2015 Q1 Form 10-Q Financial Statement

#000114420415028999 Filed on May 11, 2015

View on sec.gov

Income Statement

Concept 2015 Q1 2014 Q1
Revenue $723.1K $1.062M
YoY Change -31.92% 186.05%
Cost Of Revenue $304.5K $662.5K
YoY Change -54.04% 161.34%
Gross Profit $418.6K $399.6K
YoY Change 4.74% 239.19%
Gross Profit Margin 57.89% 37.62%
Selling, General & Admin $1.515M $1.081M
YoY Change 40.23% 76.22%
% of Gross Profit 361.97% 270.38%
Research & Development $951.0K $236.8K
YoY Change 301.66% -66.37%
% of Gross Profit 227.2% 59.25%
Depreciation & Amortization $20.00K $20.00K
YoY Change 0.0% 100.0%
% of Gross Profit 4.78% 5.0%
Operating Expenses $2.682M $1.554M
YoY Change 72.59% 0.89%
Operating Profit -$2.712M -$1.154M
YoY Change 134.94% -18.85%
Interest Expense $2.613K -$137.1K
YoY Change -101.91% -33.68%
% of Operating Profit
Other Income/Expense, Net -$2.454M $179.1K
YoY Change -1470.0% -186.65%
Pretax Income -$4.717M -$975.1K
YoY Change 383.75% -40.14%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$4.717M -$975.1K
YoY Change 383.75% -40.14%
Net Earnings / Revenue -652.35% -91.8%
Basic Earnings Per Share -$0.19
Diluted Earnings Per Share -$0.19 -$83.83K
COMMON SHARES
Basic Shares Outstanding 24.64M shares 298.6M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2015 Q1 2014 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $13.40M $11.20M
YoY Change 19.64% 700.0%
Cash & Equivalents $10.42M $6.416M
Short-Term Investments $2.900M $4.700M
Other Short-Term Assets $100.0K $200.0K
YoY Change -50.0% 100.0%
Inventory $702.9K $146.5K
Prepaid Expenses
Receivables $700.0K $300.0K
Other Receivables $0.00 $0.00
Total Short-Term Assets $14.88M $11.83M
YoY Change 25.82% 455.46%
LONG-TERM ASSETS
Property, Plant & Equipment $330.3K $155.4K
YoY Change 112.55% 11.19%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $652.2K $409.7K
YoY Change 59.2% 59.07%
Total Long-Term Assets $982.5K $565.1K
YoY Change 73.87% 42.23%
TOTAL ASSETS
Total Short-Term Assets $14.88M $11.83M
Total Long-Term Assets $982.5K $565.1K
Total Assets $15.86M $12.39M
YoY Change 28.01% 390.48%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $475.2K $527.6K
YoY Change -9.94% -25.13%
Accrued Expenses $700.0K $400.0K
YoY Change 75.0% 33.33%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $1.700M
YoY Change
Total Short-Term Liabilities $6.198M $3.299M
YoY Change 87.91% 232.05%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $0.00 $0.00
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $6.198M $3.299M
Total Long-Term Liabilities $0.00 $0.00
Total Liabilities $6.200M $3.300M
YoY Change 87.88% 232.18%
SHAREHOLDERS EQUITY
Retained Earnings -$129.1M
YoY Change
Common Stock $24.68K $299.0K
YoY Change -91.75% 30.61%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $9.666M -$7.259M
YoY Change
Total Liabilities & Shareholders Equity $15.86M $12.39M
YoY Change 28.01% 390.48%

Cashflow Statement

Concept 2015 Q1 2014 Q1
OPERATING ACTIVITIES
Net Income -$4.717M -$975.1K
YoY Change 383.75% -40.14%
Depreciation, Depletion And Amortization $20.00K $20.00K
YoY Change 0.0% 100.0%
Cash From Operating Activities -$2.409M -$800.1K
YoY Change 201.08% -1.16%
INVESTING ACTIVITIES
Capital Expenditures $104.0K $21.37K
YoY Change 386.69% 877.58%
Acquisitions
YoY Change
Other Investing Activities -$990.0K -$4.750M
YoY Change -79.16%
Cash From Investing Activities -$1.135M -$4.771M
YoY Change -76.22% 218148.44%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $9.409M $9.451M
YoY Change -0.44%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $10.01M $9.803M
YoY Change 2.13% 2078.49%
NET CHANGE
Cash From Operating Activities -$2.409M -$800.1K
Cash From Investing Activities -$1.135M -$4.771M
Cash From Financing Activities $10.01M $9.803M
Net Change In Cash $6.468M $4.232M
YoY Change 52.83% -1270.26%
FREE CASH FLOW
Cash From Operating Activities -$2.409M -$800.1K
Capital Expenditures $104.0K $21.37K
Free Cash Flow -$2.513M -$821.5K
YoY Change 205.91% 1.21%

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<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <div class="CursorPointer"> <table cellspacing="0" cellpadding="0" style="font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; border-collapse: collapse; width: 100%;"> <tr style="vertical-align: top;"> <td style="padding: 0px; text-indent: 0px; font-family: 'times new roman'; width: 2%;"><font style="font-size: 10pt;"><b>&#160;</b></font></td> <td style="padding: 0px; text-indent: 0px; font-family: 'times new roman'; width: 2%;"><font style="font-size: 10pt;"><b>1.</b></font></td> <td style="text-align: justify; padding: 0px; text-indent: 0px; font-family: 'times new roman'; width: 96%;"><font style="font-size: 10pt;"><b>BASIS OF PRESENTATION</b></font></td> </tr> </table> </div> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in;">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;">The Company's interim financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (&#147;U.S. GAAP&#148;). In the opinion of management, the Company has made all necessary adjustments, which include normal recurring adjustments necessary for a fair statement of the Company's financial position and results of operations for the interim periods presented. Certain information and disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These interim financial statements should be read in conjunction with the audited financial statements and accompanying notes for the year ended December 31, 2014 included in the Company's Annual Report on Form 10-K. The results for the three months and nine months ended September 30, 2014 are not necessarily indicative of the results to be expected for a full year, any other interim periods or any future year or period.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in;">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;">The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company believes that it has adequate funding for more than the next twelve months of operations, however, it may have to raise additional capital to fund its future operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;">As of March 31, 2015, the Company had an accumulated deficit of $<font>129,111,062</font>, which included net losses of $<font>4,716,942</font> for the three months ended March 31, 2015 and $<font>975,083</font> for the three months ended March 31, 2014.&#160;<font style="color: #000000; font-family: 'Times New Roman', Times, serif; font-size: 13.3333330154419px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 1; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: inline !important; float: none;">The Company's losses have resulted principally from costs incurred in the research and development of the Company's polymer technology and selling, general and administrative expenses. The Company intends to continue to conduct significant additional research, development, and clinical study activities which, together with expenses incurred for the establishment of manufacturing arrangements and a marketing and distribution presence and other selling, general and administrative expenses, are expected to result in continuing operating losses for the foreseeable future. The amount of future losses and when, if ever, the Company will achieve profitability are uncertain. The Company's ability to achieve profitability will depend, among other things, on successfully completing the development of the Company's technology and commercial products, obtaining additional requisite regulatory approvals in markets not covered by the CE Mark and for potential label extensions of the Company's current CE Mark, establishing manufacturing and sales and marketing arrangements with third parties, and raising sufficient funds to finance the Company's activities. No assurance can be given that the Company's product development efforts will be successful, that the Company's current CE Mark will enable us to achieve profitability, that additional regulatory approvals in other countries will be obtained, that any of the Company's products will be manufactured at a competitive cost and will be of acceptable quality, or that the Company will be able to achieve profitability or that profitability, if achieved, can be sustained. These matters raise substantial doubt about the Company's ability to continue as a going concern. These consolidated financial statements do not include any adjustments related to the outcome of this uncertainty.</font></p> </div>
CY2015Q1 us-gaap Prior Period Reclassification Adjustment Description
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<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><b>Reclassifications</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;">Certain reclassifications have been made to the March 31, 2014 financial statements in order to conform to the 2015 financial statement presentation. There was no change in the reported amount of the accumulated deficit as a result of these reclassifications.</p> </div>
CY2015Q1 us-gaap Use Of Estimates
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<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><b>Use of Estimates</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in;">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities. Actual results could differ from these estimates. Significant estimates in these financials are the valuation of options granted, the valuation of preferred shares issued as stock dividends and valuation methods used to determine the fair value of the warrant liability.</p> </div>
CY2015Q1 us-gaap Concentration Risk Credit Risk
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<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><b>Concentration of Credit Risk</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in;">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;">The Company maintains cash balances, at times, with financial institutions in excess of amounts insured by the Federal Deposit Insurance Corporation. Management monitors the soundness of these institutions in an effort to minimize its collection risk of these balances.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in;">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;">As of March 31, 2015, <font>three</font> distributors accounted for approximately <font>55</font>% of outstanding grant and accounts receivable. At December 31, 2014, <font>three</font> distributors accounted for approximately <font>53</font>% of outstanding grant and accounts receivable. For the three months ended March 31, 2015, approximately <font>42</font>% of revenues were from <font>three</font> distributors. No other agency, distributor, or direct customer represented more than 10% of the Company's revenue. For the three months ended March 31, 2014, approximately <font>46</font>% of revenues were from <font>two</font> U.S. government grant agencies, and no other agency, distributor, or direct customer represented more than 10% of the Company's revenue.</p> </div>
CY2015Q1 ctso Number Of Countries In Which Product Marketed
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29 item
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25 pure
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448509 USD
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12000 USD
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1916293 USD
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452949 USD
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68826 USD
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51000 USD
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116000 USD
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41000 USD
CY2014Q1 us-gaap Freight Costs
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24000 USD
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1114516 USD
CY2015Q1 ctso Underwriters Expenses
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85000 USD
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736000 shares
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816000 shares
CY2015Q1 us-gaap Allocated Share Based Compensation Expense
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64000 USD
CY2014Q1 us-gaap Class Of Warrant Or Right Number Of Securities Called By Warrants Or Rights
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816000 shares
CY2014Q1 ctso Fair Value Warrant Liability Upon Issuance
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CY2014Q1 us-gaap Share Price
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CY2015Q1 us-gaap Stock Issued During Period Shares New Issues
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CY2015Q1 us-gaap Share Price
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CY2015Q1 us-gaap Stock Issued During Period Value New Issues
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10312500 USD
CY2015Q1 us-gaap Proceeds From Issuance Of Common Stock
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9409000 USD
CY2015Q1 ctso Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding And Exercisable Aggregate Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingAndExercisableAggregateIntrinsicValue
18350000 USD
CY2015Q1 us-gaap Class Of Warrant Or Right Outstanding
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1521479 shares
CY2014Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares
874530 shares
CY2014Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue
1.37
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
11000 shares
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
1.21
CY2015Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Options Forfeited Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedNumberOfShares
106620 shares
CY2015Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Options Forfeited Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageGrantDateFairValue
0.06
CY2015Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares
384326 shares
CY2015Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue
0.06
CY2015Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares
394584 shares
CY2015Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue
0.07
CY2014Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
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2302187 shares
CY2014Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
5.37
CY2014 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
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CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod
11000 shares
CY2015Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
4.40
CY2015Q1 ctso Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Granted In Period Weighted Average Remaining Contractual Term
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingGrantedInPeriodWeightedAverageRemainingContractualTerm
P5Y6M
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
106620 shares
CY2015Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice
4.88
CY2015Q1 ctso Share Based Compensation Arrangement By Share Based Payment Award Options Cancelled In Period Weighted Average Remaining Contractual Term
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsCancelledInPeriodWeightedAverageRemainingContractualTerm
P9Y2M12D
CY2015Q1 us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
11396 shares
CY2015Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
4.18
CY2015Q1 ctso Share Based Compensation Arrangement By Share Based Payment Award Options Exercised In Period Weighted Average Remaining Contractual Term
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisedInPeriodWeightedAverageRemainingContractualTerm
P6Y1M6D
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Expirations In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod
shares
CY2015Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Expirations In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
2195171 shares
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
5.39
CY2015Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P5Y10M24D
CY2015Q1 dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2015
CY2015Q1 dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q1
CY2015Q1 dei Amendment Flag
AmendmentFlag
false
CY2015Q1 dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
CY2015Q1 dei Document Period End Date
DocumentPeriodEndDate
2015-03-31
CY2015Q1 dei Trading Symbol
TradingSymbol
ctso
CY2015Q1 dei Entity Filer Category
EntityFilerCategory
Smaller Reporting Company
CY2015Q1 dei Entity Registrant Name
EntityRegistrantName
Cytosorbents Corp
CY2015Q1 dei Entity Central Index Key
EntityCentralIndexKey
0001175151
CY2015Q2 dei Entity Common Stock Shares Outstanding
EntityCommonStockSharesOutstanding
24764744 shares
CY2015Q1 dei Document Type
DocumentType
10-Q

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