1,000,000 reduction of the outstanding principal amount borrowed under the credit agreement. However, Quest Diagnostics has disputed whether this milestone has been achieved.
	In September 2009, the Company achieved another milestone under the credit agreement, resulting in a $3,000,000 further reduction in the principal amount borrowed under the credit agreement. Although the Company believed that, following this reduction, the principal balance under the line of credit was $6,000,000, the Company made monthly payments to Quest Diagnostics on the secured line of credit based on a principal balance of $7,000,000, resulting in a curtailment of the principal balance of $106,000. However, Quest Diagnostics has disputed that such additional principal curtailment was made.
	In October 2012, the Company paid Quest Diagnostics approximately $5,894,000 of principal which the Company believes represented payment in full of all then outstanding principal under the secured line of credit. However, the Company continues to show the amount of the liability as $1,106,000 as of September 30, 2014 because Quest Diagnostics has disputed that the $1,000,000 milestone was met and the $106,000 principal curtailment was made.
	Unrelated to the debt dispute described above, in May 2013, the Company sent Quest Diagnostics a notice of default under the Strategic Alliance Agreement relating to a number of its material violations, breaches and failures to perform under the Strategic Alliance Agreement. The Strategic Alliance Agreement states that if a party fails to cure material defaults within 90 days of the date of the notice of default, the other party has the right to terminate the Strategic Alliance Agreement. In August 2013, the Company sent Quest Diagnostics a notice of termination. Notwithstanding the termination, the Company agreed that Quest Diagnostics can continue to make OVA1 available to healthcare providers on the same financial terms following the termination while negotiating in good faith towards an alternative business structure. Prior to the termination, Quest Diagnostics had the non-exclusive right to commercialize OVA1 on a worldwide basis, with exclusive commercialization rights in the clinical reference laboratory marketplace in the United States, India, Mexico, and the United Kingdom through September 11, 2014, with the right to extend the exclusivity period for one additional year. Quest Diagnostics has disputed the effectiveness of the Company’s notice of termination.

Commitments_And_Contingencies

Commitments And Contingencies	9 Months Ended
Commitments And Contingencies	Sep. 30, 2014
Commitments And Contingencies [Abstract]	'
Commitments And Contingencies	'
	4. COMMITMENT AND CONTINGENCIES
	The Company leases facilities located in Austin, Texas with an annual base rent of $83,000 and annual estimated common area charges, taxes and insurance of $39,000. The primary lease expires on May 31, 2016.

Stockholders_Equity

Stockholders' Equity	9 Months Ended
Stockholders' Equity	Sep. 30, 2014
Stockholders' Equity [Abstract]	'
Stockholders' Equity	'
	5. STOCKHOLDERS’ EQUITY
	Equity Offering
	In October 2014, the Company established an at-the-market offering program, pursuant to which we may offer and sell, from time to time, shares of Company common stock having an aggregate offering price of up to $15.0 million. The Company will pay a commission of up to 3.0% of the gross proceeds from the sale of shares of Company common stock in the offering. The Company is not obligated to sell any shares of Company common stock in the offering.
	Stock Option Exercises
	During the three and nine months ended September 30, 2014, options to purchase 40,988 and 52,091 shares of Vermillion common stock were exercised for total proceeds to the Company of $68,400 and $87,500, respectively.
	2010 Stock Incentive Plan
	The Company’s employees, directors, and consultants are eligible to receive awards under the Amended and Restated Vermillion, Inc. 2010 Stock Incentive Plan (the “2010 Plan”). The 2010 Plan permits the granting of a variety of awards, including stock options, share appreciation rights, restricted shares, restricted share units, unrestricted shares, deferred share units, performance and cash-settled awards, and dividend equivalent rights. The 2010 Plan provides for issuance of up to 3,622,983 shares of common stock, par value $0.001 per share, under the 2010 Plan, subject to adjustment as provided in the 2010 Plan.
	Employee Stock-Based Compensation
	During the three and nine months ended September 30, 2014, the Company awarded none and 152,000 shares of restricted stock under the 2010 Plan having a fair value of approximately $470,000 to Vermillion’s Board of Directors as payment for services in 2014. Rights to 48,500 shares of restricted stock were subsequently forfeited or contractually waived by Vermillion directors during the nine months ended September 30, 2014. The remaining shares of restricted stock vested 50% on June 1, 2014 and 25% on September 1, 2014 with the remaining 25% vesting on December 1, 2014.
	In January 2014, the Company granted options to purchase 151,500 shares of Company common stock with an exercise price of $2.88 per share to Vermillion’s Chairman of the Board of Directors. These stock options vest over a four year period with 25% of the stock options vesting on December 12, 2014 and the balance in 36 equal monthly installments thereafter. On April 23, 2014, the Company granted options to purchase 348,500 shares of Company common stock with an exercise price of $2.90 per share to Vermillion’s President, Chief Executive Officer and Chairman of the Board of Directors. These stock options vest in 48 equal monthly installments from the date of the grant.
	During the nine months ended September 30, 2014, the Company also granted to certain other Vermillion officers and employees (a) options to purchase approximately 422,000 shares of Company common stock with an exercise price of $3.09 per share which vest in 48 equal monthly installments from the date of the grant and (b) options to purchase 22,500 shares of Company common stock with an exercise price of $2.87 per share, options to purchase 251,000 shares of Company common stock with an exercise price of $2.21 per share and options to purchase 100,000 shares of Company common stock with an exercise price of $2.05 per share all of which vest over a four year period with 25% of the options vesting on the employee’s one year anniversary and the balance in 36 equal monthly installments thereafter.
	In October 2014, the Company granted a Vermillion officer options to purchase 175,000 shares of Company common stock with an exercise price of $1.55 per share which vest in 48 equal monthly installments from the date of the grant.

	The allocation of employee stock-based compensation expense by functional area for the three and nine months ended September 30, 2014 and 2013 was as follows:


		Three Months Ended September 30,				Nine Months Ended September 30,
	(in thousands)	2014		2013		2014		2013
	Research and development	$	32	$	12	$	103	$	42
	Sales and marketing		164		32		233		118
	General and administrative		159		9		483		119
	Total	$	355	$	53	$	819	$	279

Loss_Per_Share

Loss Per Share	9 Months Ended
Loss Per Share	Sep. 30, 2014
Loss Per Share [Abstract]	'
Loss Per Share	'
	6. LOSS PER SHARE
	The Company calculates basic loss per share using the weighted average number of common shares outstanding during the period. Because the Company is in a net loss position, diluted loss per share is calculated using the weighted average number of common shares outstanding and excludes the effects of 2,563,106 and 13,330,302 potential common shares as of September 30, 2014 and 2013, respectively, that are antidilutive. Potential common shares include incremental shares of common stock issuable upon the exercise of outstanding warrants, stock options, and restricted stock awards.

Related_Party_Transactions

Related Party Transactions	9 Months Ended
Related Party Transactions	Sep. 30, 2014
Related Party Transactions [Abstract]	'
Related Party Transactions	'
	7. RELATED PARTY TRANSACTIONS
	Quest Diagnostics is a stockholder and was the holder of the Company’s secured line of credit (see Note 3). Accounts receivable from Quest Diagnostics under the Strategic Alliance Agreement totaled $179,000 and $373,000 at September 30, 2014 and December 31, 2013, respectively.
	On October 23, 2014, the Company appointed Valerie Palmieri as Chief Operating Officer (“COO”). Vermillion was party to a consulting agreement with a company owned by the COO to provide laboratory operations and commercialization consulting services to Vermillion. The Company made payments of $340,000 for services provided pursuant to the consulting agreement through September 30, 2014. The consulting agreement was terminated as of October 23, 2014. In connection with the work performed under the consulting agreement, the Company granted Ms. Palmieri 15,000 shares of restricted stock under the 2010 Plan having a fair value of approximately $31,000 for achievement of certain milestones.

Recovered_Sheet1

Organization, Basis of Presentation And Significant Accounting And Reporting Policies (Policies)	9 Months Ended
	Sep. 30, 2014
Organization, Basis Of Presentation And Significant Accounting And Reporting Policies [Abstract]	'
Organization	'
	Organization

	Vermillion, Inc. (“Vermillion”) develops and commercializes diagnostic tests for gynecologic disease. In March 2010, the Company commercially launched the OVA1® ovarian tumor triage test (“OVA1”). The Company distributes OVA1 through Quest Diagnostics Incorporated (“Quest Diagnostics”), a related party (see Note 3) and through our wholly-owned CLIA certified clinical laboratory, ASPiRA LABS, Inc (“ASPiRA”), which opened on June 23, 2014. The terms “Vermillion,” “the Company,” “we,” “us,” and “our” refer to Vermillion and its wholly-owned subsidiaries as a whole, unless the context otherwise requires.

Liquidity	'
	Liquidity
	There can be no assurance that the Company will achieve or sustain profitability or positive cash flow from operations. In addition, there is no assurance of our ability to generate substantial revenues and cash flows from ASPiRA’s operations.
	Our management believes that the current working capital position will be sufficient to meet the Company’s working capital needs for at least the next 12 months. However, our management also believes that the successful achievement of our business objectives will require additional financing. We expect to raise capital through a variety of sources, which may include the public equity market, private equity financing, collaborative arrangements, licensing arrangements, and/or public or private debt.
	Any additional equity financing may be dilutive to stockholders, and debt financing, if available, may involve restrictive covenants and potential dilution to stockholders. If we obtain additional funds through arrangements with collaborators or strategic partners, we may be required to relinquish our rights to certain technologies or products that we might otherwise seek to retain. Additional funding may not be available when needed or on terms acceptable to us. If we are unable to obtain additional capital, we may not be able to continue our sales and marketing, research and development or other operations on the scope or scale of current activity.
	Our management expects cash from OVA1 sales to be the Company’s only material, recurring source of cash through the balance of 2014 and into 2015.

Basis of Presentation	'
	Basis of Presentation
	The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management of the Company, all adjustments, consisting of normal recurring adjustments necessary for the fair statement of results for the periods presented, have been included. The results of operations of any interim period are not necessarily indicative of the results of operations for the full year or any other interim period.
	The unaudited consolidated financial statements and related disclosures have been prepared with the presumption that users of the interim unaudited consolidated financial statements have read or have access to the audited consolidated financial statements for the preceding fiscal year. The consolidated balance sheet at December 31, 2013 included in this report has been derived from the audited consolidated financial statements at that date but does not include all the information and footnotes required by GAAP. Accordingly, these unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2013, included in Vermillion’s Annual Report on Form 10-K which was filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2014.
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimated results.

Significant Accounting and Reporting Policies	'
	Significant Accounting and Reporting Policies
	The Company has made no significant changes in its critical accounting policies and estimates from those disclosed in Vermillion’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013 except as discussed below:

Revenue Recognition	'
	Revenue Recognition
	Product Revenue: The Company derives product revenues from sales of OVA1 through Quest Diagnostics and ASPiRA. Product revenues are recognized for tests performed when the following revenue recognition criteria are met: (1) persuasive evidence that an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured.
	As the Company has not established sufficient payment history with the insurance companies or private payors for the tests performed at ASPiRA, payment is not fixed or determinable and collectability is not reasonably assured, and we will defer recognizing revenues until those criteria are met, which typically coincides with the collection of cash. Once we establish a reliable payment history, we plan to return to normal accrual revenue recognition based on our criteria discussed above.

Stockholders_Equity_Tables

Stockholders' Equity (Tables)	9 Months Ended
Stockholders' Equity (Tables)	Sep. 30, 2014
Stockholders' Equity [Abstract]	'
Allocation of Stock-Based Compensation Expense by Functional Area	'

		Three Months Ended September 30,				Nine Months Ended September 30,
	(in thousands)	2014		2013		2014		2013
	Research and development	$	32	$	12	$	103	$	42
	Sales and marketing		164		32		233		118
	General and administrative		159		9		483		119
	Total	$	355	$	53	$	819	$	279

Strategic_Alliance_And_Secured1

Strategic Alliance And Secured Line Of Credit With Quest Diagnostics Incorporated (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2009	Sep. 30, 2014	Sep. 30, 2009	Sep. 30, 2014	Oct. 12, 2012	Jul. 22, 2005	Sep. 30, 2014
			Quest Diagnostic Has Disputed That The Milestone Was Met And The Principal Curtailment Has Been Made [Member]	Quest Diagnostic Has Disputed That The Milestone Was Met And The Principal Curtailment Has Been Made [Member]	Quest Diagnostics [Member]	Quest Diagnostics [Member]	Quest Diagnostics [Member]	Quest Diagnostics [Member]	Quest Diagnostics [Member]
						item			Selected To Commercialize [Member]
									item
Line of Credit Facility [Line Items]	'	'	'	'	'	'	'	'	'
Quest Diagnostics provided secured line of credit	'	'	'	'	'	'	'	$10,000,000	'
Number of diagnostics tests	'	'	'	'	'	3	'	'	2
Line of Credit Facility Additional Reduction In Outstanding Principal Balance	'	'	'	'	1,000,000	'	'	'	'
Line of Credit, reduction in principal amount	'	'	'	'	3,000,000	3,000,000	'	'	'
Outstanding principal balance of secured line of credit after additional reduction	'	'	'	'	6,000,000	'	'	'	'
Discussions with quest diagnostics in regard of achievement of additional amount	'	'	'	1,000,000	'	'	'	'	'
Line of Credit, outstanding principal balance	'	'	'	'	7,000,000	'	'	'	'
Payments made in excess of interest towards principal	'	'	106,000	'	'	'	'	'	'
Secured line of credit principal paid	'	'	'	'	'	'	5,894,000	'	'
Secured line of credit, liability	$1,106,000	$1,106,000	'	'	'	'	'	'	'
Exclusivity period	'	'	'	'	'	'1 year	'	'	'

Commitments_And_Contingencies_

Commitments And Contingencies (Details) (USD $)	9 Months Ended
Commitments And Contingencies (Details) (USD $)	Sep. 30, 2014
Commitments And Contingencies [Abstract]	'
Annual base rent	$83,000
Annual estimated common area charges, taxes and insurance	$39,000
Lease expiration date	31-May-16

Stockholders_Equity_Narrative_

Stockholders' Equity (Narrative) (Details) (USD $)

3 Months Ended

9 Months Ended

1 Months Ended

9 Months Ended

1 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

1 Months Ended

9 Months Ended

0 Months Ended

9 Months Ended

1 Months Ended

Sep. 30, 2014

Sep. 30, 2013

Dec. 31, 2013

Oct. 31, 2014

Sep. 30, 2014

Oct. 31, 2014

Sep. 30, 2014

Jan. 31, 2014

Sep. 30, 2014

Apr. 23, 2014

Sep. 30, 2014

Oct. 31, 2014

Subsequent Event [Member]

Other Officers And Employees [Member]

Officer [Member]

2010 Stock Incentive Plan [Member]

Maximum [Member]

$2.21 [Member]

$2.05 [Member]

$1.55 [Member]

Other Officers And Employees [Member]

Board Of Directors [Member]

Chairman Of The Board Of Directors [Member]

President, Chief Executive Officer And Chairman Of The Board Of Directors [Member]

Subsequent Event [Member]

$3.09 [Member]

$2.87 [Member]

$2.87, $2.21, $2.05 [Member]

One Year Anniversary [Member]

June 1, 2014 [Member]

September 1, 2014 [Member]

December 1, 2014 [Member]

$2.87, $2.21, $2.05 [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Aggregat offering price

$15,000,000

Commission

3.00%

Stock options exercised

40,988

52,091

Proceeds from issuance of common stock from exercise of stock options

68,400

87,500

524,000

Shares available for grant

3,622,983

Common stock, par value

$0.00

Restricted shares awarded

152,000

Fair value of restricted shares awarded

$470,000

Restricted shares forfeited

48,500

Vesting percentage

25.00%

50.00%

25.00%

Stock options granted

251,000

100,000

175,000

422,000

22,500

151,500

348,500

Stock options granted, average exercise price

$2.21

$2.05

$1.55

$3.09

$2.87

$2.88

$2.90

Stock options vesting period

'48 months

'4 years

'48 months

Stock options vesting period after first year

'36 months

Stockholders_Equity_Allocation

Stockholders' Equity (Allocation of Employee Stock-Based Compensation Expense By Functional Area) (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Research And Development [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation expense	$32	$12	$103	$44
Sales And Marketing [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation expense	164	32	233	118
General And Administrative [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation expense	159	22	518	143
Employee Stock-Based Compensation [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation expense	355	53	819	279
Employee Stock-Based Compensation [Member] \| Research And Development [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation expense	32	12	103	42
Employee Stock-Based Compensation [Member] \| Sales And Marketing [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation expense	164	32	233	118
Employee Stock-Based Compensation [Member] \| General And Administrative [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation expense	$159	$9	$483	$119

Loss_Per_Share_Details

Loss Per Share (Details)	9 Months Ended
Loss Per Share (Details)	Sep. 30, 2014	Sep. 30, 2013
Loss Per Share [Abstract]	'	'
Antidilutive securities excluded from computation of earnings per share	2,563,106	13,330,302

Related_Party_Transactions_Det

Related Party Transactions (Details) (USD $)	9 Months Ended			0 Months Ended
	Sep. 30, 2014	Sep. 30, 2014	Dec. 31, 2013	Oct. 23, 2014
		Quest Diagnostics [Member]	Quest Diagnostics [Member]	Subsequent Event [Member]
				2010 Stock Incentive Plan [Member]
				Chief Operating Officer [Member]
Related Party Transaction [Line Items]	'	'	'	'
Accounts receivable from related party	'	$179,000	$373,000	'
Payments to related party	340,000	'	'	'
Restricted shares awarded	'	'	'	15,000
Fair value of restricted shares awarded	'	'	'	$31,000