$AURX
Nuo Therapeutics Inc Stock $aurx

$aurx Overview Financials Valuation SEC Filings Company Website

2014 Q4 Form 10-Q Financial Statement

#000114420414067869 Filed on November 13, 2014

Income Statement

Concept	2014 Q4	2014 Q3	2013 Q3
Revenue	$1.900M	$1.692M	$3.366M
YoY Change	-45.09%	-49.74%	91.34%
Cost Of Revenue	$2.090M	$1.334M	$2.850M
YoY Change	-29.63%	-53.18%	185.58%
Gross Profit	-$190.0K	$357.7K	$516.3K
YoY Change	-138.78%	-30.72%	-32.18%
Gross Profit Margin	-10.0%	21.14%	15.34%
Selling, General & Admin	$4.120M	$3.847M	$4.120M
YoY Change	17.38%	-6.63%	5.37%
% of Gross Profit		1075.41%	797.94%
Research & Development	$80.00K	$1.008M	$923.0K
YoY Change	-88.41%	9.21%	-8.26%
% of Gross Profit		281.77%	178.76%
Depreciation & Amortization	$130.0K	$40.00K	$260.0K
YoY Change	-38.1%	-84.62%	-18.75%
% of Gross Profit		11.18%	50.36%
Operating Expenses	$4.230M	$4.855M	$5.126M
YoY Change	-1.86%	-5.28%	3.15%
Operating Profit	-$4.420M	-$4.497M	-$4.610M
YoY Change	15.71%	-2.44%	9.54%
Interest Expense	$7.410M	-$818.5K	-$378.6K
YoY Change	-786.11%	116.2%	44.49%
% of Operating Profit
Other Income/Expense, Net	$0.00	-$283.7K	-$360.7K
YoY Change		-21.36%	-184.31%
Pretax Income	$2.860M	-$4.781M	-$4.970M
YoY Change	-158.49%	-3.81%	31.48%
Income Tax	$10.00K	$4.645K	$4.890K
% Of Pretax Income	0.35%
Net Earnings	$2.860M	-$4.786M	-$4.975M
YoY Change	-158.37%	-3.81%	31.45%
Net Earnings / Revenue	150.53%	-282.83%	-147.8%
Basic Earnings Per Share
Diluted Earnings Per Share	$0.02	-$0.04	-$0.05
COMMON SHARES
Basic Shares Outstanding	124.4M shares	124.4M shares	104.8M shares
Diluted Shares Outstanding

Balance Sheet

Concept	2014 Q4	2014 Q3	2013 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments	$15.95M	$20.04M	$4.640M
YoY Change	384.8%	331.9%	-20.41%
Cash & Equivalents	$15.95M	$20.04M	$4.644M
Short-Term Investments
Other Short-Term Assets	$0.00	$3.360M	$127.1K
YoY Change	-100.0%	2543.44%	-85.72%
Inventory	$556.6K	$540.0K	$1.802M
Prepaid Expenses
Receivables	$609.2K	$295.7K	$990.0K
Other Receivables	$1.310M	$1.550M	$1.140M
Total Short-Term Assets	$21.88M	$25.73M	$10.47M
YoY Change	119.79%	145.8%	10.66%
LONG-TERM ASSETS
Property, Plant & Equipment	$925.2K	$757.2K	$890.0K
YoY Change	0.62%	-14.92%	-64.54%
Goodwill	$0.00		$1.129M
YoY Change	-100.0%
Intangibles	$28.75M		$33.86M
YoY Change	-14.87%
Long-Term Investments
YoY Change
Other Assets	$4.020M	$3.820M	$540.0K
YoY Change	737.56%	607.41%	157.14%
Total Long-Term Assets	$34.35M	$34.53M	$36.42M
YoY Change	-5.37%	-5.2%	-4.35%
TOTAL ASSETS
Total Short-Term Assets	$21.88M	$25.73M	$10.47M
Total Long-Term Assets	$34.35M	$34.53M	$36.42M
Total Assets	$56.22M	$60.26M	$46.89M
YoY Change	21.56%	28.51%	-1.37%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable	$1.878M	$1.673M	$3.043M
YoY Change	-43.98%	-45.01%	32.32%
Accrued Expenses	$5.193M	$4.887M	$1.220M
YoY Change	11.27%	300.61%	19.61%
Deferred Revenue
YoY Change
Short-Term Debt	$0.00	$0.00	$0.00
YoY Change
Long-Term Debt Due	$0.00	$0.00	$1.800M
YoY Change	-100.0%	-100.0%
Total Short-Term Liabilities	$8.498M	$6.960M	$9.479M
YoY Change	-19.52%	-26.57%	162.58%
LONG-TERM LIABILITIES
Long-Term Debt	$330.0K	$250.0K	$4.300M
YoY Change	-91.36%	-94.19%	66.02%
Other Long-Term Liabilities	$546.9K	$1.025M	$2.130M
YoY Change	49.04%	-51.88%	93.64%
Total Long-Term Liabilities	$546.9K	$1.025M	$6.430M
YoY Change	49.04%	-84.06%	74.25%
TOTAL LIABILITIES
Total Short-Term Liabilities	$8.498M	$6.960M	$9.479M
Total Long-Term Liabilities	$546.9K	$1.025M	$6.430M
Total Liabilities	$40.26M	$47.49M	$15.97M
YoY Change	107.08%	197.37%	117.26%
SHAREHOLDERS EQUITY
Retained Earnings	-$110.1M	-$113.0M	-$86.33M
YoY Change	20.7%	30.85%
Common Stock	$12.48K	$12.35K	$10.43K
YoY Change	17.42%	18.43%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity	$15.47M	$12.27M	$30.42M
YoY Change
Total Liabilities & Shareholders Equity	$56.22M	$60.26M	$46.89M
YoY Change	21.56%	28.51%	-1.37%

Cashflow Statement

Concept	2014 Q4	2014 Q3	2013 Q3
OPERATING ACTIVITIES
Net Income	$2.860M	-$4.786M	-$4.975M
YoY Change	-158.37%	-3.81%	31.45%
Depreciation, Depletion And Amortization	$130.0K	$40.00K	$260.0K
YoY Change	-38.1%	-84.62%	-18.75%
Cash From Operating Activities	-$3.810M	-$4.830M	-$200.0K
YoY Change	15.11%	2315.0%	-93.22%
INVESTING ACTIVITIES
Capital Expenditures	-$270.0K	-$130.0K	-$310.0K
YoY Change	80.0%	-58.06%	-58.11%
Acquisitions
YoY Change
Other Investing Activities	$0.00	$100.0K	$2.020M
YoY Change		-95.05%	1920.0%
Cash From Investing Activities	-$270.0K	-$40.00K	$1.710M
YoY Change	80.0%	-102.34%	-367.19%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities	0.000	-80.00K	-240.0K
YoY Change	-100.0%	-66.67%	-127.27%
NET CHANGE
Cash From Operating Activities	-3.810M	-4.830M	-200.0K
Cash From Investing Activities	-270.0K	-40.00K	1.710M
Cash From Financing Activities	0.000	-80.00K	-240.0K
Net Change In Cash	-4.080M	-4.950M	1.270M
YoY Change	200.0%	-489.76%	-146.86%
FREE CASH FLOW
Cash From Operating Activities	-$3.810M	-$4.830M	-$200.0K
Capital Expenditures	-$270.0K	-$130.0K	-$310.0K
Free Cash Flow	-$3.540M	-$4.700M	$110.0K
YoY Change	12.03%	-4372.73%	-104.98%

Facts In Submission

Frame	Concept Type	Concept / XBRL Key	Value	Unit
	us-gaap	Use Of Estimates UseOfEstimates	<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-TRANSFORM: none; TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt 'Times New Roman', Times, serif; WHITE-SPACE: normal; LETTER-SPACING: normal; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-TRANSFORM: none; TEXT-INDENT: 0px; MARGIN: 0pt 0px; FONT: 10pt 'Times New Roman', Times, serif; WHITE-SPACE: normal; LETTER-SPACING: normal; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal"> <font style="COLOR: black"><strong><i>Use of Estimates</i></strong></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-TRANSFORM: none; TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt 'Times New Roman', Times, serif; WHITE-SPACE: normal; LETTER-SPACING: normal; COLOR: rgb(0,0,0); WORD-SPACING: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px"> <font style="COLOR: black"> </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-TRANSFORM: none; TEXT-INDENT: 0px; MARGIN: 0pt 0px; FONT: 10pt 'Times New Roman', Times, serif; WHITE-SPACE: normal; LETTER-SPACING: normal; COLOR: rgb(0,0,0); WORD-SPACING: 0px; font-stretch: normal; -webkit-text-stroke-width: 0px"> <font style="COLOR: black">The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. In the accompanying unaudited condensed consolidated financial statements, estimates are used for, but not limited to, stock-based compensation, allowance for doubtful accounts, valuation of derivative liabilities, valuation and probability of contingent liabilities, fair value of long-lived assets, deferred taxes and associated valuation allowance, and the depreciable lives of fixed assets (including intangible assets and goodwill). Actual results could differ from those estimates.</font></div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
CY2013Q4	us-gaap	Deferred Costs Current DeferredCostsCurrent	316551	USD
CY2014Q3	us-gaap	Cash And Cash Equivalents At Carrying Value CashAndCashEquivalentsAtCarryingValue	20036100	USD
CY2013Q4	us-gaap	Cash And Cash Equivalents At Carrying Value CashAndCashEquivalentsAtCarryingValue	3286713	USD
CY2013Q4	us-gaap	Restricted Investments Current RestrictedInvestmentsCurrent	53257	USD
CY2013Q4	us-gaap	Accounts And Other Receivables Net Current AccountsAndOtherReceivablesNetCurrent	3926681	USD
CY2013Q4	us-gaap	Inventory Net InventoryNet	1111507	USD
CY2013Q4	us-gaap	Prepaid Expense And Other Assets Current PrepaidExpenseAndOtherAssetsCurrent	1258282	USD
CY2013Q4	us-gaap	Assets Current AssetsCurrent	9952991	USD
CY2014Q3	us-gaap	Property Plant And Equipment Net PropertyPlantAndEquipmentNet	757230	USD
CY2013Q4	us-gaap	Property Plant And Equipment Net PropertyPlantAndEquipmentNet	919469	USD
CY2013Q4	us-gaap	Deferred Costs DeferredCosts	482349	USD
CY2013Q4	us-gaap	Intangible Assets Net Excluding Goodwill IntangibleAssetsNetExcludingGoodwill	33768954	USD
CY2013Q4	us-gaap	Goodwill Goodwill	1128517	USD
CY2013Q4	us-gaap	Assets Assets	46252280	USD
CY2014Q3	us-gaap	Accounts Payable Current AccountsPayableCurrent	1673402	USD
CY2013Q4	us-gaap	Accounts Payable Current AccountsPayableCurrent	3351844	USD
CY2013Q4	us-gaap	Deferred Revenue Current DeferredRevenueCurrent	740990	USD
CY2013Q4	us-gaap	Notes Payable Current NotesPayableCurrent	1800000	USD
CY2013Q4	us-gaap	Liabilities Current LiabilitiesCurrent	10559662	USD
CY2013Q4	us-gaap	Long Term Notes Payable LongTermNotesPayable	3620593	USD
CY2014Q3	us-gaap	Convertible Debt Noncurrent ConvertibleDebtNoncurrent	251600	USD
CY2013Q4	us-gaap	Convertible Debt Noncurrent ConvertibleDebtNoncurrent	202658	USD
CY2014Q3	us-gaap	Deferred Revenue Noncurrent DeferredRevenueNoncurrent	1139956	USD
CY2013Q4	us-gaap	Deferred Revenue Noncurrent DeferredRevenueNoncurrent	1441852	USD
CY2014Q3	us-gaap	Derivative Liabilities Noncurrent DerivativeLiabilitiesNoncurrent	38106375	USD
CY2013Q4	us-gaap	Derivative Liabilities Noncurrent DerivativeLiabilitiesNoncurrent	3248595	USD
CY2014Q3	us-gaap	Other Liabilities Noncurrent OtherLiabilitiesNoncurrent	1024863	USD
CY2013Q4	us-gaap	Other Liabilities Noncurrent OtherLiabilitiesNoncurrent	366926	USD
CY2014Q3	us-gaap	Liabilities Liabilities	47485991	USD
CY2013Q4	us-gaap	Liabilities Liabilities	19440286	USD
CY2014Q3	us-gaap	Commitments And Contingencies CommitmentsAndContingencies		USD
CY2013Q4	us-gaap	Commitments And Contingencies CommitmentsAndContingencies		USD
CY2014Q3	us-gaap	Temporary Equity Carrying Amount Attributable To Parent TemporaryEquityCarryingAmountAttributableToParent	500000	USD
CY2013Q4	us-gaap	Temporary Equity Carrying Amount Attributable To Parent TemporaryEquityCarryingAmountAttributableToParent	500000	USD
CY2014Q3	us-gaap	Common Stock Value CommonStockValue	12350	USD
CY2013Q4	us-gaap	Common Stock Value CommonStockValue	10626	USD
CY2014Q3	cmxi	Common Stock Issuable CommonStockIssuable	392950	USD
CY2013Q4	cmxi	Common Stock Issuable CommonStockIssuable	432100	USD
CY2014Q3	us-gaap	Additional Paid In Capital AdditionalPaidInCapital	124834282	USD
CY2013Q4	us-gaap	Additional Paid In Capital AdditionalPaidInCapital	117097844	USD
CY2014Q3	us-gaap	Retained Earnings Accumulated Deficit RetainedEarningsAccumulatedDeficit	-112967710	USD
CY2013Q4	us-gaap	Retained Earnings Accumulated Deficit RetainedEarningsAccumulatedDeficit	-91228576	USD
CY2014Q3	us-gaap	Stockholders Equity StockholdersEquity	12271872	USD
CY2013Q4	us-gaap	Stockholders Equity StockholdersEquity	26311994	USD
CY2014Q3	us-gaap	Liabilities And Stockholders Equity LiabilitiesAndStockholdersEquity	60257863	USD
CY2013Q4	us-gaap	Liabilities And Stockholders Equity LiabilitiesAndStockholdersEquity	46252280	USD
CY2013Q1	cmxi	Medical Device Excise Tax Percentage MedicalDeviceExciseTaxPercentage	0.023	pure
CY2014Q3	cmxi	Minimum Cash Balance MinimumCashBalance	5000000	USD
CY2014Q3	us-gaap	Retainage Deposit RetainageDeposit	5000000	USD
CY2014Q3	us-gaap	Temporary Equity Shares Issued TemporaryEquitySharesIssued	909091	shares
CY2013Q4	us-gaap	Temporary Equity Shares Issued TemporaryEquitySharesIssued	909091	shares
CY2014Q3	us-gaap	Temporary Equity Shares Outstanding TemporaryEquitySharesOutstanding	909091	shares
CY2013Q4	us-gaap	Temporary Equity Shares Outstanding TemporaryEquitySharesOutstanding	909091	shares
CY2014Q3	us-gaap	Common Stock Par Or Stated Value Per Share CommonStockParOrStatedValuePerShare	0.0001
CY2013Q4	us-gaap	Common Stock Par Or Stated Value Per Share CommonStockParOrStatedValuePerShare	0.0001
CY2014Q3	us-gaap	Common Stock Shares Authorized CommonStockSharesAuthorized	425000000	shares
CY2013Q4	us-gaap	Common Stock Shares Authorized CommonStockSharesAuthorized	425000000	shares
CY2014Q3	us-gaap	Common Stock Shares Issued CommonStockSharesIssued	124410100	shares
CY2014Q3	us-gaap	Cash Cash	20000000	USD
CY2014Q3	cmxi	Deferred Licensing Revenue DeferredLicensingRevenue	1542000	USD
	us-gaap	Allocated Share Based Compensation Expense AllocatedShareBasedCompensationExpense	537958	USD
	us-gaap	Allocated Share Based Compensation Expense AllocatedShareBasedCompensationExpense	939478	USD
CY2013Q3	us-gaap	Allocated Share Based Compensation Expense AllocatedShareBasedCompensationExpense	150063	USD
CY2014Q3	us-gaap	Allocated Share Based Compensation Expense AllocatedShareBasedCompensationExpense	390889	USD
CY2014Q3	us-gaap	Allowance For Doubtful Accounts Receivable AllowanceForDoubtfulAccountsReceivable	58000	USD
CY2013Q4	us-gaap	Allowance For Doubtful Accounts Receivable AllowanceForDoubtfulAccountsReceivable	16000	USD
	us-gaap	Income Tax Expense Benefit IncomeTaxExpenseBenefit	14670	USD
	us-gaap	Income Tax Expense Benefit IncomeTaxExpenseBenefit	13935	USD
CY2014Q3	us-gaap	Income Tax Expense Benefit IncomeTaxExpenseBenefit	4645	USD
	us-gaap	Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount	28207642	shares
	us-gaap	Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount	224287504	shares
CY2013Q4	us-gaap	Common Stock Shares Issued CommonStockSharesIssued	107164855	shares
CY2014Q3	us-gaap	Common Stock Shares Outstanding CommonStockSharesOutstanding	124410100	shares
CY2013Q4	us-gaap	Common Stock Shares Outstanding CommonStockSharesOutstanding	107164855	shares
CY2014Q3	us-gaap	Trade Receivables Held For Sale Amount TradeReceivablesHeldForSaleAmount	295667	USD
CY2013Q3	us-gaap	Sales Revenue Goods Net SalesRevenueGoodsNet	2925971	USD
CY2014Q3	us-gaap	Sales Revenue Goods Net SalesRevenueGoodsNet	1200719	USD
	us-gaap	Licenses Revenue LicensesRevenue	67063	USD
	us-gaap	Licenses Revenue LicensesRevenue	301783	USD
	us-gaap	Sales Revenue Goods Net SalesRevenueGoodsNet	4474970	USD
CY2013Q4	us-gaap	Trade Receivables Held For Sale Amount TradeReceivablesHeldForSaleAmount	2449199	USD
CY2014Q3	us-gaap	Other Receivables Gross Current OtherReceivablesGrossCurrent	1547804	USD
CY2013Q4	us-gaap	Other Receivables Gross Current OtherReceivablesGrossCurrent	1493979	USD
CY2014Q3	us-gaap	Accounts Receivable Gross Current AccountsReceivableGrossCurrent	1843471	USD
CY2013Q4	us-gaap	Accounts Receivable Gross Current AccountsReceivableGrossCurrent	3943178	USD
CY2014Q3	us-gaap	Allowance For Doubtful Accounts Receivable Current AllowanceForDoubtfulAccountsReceivableCurrent	58329	USD
CY2013Q4	us-gaap	Allowance For Doubtful Accounts Receivable Current AllowanceForDoubtfulAccountsReceivableCurrent	16497	USD
CY2014Q3	us-gaap	Finite Lived Intangible Assets Gross FiniteLivedIntangibleAssetsGross	30036000	USD
CY2013Q4	us-gaap	Finite Lived Intangible Assets Gross FiniteLivedIntangibleAssetsGross	34958000	USD
CY2014Q3	us-gaap	Finite Lived Intangible Assets Accumulated Amortization FiniteLivedIntangibleAssetsAccumulatedAmortization	1211136	USD
CY2013Q4	us-gaap	Finite Lived Intangible Assets Accumulated Amortization FiniteLivedIntangibleAssetsAccumulatedAmortization	1189046	USD
CY2014Q3	us-gaap	Finite Lived Intangible Assets Amortization Expense Next Twelve Months FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths	308300	USD
CY2014Q3	us-gaap	Finite Lived Intangible Assets Amortization Expense Year Two FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo	308300	USD
CY2014Q3	us-gaap	Finite Lived Intangible Assets Amortization Expense Year Three FiniteLivedIntangibleAssetsAmortizationExpenseYearThree	308300	USD
CY2014Q3	us-gaap	Finite Lived Intangible Assets Amortization Expense Year Four FiniteLivedIntangibleAssetsAmortizationExpenseYearFour	242000	USD
CY2014Q3	us-gaap	Finite Lived Intangible Assets Amortization Expense Year Five FiniteLivedIntangibleAssetsAmortizationExpenseYearFive	219800	USD
CY2014Q3	us-gaap	Finite Lived Intangible Assets Amortization Expense After Year Five FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFive	1434800	USD
CY2014Q2	us-gaap	Impairment Of Intangible Assets Finitelived ImpairmentOfIntangibleAssetsFinitelived	1000000	USD
CY2014Q3	us-gaap	Finite Lived Intangible Assets Amortization Expense Remainder Of Fiscal Year FiniteLivedIntangibleAssetsAmortizationExpenseRemainderOfFiscalYear	77100	USD
CY2014Q3	cmxi	Warrants Initial Value WarrantsInitialValue	1100000	USD
CY2013Q4	cmxi	Percentage In Number Of Shares PercentageInNumberOfShares	0.75	pure
CY2013Q4	cmxi	Exercise Price On Market Price ExercisePriceOnMarketPrice	1.25	pure
	us-gaap	Stock Issued During Period Shares New Issues StockIssuedDuringPeriodSharesNewIssues	17245245	shares
	us-gaap	Proceeds From Issuance Or Sale Of Equity ProceedsFromIssuanceOrSaleOfEquity	3666260	USD
	us-gaap	Sales Revenue Goods Net SalesRevenueGoodsNet	7541874	USD
CY2013Q3	us-gaap	Licenses Revenue LicensesRevenue	67063	USD
CY2014Q3	us-gaap	Licenses Revenue LicensesRevenue	100594	USD
	us-gaap	Royalty Revenue RoyaltyRevenue	369646	USD
	us-gaap	Royalty Revenue RoyaltyRevenue	1087307	USD
CY2013Q3	us-gaap	Royalty Revenue RoyaltyRevenue	244350	USD
CY2014Q3	us-gaap	Royalty Revenue RoyaltyRevenue	390714	USD
	us-gaap	Sales Revenue Net SalesRevenueNet	8107418	USD
	us-gaap	Sales Revenue Net SalesRevenueNet	5864060	USD
CY2013Q3	us-gaap	Sales Revenue Net SalesRevenueNet	3366219	USD
CY2014Q3	us-gaap	Sales Revenue Net SalesRevenueNet	1692027	USD
	us-gaap	Cost Of Goods Sold CostOfGoodsSold	5439401	USD
	us-gaap	Cost Of Goods Sold CostOfGoodsSold	4552317	USD
CY2013Q3	us-gaap	Cost Of Goods Sold CostOfGoodsSold	2817386	USD
CY2014Q3	us-gaap	Cost Of Goods Sold CostOfGoodsSold	1290449	USD
	us-gaap	Direct Operating Cost Royalty Expense DirectOperatingCostRoyaltyExpense	41578	USD
	us-gaap	Direct Operating Cost Royalty Expense DirectOperatingCostRoyaltyExpense	132543	USD
CY2013Q3	us-gaap	Direct Operating Cost Royalty Expense DirectOperatingCostRoyaltyExpense	32504	USD
CY2014Q3	us-gaap	Direct Operating Cost Royalty Expense DirectOperatingCostRoyaltyExpense	43853	USD
	us-gaap	Cost Of Revenue CostOfRevenue	5480979	USD
	us-gaap	Cost Of Revenue CostOfRevenue	4684860	USD
CY2013Q3	us-gaap	Cost Of Revenue CostOfRevenue	2849890	USD
CY2014Q3	us-gaap	Cost Of Revenue CostOfRevenue	1334302	USD
	us-gaap	Gross Profit GrossProfit	2626439	USD
	us-gaap	Gross Profit GrossProfit	1179200	USD
CY2013Q3	us-gaap	Gross Profit GrossProfit	516329	USD
CY2014Q3	us-gaap	Gross Profit GrossProfit	357725	USD
CY2013Q3	us-gaap	Operating Expenses OperatingExpenses	5125866	USD
CY2014Q3	us-gaap	Operating Expenses OperatingExpenses	4854993	USD
	us-gaap	Operating Income Loss OperatingIncomeLoss	-14274478	USD
	us-gaap	Operating Income Loss OperatingIncomeLoss	-18969918	USD
CY2013Q3	us-gaap	Operating Income Loss OperatingIncomeLoss	-4609537	USD
	us-gaap	Labor And Related Expense LaborAndRelatedExpense	6011337	USD
	us-gaap	Labor And Related Expense LaborAndRelatedExpense	6220302	USD
CY2013Q3	us-gaap	Labor And Related Expense LaborAndRelatedExpense	1967965	USD
CY2014Q3	us-gaap	Labor And Related Expense LaborAndRelatedExpense	1950307	USD
	cmxi	Consulting Fees ConsultingFees	1596576	USD
	cmxi	Consulting Fees ConsultingFees	1374616	USD
CY2013Q3	cmxi	Consulting Fees ConsultingFees	415947	USD
CY2014Q3	cmxi	Consulting Fees ConsultingFees	204985	USD
	us-gaap	Professional Fees ProfessionalFees	827198	USD
	us-gaap	Professional Fees ProfessionalFees	935112	USD
CY2013Q3	us-gaap	Professional Fees ProfessionalFees	385344	USD
CY2014Q3	us-gaap	Professional Fees ProfessionalFees	303083	USD
	us-gaap	Research And Development Expense ResearchAndDevelopmentExpense	3050038	USD
	us-gaap	Research And Development Expense ResearchAndDevelopmentExpense	2547559	USD
CY2013Q3	us-gaap	Research And Development Expense ResearchAndDevelopmentExpense	922999	USD
CY2014Q3	us-gaap	Research And Development Expense ResearchAndDevelopmentExpense	636239	USD
	us-gaap	General And Administrative Expense GeneralAndAdministrativeExpense	5415768	USD
	us-gaap	General And Administrative Expense GeneralAndAdministrativeExpense	4387700	USD
CY2013Q3	us-gaap	General And Administrative Expense GeneralAndAdministrativeExpense	1433611	USD
CY2014Q3	us-gaap	General And Administrative Expense GeneralAndAdministrativeExpense	1760379	USD
	us-gaap	Impairment Of Intangible Assets Excluding Goodwill ImpairmentOfIntangibleAssetsExcludingGoodwill	0	USD
	us-gaap	Impairment Of Intangible Assets Excluding Goodwill ImpairmentOfIntangibleAssetsExcludingGoodwill	4683829	USD
CY2013Q3	us-gaap	Impairment Of Intangible Assets Excluding Goodwill ImpairmentOfIntangibleAssetsExcludingGoodwill	0	USD
CY2014Q3	us-gaap	Impairment Of Intangible Assets Excluding Goodwill ImpairmentOfIntangibleAssetsExcludingGoodwill	0	USD
	us-gaap	Operating Expenses OperatingExpenses	16900917	USD
	us-gaap	Operating Expenses OperatingExpenses	20149118	USD
CY2014Q3	us-gaap	Operating Income Loss OperatingIncomeLoss	-4497268	USD
	us-gaap	Interest Income Expense Nonoperating Net InterestIncomeExpenseNonoperatingNet	-1323900	USD
	us-gaap	Interest Income Expense Nonoperating Net InterestIncomeExpenseNonoperatingNet	-2587366	USD
CY2013Q3	us-gaap	Interest Income Expense Nonoperating Net InterestIncomeExpenseNonoperatingNet	-378587	USD
CY2014Q3	us-gaap	Interest Income Expense Nonoperating Net InterestIncomeExpenseNonoperatingNet	-818493	USD
	us-gaap	Gain Loss On Derivative Instruments Net Pretax GainLossOnDerivativeInstrumentsNetPretax	250349	USD
	us-gaap	Gain Loss On Derivative Instruments Net Pretax GainLossOnDerivativeInstrumentsNetPretax	-158631	USD
CY2013Q3	us-gaap	Gain Loss On Derivative Instruments Net Pretax GainLossOnDerivativeInstrumentsNetPretax	5789	USD
CY2014Q3	us-gaap	Gain Loss On Derivative Instruments Net Pretax GainLossOnDerivativeInstrumentsNetPretax	542868	USD
	us-gaap	Other Nonoperating Income Expense OtherNonoperatingIncomeExpense	12331	USD
	us-gaap	Other Nonoperating Income Expense OtherNonoperatingIncomeExpense	-9284	USD
CY2013Q3	us-gaap	Other Nonoperating Income Expense OtherNonoperatingIncomeExpense	12076	USD
CY2014Q3	us-gaap	Other Nonoperating Income Expense OtherNonoperatingIncomeExpense	-8045	USD
	us-gaap	Nonoperating Income Expense NonoperatingIncomeExpense	-1061220	USD
	us-gaap	Nonoperating Income Expense NonoperatingIncomeExpense	-2755281	USD
CY2013Q3	us-gaap	Nonoperating Income Expense NonoperatingIncomeExpense	-360722	USD
CY2014Q3	us-gaap	Nonoperating Income Expense NonoperatingIncomeExpense	-283670	USD
	us-gaap	Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest	-15335698	USD
	us-gaap	Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest	-21725199	USD
CY2013Q3	us-gaap	Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest	-4970259	USD
CY2014Q3	us-gaap	Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest	-4780938	USD
CY2013Q3	us-gaap	Income Tax Expense Benefit IncomeTaxExpenseBenefit	4890	USD
	us-gaap	Net Income Loss Available To Common Stockholders Basic NetIncomeLossAvailableToCommonStockholdersBasic	-15350368	USD
	us-gaap	Net Income Loss Available To Common Stockholders Basic NetIncomeLossAvailableToCommonStockholdersBasic	-21739134	USD
	us-gaap	Amortization Of Deferred Charges AmortizationOfDeferredCharges	186931	USD
	cmxi	Warrants Expired WarrantsExpired	200000	shares
CY2014Q3	us-gaap	Class Of Warrant Or Right Outstanding ClassOfWarrantOrRightOutstanding	122771879	shares
CY2013Q1	us-gaap	Proceeds From Issuance Of Private Placement ProceedsFromIssuanceOfPrivatePlacement	5000000	USD
CY2014Q1	us-gaap	Proceeds From Issuance Of Private Placement ProceedsFromIssuanceOfPrivatePlacement	2000000	USD
CY2013Q1	us-gaap	Share Price SharePrice	0.55
CY2013Q1	us-gaap	Class Of Warrant Or Right Number Of Securities Called By Warrants Or Rights ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights	6363638	shares
CY2013Q1	cmxi	Stock Issued During Period Shares Investors StockIssuedDuringPeriodSharesInvestors	9090911	shares
CY2014Q3	us-gaap	Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Stock Options EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions	2500000	USD
	us-gaap	Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition1 EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1	P2Y10M24D
CY2013Q3	us-gaap	Net Income Loss Available To Common Stockholders Basic NetIncomeLossAvailableToCommonStockholdersBasic	-4975149	USD
CY2014Q3	us-gaap	Net Income Loss Available To Common Stockholders Basic NetIncomeLossAvailableToCommonStockholdersBasic	-4785583	USD
	us-gaap	Earnings Per Share Basic And Diluted EarningsPerShareBasicAndDiluted	-0.15
	us-gaap	Earnings Per Share Basic And Diluted EarningsPerShareBasicAndDiluted	-0.18
CY2013Q3	us-gaap	Earnings Per Share Basic And Diluted EarningsPerShareBasicAndDiluted	-0.05
CY2014Q3	us-gaap	Earnings Per Share Basic And Diluted EarningsPerShareBasicAndDiluted	-0.04
	us-gaap	Weighted Average Number Of Share Outstanding Basic And Diluted WeightedAverageNumberOfShareOutstandingBasicAndDiluted	102891983	shares
	us-gaap	Weighted Average Number Of Share Outstanding Basic And Diluted WeightedAverageNumberOfShareOutstandingBasicAndDiluted	118990010	shares
CY2013Q3	us-gaap	Weighted Average Number Of Share Outstanding Basic And Diluted WeightedAverageNumberOfShareOutstandingBasicAndDiluted	104890396	shares
CY2014Q3	us-gaap	Weighted Average Number Of Share Outstanding Basic And Diluted WeightedAverageNumberOfShareOutstandingBasicAndDiluted	123968305	shares
CY2013Q4	us-gaap	Class Of Warrant Or Right Outstanding ClassOfWarrantOrRightOutstanding	23019301	shares
	cmxi	Debt Instrument Warrants Issued For Convertible Bridge Notes DebtInstrumentWarrantsIssuedForConvertibleBridgeNotes	232964	shares
	cmxi	Debt Instrument Warrants Issued For Equity Placement DebtInstrumentWarrantsIssuedForEquityPlacement	2884615	shares
	cmxi	Debt Instrument Warrants Issued For Convertible Notes DebtInstrumentWarrantsIssuedForConvertibleNotes	25115384	shares
	cmxi	Debt Instrument Warrants Issued For Convertible Notes One DebtInstrumentWarrantsIssuedForConvertibleNotesOne	1474615	shares
	cmxi	Debt Instrument Warrants Issued For Amendment To Note DebtInstrumentWarrantsIssuedForAmendmentToNote	750000	shares
	cmxi	Debt Instrument Warrants Issued For Consulting Agreement DebtInstrumentWarrantsIssuedForConsultingAgreement	20000	shares
	cmxi	Debt Instrument Warrants Issued For Convertible Notes Two DebtInstrumentWarrantsIssuedForConvertibleNotesTwo	67500000	shares
	cmxi	Debt Instrument Warrants Issued For Convertible Notes Three DebtInstrumentWarrantsIssuedForConvertibleNotesThree	3525000	shares
	cmxi	Debt Instrument Warrants No Longer Outstanding DebtInstrumentWarrantsNoLongerOutstanding	800000	shares
	cmxi	Debt Instrument Warrants No Longer Outstanding1 DebtInstrumentWarrantsNoLongerOutstanding1	750000	shares
CY2013Q4	us-gaap	Fair Value Measurement With Unobservable Inputs Reconciliations Recurring Basis Liability Value FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue	3248595	USD
	us-gaap	Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Purchases FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisLiabilityPurchases	37963618	USD
	us-gaap	Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Settlements FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisLiabilitySettlements	1932693	USD
	us-gaap	Fair Value Measurement With Unobservable Inputs Reconciliation Liability Transfers Out Of Level3 FairValueMeasurementWithUnobservableInputsReconciliationLiabilityTransfersOutOfLevel3	1331776	USD
	us-gaap	Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Period Increase Decrease FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisLiabilityPeriodIncreaseDecrease	158631	USD
CY2014Q3	us-gaap	Fair Value Measurement With Unobservable Inputs Reconciliations Recurring Basis Liability Value FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue	38106375	USD
CY2014Q1	us-gaap	Time Deposits At Carrying Value TimeDepositsAtCarryingValue	53000	USD
CY2014Q1	cmxi	Time Deposits Annual Interest Rate TimeDepositsAnnualInterestRate	0.0010	pure
CY2014Q1	cmxi	Time Deposits Maturity Date TimeDepositsMaturityDate	2015-06-24
	us-gaap	Debt Conversion Converted Instrument Amount1 DebtConversionConvertedInstrumentAmount1	3067423	USD
	cmxi	Noncash Effect Of Debt Discount And Derivative Liability Upon Extinguishment Of Debt NoncashEffectOfDebtDiscountAndDerivativeLiabilityUponExtinguishmentOfDebt	2860627	USD
	cmxi	Derivative Liability From Convertible Debt Embedded Conversion Option DerivativeLiabilityFromConvertibleDebtEmbeddedConversionOption	8825935	USD
	cmxi	Non Cash Or Part Non Cash Acquisition Effect Of Reclassification Of Warrant Derivative Liability NonCashOrPartNonCashAcquisitionEffectOfReclassificationOfWarrantDerivativeLiability	1331776	USD
CY2014Q3	cmxi	Research And Development ResearchAndDevelopment	383000	USD
	cmxi	Shares Issuable Contingent Condition Description SharesIssuableContingentConditionDescription	This exchange was contingent on the Company’s attaining aggregate gross revenues for four consecutive quarters of at least $10,000,000 and if met would result in the issuance of 325,000 shares of the Company’s Common stock.
CY2014Q3	cmxi	Common Stock Shares To Be Issued CommonStockSharesToBeIssued	325000	shares
	us-gaap	Net Income Loss NetIncomeLoss	-15350368	USD
	us-gaap	Net Income Loss NetIncomeLoss	-21739134	USD
	us-gaap	Provision For Doubtful Accounts ProvisionForDoubtfulAccounts	42775	USD
	us-gaap	Provision For Doubtful Accounts ProvisionForDoubtfulAccounts	57633	USD
	us-gaap	Depreciation Depletion And Amortization DepreciationDepletionAndAmortization	875084	USD
	us-gaap	Depreciation Depletion And Amortization DepreciationDepletionAndAmortization	481114	USD
	us-gaap	Share Based Compensation ShareBasedCompensation	537958	USD
	us-gaap	Share Based Compensation ShareBasedCompensation	939478	USD
	us-gaap	Proceeds From Sale Of Property Plant And Equipment ProceedsFromSaleOfPropertyPlantAndEquipment	133767	USD
	us-gaap	Amortization Of Deferred Charges AmortizationOfDeferredCharges	840043	USD
	us-gaap	Amortization Of Debt Discount Premium AmortizationOfDebtDiscountPremium	222282	USD
	us-gaap	Amortization Of Debt Discount Premium AmortizationOfDebtDiscountPremium	515739	USD
	us-gaap	Deferred Income Tax Expense Benefit DeferredIncomeTaxExpenseBenefit	14670	USD
	us-gaap	Deferred Income Tax Expense Benefit DeferredIncomeTaxExpenseBenefit	13935	USD
	us-gaap	Gain Loss On Disposition Of Assets GainLossOnDispositionOfAssets	594173	USD
	us-gaap	Gain Loss On Disposition Of Assets GainLossOnDispositionOfAssets	-131575	USD
	cmxi	Amendment To Contingent Consideration Effect On Income AmendmentToContingentConsiderationEffectOnIncome	1006159	USD
	cmxi	Amendment To Contingent Consideration Effect On Income AmendmentToContingentConsiderationEffectOnIncome	0	USD
	us-gaap	Extinguishment Of Debt Gain Loss Net Of Tax ExtinguishmentOfDebtGainLossNetOfTax	-19867	USD
	us-gaap	Extinguishment Of Debt Gain Loss Net Of Tax ExtinguishmentOfDebtGainLossNetOfTax	0	USD
	cmxi	Issuance Of Warrants Effect On Income IssuanceOfWarrantsEffectOnIncome	303517	USD
	cmxi	Issuance Of Warrants Effect On Income IssuanceOfWarrantsEffectOnIncome	0	USD
	us-gaap	Increase Decrease In Accounts And Other Receivables IncreaseDecreaseInAccountsAndOtherReceivables	441436	USD
	us-gaap	Increase Decrease In Accounts And Other Receivables IncreaseDecreaseInAccountsAndOtherReceivables	-2083906	USD
	us-gaap	Increase Decrease In Inventories IncreaseDecreaseInInventories	631812	USD
	us-gaap	Increase Decrease In Inventories IncreaseDecreaseInInventories	-566766	USD
	cmxi	Increase Decrease In Prepaid Expense And Other Current Assets IncreaseDecreaseInPrepaidExpenseAndOtherCurrentAssets	561095	USD
	cmxi	Increase Decrease In Prepaid Expense And Other Current Assets IncreaseDecreaseInPrepaidExpenseAndOtherCurrentAssets	958489	USD
	us-gaap	Increase Decrease In Accounts Payable IncreaseDecreaseInAccountsPayable	1609084	USD
	us-gaap	Increase Decrease In Accounts Payable IncreaseDecreaseInAccountsPayable	-1678442	USD
	us-gaap	Increase Decrease In Deferred Revenue IncreaseDecreaseInDeferredRevenue	4044700	USD
	us-gaap	Increase Decrease In Deferred Revenue IncreaseDecreaseInDeferredRevenue	-640509	USD
	us-gaap	Increase Decrease In Other Operating Liabilities IncreaseDecreaseInOtherOperatingLiabilities	124212	USD
	us-gaap	Increase Decrease In Other Operating Liabilities IncreaseDecreaseInOtherOperatingLiabilities	588268	USD
	us-gaap	Net Cash Provided By Used In Operating Activities Continuing Operations NetCashProvidedByUsedInOperatingActivitiesContinuingOperations	-8086676	USD
	us-gaap	Net Cash Provided By Used In Operating Activities Continuing Operations NetCashProvidedByUsedInOperatingActivitiesContinuingOperations	-13607095	USD
	us-gaap	Payments To Acquire Property Plant And Equipment PaymentsToAcquirePropertyPlantAndEquipment	600373	USD
	us-gaap	Payments To Acquire Property Plant And Equipment PaymentsToAcquirePropertyPlantAndEquipment	209462	USD
	us-gaap	Proceeds From Sale Of Property Plant And Equipment ProceedsFromSaleOfPropertyPlantAndEquipment	2139672	USD
	us-gaap	Net Cash Provided By Used In Investing Activities Continuing Operations NetCashProvidedByUsedInInvestingActivitiesContinuingOperations	1539299	USD
	us-gaap	Net Cash Provided By Used In Investing Activities Continuing Operations NetCashProvidedByUsedInInvestingActivitiesContinuingOperations	-75695	USD
	us-gaap	Proceeds From Issuance Of Debt ProceedsFromIssuanceOfDebt	4235797	USD
	us-gaap	Proceeds From Issuance Of Debt ProceedsFromIssuanceOfDebt	32967060	USD
	us-gaap	Proceeds From Issuance Of Common Stock ProceedsFromIssuanceOfCommonStock	4910237	USD
	us-gaap	Proceeds From Issuance Of Common Stock ProceedsFromIssuanceOfCommonStock	3666260	USD
	us-gaap	Repayments Of Notes Payable RepaymentsOfNotesPayable	570000	USD
	us-gaap	Repayments Of Notes Payable RepaymentsOfNotesPayable	6201143	USD
	us-gaap	Net Cash Provided By Used In Financing Activities Continuing Operations NetCashProvidedByUsedInFinancingActivitiesContinuingOperations	8576034	USD
	us-gaap	Net Cash Provided By Used In Financing Activities Continuing Operations NetCashProvidedByUsedInFinancingActivitiesContinuingOperations	30432177	USD
	us-gaap	Cash And Cash Equivalents Period Increase Decrease CashAndCashEquivalentsPeriodIncreaseDecrease	2028657	USD
	us-gaap	Cash And Cash Equivalents Period Increase Decrease CashAndCashEquivalentsPeriodIncreaseDecrease	16749387	USD
CY2012Q4	us-gaap	Cash And Cash Equivalents At Carrying Value CashAndCashEquivalentsAtCarryingValue	2615805	USD
CY2013Q3	us-gaap	Cash And Cash Equivalents At Carrying Value CashAndCashEquivalentsAtCarryingValue	4644462	USD
	us-gaap	Nature Of Operations NatureOfOperations	<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><b>Note 1  Business and Presentation</b></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><b><i> Description of Business</i></b></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">At our 2014 Annual Meeting, our shareholders voted to approve the name change amendment to our Certificate of Incorporation. The new name of our Company is “Nuo Therapeutics, Inc.” and the name change was effective upon filing of the Certificate of Amendment to our Certificate of Incorporation in the State of Delaware. Nuo Therapeutics, Inc., formerly Cytomedix, Inc., (“Nuo Therapeutics,” the “Company,” “we,” “us,” or “our”) is a biomedical company marketing products within the U.S. and internationally. We commercialize innovative cell-based technologies that harness the regenerative capacity of the human body to trigger natural healing. The use of autologous from self-biological therapies for tissue repair and regeneration is part of a transformative clinical strategy designed to improve long term recovery in complex chronic conditions with significant unmet medical needs. Growth drivers in the U.S. include Medicare coverage for the treatment of chronic wounds under a National Coverage Determination when registry data is collected under Coverage with Evidence Development (“CED”), and a worldwide distribution and licensing agreement that allows our partner to promote the Angel System for all uses other than wound care.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">Our current commercial offerings consist of point of care technologies for the safe and efficient separation of autologous blood and bone marrow to produce platelet based therapies or cell concentrates. We currently have two distinct platelet rich plasma (“PRP”) devices, the AutoloGel <sup style="font-style:normal">TM</sup> System <b><i>(relaunched as Aurix <sup style="font-style:normal"></sup></i></b><sup style="font-style:normal"></sup><b><i>in October 2014)</i></b> for wound care and the Angel<sup style="font-style:normal"></sup> concentrated Platelet Rich Plasma (“cPRP”) System for orthopedics markets. Our sales are predominantly in the United States, where we sell our products through direct sales representatives and distributors. Since August 8, 2013, Arthrex, Inc. (“Arthrex”), as our exclusive distributor for Angel, accounted for 100% of our Angel sales.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">Since our inception, we have financed our operations by raising debt, issuing equity and equity-linked instruments, licensing arrangements, royalties, and product revenues. We have incurred, and continue to incur, recurring losses and negative cash flows. On March 31, 2014, we entered into a $35,000,000 convertible debt facility, $9,000,000 of which was funded on March 31, 2014 and the remaining $26,000,000 was funded on June 25, 2014. In addition, on March 31, 2014 we raised $2.0 million of gross proceeds from the sale of our common stock and warrants to an accredited investor (See <i>Note 2 -</i> <i>Recent Financing and Other Capital Transactions</i> and <i> Note 8 <b>-</b></i> <i>Equity and Equity-Linked Securities</i> for additional details.) We used approximately $5.9 million of the net proceeds from these transactions to retire outstanding debt and interest, approximately $0.34 million to repay a portion of previously outstanding convertible debt and interest, and we converted approximately $3.1 million previously outstanding convertible debt and interest into common stock (See <i>Note 2 -</i> <i>Recent Financing and Other Capital Transactions</i> and <i>Note 7 <b>-</b></i> <i>Debt</i> for additional details.)</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">At September 30, 2014, we had approximately $20.0 million of cash on hand. Our operations are subject to certain risks and uncertainties including, among others, current and potential competitors with greater resources, dependence on significant customers, lack of operating history and uncertainty of future profitability and possible fluctuations in financial results. The accompanying consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities in the ordinary course of business. The propriety of using the going-concern basis is dependent upon, among other things, the achievement of future profitable operations, the ability to generate sufficient cash from operations, and potential other funding sources, including cash on hand, to meet our obligations as they become due. We believe that our current resources will be sufficient to fund our operations through the next twelve months. Accordingly, management believes the going-concern basis is appropriate for the accompanying consolidated financial statements.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><b><i> Basis of Presentation</i></b></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In our opinion, the accompanying unaudited interim condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, which are necessary to present fairly our financial position, results of operations and cash flows. The condensed consolidated balance sheet at December 31, 2013, has been derived from audited financial statements of that date. The interim condensed consolidated results of operations are not necessarily indicative of the results that may occur for the full fiscal year.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">Certain information and footnote disclosure normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to instructions, rules and regulations prescribed by the United States Securities and Exchange Commission. We believe that the disclosures provided herein are adequate to make the information presented not misleading when these unaudited interim condensed consolidated financial statements are read in conjunction with the audited financial statements and notes previously distributed in our annual report on Form 10-K for the year ended December 31, 2013. Certain prior period information has been reclassified to conform to the current period presentation.</font> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><b><i> Principles of Consolidation</i></b></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">The condensed consolidated financial statements include the accounts of the Company and its wholly-owned and controlled subsidiary. All significant inter-company accounts and transactions are eliminated in consolidation.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><b><i>Use of Estimates</i></b></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. In the accompanying unaudited condensed consolidated financial statements, estimates are used for, but not limited to, stock-based compensation, allowance for doubtful accounts, valuation of derivative liabilities, valuation and probability of contingent liabilities, fair value of long-lived assets, deferred taxes and associated valuation allowance, and the depreciable lives of fixed assets (including intangible assets and goodwill). Actual results could differ from those estimates.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><b><i>  </i></b></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><b><i> Cash Equivalents</i></b></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">We consider all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">In connection with the Deerfield Facility Agreement (See <i> Note 7 - Debt</i> for additional details), the Company is required to maintain a compensating cash balance of $5,000,000 in deposit accounts subject to control agreements in favor of the lenders.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><b><i> Accounts Receivable and Credit Concentration</i></b></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">We generate accounts receivable from the sale of our products. Our trade receivables balance at September 30, 2014 was primarily from Arthrex (41%).</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">We provide for a reserve against receivables for estimated losses that may result from a customer’s inability or unwillingness to pay. The allowance for doubtful accounts is estimated primarily based upon historical write-off percentages, known problem accounts, and current economic conditions. Accounts are written off against the allowance for doubtful accounts when we determine that amounts are not collectable. Recoveries of previously written-off accounts are recorded when collected. At September 30, 2014 and December 31, 2013, we maintained an allowance for doubtful accounts of $58,000 and $16,000, respectively.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">We use single suppliers for several components of the Angel and Aurix<sup style="font-style:normal"></sup> product lines. We outsource the manufacturing of various products, including component parts for Angel, to contract manufacturers. While we believe these manufacturers to be of sufficient competency, quality, reliability, and stability, there is no assurance that one or more of them will not experience an interruption or inability to provide us with the products needed to satisfy customer demand. Additionally, while most of the components of Aurix<sup style="font-style:normal"></sup> are generally readily available on the open market, a reagent, bovine thrombin, is available exclusively through Pfizer, with whom we have an established vendor relationship.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><b><i> Inventory</i></b></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">Our inventory is produced by third party manufacturers and consists primarily of finished goods. Inventory cost is determined on a first-in, first-out basis and is stated at the lower of cost or net realizable value. At September 30, 2014 and December 31, 2013, we did not have a balance in our reserve for the lower of cost or market or excess and obsolete inventory. Our primary product is the Angel Processing set which has a shelf life of three years. We also maintain an inventory of kits, reagents, and other disposables that have shelf lives that generally range from ten months to five years. Expired products are segregated and used for demonstration purposes only; we write off expired inventory through cost of sales.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><b><i> Property and Equipment</i></b></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">Property and equipment is stated at cost less accumulated depreciation and is depreciated, using the straight-line method, over its estimated useful life ranging from three to five years for all assets except for furniture, lab, and manufacturing equipment which is depreciated over seven and ten years, respectively. Leasehold improvements are stated at cost less accumulated depreciation and is depreciated, using the straight-line method, over the lesser of the expected lease term or its estimated useful life ranging from three to six years. Amortization of leasehold improvements is included in depreciation expense. Maintenance and repairs are charged to operations as incurred. When assets are disposed of, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in operating expenses.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> Centrifuges may be sold, leased, or placed at no charge with customers. Depreciation expense for centrifuges that are available for sale, leased, or placed at no charge with customers are charged to cost of sales. Depreciation expense for centrifuges used for sales and marketing and other internal purposes are charged to operations. When the centrifuges are sold the net book value is charged to cost of sales.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> Management reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the long-lived asset is measured by a comparison of the carrying amount of the asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets.</font> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><b><i> Exit Activities</i></b></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><b><i>  </i></b></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">On May 5, 2014, we announced preliminary efficacy and safety results of our RECOVER-Stroke Phase 2 clinical trial in patients with neurological damage arising from ischemic stroke and treated with ALD-401. Observed improvements in the primary endpoint (mean modified Rankin Score or mRS) of the trial were not clinically or statistically significant. In light of this outcome, we discontinued further funding of the ALD-401 development program, decided to close our facilities in Durham, NC, and terminated certain employees.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">The discontinuance of this development program is considered an exit activity. As such, we recognized the following expenses in the second and third quarters of 2014:</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <table style="WIDTH: 80%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="white-space:nowrap;"> <div> </div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="white-space:nowrap; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="6"> <div>Quarter ended</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt"> <div> </div> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="white-space:nowrap;"> <div> </div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="white-space:nowrap; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2"> <div>June 30, 2014</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="white-space:nowrap; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2"> <div>September 30, 2014</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt"> <div> </div> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td> <div> </div> </td> <td> <div> </div> </td> <td colspan="2"> <div> </div> </td> <td> <div> </div> </td> <td> <div> </div> </td> <td colspan="2"> <div> </div> </td> <td> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; WIDTH: 66%"> <div>Severance costs</div> </td> <td style="WIDTH: 1%"> <div> </div> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div>$</div> </td> <td style="TEXT-ALIGN: right; WIDTH: 14%"> <div>320,000</div> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div> </div> </td> <td style="WIDTH: 1%"> <div> </div> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div>$</div> </td> <td style="TEXT-ALIGN: right; WIDTH: 14%"> <div>-</div> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left"> <div>Loss on abandonment of lease</div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div>-</div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div>243,000</div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left"> <div>Loss on disposal of assets</div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div>-</div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div>132,000</div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> <div> </div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); VERTICAL-ALIGN: bottom"> <td style="PADDING-BOTTOM: 2.5pt; TEXT-INDENT: 10pt"> <div>Total</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div>$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>320,000</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div>$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>375,000</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div> </div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> Approximately $486,000 of the above costs remained accrued and unpaid as of September 30, 2014, of which $438,000 remained in accrued loss on abandonment of the lease. The accrued loss will be amortized over the life of the lease against future rental payments made and sublet income payments received. Severance expense is classified as “salaries and wages” and the loss on abandonment and loss on disposal of assets is classified as “general and administrative expenses” in the accompanying consolidate statements of operations. The severance accrual and accrued loss on abandonment are included in “accounts payable and accrued expenses” in the accompanying condensed consolidated balance sheet.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><b><i>  </i></b></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><b><i> Intangible Assets and Goodwill</i></b></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> Intangible assets were acquired as part of our acquisition of the Angel business and Aldagen, and consist of definite-lived and indefinite-lived intangible assets, including goodwill.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><i> Definite-lived intangible assets</i></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">Our definite-lived intangible assets include trademarks, technology (including patents) and customer relationships, and are amortized over their useful lives and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If any indicators were present, we test for recoverability by comparing the carrying amount of the asset to the net undiscounted cash flows expected to be generated from the asset. If those net undiscounted cash flows do not exceed the carrying amount (i.e., the asset is not recoverable), we would perform the next step, which is to determine the fair value of the asset and record an impairment loss, if any. We periodically reevaluate the useful lives for these intangible assets to determine whether events and circumstances warrant a revision in their remaining useful lives. During the second quarter of 2014, as a result of recent events and changes in circumstances, the Company performed an assessment of our trademarks and concluded that the carrying value of the trademarks was impaired. (See <i>Note 5  Goodwill and Intangible Assets</i> for additional details.)</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><i>  </i></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><i> Indefinite-lived intangible assets</i></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">We evaluate our indefinite-lived intangible asset, consisting solely of in-process research and development (“IPR&D”) acquired in the Aldagen acquisition, for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable, and at least on an annual basis on October 1 of each year, by comparing the fair value of the asset with its carrying amount. If the carrying amount of the intangible asset exceeds its fair value, we would recognize an impairment loss in the amount of that excess. During the second quarter of 2014 the Company performed an assessment of our IPR&D as of June 30, 2014, as a result of recent events and changes in circumstances, and concluded that the carrying value of the IPR&D was impaired. (See <i>Note 5  Goodwill and Intangible Assets</i> for additional details.)</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><i> Goodwill</i></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">Goodwill represents the purchase price of acquisitions in excess of the amounts assigned to acquired tangible or intangible assets and assumed liabilities. Amounts allocated to goodwill are tax deductible in all relevant jurisdictions. As a result of our acquisition of Aldagen in February 2012, we recorded goodwill of approximately $422,000. Prior to the acquisition of Aldagen, we had goodwill of approximately $707,000 as a result of the acquisition of the Angel business in April 2010.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">We conduct an impairment test of goodwill on an annual basis as of October 1 of each year, and will also conduct tests if events occur or circumstances change that would, more likely than not, reduce the Company’s fair value below its net equity value impaired. The Company conducted an impairment test of our Goodwill as of June 30, 2014, as a result of recent events and changes in circumstances, and concluded that the fair value was not impaired (See <i>Note 5  Goodwill and Intangible Assets</i> for additional details.)</font> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><b><i> Conditionally Redeemable Common Stock</i></b></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">The Maryland Venture Fund (“MVF,” part of Maryland Department of Business and Economic Development) has an investment in our common stock, and can require us to repurchase the common stock, at MVF’s option, upon certain events outside of our control; provided, however, that in the event that, at the time of either such event our securities are listed on a national securities exchange, the foregoing repurchase will not be triggered. MVF’s common stock is are classified as “contingently redeemable common shares” in the accompanying condensed consolidated balance sheets.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><b><i> Revenue Recognition</i></b></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">We recognize revenue when the four basic criteria for recognition are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services rendered; (3) consideration is fixed or determinable; and (4) collectability is reasonably assured.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><i>Sales of products</i></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">We provide for the sale of our products, including disposable processing sets and supplies to customers. Revenue from the sale of products is recognized upon shipment of products to the customers. We do not maintain a reserve for returned products as in the past those returns have not been material.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><i>Usage or leasing of blood separation equipment</i></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">As a result of the acquisition of the Angel<sup style="font-style:normal"></sup> business in 2010, we acquired various multiple element revenue arrangements that combine the (i) usage or leasing of blood separation processing equipment, (ii) maintenance of processing equipment, and (iii) purchase of disposable processing sets and supplies. We assigned these multiple element revenue arrangements to Arthrex on August 7, 2013. (See <i> Note 3  Distribution and License Agreement with Arthrex</i> for additional details.) Under these arrangements, the total arrangement consideration was allocated to the various elements based on their relative estimated selling prices. The usage of the blood separation processing equipment was accounted for as an operating lease; since customer payments were contingent upon the customer ordering new products, rental income was recorded following the contingent rental method when rental income was earned and collectability was reasonably assured. The sale of disposable processing sets and supplies and maintenance were deemed a combined unit of accounting; since (a) any consideration for disposable processing sets and supplies and maintenance was contingent upon the customer ordering additional disposable processing sets and supplies and (b) both the disposable products and maintenance services were provided over the same term, we recognized revenue for this combined unit of accounting following the contingent revenue method at the time disposable products were delivered based on prices contained in the agreement.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> Percentage-based fees on licensee sales of covered products are generally recorded as products are sold by licensees and are reflected as “Royalties” in the consolidated statements of operations. Direct costs associated with product sales and royalty revenues are recorded at the time that revenue is recognized.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">Deferred revenue at September 30, 2014 consists of prepaid licensing revenue of approximately $1,542,000. Revenue of approximately $302,000 related to the prepaid license was recognized during the nine months ended September 30, 2014. On January 1, 2013 a medical device excise tax came into effect that required manufacturers to pay tax of 2.3% on the sale of certain medical devices. We report the medical device excise tax on a gross basis, recognizing the tax as both revenue and cost of sales.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><b><i>  </i></b></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><b><i> Segments and Geographic Information</i></b></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">We operate in one business segment. Approximately 50% and 30% of our product sales were generated outside of the United States for the three month and nine month periods ended September 30, 2014, respectively. Approximately 12% and 14% of our product sales were generated outside of the United States for the three and nine month periods ended September 30, 2013.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><b><i> Research and Development Expenses</i></b></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">Research and development costs are expensed as incurred and primarily consist of expenses relating to product development.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><b><i> Stock-Based Compensation</i></b></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">We have a stock-based compensation plan that includes stock options and other equity awards, which are awarded in exchange for employee, non-employee director and other non-employee services.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> Stock-based compensation cost for employee and non-employee director stock options is determined at the grant date using an option pricing model and stock-based compensation cost for restricted stock is based on the closing market price of the stock at the grant date. The value of the award that is ultimately expected to vest is recognized as expense on a straight-line basis over the employee's requisite service period. Stock-based compensation for awards granted to non-employees is periodically remeasured as the underlying options and warrants vest. We recognize an expense for such awards throughout the performance period as the services are provided by the non-employees, based on the fair value of these options and warrants at each reporting period.</font> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">Valuation of stock awards requires management to make assumptions and to apply judgment to determine the fair value of the awards. These assumptions and judgments include estimating the future volatility of the Company’s stock price, dividend yields, future employee turnover rates, and future employee stock option exercise behaviors. Changes in these assumptions can affect the fair value estimate. We recognize the estimated fair value of stock-based awards and classify the expense where the underlying salaries or other related costs are classified.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> Stock-based compensation expense for the three and nine months ended September 30, 2014 and 2013 was as follow:</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="white-space:nowrap;"> <div> </div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="white-space:nowrap; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="6"> <div>Three Months Ended September 30,</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="white-space:nowrap; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="6"> <div>Nine Months Ended September 30,</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt"> <div> </div> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="white-space:nowrap;"> <div> </div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt; FONT-WEIGHT: bold"> <div> </div> </td> <td style="white-space:nowrap; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT-WEIGHT: bold" colspan="2"> <div>2014</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt; FONT-WEIGHT: bold"> <div> </div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt; FONT-WEIGHT: bold"> <div> </div> </td> <td style="white-space:nowrap; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT-WEIGHT: bold" colspan="2"> <div>2013</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt; FONT-WEIGHT: bold"> <div> </div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt; FONT-WEIGHT: bold"> <div> </div> </td> <td style="white-space:nowrap; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT-WEIGHT: bold" colspan="2"> <div>2014</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt; FONT-WEIGHT: bold"> <div> </div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt; FONT-WEIGHT: bold"> <div> </div> </td> <td style="white-space:nowrap; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT-WEIGHT: bold" colspan="2"> <div>2013</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt; FONT-WEIGHT: bold"> <div> </div> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td> <div> </div> </td> <td> <div> </div> </td> <td colspan="2"> <div> </div> </td> <td> <div> </div> </td> <td> <div> </div> </td> <td colspan="2"> <div> </div> </td> <td> <div> </div> </td> <td> <div> </div> </td> <td colspan="2"> <div> </div> </td> <td> <div> </div> </td> <td> <div> </div> </td> <td colspan="2"> <div> </div> </td> <td> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; WIDTH: 48%"> <div>Salaries and wages</div> </td> <td style="WIDTH: 1%"> <div> </div> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div>$</div> </td> <td style="TEXT-ALIGN: right; WIDTH: 10%"> <div>362,046</div> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div> </div> </td> <td style="WIDTH: 1%"> <div> </div> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div>$</div> </td> <td style="TEXT-ALIGN: right; WIDTH: 10%"> <div>121,929</div> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div> </div> </td> <td style="WIDTH: 1%"> <div> </div> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div>$</div> </td> <td style="TEXT-ALIGN: right; WIDTH: 10%"> <div>834,240</div> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div> </div> </td> <td style="WIDTH: 1%"> <div> </div> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div>$</div> </td> <td style="TEXT-ALIGN: right; WIDTH: 10%"> <div>434,790</div> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td> <div>Consulting</div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div>246</div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div>-</div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div>9,921</div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td> <div> </div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> <td style="TEXT-ALIGN: right"> <div>-</div> </td> <td style="TEXT-ALIGN: left"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> <div>General and administrative</div> </td> <td style="PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> <div>28,597</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> <div>28,134</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> <div>95,317</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="PADDING-BOTTOM: 1pt"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> <div> </div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> <div>103,168</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> <div> </div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div>Total share-based compensation expense</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div>$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>390,889</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div>$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>150,063</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div>$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>939,478</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div> </div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div>$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>537,958</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div> </div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><b><i> Income Taxes</i></b></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">We account for income taxes using the asset and liability approach, which requires the recognition of future tax benefits or liabilities on the temporary differences between the financial reporting and tax bases of our assets and liabilities. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized. We also recognize a tax benefit from uncertain tax positions only if it is “more likely than not” that the position is sustainable based on its technical merits. Our policy is to recognize interest and penalties on uncertain tax positions as a component of income tax expense. </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">Income tax expense was $4,645 and $4,890 during the three months ended September 30, 2014 and 2013 and $13,935 and $14,670 during the nine months ended September 30, 2014 and 2013, respectively. These relate exclusively to the generation of a deferred tax liability associated with the tax amortization of goodwill, which is included as a component of other long-term liabilities on our condensed consolidated balance sheets.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><b><i> Basic and Diluted Earnings (Loss) per Share</i></b></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">Basic earnings (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of shares of common stock outstanding during the period.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">For periods of net income, and when the effects are not anti-dilutive, diluted earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of shares outstanding plus the impact of all potential dilutive common shares, consisting primarily of common stock options and stock purchase warrants using the treasury stock method, and convertible preferred stock and convertible debt using the if-converted method.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">For periods of net loss, diluted loss per share is calculated similarly to basic loss per share because the impact of all dilutive potential common shares is anti-dilutive. The total number of anti-dilutive shares, common stock options, warrants exercisable for common stock, convertible preferred stock and convertible debt, which have been excluded from the computation of diluted earnings (loss) per share, were 224,287,504 and 28,207,642 for the nine months ended September 30, 2014 and 2013, respectively.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><b><i> Recent Accounting Pronouncements</i></b></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-stretch: normal; font-size-adjust: none"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><i>ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).”</i> The Financial Accounting Standards Board (FASB or Board) and the International Accounting Standards Board (IASB) (collectively, the Boards) jointly issued a long-awaited standard that will supersede virtually all of the revenue recognition guidance in U.S. GAAP. The FASB issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606). The FASB has set an effective date of fiscal years beginning after December 15, 2016. Early adoption is not permitted for public entities. FASB ASU No. 2014-09 will amend FASB Accounting Standards Codification (ASC) by creating Topic 606, Revenue from Contracts with Customers and Subtopic 340-40, Other Assets and Deferred CostsContracts with Customers. This document reorganizes the guidance contained in FASB ASC 606 (revenue recognition standard), to follow the five step revenue recognition model along with other guidance impacted by this standard. The potential effects of the adoption of ASU 2014-09, Topic 606 on our results of operations and the Company’s Condensed Consolidated Financials have not been determined at this time.</font> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">  </font></div> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><i>ASU No. 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40) - Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.”</i> Under generally accepted accounting principles (GAAP), continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. Preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting. Previously, there was no guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. FASB issued ASU 2014-15 to provide guidance in GAAP about 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. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is currently evaluating the impact, if any, that the adoption will have on its financial statements.<br/> </font></div> </div> </div> </div> </div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
CY2013Q1	invest	Investment Warrants Exercise Price InvestmentWarrantsExercisePrice	0.75
	dei	Document Type DocumentType	10-Q
	dei	Amendment Flag AmendmentFlag	false
	dei	Document Period End Date DocumentPeriodEndDate	2014-09-30
	dei	Document Fiscal Year Focus DocumentFiscalYearFocus	2014
	dei	Document Fiscal Period Focus DocumentFiscalPeriodFocus	Q3
	dei	Entity Registrant Name EntityRegistrantName	NUO THERAPEUTICS, INC.
	dei	Entity Central Index Key EntityCentralIndexKey	0001091596
	dei	Current Fiscal Year End Date CurrentFiscalYearEndDate	--12-31
	dei	Entity Filer Category EntityFilerCategory	Smaller Reporting Company
	dei	Trading Symbol TradingSymbol	CMXI
CY2014Q4	dei	Entity Common Stock Shares Outstanding EntityCommonStockSharesOutstanding	124410100	shares
	us-gaap	Other Sales Revenue Net OtherSalesRevenueNet	128835	USD
	us-gaap	Other Sales Revenue Net OtherSalesRevenueNet	0	USD
CY2013Q3	us-gaap	Other Sales Revenue Net OtherSalesRevenueNet	128835	USD
CY2014Q3	us-gaap	Other Sales Revenue Net OtherSalesRevenueNet	0	USD
	cmxi	Loss On Abandonment LossOnAbandonment	0	USD
	cmxi	Loss On Abandonment LossOnAbandonment	242466	USD
CY2014Q1	us-gaap	Class Of Warrant Or Right Exercise Price Of Warrants Or Rights1 ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1	0.52
CY2014Q3	us-gaap	Class Of Warrant Or Right Exercise Price Of Warrants Or Rights1 ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1	0.52
	cmxi	Issuance Of Stock In Connection With Convertible Debt Facility IssuanceOfStockInConnectionWithConvertibleDebtFacility	1050000	USD
	us-gaap	Noncash Or Part Noncash Acquisition Fixed Assets Acquired1 NoncashOrPartNoncashAcquisitionFixedAssetsAcquired1	114494	USD
	cmxi	Derivative Liability From Convertible Debt Warrant DerivativeLiabilityFromConvertibleDebtWarrant	29137683	shares
	cmxi	Time Deposits Maturity Date TimeDepositsMaturityDate	2015-06-24
	us-gaap	Severance Costs1 SeveranceCosts1	320000	USD
	us-gaap	Severance Costs1 SeveranceCosts1	0	USD
	us-gaap	Business Exit Costs1 BusinessExitCosts1	0	USD
	us-gaap	Business Exit Costs1 BusinessExitCosts1	243000	USD
	us-gaap	Gain Loss On Disposition Of Assets1 GainLossOnDispositionOfAssets1	0	USD
	us-gaap	Gain Loss On Disposition Of Assets1 GainLossOnDispositionOfAssets1	-132000	USD
	us-gaap	Restructuring Charges RestructuringCharges	320000	USD
	us-gaap	Restructuring Charges RestructuringCharges	375000	USD
CY2014Q3	us-gaap	Customer Deposits Current CustomerDepositsCurrent	2500524	USD
CY2013Q4	us-gaap	Customer Deposits Current CustomerDepositsCurrent	1795803	USD
CY2014Q3	us-gaap	Accrued Employee Benefits Current AccruedEmployeeBenefitsCurrent	969160	USD
CY2013Q4	us-gaap	Accrued Employee Benefits Current AccruedEmployeeBenefitsCurrent	795584	USD
CY2014Q3	us-gaap	Other Accrued Liabilities Current OtherAccruedLiabilitiesCurrent	729043	USD
CY2013Q4	us-gaap	Other Accrued Liabilities Current OtherAccruedLiabilitiesCurrent	242993	USD
CY2014Q3	us-gaap	Deposit Liabilities Accrued Interest DepositLiabilitiesAccruedInterest	3375	USD
CY2013Q4	us-gaap	Deposit Liabilities Accrued Interest DepositLiabilitiesAccruedInterest	2250	USD
CY2014Q3	cmxi	Accrued Payable To Arthrex AccruedPayableToArthrex	322794	USD
CY2013Q4	cmxi	Accrued Payable To Arthrex AccruedPayableToArthrex	1630564	USD
CY2014Q3	us-gaap	Accrued Professional Fees Current AccruedProfessionalFeesCurrent	259346	USD
CY2013Q4	us-gaap	Accrued Professional Fees Current AccruedProfessionalFeesCurrent	199634	USD
CY2014Q3	us-gaap	Accrued Liabilities Current AccruedLiabilitiesCurrent	4887418	USD
CY2013Q4	us-gaap	Accrued Liabilities Current AccruedLiabilitiesCurrent	4666828	USD
CY2014Q3	cmxi	Accrued Loss On Abandonment Of Lease AccruedLossOnAbandonmentOfLease	103176	USD
CY2013Q4	cmxi	Accrued Loss On Abandonment Of Lease AccruedLossOnAbandonmentOfLease	0	USD
	us-gaap	Increase Decrease In Accrued Liabilities IncreaseDecreaseInAccruedLiabilities	755318	USD
	us-gaap	Increase Decrease In Accrued Liabilities IncreaseDecreaseInAccruedLiabilities	106096	USD
CY2014Q3	us-gaap	Restructuring Reserve RestructuringReserve	486000	USD
CY2014Q3	us-gaap	Purchase Commitment Remaining Minimum Amount Committed PurchaseCommitmentRemainingMinimumAmountCommitted	573000	USD

Files In Submission

Name	View Source	Status
0001144204-14-067869-index-headers.html	Edgar Link	pending
0001144204-14-067869-index.html	Edgar Link	pending
0001144204-14-067869.txt	Edgar Link	pending
0001144204-14-067869-xbrl.zip	Edgar Link	pending
cmxi-20140930.xml	Edgar Link	completed
cmxi-20140930.xsd	Edgar Link	pending
cmxi-20140930_cal.xml	Edgar Link	unprocessable
cmxi-20140930_def.xml	Edgar Link	unprocessable
cmxi-20140930_lab.xml	Edgar Link	unprocessable
cmxi-20140930_pre.xml	Edgar Link	unprocessable
FilingSummary.xml	Edgar Link	unprocessable
Financial_Report.xls	Edgar Link	pending
Financial_Report.xlsx	Edgar Link	pending
R1.htm	Edgar Link	pending
R10.htm	Edgar Link	pending
R11.htm	Edgar Link	pending
R12.htm	Edgar Link	pending
R13.htm	Edgar Link	pending
R14.htm	Edgar Link	pending
R15.htm	Edgar Link	pending
R16.htm	Edgar Link	pending
R17.htm	Edgar Link	pending
R18.htm	Edgar Link	pending
R19.htm	Edgar Link	pending
R2.htm	Edgar Link	pending
R20.htm	Edgar Link	pending
R21.htm	Edgar Link	pending
R22.htm	Edgar Link	pending
R23.htm	Edgar Link	pending
R24.htm	Edgar Link	pending
R25.htm	Edgar Link	pending
R26.htm	Edgar Link	pending
R27.htm	Edgar Link	pending
R28.htm	Edgar Link	pending
R29.htm	Edgar Link	pending
R3.htm	Edgar Link	pending
R30.htm	Edgar Link	pending
R31.htm	Edgar Link	pending
R32.htm	Edgar Link	pending
R33.htm	Edgar Link	pending
R34.htm	Edgar Link	pending
R35.htm	Edgar Link	pending
R36.htm	Edgar Link	pending
R37.htm	Edgar Link	pending
R38.htm	Edgar Link	pending
R39.htm	Edgar Link	pending
R4.htm	Edgar Link	pending
R40.htm	Edgar Link	pending
R41.htm	Edgar Link	pending
R42.htm	Edgar Link	pending
R43.htm	Edgar Link	pending
R44.htm	Edgar Link	pending
R45.htm	Edgar Link	pending
R46.htm	Edgar Link	pending
R47.htm	Edgar Link	pending
R48.htm	Edgar Link	pending
R49.htm	Edgar Link	pending
R5.htm	Edgar Link	pending
R50.htm	Edgar Link	pending
R6.htm	Edgar Link	pending
R7.htm	Edgar Link	pending
R8.htm	Edgar Link	pending
R9.htm	Edgar Link	pending
report.css	Edgar Link	pending
Show.js	Edgar Link	pending
v392678_10q.htm	Edgar Link	pending
v392678_ex10-19.htm	Edgar Link	pending
v392678_ex10-20.htm	Edgar Link	pending
v392678_ex3-i6.htm	Edgar Link	pending
v392678_ex31-1.htm	Edgar Link	pending
v392678_ex31-2.htm	Edgar Link	pending
v392678_ex32-1.htm	Edgar Link	pending
v392678_ex32-2.htm	Edgar Link	pending

Create your account

Find Stocks Worth Researching

Deeply Understand Businesses

Value Businesses Intelligently

$AURX
Nuo Therapeutics Inc Stock $aurx

2014 Q4 Form 10-Q Financial Statement

#000114420414067869 Filed on November 13, 2014

Income Statement

Balance Sheet

Cashflow Statement

Facts In Submission

Files In Submission

$AURX Nuo Therapeutics Inc Stock $aurx

2014 Q4 Form 10-Q Financial Statement

#000114420414067869 Filed on November 13, 2014

Income Statement

Balance Sheet

Cashflow Statement

Facts In Submission

Files In Submission

$AURX
Nuo Therapeutics Inc Stock $aurx