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Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2012	Mar. 28, 2013	Jun. 30, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	SafeStitch Medical, Inc.
Entity Central Index Key	0000876378
Document Type	10-K
Document Period End Date	Dec. 31, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 5.0
Entity Common Stock, Shares Outstanding		61,699,276

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
CURRENT ASSETS
Cash and cash equivalents	$ 275	$ 298
Accounts Receivable - trade	12
Other receivable - related-party	59	66
Prepaid expenses	140	143
Inventory	1,600
Total Current Assets	2,086	507
FIXED ASSETS
Property and equipment, net	332	470
OTHER ASSETS
Security deposits	2	2
Deferred financing costs, net		14
Total Other Assets	2	16
TOTAL ASSETS	2,420	993
CURRENT LIABILITIES
Accounts payable and accrued liabilities	1,263	469
Stockholders loans, including accrued interest - current	912
Total Current Liabilities	2,175	469
Stockholders loans, including accrued interest		2,523
Commitments and contingencies (Note 8)
STOCKHOLDERS' (DEFICIT) EQUITY
Preferred stock, $0.01 par value per share, 25,000,000 shares authorized 10% Series A Cumulative Convertible Preferred Stock, 4,000,000 shares authorized, no shares issued and outstanding as of December 31, 2012 and 2011; liquidation preference $0 as of December 31, 2012 and 2011
Common stock, $0.001 par value per share, 225,000,000 shares authorized, 49,603,276 and 28,003,755 shares issued and outstanding as of December 31, 2012 and 2011, respectively	50	28
Additional paid-in capital	29,708	20,762
Deficit accumulated during the development stage	(29,513)	(22,789)
Total Stockholders' (Deficit) Equity	245	(1,999)
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY	$ 2,420	$ 993

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Stockholders Equity
Preferred Stock, Par value	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	25,000,000	25,000,000
Dividends, Preferred Stock, Stock	$ 0	$ 0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	225,000,000	225,000,000
Common stock, shares issued	49,603,276	28,003,755
Common stock, shares outstanding	49,603,276	28,003,755
10% Cumulative Convertible Preferred Stock
Stockholders Equity
Preferred Stock, Shares Authorized	4,000,000	4,000,000
Series A Preferred stock aggregate issuance
Preferred stock, shares outstanding
Cumulative Preferred Stock
Stockholders Equity
Rate of Cumulative Convertible Preferred Stock	10.00%	10.00%

Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands	12 Months Ended		88 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012
Revenues	$ 35		$ 35
Cost of sales	382		382
Gross margin	(347)		(347)
Costs and expenses
Research and development	2,916	$ 3,367	15,854
Selling, general and administrative	3,392	2,306	12,387
Total costs and expenses	6,308	5,673	28,241
Loss from operations	(6,655)	(5,673)	(28,588)
Other income and (expense)
Other income			1,147
Interest income			79
Amortization of deferred financing costs	(14)	(37)	(1,984)
Interest expense	(55)	(48)	(167)
Total other income and (expense)	(69)	(85)	(925)
Loss before income tax	(6,724)	(5,758)	(29,513)
Provision for income tax
Net loss	(6,724)	(5,758)	(29,513)
Comprehensive income (Loss)
Comprehensive loss	(6,724)	(5,758)	(29,513)
Loss attributable to common stockholders and loss per common share:
Net loss	(6,724)	(5,758)	(29,513)
Loss attributable to common stockholders	$ (6,724)	$ (5,758)	(34,880)
Weighted average shares outstanding, basic and diluted	46,218	28,004
Net loss per basic and diluted share	$ (0.15)	$ (0.21)
Series A Preferred Conversion
Loss attributable to common stockholders and loss per common share:
Deemed dividend			(4,301)
Series A Preferred Stock
Loss attributable to common stockholders and loss per common share:
Deemed dividend			(700)
Declared/Accrued Dividends - Series A Preferred Stock			$ (366)

Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	Preferred Stock	Preferred Stock Series A Preferred Stock	Preferred Stock Series A Preferred Conversion	Common Stock	Additional Paid-in Capital	Deficit Accumulated During the Development Stage
Beginning Balance at Sep. 15, 2005
Beginning Balance, Shares at Sep. 15, 2005
Capital contributed	1					1
Net loss	(76)						(76)
Ending Balance at Dec. 31, 2005	(75)					1	(76)
Ending Balance, Shares at Dec. 31, 2005
Beginning Balance at Sep. 15, 2005
Beginning Balance, Shares at Sep. 15, 2005
Net loss	(29,513)
Ending Balance at Dec. 31, 2012	245				$ 50	29,708	(29,513)
Ending Balance, Shares at Dec. 31, 2012					49,603,000
Beginning Balance at Dec. 31, 2005	(75)					1	(76)
Beginning Balance, Shares at Dec. 31, 2005
Capital contributed	1,504				$ 11	1,493
Capital contributed, Shares					11,256,000
Net loss	(1,060)						(1,060)
Ending Balance at Dec. 31, 2006	369				$ 11	1,494	(1,136)
Ending Balance, Shares at Dec. 31, 2006					11,256,000
Exercise of options (CTS) September 23, 2007 at $0.79 per share	35					35
Exercise of options (CTS) September 23, 2007 at $0.79 per share, Shares					42,000
Stock-based compensation September 4, 2007	77					77
Issuance of shares in recapitalization September 4, 2007 at $0.64 per share	3,083				$ 5	3,078
Issuance of shares in recapitalization					4,795,000
SafeStitch expenses associated with recapitalization	(156)					(156)
Warrants issued in connection with credit facility September 4, 2007 at $2.46 per share	1,985					1,985
Rule 16 payment received	4					4
Stock-based compensation	65					65
Net loss	(3,041)						(3,041)
Ending Balance at Dec. 31, 2007	2,421				$ 16	6,582	(4,177)
Ending Balance, Shares at Dec. 31, 2007					16,093,000
Issuance of common shares in private offering	3,988				$ 2	3,986
Issuance of common shares in private offering, Shares					1,862,000
Issuance of common shares as repayment of stockholder note per share	10					10
Issuance of common shares as repayment of stockholder note per share, Shares					8,000
Stock-based compensation	239					239
Net loss	(5,185)						(5,185)
Ending Balance at Dec. 31, 2008	1,473				$ 18	10,817	(9,362)
Ending Balance, Shares at Dec. 31, 2008					17,963,000
Issuance of Series A Preferred Stock, net of offering costs	1,982		$ 20			1,962
Issuance of Series A Preferred Stock, net of offering costs , shares			2,000,000
Fair value of beneficial conversion feature of Series A Preferred Stock	200					200
Deemed dividend to Series A Preferred Stockholders, charged to additional paid-in capital in the absence of retained earnings	(200)					(200)
Stock-based compensation	195					195
Net loss	(2,366)						(2,366)
Ending Balance at Dec. 31, 2009	1,284	$ 20			$ 18	12,974	(11,728)
Ending Balance, Shares at Dec. 31, 2009		2,000,000			17,963,000
Issuance of Series A Preferred Stock, net of offering costs	1,998		$ 20			1,978
Issuance of Series A Preferred Stock, net of offering costs , shares			2,000,000
Fair value of beneficial conversion feature of Series A Preferred Stock	500					500
Deemed dividend to Series A Preferred Stockholders, charged to additional paid-in capital in the absence of retained earnings	(500)					(500)
Issuance of common shares in private offering	4,974				$ 5	4,969
Issuance of common shares in private offering, Shares					4,978,000
Conversion of shares of Series A Preferred Stock and accumulated dividends into shares of Common Stock				$ (40)	$ 4	36
Conversion of shares of Series A Preferred Stock and accumulated dividends into shares of Common Stock , shares				4,000,000	4,366,000
Issuance of shares of Common Stock as Consideration Shares					$ 1	(1)
Issuance of shares of Common Stock as Consideration Shares , shares					697,000
Intrinsic value of aggregate shares of Common Stock issued on conversion of Series A Preferred Stock	4,301					4,301
Dividend paid to Series A Preferred Stockholders on conversion, charged to additional paid-in capital in the absence of retained earnings	(4,301)					(4,301)
Stock-based compensation	471					471
Net loss	(5,303)						(5,303)
Ending Balance at Dec. 31, 2010	$ 3,424				$ 28	20,427	(17,031)
Ending Balance, Shares at Dec. 31, 2010					28,004,000
Exercise of options (CTS) September 23, 2007 at $0.79 per share, Shares	0
Stock-based compensation	$ 335					335
Net loss	(5,758)						(5,758)
Ending Balance at Dec. 31, 2011	$ (1,999)				$ 28	20,762	(22,789)
Ending Balance, Shares at Dec. 31, 2011					28,004,000
Exercise of options (CTS) September 23, 2007 at $0.79 per share, Shares	0
Stock-based compensation	$ 448					448
Net loss	(6,724)						(6,724)
Issuance of 20,794,000 shares of Common Stock par value $0.40 per share for cash in February 2012	8,318				$ 21	8,297
Issuance of 20,794,000 shares of Common Stock par value $0.40 per share for cash in February 2012, shares					20,794,000
Issuance of 805,521 shares of Common Stock for Warrants at $0.25 per share for cash in October 2012	201				$ 1	200
Issuance of 805,521 shares of Common Stock for Warrants at $0.25 per share for cash in October 2012, shares					805,000
Ending Balance at Dec. 31, 2012	$ 245				$ 50	$ 29,708	$ (29,513)
Ending Balance, Shares at Dec. 31, 2012					49,603,000

Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Parenthetical)	1 Months Ended						12 Months Ended
	Feb. 28, 2012 $ / shares	Sep. 30, 2010 shares	Jan. 31, 2010 $ / shares	Jul. 31, 2009 $ / shares	Dec. 30, 2008 $ / shares	Sep. 30, 2007 $ / shares	Dec. 31, 2010 shares	Dec. 31, 2012 $ / shares $ / Units shares	Jan. 08, 2008 $ / shares	Sep. 04, 2007 $ / Units
Exercise of options						$ 0.79
Issuance of per share recapitalization						0.64
Warrants issued with credit facility \| $ / Units								0.25		2.46
Repayment of stockholder related to Issuance of common shares					$ 1.22
Common stock, par value								$ 0.001
Common stock, shares issued \| shares							697,000	49,603,276
Common stock shares issued for warrants \| shares								805,521
Issuance of shares of Common Stock for warrants per share								$ 0.25
Series A Preferred Stock
Issuance of Series A Preferred Stock	$ 1.00		$ 1.00	$ 1.00
Series A Preferred Conversion
Intrinsic value of aggregate shares of Common Stock issued on conversion of Series A Preferred Stock \| shares							5,063,000
Preferred Stock
Conversion of shares of series A Preferred Stock \| shares		4,000,000
Conversion of accumulated dividends \| shares		4,366,000
Preferred Stock \| Series A Preferred Stock
Issuance of Series A Preferred Stock	1.00		1.00	1.00
Common Stock
Exercise of options						0.79
Issuance of per share recapitalization						0.64
Conversion of shares of series A Preferred Stock \| shares		4,000,000
Conversion of accumulated dividends \| shares		4,366,000
Repayment of stockholder related to Issuance of common shares					1.22
Common stock, par value								$ 0.40	$ 0.001
Common stock, shares issued \| shares								20,794,000,000
Common stock shares issued for warrants \| shares								805,521,000
Issuance of shares of Common Stock for warrants per share								$ 0.25
Additional Paid-in Capital
Exercise of options						0.79
Issuance of per share recapitalization						$ 0.64
Warrants issued with credit facility \| $ / Units										2.46
Conversion of shares of series A Preferred Stock \| shares		4,000,000
Conversion of accumulated dividends \| shares		4,366,000
Repayment of stockholder related to Issuance of common shares					$ 1.22
Common stock, par value								$ 0.40
Common stock, shares issued \| shares								20,794,000,000
Common stock shares issued for warrants \| shares								805,521,000
Issuance of shares of Common Stock for warrants per share								$ 0.25
Additional Paid-in Capital \| Series A Preferred Stock
Issuance of Series A Preferred Stock	$ 1.00		$ 1.00	$ 1.00
Additional Paid-in Capital \| Series A Preferred Conversion
Intrinsic value of aggregate shares of Common Stock issued on conversion of Series A Preferred Stock \| shares							5,063,000

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended		88 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012
OPERATING ACTIVITIES
Net loss	$ (6,724)	$ (5,758)	$ (29,513)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of deferred finance costs	14	37	1,984
Stock-based compensation expense	448	335	1,753
Stock-based compensation expense related to Share Exchange			77
Depreciation and amortization	167	140	509
Loss from disposal of assets		20	20
Gain on sale of TruePosition investment			(903)
Inventory disposals	198	86	337
Changes in operating assets and liabilities
Other current assets	(2)	(28)	(191)
Inventory	(1,798)	5	(1,937)
Other assets			(2)
Accounts payable and accrued liabilities	794	248	979
Accrued interest	(36)	48	12
NET CASH USED IN OPERATING ACTIVITIES	(6,939)	(4,867)	(26,875)
INVESTING ACTIVITIES
Purchase of equipment	(29)	(293)	(861)
Proceeds from sale of TruePosition investment			903
Payment received under Rule 16b			4
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES	(29)	(293)	47
FINANCING ACTIVITIES
Net cash provided in connection with the acquisition of SafeStitch LLC			3,192
Issuance of Common Stock, net of offering costs	8,319		17,281
Issuance of Common Stock from warrants	201		201
Issuance of Preferred Stock, net of offering costs			3,980
Capital Contributions			1,431
Proceeds from notes payable			141
Repayment of notes payable		(49)	(141)
Proceeds from stockholders loans	1,400	2,475	6,735
Repayment of stockholders loans	(2,975)		(5,751)
Exercise of warrants	201		201
Exercise of options			35
NET CASH PROVIDED BY FINANCING ACTIVITIES	6,944	2,426	27,103
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(23)	(2,734)	275
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	298	3,032
CASH AND CASH EQUIVALENTS AT END OF PERIOD	275	$ 298	275
Supplemental disclosures:
Cash paid for interest	$ 92		156
Non cash activities:
Non-cash dividend upon issuance and conversion of Preferred Stock			5,001
Dividends			366
Stockholder loans contributed to capital			84
Warrants issued in connection with credit facility			$ 1,985

Basis of Presentation and Liquidity

12 Months Ended

Dec. 31, 2012

Basis of Presentation and Liquidity [Abstract]

BASIS OF PRESENTATION AND LIQUIDITY

NOTE 1 – BASIS OF PRESENTATION AND LIQUIDITY

SafeStitch Medical, Inc. (together with its consolidated subsidiaries, “SafeStitch” or the “Company”) is a developmental stage medical device company focused on the development of medical devices that manipulate tissues for endoscopic and minimally invasive surgery for the treatment of obesity, gastroesophageal reflux disease (“GERD”), Barrett’s Esophagus, esophageal obstructions, upper gastrointestinal bleeding, hernia formation and other intraperitoneal abnormalities.

Cellular Technical Services Company, Inc. (“Cellular”), a non-operating public company, was incorporated in 1988 as NCS Ventures Corp. under the laws of the State of Delaware. On July 25, 2007, Cellular entered into a Share Transfer, Exchange and Contribution Agreement (the “Share Exchange”) with SafeStitch LLC, a Virginia limited liability company. On September 4, 2007, Cellular acquired all of the members’ equity interests in SafeStitch LLC in exchange for 11,256,369 shares of Cellular’s common stock, which represented a majority of Cellular’s outstanding shares immediately following the Share Exchange. Effective January 8, 2008, Cellular changed its name to SafeStitch Medical, Inc. and increased the aggregate number of shares of capital stock that may be issued from 35,000,000 to 250,000,000, comprising 225,000,000 shares of common stock, par value $0.001 per share (the “Common Stock”), and 25,000,000 shares of preferred stock, par value $0.01 per share. For accounting purposes, the acquisition has been treated as a recapitalization of SafeStitch LLC, with SafeStitch LLC as the acquirer (reverse acquisition). The historical financial statements prior to September 4, 2007 are those of SafeStitch LLC, which began operations on September 15, 2005. The accompanying financial statements give retroactive effect to the recapitalization as if it had occurred on September 15, 2005 (inception).

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. For the period from September 15, 2005 (inception) through December 31, 2012, the Company has accumulated a deficit of $29.5 million, including a net loss of $6.7 million for the year ended December 31, 2012, and has not generated significant revenue or positive cash flows from operations.

On March 22, 2013, the Company sold approximately 12,100,000 shares of our common stock (the “2013 PIPE Shares”) in a private placement at a price of $0.25 per share, with net proceeds to the Company of approximately $3.0 million (Note 14). Included in this private placement was the issuance of warrants (the “PIPE Warrants”) to purchase approximately 6,050,000 common shares, representing one warrant for every two common shares purchased, with an exercise price of $0.33 per share and five year expiration. Approximately 50% of the shares and warrants offered were purchased by our officers, directors and significant shareholders. The capital raised will be primarily used for the expansion of our Gastroplasty Device study in Hungary scheduled for May 2013, continued development of the Gastroplasty Device and sales and marketing efforts for the AMID HFD. Approximately $1.1 million of the proceeds will be used to pay off amounts outstanding under the Credit Facility and promissory notes. Based upon the Company’s current cash position and by monitoring our discretionary expenditures, we anticipate that the Company will be able to fund operations during 2013. We based this belief on assumptions that may prove to be wrong or are subject to change, and we may be required to use our available cash resources sooner than we currently expect.

We believe it is unlikely that the Credit Facility will be extended beyond its June 30, 2013 maturity date and additional funding will be required to continue operations. The Company currently does not have any commitments for future external funding. Almost all of the Company’s equity and financing to date has been provided from the Company’s principal existing stockholders and there is no assurance that the Company’s stockholders will continue to provide the necessary financing for us to continue our operations or that any additional equity or debt financing will be available to the Company on acceptable terms, or at all. If adequate funds are not available when needed, the Company may be required to delay, further reduce the scope of or eliminate our research and development programs, including the development of the Gastroplasty Device, all of which may not significantly extend the period of time that the Company will be able to continue operations without raising additional funding.

It is uncertain as to the length of time the Company can sustain continued operations without the availability of additional funds. This uncertainty raises substantial doubt about the Company’s ability to continue as a going concern.

- Definition

The entire disclosure for the organization, consolidation and basis of presentation of financial statements disclosure, and significant accounting policies of the reporting entity. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements.

+ References + Details

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2012

Summary of Significant Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Consolidation. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Isis Tele-Communications, Inc., which has no current operations, and SafeStitch LLC. All inter-company accounts and transactions have been eliminated in consolidation.

Use of estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions, such as useful lives of property and equipment, 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 amounts of expenses during the reporting period. Actual results could differ from those estimates.

Cash and cash equivalents. We consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The Company holds cash and cash equivalent balances in banks and other financial institutions, and includes overnight repurchase agreements collateralizing its depository bank accounts (sweep accounts) in its cash balances. Balances in excess of Federal Deposit Insurance Corporation (“FDIC”) limitations may not be insured.

Allowances for Doubtful Accounts. The Company provides an allowance for receivables it believes it may not collect in full. Receivables are written off when they are deemed to be uncollectible and all collection attempts have ceased. The amount of bad debt recorded each period and the resulting adequacy of the allowance for doubtful accounts at the end of each period are determined using a combination of customer-by-customer analysis of the Company’s accounts receivable each period and subjective assessments of the Company’s future bad debt exposure.

Inventories. Inventories are stated at lower of cost or market using the weighted average cost method. Provisions for potentially obsolete or slow-moving inventory are made based on management’s analysis of inventory levels, obsolescence and future sales forecasts. An inventory parts adjustment of $198,000 due to material scraps associated with the early development of the manufacturing was expensed through cost of goods sold during the fourth quarter in the year ending December 31, 2012. The Company had approximately 5,800 AMID HFD units in inventory at December 31, 2012.

Property and equipment. Property and equipment are carried at cost less accumulated depreciation. Major additions and improvements are capitalized, while maintenance and repairs that do not extend the lives of assets are expensed. Gain or loss, if any, on the disposition of fixed assets is recognized currently in operations. Depreciation is calculated primarily on a straight-line basis over estimated useful lives of the assets.

Revenue Recognition. Revenue from product sales is recognized when persuasive evidence of an arrangement exists, the goods are shipped and title has transferred, the price is fixed or determinable, and the collection of the sales proceeds is reasonably assured.

The Company’s revenue was a result of AMID HFD product sales. There were 126 units sold for the year ended December 31, 2012 and there were no units available for sale during the year ended December 31, 2011. In addition, there were 674 AMID HFD units used for demonstration purposes during the year ended December 31, 2012 and no units were available for demonstration purposes during the year ended December 31, 2011.

Advertising Costs. The Company expenses all costs of advertising as incurred. Advertising and promotional costs are included in selling, general and administrative (“SG&A”) costs and expensed for all periods presented, and totaled $112,000 and $73,000, respectively, for the years ended December 31, 2012 and 2011.

Research and development. Research and development costs principally represent salaries of the Company’s medical and biomechanical engineering professionals, material and shop costs associated with manufacturing product prototypes and payments to third parties for clinical trials and additional product development and testing. All research and development costs are charged to expense as incurred.

Patent costs. Costs incurred in connection with acquiring patent rights and the protection of proprietary technologies are charged to expense as incurred.

Stock-based compensation. The Company follows ASC 718 (Stock Compensation) and 505-50 (Equity-Based Payments to Non-employees), which provide guidance in accounting for share-based awards exchanged for services rendered and requires companies to expense the estimated fair value of these awards over the requisite service period. The Company determines the fair value of the stock-based compensation awards granted as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. If the fair value of the equity instruments issued is used, it is measured using the stock price and other measurement assumptions as of the earlier of either of (1) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date at which the counterparty’s performance is complete.

Therapeutic discovery project tax credit. The Company records the therapeutic discovery project tax credit on the accrual basis when approved by the government agency which is reported as other income in the accompanying statements.

Fair value of financial instruments. Authoritative guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy consists of three broad levels, as described below:

•

Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

•

Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

•

Level 3—Inputs that are both significant to the fair value measurement and unobservable.

Long-lived assets. The Company reviews the carrying values of its long-lived assets, including long-term investments, for possible impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be recoverable. Any long-lived assets held for disposal are reported at the lower of their carrying amounts or fair value less costs to sell.

Income taxes. The Company follows the liability method of accounting for income taxes, which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of the assets and liabilities. The Company’s policy is to record a valuation allowance against deferred tax assets, when it is more likely than not the deferred tax asset is not recoverable. The Company considers estimated future taxable income or loss and other available evidence when assessing the need for its deferred tax valuation allowance.

Comprehensive income (loss). Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The Company’s comprehensive net loss is equal to its net loss for all periods presented.

Recent Accounting Pronouncements. In June 2011, the FASB issued ASU 2011-05, “Comprehensive Income (Topic 220): Presentation of Comprehensive Income.” Specifically, the new guidance allows an entity to present components of net income or other comprehensive income in one continuous statement, referred to as the statement of comprehensive income, or in two separate, but consecutive statements. The new guidance eliminates the current option to report other comprehensive income and its components in the statement of changes in equity. While the new guidance changes the presentation of comprehensive income, there are no changes to the components that are recognized in net income or other comprehensive income under current accounting guidance. The new guidance is effective for fiscal years and interim periods beginning after December 15, 2011 and is to be applied retrospectively. The adoption of ASU 2011-05 did not have any impact on the Company’s consolidated financial statements. Comprehensive income (loss) was the same as net income (loss) since inception, including the years ended December 31, 2012 and 2011.

In May 2011, the FASB issued ASU No. 2011-04, “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards (“IFRS”).” The amendments in this ASU generally represent clarification of Topic 820, but also include instances where a particular principle or requirement for measuring fair value or disclosing information about fair value measurements has changed. This update results in common principles and requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP and IFRS. The amendments are effective for interim and annual periods beginning after December 15, 2011 and are to be applied prospectively. Early application is not permitted. The adoption of ASU 2011-04 as of January 1, 2012 did not have any impact on the Company’s consolidated financial statements.

Property and Equipment

12 Months Ended

Dec. 31, 2012

Property and Equipment [Abstract]

PROPERTY AND EQUIPMENT

NOTE 3 – PROPERTY AND EQUIPMENT

Property and equipment consists of the following:


	Estimated Useful lives	December 31, 2012			December 31, 2011
Machinery and equipment	5 years	$	682,000		$	660,000
Furniture, fixtures and leasehold improvements	3-5 years		88,000			81,000
Software	3-5 years		57,000			57,000

			827,000			798,000
Accumulated depreciation and amortization			(495,000	)		(328,000	)

Property and equipment, net		$	332,000		$	470,000

Depreciation of fixed assets utilized in research and development activities is included in research and development costs and expenses. All other depreciation is included in general and administrative expense. Depreciation and amortization expense was $167,000 and $140,000 for the years ended December 31, 2012 and 2011, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Stock-Based Compensation

12 Months Ended

Dec. 31, 2012

Stock-Based Compensation [Abstract]

STOCK-BASED COMPENSATION

NOTE 4 – STOCK-BASED COMPENSATION

On November 13, 2007, the Board of Directors and a majority of the Company’s stockholders approved the SafeStitch Medical, Inc. 2007 Incentive Compensation Plan (the “2007 Plan”), which was amended on June 19, 2012 to increase the number of shares of Common Stock available for issuance to 5,000,000. Under the 2007 Plan, which is administered by the Compensation Committee, the Company may grant stock options, stock appreciation rights, restricted stock and/or deferred stock to employees, officers, directors, consultants and vendors up to an aggregate of 5,000,000 shares of Common Stock, which are fully reserved for future issuance. The exercise price of stock options or stock appreciation rights may not be less than the fair market value of the Company’s shares at the date of grant and, within any 12 month period, no person may receive stock options or stock appreciation rights for more than one million shares. Additionally, no stock options or stock appreciation rights granted under the 2007 Plan may have a term exceeding ten years.

The Company granted 813,500 and 562,500 stock options under the 2007 Plan during the years ended December 31, 2012 and 2011, respectively, including 218,000 and 68,000 stock options that were issued to consultants. The options granted during 2012 were issued at an exercise price ranging from $0.65 to $0.85 per share and had an estimated aggregate grant date fair value of $441,000. The options granted during 2011 were issued at an exercise price of $1.12 per share and had an estimated aggregate grant date fair value of $502,000. The weighted average grant date fair value of the options granted during 2012 and 2011 was $0.54 per share and $0.89 per share, respectively. At December 31, 2012, a total of 2,921,000 shares of Common Stock remained available for issuance under the 2007 Plan.

Total stock-based compensation recorded for the years ended December 31, 2012 and 2011 was $448,000 and $335,000, respectively, and is included in general and administrative expense. The stock-based compensation recorded for the year ended December 31, 2011 included a credit of $113,000 for a change in the forfeitures experience. The fair value of the Company’s stock option awards is expensed over the vesting life of the underlying stock options using the graded vesting method, with each tranche of vesting options valued separately. Expected volatility is based on the historical volatility of the Company’s stock. The risk-free interest rate for periods within the contractual life of the stock option award is based on the yield of U.S. Treasury bonds on the grant date with a maturity equal to the expected term of the stock option. The expected life of stock option awards is based upon the “simplified” method for “plain vanilla” options described in SEC Staff Accounting Bulletin No. 107, as amended by SEC Staff Accounting Bulletin No. 110. Forfeiture rates are based on management’s estimates. The fair value of each of the Company’s stock option awards is estimated on the date of grant using a Black-Scholes option-pricing model that uses the assumptions noted in the table below. Expected volatility is based on an average of historical volatility of the Company’s common stock. The risk-free interest rate for periods within the contractual life of the stock option award is based on the yield curve of a zero-coupon U.S. Treasury bond on the date the award is granted with a maturity equal to the expected term of the award. The Company uses historical data to estimate forfeitures within its valuation model.


	Year ended December 31, 2012	Year ended December 31, 2011
Expected volatility	85.41% – 111.36%	76.91% – 102.63%
Expected dividend yield	0.00%	0.00%
Risk-free interest rate	1.02% – 1.98%	2.25% – 3.25%
Expected life	5.5 – 10.0 years	5.5 – 10.0 years
Forfeiture rate	0% – 2%	0% – 5%

The following summarizes the Company’s stock option activity for the two years ended December 31, 2012:


	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at December 31, 2010		1,334,667		$	1.41		5.74
Granted		562,500		$	1.12		9.20
Exercised		—			—
Canceled or expired		(269,000	)	$	1.19		4.88

Outstanding at December 31, 2011		1,628,167		$	1.35		6.26	$	—

Exercisable at December 31, 2011		864,917		$	1.50		4.98	$	—


	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Vested and expected to vest at December 31, 2011		1,585,098		$	1.35		6.23	$	—

Granted		813,500		$	0.66		9.13
Exercised		—			—
Canceled or expired		(362,667	)	$	1.61		5.29

Outstanding at December 31, 2012		2,079,000		$	1.03		6.77	$	—

Exercisable at December 31, 2012		982,625		$	1.26		5.13	$	—

Vested and expected to vest at December 31, 2012		2,037,742		$	1.03		6.73	$	—

None of the 813,500 options granted during the year ended December 31, 2012, were vested as of December 31, 2012. At December 31, 2012, there was $222,000 of total unrecognized compensation cost related to non-vested employee and director share-based compensation arrangements. That cost is expected to be recognized over a weighted-average period of 1.66 years.

The expected term of awards granted is derived from historical experience under the 2007 Plan and represents the period of time that awards granted are expected to be outstanding. No options were exercised during the years ended December 31, 2012 and 2011.

No tax benefits were attributed to the stock-based compensation expense because a valuation allowance was maintained for substantially all net deferred tax assets.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Debt

12 Months Ended

Dec. 31, 2012

Debt [Abstract]

DEBT

NOTE 5 – DEBT

Credit Facility. In connection with the acquisition of SafeStitch LLC, the Company entered into a Note and Security Agreement (the “Credit Facility”) with both The Frost Group and Jeffrey G. Spragens, the Company’s Chief Executive Officer and President and a director. The Frost Group is a Florida limited liability company whose members include Frost Gamma Investments Trust (“Frost Gamma”), a trust controlled by Dr. Phillip Frost, one of the largest beneficial holders of the issued and outstanding shares of Common Stock, Dr. Jane H. Hsiao, the Company’s Chairman of the Board, and Steven D. Rubin, a director. The Credit Facility provides up to $4.0 million in total available borrowings, consisting of up to $3.9 million from The Frost Group and up to $100,000 from Mr. Spragens. The Company has granted a security interest in all present and subsequently acquired collateral in order to secure prompt, full and complete payment of the amounts outstanding under the Credit Facility. The collateral includes all assets of the Company, inclusive of intellectual property (patents, patent rights, trademarks, service marks, etc.). Outstanding borrowings under the Credit Facility accrue interest at a 10% annual rate. The Credit Facility had an initial term of 28 months, expiring in December 2009, and was amended on four occasions to extend the maturity date, which is now June 30, 2013.

In connection with the Credit Facility, the Company granted warrants to purchase an aggregate of 805,521 shares of its Common Stock to the Frost Group and Mr. Spragens at an assumed exercise price of $0.25 per share. The fair value of the warrants was determined to be approximately $2.0 million on the grant date based on the Black-Scholes valuation model using the following assumptions: expected volatility of 82%, dividend yield of 0%, risk-free interest rate of 4.88% and expected life of 10 years. The fair value of the warrants was recorded as deferred financing costs and is being amortized over the life of the Credit Facility. The Company recorded amortization expense of $14,000 and $37,000 related to these deferred financing costs for the years ended December 31, 2012 and 2011, respectively. In October 2012, The Frost Group and Mr. Spragens exercised the warrants for the purchase of 805,521 shares of Common Stock at an exercise price of $0.25 per share with net proceeds to the Company of $201,000.

The Company borrowed $300,000 and $2,475,000 under the Credit Facility during the years ended December 31, 2012 and 2011 respectively. The Company recognized interest expense related to the outstanding borrowings under the Credit Facility for the years ended December 31, 2012 and 2011 of $51,000 and $48,000, respectively. As of December 31, 2012, there was a balance outstanding under the Credit Facility of $300,000, plus accrued interest of $8,000, and there was a balance outstanding under the Credit Facility of $2,475,000 plus accrued interest of $48,000 at December 31, 2011.

On November 20, 2012, the Company entered into a Promissory Note in the principal amount of $300,000.00 with Hsu Gamma Investments, L.P. (“Hsu Gamma”), an entity controlled by the Company’s Chairman of the Board, Jane H. Hsiao, (the “Hsu Gamma Note”). The interest rate payable by the Company on the Hsu Gamma Note is 10% per annum, payable on the maturity date of June 30, 2013. The Hsu Gamma Note may be prepaid in advance of the Maturity Date without penalty.

On December 26, 2012, the Company entered into a Promissory Note in the principal amount of $300,000.00 with Frost Gamma, an entity controlled by one of the Company’s largest beneficial holders of common stock, Dr. Phillip Frost (the “Frost Gamma Note”). The interest rate payable by the Company on the Frost Gamma Note is 10% per annum, payable on the maturity date of June 30, 2013. The Frost Gamma Note may be prepaid in advance of the Maturity Date without penalty.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

Capital Transactions

12 Months Ended

Dec. 31, 2012

Capital Transactions [Abstract]

CAPITAL TRANSACTIONS

NOTE 6 – CAPITAL TRANSACTIONS

2012 Private Placement of Common Stock. On February 17, 2012, the Company entered into a stock purchase agreement (the “2012 Stock Purchase Agreement”) with 35 investors (the “2012 PIPE Investors”) pursuant to which the 2012 PIPE Investors agreed to purchase an aggregate of 20,794,000 shares of Common Stock (the “2012 PIPE Shares”) at a price of $0.40 per share for aggregate consideration of $8.3 million. Among the Investors purchasing Shares were Frost Gamma, Dr. Jane Hsiao, the Company’s Chairman of the Board, Jeffrey Spragens, the Company’s President and Chief Executive Officer and Richard Pfenniger, a member of the Company’s Board of Directors. Frost Gamma and Dr. Hsiao each purchased 4,500,000 shares, Mr. Spragens purchased 250,000 shares, and Mr. Pfenniger purchased 125,000 shares. The Company issued the 2012 PIPE Shares in reliance upon the exemption from registration under Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506 of Regulation D promulgated thereunder.

2010 Private Placement of Common Stock. On June 15, 2010, the Company entered into a stock purchase agreement (the “2010 Stock Purchase Agreement”) with 20 investors (the “2010 PIPE Investors”) pursuant to which the 2010 PIPE Investors agreed to purchase an aggregate of 4,978,000 shares of Common Stock (the “PIPE Shares”) at a price of $1.00 per share for aggregate consideration of $4,978,000. Among the 2010 PIPE Investors who purchased a portion of the PIPE Shares were Hsu Gamma and Frost Gamma. Both Hsu Gamma and Frost Gamma purchased 1,300,000 PIPE Shares. The Company issued the PIPE Shares in reliance upon the exemption from registration under Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506 of Regulation D promulgated thereunder.

10.0% Series A Cumulative Convertible Preferred Stock. In June 2009, the Company authorized a new series of preferred stock, designated as 10.0% Series A Cumulative Convertible Preferred Stock, par value $0.01 per share (“Series A Preferred Stock”). Holders of the Series A Preferred Stock are entitled to receive, when, as and if declared by the Company’s Board of Directors, dividends on each share of Series A Preferred Stock at a rate per annum equal to 10.0% of the sum of (a) $1.00, plus (b) any and all declared and unpaid and accrued dividends thereon, subject to adjustment for any stock split, combination, recapitalization or other similar corporate action (the “Liquidation Amount”). Holders of the Series A Preferred Stock also have the right to receive notice of any meeting of holders of Common Stock or Series A Preferred Stock and to vote (on an as-converted into Common Stock basis) upon any matter submitted to a vote of the holders of Common Stock or Series A Preferred Stock. With respect to dividend distributions and distributions upon liquidation, winding up or dissolution of the Company, the Series A Preferred Stock ranks senior to all classes of Common Stock and to each other class of the Company’s capital stock existing now or hereafter created that are not specifically designated as ranking senior to or pari passu with the Series A Preferred Stock. The Company may not issue any capital stock that is senior to or pari passu with the Series A Preferred Stock unless such issuance is approved by the holders of at least 66 2/3% of the issued and outstanding Series A Preferred Stock voting separately as a class.

Upon the occurrence of a Liquidation Event (as defined in the Series A Preferred Stock’s Certificate of Designation, which is referred to as the “Certificate of Designation”), holders of Series A Preferred Stock are entitled to be paid, subject to applicable law, out of the assets of the Company available for distribution to its stockholders, an amount in cash (the “Liquidation Payment”) for each share of Series A Preferred Stock equal to the greater of (x) the Liquidation Amount for each share of Series A Preferred Stock outstanding, or (y) the amount for each share of Series A Preferred Stock the holders would be entitled to receive pursuant to the Liquidation Event if all of the shares of Series A Preferred Stock had been converted into Common Stock as of the date immediately prior to the date fixed for determination of stockholders entitled to receive a distribution in such Liquidation Event. Such Liquidation Payment will be paid before any cash distribution will be made or any other assets distributed in respect of any class of securities junior to the Series A Preferred Stock, including, without limitation, Common Stock. The holder of any share of Series A Preferred Stock may at any time and from time to time convert such share into such number of fully paid and nonassessable shares of Common Stock as is determined by dividing (A) the Liquidation Amount of the share by (B) the conversion price, which was initially $1.00, subject to adjustment as provided in the Certificate of Designation. To the extent it is lawfully able to do so, the Company may redeem all of the then outstanding shares of Series A Preferred Stock by paying in cash an amount per share equal to $1.00 plus all declared or accrued unpaid dividends on such shares, subject to adjustment for any stock dividends or distributions, splits, subdivisions, combinations, reclassifications, stock issuances or similar events with respect to the Common Stock.

2009 Issuance of Series A Preferred Stock. On July 21, 2009, the Company entered into a securities purchase agreement with a private investor (the “2009 Investor”), pursuant to which the 2009 Investor agreed to purchase an aggregate of up to 2,000,000 shares (the “2009 Shares”) of the Series A Preferred Stock at a purchase price of $1.00 per share. On July 22, 2009, the Company closed on the issuance of the 2009 Shares for aggregate consideration of $2.0 million. A portion of the proceeds from the issuance was used to repay all principal and interest outstanding under the Credit Facility.

2010 Issuance of Series A Preferred Stock. On July 21, 2009, the Company entered into a second securities purchase agreement (the “Future Purchase Agreement”) with certain private investors (the “Future Investors,” together with the 2009 Investor, the “Preferred Investors”), pursuant to which the Future Investors agreed to purchase, at the Company’s election upon ten days written notice delivered to the Future Investors by the Company, an aggregate of up to 2,000,000 shares of Series A Preferred Stock (the “Future Shares,” together with the 2009 Shares, the “Preferred Shares”) at a purchase price of $1.00 per share. On December 30, 2009, the Company provided notice to the Future Investors that the Company intended to consummate the sale of the Future Shares on January 12, 2010, and on January 12, 2010, the Company closed on the issuance of 2,000,000 Future Shares under the Future Purchase Agreement for aggregate consideration of $2.0 million. Among the Future Investors who purchased an aggregate of 995,000 Future Shares were Hsu Gamma, Frost Gamma and Mr. Spragens, each of whom is the beneficial owner of more than 10% of the Common Stock.

The Company issued the Preferred Shares in reliance upon the exemption from registration under Section 4(2) of the Securities Act. On July 22, 2009 and January 12, 2010, the closing prices of the Common Stock on the OTCBB were $1.10 and $1.25, respectively, resulting in beneficial conversion features of $0.10 and $0.25 per share of Series A Preferred Stock on the respective issue dates. The $200,000 and $500,000 aggregate beneficial conversion features of the Series A Preferred Stock on the issue dates were deemed discounts on the issuance of the Preferred Shares and were recorded as increases to additional paid-in capital in the consolidated financial statements. Because the Series A Preferred Stock was immediately convertible by the holders thereof into Common Stock, the $200,000 and $500,000 aggregate intrinsic value was deemed a dividend paid to the Preferred Investors on the relevant closing date. In the absence of retained earnings, such deemed dividends were recorded as reductions of additional paid-in capital and, for calculating net loss per common share, as increases in losses attributable to common stockholders (see Note 7).

2010 Conversion of Series A Preferred Stock. Effective September 10, 2010 (the “Conversion Date”), the Preferred Investors elected to convert an aggregate of 4.0 million shares of the Series A Preferred Stock pursuant to the terms of the Certificate of Designation. Following conversion of the Series A Preferred Stock, the Company had no issued and outstanding shares of any class of preferred stock. On the Conversion Date, for each converted share of Series A Preferred Stock, the holder thereof became entitled to receive one share of Common Stock, plus all accrued and unpaid dividends (“Unpaid Dividends”) thereon through the Conversion Date, which Unpaid Dividends were paid in shares of Common Stock in accordance with the Certificate of Designation. Approximately $366,000 of Unpaid Dividends had accumulated through the Conversion Date and an aggregate of 365,575 shares of Common Stock were issued as a result of the Unpaid Dividends (the “Dividend Shares”), of which 29,709 Dividend Shares were issued to each of Hsu Gamma and Frost Gamma, and 6,638 Dividend Shares were issued to Mr. Spragens.

To encourage the Preferred Investors to voluntarily convert their respective shares of Series A Preferred Stock, the Company offered to each Preferred Investor who converted his or her shares of Series A Preferred Stock on or prior to the Conversion Date the number of shares of Common Stock (the “Consideration Shares”) equal to the difference between (a) the number of shares of Common Stock issuable pursuant to a holder-initiated conversion of Series A Preferred Stock on March 31, 2012 and (b) the number of shares of Common Stock issuable pursuant to a holder-initiated conversion of Series A Preferred Stock on the Conversion Date, each as calculated in accordance with the Certificate of Designation. The Preferred Investors voluntarily elected to convert all of their respective shares of Series A Preferred Stock, and an aggregate of 697,462 Consideration Shares were issued, of which 76,261 Consideration Shares were issued to each of Hsu Gamma and Frost Gamma, and 17,042 Consideration Shares were issued to Mr. Spragens.

On September 10, 2010, the closing price of the Common Stock on the OTCBB was $1.85, resulting in an intrinsic value of $0.85 per share for the 4,000,000 shares of Common Stock issued upon conversion of the Series A Preferred Stock and the 365,575 shares of Common Stock issued as Dividend Shares. These 4,365,575 shares of Common Stock had an aggregate intrinsic value of $3.7 million on the Conversion Date, which was considered a deemed dividend. The 697,462 Consideration Shares issued on the Conversion Date had an aggregate market value of approximately $1.3 million, which was also considered a deemed dividend on the Conversion Date. In the absence of retained earnings, the $366,000 accumulated dividends and the $5.0 million aggregate deemed dividends were recorded as reductions of additional paid-in capital and, for calculating net loss per common share, as increases in losses attributable to common stockholders (see Note 7).

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Publisher FASB
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-Subparagraph (SX 210.3-04)
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher FASB
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-Number 5
-Paragraph 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 20: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 129
-Paragraph 2, 3, 4, 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 23: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

Basic and Diluted Net Loss Per Share

12 Months Ended

Dec. 31, 2012

Basic and Diluted Net Loss Per Share [Abstract]

BASIC AND DILUTED NET LOSS PER SHARE

NOTE 7 – BASIC AND DILUTED NET LOSS PER SHARE

Basic net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed giving effect to all dilutive potential common shares that were outstanding during the period. Diluted potential common shares consist of incremental shares issuable upon exercise of stock options and warrants and conversion of preferred stock. In computing diluted net loss per share for the years ended December 31, 2012 and 2011, no adjustment has been made to the weighted average outstanding common shares as the assumed exercise of outstanding options and warrants and conversion of preferred stock would be anti-dilutive.

Potential common shares not included in calculating diluted net loss per share are as follows:


	December 31, 2012		December 31, 2011
Stock options		2,079,000		1,628,167
Stock warrants		0		805,521

Total		2,079,000		2,433,688

Commitments and Contingencies

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 8 – COMMITMENTS AND CONTINGENCIES

The Company was obligated under various operating lease agreements for office space that expired in 2012. Generally, the lease agreements require the payment of base rent plus escalations for increases in building operating costs and real estate taxes. Rental expense under operating leases amounted to $269,000 and $199,000 for the years ended December 31, 2012 and 2011, respectively. At December 31, 2012, the Company was no longer obligated under any non-cancellable operating leases.

The Company is obligated to pay royalties to Creighton University (“Creighton”) on the sales of products licensed from Creighton pursuant to an exclusive license and development agreement (see Note 9). The Company is also obligated under an agreement with Dr. Parviz Amid to pay a 1.5% royalty for the first three years and then a 4% royalty on the following seven years to Dr. Amid on the net sales of any product developed with Dr. Amid’s assistance, including the AMID HFD, for a period of ten years from the first commercial sale of such product. Royalties were incurred in the amount of $1,300 during the year ended December 31, 2012 and no royalties were incurred during the year ended December 31, 2011.

The Company has placed orders with various suppliers for the purchase of certain tooling, inventory and contract engineering and research services. Each of these orders has a duration or expected completion within the next twelve months. The Company currently has no material commitments with terms beyond twelve months.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Agreement with Creighton University

12 Months Ended

Dec. 31, 2012

Agreement with University [Abstract]

AGREEMENT WITH CREIGHTON UNIVERSITY

NOTE 9 – AGREEMENT WITH CREIGHTON UNIVERSITY

On May 26, 2006, SafeStitch entered into an exclusive license and development agreement (the “Creighton Agreement”) with Creighton, granting the Company a worldwide exclusive (even as to the university) license, with rights to sublicense, to all the Company’s product candidates and associated know-how based on Creighton technology, including the exclusive right to manufacture, use and sell the product candidates.

Pursuant to the Creighton Agreement, the Company is obligated to pay Creighton, on a quarterly basis, a royalty of 1.5% of the revenue collected worldwide from the sale of any product licensed under the Creighton Agreement, less certain amounts including, without limitation, chargebacks, credits, taxes, duties and discounts or rebates. Also pursuant to the Creighton Agreement, the Company agreed to invest, in the aggregate, at least $2.5 million over 36 months, beginning May 26, 2006, towards development of any licensed product. This $2.5 million investment obligation excluded the first $150,000 of costs related to the prosecution of patents, which the Company invested outside of the Creighton Agreement. The Company is further obligated to pay to Creighton an amount equal to 20% of certain of the Company’s research and development expenditures as reimbursement for the use of Creighton’s facilities. Failure to comply with the payment obligations above will result in all rights in the licensed patents and know-how reverting back to Creighton. As of December 31, 2007, the Company had satisfied the $2.5 million investment obligation described above. For the years ended December 31, 2012 and 2011, the Company paid Creighton $32,000 and $45,000, respectively, in satisfaction of the 20% facility reimbursement obligation.

Pursuant to the Creighton Agreement, SafeStitch is entitled to exercise its own business judgment and sole and absolute discretion over the marketing, sale, distribution, promotion and other commercial exploitation of any licensed products, provided that, if the Company has not commercially exploited or commenced development of a licensed patent and its associated know-how by the seventh anniversary of the later of the date of the Creighton Agreement or the date such technology is disclosed to and accepted by SafeStitch, then the licensed patent and associated know-how shall revert back to the university, with no rights retained by the Company, and the university will have the right to seek a third party with whom to commercialize such patent and associated know-how, unless the Company purchases one or more one-year extensions. The Company is in compliance with these requirements.

Income Taxes

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

INCOME TAXES

NOTE 10 – INCOME TAXES

The Company accounts for income taxes using the asset and liability method, the objective of which is to establish deferred tax assets and liabilities for the temporary differences between the financial reporting and the tax bases of the Company’s assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. A valuation allowance related to deferred tax assets is recorded when it is more likely than not that some portion or all of the deferred tax assets will not be realized.

At December 31, 2012, we have approximately $15.0 million of federal net operating loss carryforwards to offset future taxable income and $10.0 million of certain operating expenses which have been deferred as start-up costs under Sec. 195 for federal income tax purposes, subject to limitations for alternative minimum tax. Start-up costs will continue to be capitalized until the month in which active business begins, at which time the costs may be amortized over 15 years. In addition, at December 31, 2012 we have approximately $590,000 of research and development tax credit carryforwards. The net operating loss and research and development credit carryforwards expire through 2032.

The difference between income taxes at the statutory federal income tax rate and income taxes reported in the statements of operations are attributable to the following:


	December 31, 2012			December 31, 2011
Income tax benefit at the federal statutory rate		34.00	%		34.00	%
State income taxes, net of effect on federal taxes		3.55	%		3.51	%
Research and development credit		1.67	%		2.84	%
Other		(0.21	%)		0.56	%
Increase in valuation allowance		(39.01	%)		(40.91	%)

Provision for income tax		0	%		0	%

The deferred tax asset at December 31, 2012 and 2011 consists of the following:


	2012			2011
Net operating loss carryforward	$	5,593,000		$	4,419,000
Deferred start-up costs		3,762,000			2,658,000
Research and development credit carryforward		590,000			477,000
Stock-based compensation		689,000			520,000
Other		51,000			(13,000	)

		10,685,000			8,061,000
Less: Valuation allowance		(10,685,000	)		(8,061,000	)

Net deferred tax asset	$	—		$	—

The change in the valuation allowance from December 31, 2011 to December 31, 2012 amounted to approximately $2,624,000. At December 31, 2006, Cellular had available for federal income tax purposes, net operating loss carryforwards of approximately $54.1 million which expire through 2026, and research and development tax credits of approximately $1.2 million that will expire through 2024. Upon consummation of the share exchange with SafeStitch LLC, these net deferred tax assets along with net operating losses for 2007 were forfeited in accordance with Section 382 of the Internal Revenue Code. The Company had provided a valuation allowance of 100% of the net deferred tax asset.

The Company recognizes interest and penalties related to uncertain tax positions in general and administrative expense. As of December 31, 2012, the Company has no unrecognized tax position, including interest and penalties.

The tax years 2009-2011 remain open to examination by the major tax jurisdictions in which the Company operates.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

+ Details

Certain Relationships and Related Party Transactions

12 Months Ended

Dec. 31, 2012

Certain Relationships and Related Party Transactions [Abstract]

CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

NOTE 11 – CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

In connection with the acquisition of SafeStitch LLC, the Company entered into the Credit Facility with The Frost Group and Jeffrey G. Spragens, the Company’s Chief Executive Officer and President and a director. The Frost Group is a Florida limited liability company whose members include Frost Gamma, a trust controlled by Dr. Phillip Frost, one of the largest beneficial holders of the issued and outstanding shares of the Company’s common stock, Dr. Jane H. Hsiao, the Company’s Chairman of the Board and Steven D. Rubin, a director. As of December 31, 2012 there was a balance outstanding under the Credit Facility of $300,000 (see Note 5), plus accrued interest of $8,000, and there was a balance outstanding under the Credit Facility of $2,475,000 plus accrued interest of $48,000 at December 31, 2011.

On December 26, 2012, the Company entered into a Promissory Note in the principal amount of $300,000.00 with Frost Gamma, an entity controlled by the Company’s largest beneficial holder of common stock, Dr. Phillip Frost. (the “Frost Gamma Note”). The interest rate payable by the Company on the Frost Gamma Note is 10% per annum, payable on the maturity date of June 30, 2013. The Frost Gamma Note may be prepaid in advance of the Maturity Date without penalty.

The Company entered into a five-year lease for office space in Miami, Florida with a company controlled by Dr. Frost. The non-cancelable lease, which commenced January 1, 2008, provides for a 4.5% annual rent increase over the life of the lease. The Miami office lease was amended in July 2011 to include additional office space in the same building, and current rental payments under the lease are approximately $21,000 per month. The Company recorded $255,000 and $199,000 of rent expense related to the Miami lease for the years ended December 31, 2012 and 2011, respectively.

Dr. Hsiao, Dr. Frost and director Steven Rubin are each significant stockholders and/or directors of Non-Invasive Monitoring Systems, Inc. (“NIMS”), a publicly-traded medical device company, Aero Pharmaceuticals, Inc. (“Aero”), a privately-held pharmaceutical distribution company that dissolved in December 2011, Tiger X Medical, Inc. (“Tiger X”) (formerly known as Cardo Medical, Inc.), a publicly-traded medical device company, and TigerMedia, Inc. (“TigerMedia) (formerly known as SearchMedia Holdings Limited), a publicly-traded media company operating primarily in China. Director Richard Pfenniger is also a shareholder of NIMS. The Company’s Chief Financial Officer also serves as the Chief Financial Officer and supervises the accounting staffs of NIMS and, until its dissolution, Aero, under a Board-approved cost sharing arrangement whereby the total salaries of the accounting staffs of the three companies are shared. Aero has not participated in the cost sharing arrangement since June 30, 2011 and was dissolved in December 2011. Since December 2009, the Company’s Chief Legal Officer has served under a similar Board-approved cost sharing arrangement as Corporate Counsel of TigerMedia and as the Chief Legal Officer of each of NIMS and Tiger X. The Company has recorded reductions to SG&A costs and expenses for the years ended December 31, 2012 and 2011 of $60,000 and $78,000, respectively, to account for the sharing of accounting costs under this arrangement. The Company has recorded $145,000 and $178,000 of reductions to SG&A costs and expenses for the year ended December 31, 2012 and 2011, respectively, to account for the sharing of legal costs under this arrangement. Aggregate accounts receivable from NIMS, Tiger X and TigerMedia were approximately $59,000 and $66,000 as of December 31, 2012 and 2011, respectively, and are included in other receivable – related party.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39603-107864

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39622-107864

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(k))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
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-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39691-107864

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph b
-Article 3A

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph k
-Article 4

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 57
-Paragraph 1-4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Employee Benefit Plans

12 Months Ended

Dec. 31, 2012

Employee Benefit Plans [Abstract]

EMPLOYEE BENEFIT PLANS

NOTE 12 – EMPLOYEE BENEFIT PLANS

Effective May 1, 2008, the SafeStitch 401(k) Plan (the “401k Plan”) permits employees to contribute up to 100% of qualified annual compensation up to annual statutory limitations. Employee contributions may be made on a pre-tax basis to a regular 401(k) account, or on an after-tax basis to a “Roth” 401(k) account. The Company will contribute to the 401k Plan a “safe harbor” match of 100% of each participant’s contributions to the 401k Plan up to a maximum of 4% of the participant’s qualified annual earnings. The Company’s matching contributions to the plan were approximately $45,000 and $39,000, respectively, for the years ended December 31, 2012 and 2011.

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Implementation Guide (Q and A)
-Number FAS88
-Paragraph 63
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 106
-Paragraph 518
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-2
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 264
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph q
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph h
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 8
-Subparagraph m
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 158
-Paragraph 7, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS106-2
-Paragraph 20, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 30
-Paragraph 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Concentration of Risk

12 Months Ended

Dec. 31, 2012

Concentration of Risk [Abstract]

CONCENTRATION OF RISK

NOTE 13 – CONCENTRATION OF RISK

The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash. The Company maintains its cash at banks and financial institutions it considers to be of high credit quality; however the Company’s cash deposits may at times exceed the FDIC insured limit. The Company’s deposits at banks in excess of the FDIC insured limit are maintained in sweep accounts that are collateralized by overnight repurchase agreements. The Company has not experienced losses on these accounts, and management believes that the Company is not exposed to significant risks on such accounts.

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6327-108592

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 94-6
-Paragraph 21, 22, 24
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Subsequent Events

12 Months Ended

Dec. 31, 2012

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 14 – SUBSEQUENT EVENTS

On February 22, 2013 the Company entered into a promissory note in the principal amount of $200,000 with Jane Hsiao, the Company’s Chairman of the Board (the “Hsiao Note”). The interest payable by the Company on the Hsiao Note is 10% per annum, payable on the maturity date of June 30, 2013 (the “Maturity Date”). The Hsiao Note may be prepaid in advance of the Maturity Date without penalty.

2013 Private Placement of Common Stock. On March 22, 2013, the Company entered into a stock purchase agreement (the “2013 Stock Purchase Agreement”) with approximately 17 investors (the “2013 PIPE Investors”) pursuant to which the 2013 PIPE Investors agreed to purchase an aggregate of approximately 12,100,000 shares of common stock at a price of $0.25 per share for aggregate consideration of approximately $3.0 million. Included in this private placement was the issuance of PIPE Warrants to purchase approximately 6,050,000 common shares, representing one warrant for every two common shares purchased, with an exercise price of $0.33 per share and five year expiration. Among the Investors purchasing Shares were Frost Gamma, Dr. Jane Hsiao, the Company’s Chairman of the Board and Jeffrey Spragens, the Company’s President and Chief Executive Officer. Frost Gamma purchased 2.0 million shares and received 1.0 million warrants and Dr. Hsiao purchased 4.0 million shares received 2.0 million warrants and Mr. Spragens purchased 400,000 shares received 200,000 warrants. The Company issued the 2013 PIPE Shares in reliance upon the exemption from registration under Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506 of Regulation D promulgated thereunder.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2012

Summary of Significant Accounting Policies [Abstract]

Consolidation

Use of estimates

Cash and cash equivalents

Allowances for Doubtful Accounts

Inventories

Property and equipment

Revenue Recognition

Advertising Costs

Research and development

Patent costs

Patent costs. Costs incurred in connection with acquiring patent rights and the protection of proprietary technologies are charged to expense as incurred.

Stock-based compensation

Therapeutic discovery project tax credit

Fair value of financial instruments

•

Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

•

Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

•

Level 3—Inputs that are both significant to the fair value measurement and unobservable.

Long-lived assets

Income taxes

Comprehensive income (loss).

Recent Accounting Pronouncements

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2012

Property and Equipment [Abstract]

Summary of Property and equipment

Property and equipment consists of the following:


	Estimated Useful lives	December 31, 2012			December 31, 2011
Machinery and equipment	5 years	$	682,000		$	660,000
Furniture, fixtures and leasehold improvements	3-5 years		88,000			81,000
Software	3-5 years		57,000			57,000

			827,000			798,000
Accumulated depreciation and amortization			(495,000	)		(328,000	)

Property and equipment, net		$	332,000		$	470,000

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2012

Stock-Based Compensation [Abstract]

Summary of Share Based Compensation of Fair Value Assumptions

The fair value of each of the Company’s stock option awards is estimated on the date of grant using a Black-Scholes option-pricing model that uses the assumptions noted in the table below.


	Year ended December 31, 2012	Year ended December 31, 2011
Expected volatility	85.41% – 111.36%	76.91% – 102.63%
Expected dividend yield	0.00%	0.00%
Risk-free interest rate	1.02% – 1.98%	2.25% – 3.25%
Expected life	5.5 – 10.0 years	5.5 – 10.0 years
Forfeiture rate	0% – 2%	0% – 5%

Summary of Company's Stock Option activity

The following summarizes the Company’s stock option activity for the two years ended December 31, 2012:


	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at December 31, 2010		1,334,667		$	1.41		5.74
Granted		562,500		$	1.12		9.20
Exercised		—			—
Canceled or expired		(269,000	)	$	1.19		4.88

Outstanding at December 31, 2011		1,628,167		$	1.35		6.26	$	—

Exercisable at December 31, 2011		864,917		$	1.50		4.98	$	—


	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Vested and expected to vest at December 31, 2011		1,585,098		$	1.35		6.23	$	—

Granted		813,500		$	0.66		9.13
Exercised		—			—
Canceled or expired		(362,667	)	$	1.61		5.29

Outstanding at December 31, 2012		2,079,000		$	1.03		6.77	$	—

Exercisable at December 31, 2012		982,625		$	1.26		5.13	$	—

Vested and expected to vest at December 31, 2012		2,037,742		$	1.03		6.73	$	—

Basic and Diluted Net Loss Per Share (Tables)

12 Months Ended

Dec. 31, 2012

Basic and Diluted Net Loss Per Share [Abstract]

Summary of Potential Common Shares

Potential common shares not included in calculating diluted net loss per share are as follows:


	December 31, 2012		December 31, 2011
Stock options		2,079,000		1,628,167
Stock warrants		0		805,521

Total		2,079,000		2,433,688

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Schedule of difference between income taxes at the statutory federal income tax rate and income taxes reported in the statements of operations in percent

The difference between income taxes at the statutory federal income tax rate and income taxes reported in the statements of operations are attributable to the following:


	December 31, 2012			December 31, 2011
Income tax benefit at the federal statutory rate		34.00	%		34.00	%
State income taxes, net of effect on federal taxes		3.55	%		3.51	%
Research and development credit		1.67	%		2.84	%
Other		(0.21	%)		0.56	%
Increase in valuation allowance		(39.01	%)		(40.91	%)

Provision for income tax		0	%		0	%

Disclosure of deferred tax asset

The deferred tax asset at December 31, 2012 and 2011 consists of the following:


	2012			2011
Net operating loss carryforward	$	5,593,000		$	4,419,000
Deferred start-up costs		3,762,000			2,658,000
Research and development credit carryforward		590,000			477,000
Stock-based compensation		689,000			520,000
Other		51,000			(13,000	)

		10,685,000			8,061,000
Less: Valuation allowance		(10,685,000	)		(8,061,000	)

Net deferred tax asset	$	—		$	—

Basis of Presentation and Liquidity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		4 Months Ended	12 Months Ended							88 Months Ended
	Mar. 22, 2013	Sep. 30, 2007	Dec. 31, 2005	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2007	Dec. 31, 2006	Dec. 31, 2012	Jan. 08, 2008	Sep. 15, 2005
Basis of Presentation and Liquidity (Textual) [Abstract]
Agreed to purchase an aggregate shares of common stock				225,000,000	225,000,000						225,000,000
Common Stock at Par value				$ 0.001	$ 0.001						$ 0.001
Preferred Stock, Par value				$ 0.01	$ 0.01						$ 0.01
Accumulated deficit													$ 29,500
Credit facility available Borrowing				$ 3,000							$ 3,000
Maturity Date for line of Credit				Jun. 30, 2013
Net loss			$ (76)	$ (6,724)	$ (5,758)	$ (5,303)	$ (2,366)	$ (5,185)	$ (3,041)	$ (1,060)	$ (29,513)
Percentage of Shares Offered for Employee				50.00%
Repayment of credit facility				$ 1,100
2013 PIPE investors [Member]
Basis of Presentation and Liquidity (Textual) [Abstract]
Issuance of common shares in private offering, Shares	12,100,000
Sale of stock, Price per share	$ 0.25
Issuance of warrants to purchase common stock	6,050,000
Basis of Warrant to Purchase Common Stock, Description				one warrant for every two common shares
Percentage of Warrant and share purchased by officers, directors and significant shareholders				50.00%
Weighted average exercise price to purchase shares				$ 0.33
Expiration Period				5 years
Cellular [Member]
Basis of Presentation and Liquidity (Textual) [Abstract]
Net loss				$ 6,700
Maximum [Member]
Basis of Presentation and Liquidity (Textual) [Abstract]
Capital stock, share authorized												250,000,000
Minimum [Member]
Basis of Presentation and Liquidity (Textual) [Abstract]
Capital stock, share authorized												35,000,000
Common Stock [Member]
Basis of Presentation and Liquidity (Textual) [Abstract]
Agreed to purchase an aggregate shares of common stock												225,000,000
Common Stock [Member] \| Cellular [Member]
Basis of Presentation and Liquidity (Textual) [Abstract]
Common stock, shares issued		11,256,369
Preferred Stock [Member]
Basis of Presentation and Liquidity (Textual) [Abstract]
Preferred Stock, Par value												$ 0.01
Series A Preferred stock aggregate issuance												25,000,000

Summary of Significant Accounting Policies (Details Textual)	3 Months Ended	12 Months Ended		88 Months Ended
	Dec. 31, 2012 USD ($) units	Dec. 31, 2012 USD ($) units	Dec. 31, 2011 USD ($) units	Dec. 31, 2012 USD ($) units
Summary of Significant Accounting Policies (Additional Textual) [Abstract]
Obsolete inventory \| $	$ 198,000
Selling, General and Administrative costs and expenses \| $		$ 3,392,000	$ 2,306,000	$ 12,387,000
AMID HFD [Member]
Summary of Significant Accounting Policies (Textual) [Abstract]
Number Of AMID HFD units in inventory	5,800	5,800		5,800
Number Of AMID HFD units Sold		126	0
Number Of AMID HFD units Held for Demo		674	0

- Definition

Charge to cost of goods sold that represents the reduction of the carrying amount of inventory, generally attributable to obsolescence or market conditions.

+ References + Details

Property and Equipment (Details) - USD ($)	12 Months Ended
Property and Equipment (Details) - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Summary of Property and equipment
Property and equipment, Gross	$ 827,000	$ 798,000
Accumulated depreciation and amortization	(495,000)	(328,000)
Property and equipment, net	$ 332,000	470,000
Machinery and Equipment [Member]
Summary of Property and equipment
Estimated Useful Lives	5 years
Property and equipment, Gross	$ 682,000	660,000
Furniture, Fixtures and Leasehold Improvements [Member]
Summary of Property and equipment
Property and equipment, Gross	$ 88,000	81,000
Furniture, Fixtures and Leasehold Improvements [Member] \| Maximum [Member]
Summary of Property and equipment
Estimated Useful Lives	5 years
Furniture, Fixtures and Leasehold Improvements [Member] \| Minimum [Member]
Summary of Property and equipment
Estimated Useful Lives	3 years
Software [Member]
Summary of Property and equipment
Property and equipment, Gross	$ 57,000	$ 57,000
Software [Member] \| Maximum [Member]
Summary of Property and equipment
Estimated Useful Lives	5 years
Software [Member] \| Minimum [Member]
Summary of Property and equipment
Estimated Useful Lives	3 years

Property and Equipment (Details Textual) - USD ($)	12 Months Ended
Property and Equipment (Details Textual) - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Property and Equipment (Textual) [Abstract]
Depreciation and amortization expense	$ 167,000	$ 140,000

Stock-Based Compensation (Details)	12 Months Ended
Stock-Based Compensation (Details)	Dec. 31, 2012	Dec. 31, 2011
Summary of Share-Based Compensation of Fair Value Assumptions
Expected Volatility, Minimum	85.41%	76.91%
Expected Volatility, Maximum	111.36%	102.63%
Expected Dividend yield	0.00%	0.00%
Risk-free interest rate, Minimum	1.02%	2.25%
Risk-free interest rate, Maximum	1.98%	3.25%
Minimum Expected life	5 years 6 months	5 years 6 months
Maximum Expected Term	10 years	10 years
Minimum Forfeiture Rate	0.00%	0.00%
Maximum Forfeiture Rate	2.00%	5.00%

Stock-Based Compensation (Details 1) - USD ($)	12 Months Ended
Stock-Based Compensation (Details 1) - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Summary of Company's Stock Option activity
Outstanding, Shares, Beginning Balance	1,628,167	1,334,667
Outstanding, Weighted Average Exercise Price, Beginning Balance	$ 1.35	$ 1.41
Outstanding, Weighted Average Remaining Contractual Term, Beginning Balance	6 years 3 months 4 days	5 years 8 months 27 days
Granted, Shares	813,500	562,500
Granted, Weighted Average Exercise Price	$ 0.66	$ 1.12
Granted, Weighted Average Remaining Contractual Term	9 years 1 month 17 days	9 years 2 months 12 days
Exercised, Shares	0	0
Exercised, Weighted Average Exercise Price
Canceled or expired, Shares	(362,667)	(269,000)
Canceled or expired, Weighted Average Exercise Price	$ 1.61	$ 1.19
Canceled or expired, Weighted Average Remaining Contractual Term	5 years 3 months 15 days	4 years 10 months 17 days
Outstanding, Shares, Ending Balance	2,079,000	1,628,167
Outstanding, Weighted Average Exercise Price, Ending Balance	$ 1.03	$ 1.35
Outstanding, Weighted Average Remaining Contractual Term, Ending Balance	6 years 9 months 7 days	6 years 3 months 4 days
Outstanding, Aggregate Intrinsic Value, Ending Balance
Exercisable, Shares	982,625	864,917
Exercisable, Weighted Average Exercise Price	$ 1.26	$ 1.50
Exercisable, Weighted Average Remaining Contractual Term	5 years 1 month 17 days	4 years 11 months 23 days
Exercisable, Aggregate Intrinsic Value
Vested and expected to vest, Shares	2,037,742	1,585,098
Vested and expected to vest, Weighted Average Exercise Price	$ 1.03	$ 1.35
Vested and expected to vest, Weighted Average Remaining Contractual Term	6 years 8 months 23 days	6 years 2 months 23 days
Vested and expected to vest, Aggregate Intrinsic Value

Stock-Based Compensation (Details Textual) - USD ($)	12 Months Ended
Stock-Based Compensation (Details Textual) - USD ($)	Dec. 31, 2012	Dec. 31, 2011	Jun. 19, 2012
Stock-Based Compensation (Textual) [Abstract]
Stock option exercise price	$ 0.66	$ 1.12
Stock options or stock appreciation rights granted having Exceeding Terms ten years	813,500	562,500
Common stock shares available for issuance			5,000,000
Stock-Based Compensation (Additional Textual) [Abstract]
Period for conditional grant of award	12 months
Maximum number of Shares for which share awards can be granted	1,000,000
Stock option exceeding period	10 years
Estimated aggregate fair value of stock option	$ 441,000	$ 502,000
Weight average fair value of the options granted	$ 0.54	$ 0.89
Stock based compensation forfeiture experience recorded		$ 113,000
Number of options vested	0
Unrecognized compensation cost related to non vested employee and director share based compensation arrangement	$ 222,000
Weighted average period for which cost is expected to be recognized	1 year 7 months 28 days
Exercised, Shares	0	0
Tax benefits attributed to the stock-based compensation expense	$ 0
Remaining shares of common stock available for issuance	2,921,000
General and Administrative Expense [Member]
Stock-Based Compensation (Textual) [Abstract]
Share-based Compensation Expense	$ 448,000	$ 335,000
Stock Options [Member]
Stock-Based Compensation (Textual) [Abstract]
Stock options or stock appreciation rights granted having Exceeding Terms ten years	0
Stock appreciation rights (SARs) [Member]
Stock-Based Compensation (Textual) [Abstract]
Stock options or stock appreciation rights granted having Exceeding Terms ten years	0
Consultants [Member]
Stock-Based Compensation (Textual) [Abstract]
Stock options or stock appreciation rights granted having Exceeding Terms ten years	218,000	68,000
Minimum [Member]
Stock-Based Compensation (Textual) [Abstract]
Stock option exercise price	$ 0.65
Maximum [Member]
Stock-Based Compensation (Textual) [Abstract]
Stock option exercise price		$ 0.85

Debt (Details Textual)	1 Months Ended	12 Months Ended		88 Months Ended
Debt (Details Textual)	Oct. 31, 2012 $ / Units shares	Dec. 31, 2012 USD ($) $ / Units shares	Dec. 31, 2011 USD ($)	Dec. 31, 2012 USD ($) $ / Units	Dec. 26, 2012 USD ($)	Nov. 20, 2012 USD ($)	Sep. 04, 2007 $ / Units
Line of Credit Facility (Textual) [Abstract]
Credit facility available Borrowing		$ 3,000,000		$ 3,000,000
Credit facility accrue interest rate		10.00%
Credit facility initial term		28 months
Warrants granted to purchase aggregate common stock \| shares		805,521
Warrants issued with credit facility \| $ / Units		0.25		0.25			2.46
Fair value of warrants		$ 2,000,000
Expected volatility		82.00%
Dividend yield		0.00%
Risk free interest rate		4.88%
Expected Life		10 years
Net proceeds from Exercise of warrants		$ 201,000		$ 201,000
Amortization expenses related to deferred financing cost		14,000	$ 37,000
Borrowing credit facility		300,000	2,475,000
Interest expense related to Outstanding credit facility		55,000	48,000	167,000
Remaining credit facility		300,000	2,475,000	300,000
Promissory note principal amount					$ 300,000	$ 300,000
Percentage of interest rate payable					10.00%	10.00%
The Frost Group [Member]
Line of Credit Facility (Textual) [Abstract]
Credit facility available Borrowing		3,900,000		3,900,000
Mr. Spragens [Member]
Line of Credit Facility (Textual) [Abstract]
Credit facility available Borrowing		100,000		100,000
Warrants granted to purchase aggregate common stock \| shares	805,521
Warrants issued with credit facility \| $ / Units	0.25
Net proceeds from Exercise of warrants		$ 201,000
Credit Facility [Member]
Line of Credit Facility (Textual) [Abstract]
Maturity date		Jun. 30, 2013
Interest expense related to Outstanding credit facility		$ 51,000	48,000
Accrued Interest		$ 8,000	$ 48,000	$ 8,000

Capital Transactions (Details Textual)	1 Months Ended					12 Months Ended
Capital Transactions (Details Textual)	Feb. 28, 2012 USD ($) $ / shares shares	Sep. 30, 2010 USD ($) shares	Jun. 30, 2010 USD ($) $ / shares shares	Jan. 31, 2010 shares	Jun. 30, 2009 $ / shares	Dec. 31, 2012 $ / shares shares	Dec. 31, 2010 USD ($) shares	Dec. 31, 2008 USD ($)	Feb. 17, 2012 Investor	Dec. 31, 2011 $ / shares shares	Sep. 10, 2010 USD ($) $ / shares shares	Jun. 15, 2010 Investor	Jan. 12, 2010 USD ($) $ / shares	Jul. 22, 2009 USD ($) $ / shares	Jul. 21, 2009 USD ($) $ / shares shares
Capital Transactions (Textual) [Abstract]
Issuance of common shares in private offering \| $							$ 4,974,000	$ 3,988,000
Preferred Stock Par value per share \| $ / shares						$ 0.01				$ 0.01
Beneficial owner in terms of the percentages of Common stock				10.00%
Closing prices of the Common Stock \| $ / shares											$ 1.85
Conversion Date, for each converted share of Series A Preferred Stock holder entitled to receive common stock											1
Common Stock share issued as a result of the Unpaid Dividends		365,575
Rectify shares number		697,462
Common stock, shares issued						49,603,276	697,000			28,003,755
Aggregate intrinsic value upon conversion date which was considered a deemed dividend. \| $											$ 3,700,000
Consideration shares issued aggregate market value considered as deemed dividend on the conversion date \| $											$ 1,300,000
Dividend paid to Series A Preferred Stockholders on conversion, charged to additional paid-in capital in the absence of retained earnings \| $							$ (4,301,000)
Series A Preferred Stock [Member]
Capital Transactions (Textual) [Abstract]
Designated percentage of cumulative convertible Series A preferred stock					10.00%
Preferred Stock Par value per share \| $ / shares															$ 0.01
Dividend rate per dollar amount \| $ / shares					$ 1.00
Minimum Percentage of holding of Issued and outstanding series A Preferred stock voting					66.67%
Redemption price preferred stock \| $ / shares					$ 1.00
Liquidation Amount per share \| $ / shares					$ 1.00
Conversion of Series A Preferred Stock											4,000,000
Series A Preferred stock aggregate issuance											0
Preferred stock, shares outstanding											0
Unpaid Dividends accumulated through Conversion Date \| $		$ 366,000
Series Preferred Conversion [Member]
Capital Transactions (Textual) [Abstract]
Common Stock intrinsic value per share \| $ / shares											$ 0.85
Common stock, shares issued											4,365,575
Convertible Preferred Stock [Member]
Capital Transactions (Textual) [Abstract]
Series A Preferred stock aggregate issuance
Preferred stock, shares outstanding
Chairman of Board [Member]
Capital Transactions (Textual) [Abstract]
Common Stock share issued as a result of the Unpaid Dividends		29,709
Rectify shares number		76,261
Chairman of Board 1 [Member]
Capital Transactions (Textual) [Abstract]
Common Stock share issued as a result of the Unpaid Dividends		29,709
Rectify shares number		76,261
President and Chief Executive Officer [Member]
Capital Transactions (Textual) [Abstract]
Common Stock share issued as a result of the Unpaid Dividends		6,638
Rectify shares number		17,042
2012 PIPE investors [Member]
Capital Transactions (Textual) [Abstract]
Number of Investors \| Investor									35
Purchase of Common stock	20,794,000
Price per Share \| $ / shares	$ 0.40
Issuance of common shares in private offering \| $	$ 8,300,000
2012 PIPE investors [Member] \| Chairman of Board [Member]
Capital Transactions (Textual) [Abstract]
Purchase of Common stock	4,500,000
2012 PIPE investors [Member] \| Board of Directors [Member]
Capital Transactions (Textual) [Abstract]
Purchase of Common stock	125,000
2012 PIPE investors [Member] \| President and Chief Executive Officer [Member]
Capital Transactions (Textual) [Abstract]
Purchase of Common stock	250,000
2010 PIPE investors [Member]
Capital Transactions (Textual) [Abstract]
Number of Investors \| Investor												20
Purchase of Common stock	4,978,000
Price per Share \| $ / shares			$ 1.00
Issuance of common shares in private offering \| $			$ 4,978,000
2010 PIPE investors [Member] \| Chairman of Board [Member]
Capital Transactions (Textual) [Abstract]
Purchase of Common stock			1,300,000
Investor 2009 [Member] \| Series A Preferred Stock [Member]
Capital Transactions (Textual) [Abstract]
Conversion of Series A Preferred Stock															2,000,000
Series A Preferred stock aggregate issuance \| $ / shares															$ 1.00
Aggregate Consideration on the issuance of the 2009 Shares \| $															$ 2,000,000
Future Investor [Member] \| Series A Preferred Stock [Member]
Capital Transactions (Textual) [Abstract]
Series A Preferred stock aggregate issuance															2,000,000
Aggregate Consideration under Future Purchase Agreement \| $													$ 2,000,000
Preferred stock purchase by beneficial shareholder				995,000
Closing prices of the Common Stock \| $ / shares													$ 1.25	$ 1.10
Deemed discount on preferred shares increase in paid in capital \| $													$ 500,000	$ 200,000
Deemed dividend on preferred shares reduction to paid in capital \| $													$ 500,000	$ 200,000
Written notice delivered to the Future Investors						10 days
Future Investor [Member] \| Series Preferred Conversion [Member]
Capital Transactions (Textual) [Abstract]
Series A Preferred stock aggregate issuance \| $ / shares															$ 1.00
Beneficial conversion features of per share of Series A Preferred Stock \| $ / shares													$ 0.25	$ 0.10

Basic and Diluted Net Loss Per Share (Details) - shares	12 Months Ended
Basic and Diluted Net Loss Per Share (Details) - shares	Dec. 31, 2012	Dec. 31, 2011
Summary of Potential Common Shares
Antidilutive Securities Excluded from Computation of Earnings Per Share	2,079,000	2,433,688
Stock Options [Member]
Summary of Potential Common Shares
Antidilutive Securities Excluded from Computation of Earnings Per Share	2,079,000	1,628,167
Stock Warrants [Member]
Summary of Potential Common Shares
Antidilutive Securities Excluded from Computation of Earnings Per Share	0	805,521

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Basic and Diluted Net Loss Per Share (Details Textual) - shares	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Basic and Diluted Net Loss Per Share (Textual) [Abstract]
Weighted average outstanding common shares	0	0

Commitments and Contingencies (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Commitments and Contingencies (Textual) [Abstract]
Obligation to pay royalty for first three years	3 years
Obligation to pay royalty for following seven years	7 years
Creighton Royalty Agreement [Member]
Commitments and Contingencies (Textual) [Abstract]
Operating Leases	$ 269,000	$ 199,000
1.5% royalty period	1.50%
4% royalty period	4.00%
Period of Royalty	10 years
Royalty Incurred	$ 1,300	$ 0
Period of supply agreement	12 months
Purchase obligation beyond next twelve months	$ 0

Agreement with Creighton University (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Agreement with Creighton University (Textual) [Abstract]
Percentage of royalty of product revenue	1.50%
Minimum investment under royalty agreement	$ 2,500,000
Period for minimum investment under royalty agreement	36 months
Patent related under royalty agreement	$ 150,000
Reimbursement percentage of research and development expenses	20.00%
Research and development expense under royalty agreement	$ 32,000	$ 45,000
Percentage of Reimbursement Obligation For Investment Obligation	20.00%

Income Taxes (Details)	12 Months Ended
Income Taxes (Details)	Dec. 31, 2012	Dec. 31, 2011
Schedule of difference between income taxes at the statutory federal income tax rate and income taxes reported in the statements of operations in percent
Income tax benefit at the federal statutory rate	34.00%	34.00%
State income taxes, net of effect on federal taxes	3.55%	3.51%
Research and development credit	1.67%	2.84%
Other	(0.21%)	0.56%
Increase in valuation allowance	(39.01%)	(40.91%)
Provision for income tax	0.00%	0.00%

Income Taxes (Details 1) - USD ($)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2006
The deferred tax asset
Net operating loss carryforward	$ 5,593,000	$ 4,419,000
Deferred start-up costs	3,762,000	2,658,000
Research and development credit carryforward	590,000	477,000	$ 1,200,000
Stock-based compensation	689,000	520,000
Other	51,000	(13,000)
Deferred Tax Assets, Gross, Current	10,685,000	8,061,000
Less: Valuation allowance	(10,685,000)	(8,061,000)
Net deferred tax asset

- Definition

Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences from share-based compensation.

+ References + Details

- Definition

Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences from other provisions, reserves, allowances, and accruals not separately disclosed.

+ References + Details

Income Taxes (Details Textual) - USD ($)	12 Months Ended
Income Taxes (Details Textual) - USD ($)	Dec. 31, 2012	Dec. 31, 2006	Dec. 31, 2011
Income Taxes (Additional Textual) [Abstract]
Federal net operating loss carryforwards to offset future taxable income	$ 15,000,000	$ 54,100,000
Deferred start-up cost	$ 10,000,000
Amortized period	15 years
Research and development credit carryforward	$ 590,000	$ 1,200,000	$ 477,000
Net operating loss and research and development credit carryforwards expire	2032
Change in valuation allowance, Amount	$ 2,624,000
Operating loss carryforwards expire	2026
Research and development credit tax credit expires	2024
Valuation allowance percentage on deferred tax asset		100.00%
Unrecognized tax position, including interest and penalties	$ 0
Maximum [Member]
Income Taxes (Textual) [Abstract]
Tax years open to examination by major tax jurisdictions	2011
Minimum [Member]
Income Taxes (Textual) [Abstract]
Tax years open to examination by major tax jurisdictions	2009

Certain Relationships and Related Party Transactions (Details Textual) - USD ($)	1 Months Ended		12 Months Ended
	Dec. 31, 2012	Nov. 30, 2012	Dec. 31, 2012	Dec. 31, 2011	Dec. 26, 2012	Nov. 20, 2012
Certain Relationships and Related Party Transactions (Textual) [Abstract]
Credit facility	$ 3,000,000		$ 3,000,000
Promissory note principal amount					$ 300,000	$ 300,000
Percentage of interest rate payable					10.00%	10.00%
Certain Relationships and Related Party Transactions (Additional Textual) [Abstract]
Balance outstanding credit facility	300,000		$ 300,000	$ 2,475,000
Lease period for office space			5 years
Percentage of annual rent increase of lease			4.50%
Reduction in selling general and administrative costs and expenses			$ 60,000	78,000
Aggregate account receivable from NIMS	59,000		59,000	66,000
Reduction in selling general and administrative costs and expenses due to accounted in legal cost under agreement			145,000	178,000
Miami [Member]
Certain Relationships and Related Party Transactions (Textual) [Abstract]
Payments for rent				21,000
Current rental payments under the lease			255,000	199,000
Credit Facility [Member]
Certain Relationships and Related Party Transactions (Textual) [Abstract]
Accrued Interest	$ 8,000		$ 8,000	$ 48,000
Maturity date			Jun. 30, 2013
Notes Payable, Other Payables [Member] \| Hsu Gamma [Member]
Certain Relationships and Related Party Transactions (Textual) [Abstract]
Promissory note principal amount						$ 300,000
Maturity date		Jun. 30, 2013
Percentage of interest rate payable						10.00%
Notes Payable, Other Payables [Member] \| Frost Gamma [Member]
Certain Relationships and Related Party Transactions (Textual) [Abstract]
Promissory note principal amount					$ 300,000
Maturity date	Jun. 30, 2013
Percentage of interest rate payable					10.00%

Employee Benefit Plans (Details Textual) - USD ($)	12 Months Ended
Employee Benefit Plans (Details Textual) - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Employee Benefit Plans (Textual) [Abstract]
Employee contribution to annual compensation	100.00%	100.00%
Employer contribution matching plan	100.00%	100.00%
Percentage of participant's qualified annual earnings	4.00%	4.00%
Expenses recorded related to plan	$ 45,000	$ 39,000

Subsequent Events (Details)	1 Months Ended	12 Months Ended
Subsequent Events (Details)	Mar. 22, 2013 USD ($) Investor $ / shares shares	Dec. 31, 2012 $ / shares	Dec. 31, 2010 USD ($)	Dec. 31, 2008 USD ($)	Feb. 22, 2013 USD ($)	Dec. 26, 2012 USD ($)	Nov. 20, 2012 USD ($)
Subsequent Events (Textual) [Abstract]
Hsiao Note, principal note \| $						$ 300,000	$ 300,000
Hsiao Note, interest rate						10.00%	10.00%
Aggregate consideration for common stock \| $			$ 4,974,000	$ 3,988,000
2013 PIPE investors [Member]
Subsequent Events (Textual) [Abstract]
Issuance of common shares in private offering, Shares	12,100,000
Sale of stock, Price per share \| $ / shares	$ 0.25
Warrants to purchase common shares	6,050,000
Exercise price of Warrants \| $ / shares		$ 0.33
Expiry period for warrants		5 years
Subsequent Event [Member] \| 2013 PIPE investors [Member]
Subsequent Events (Textual) [Abstract]
Number of PIPE Investors under stock purchase agreement \| Investor	17
Issuance of common shares in private offering, Shares	12,100,000
Sale of stock, Price per share \| $ / shares	$ 0.25
Aggregate consideration for common stock \| $	$ 3,000,000
Warrants to purchase common shares	6,050,000
Exercise price of Warrants \| $ / shares	$ 0.33
Expiry period for warrants	5 years
Frost Gamma [Member] \| Subsequent Event [Member]
Subsequent Events (Textual) [Abstract]
Issuance of common shares in private offering, Shares	2,000,000
Warrants to purchase common shares	1,000,000
Dr. Jane Hsiao [Member] \| Subsequent Event [Member]
Subsequent Events (Textual) [Abstract]
Issuance of common shares in private offering, Shares	4,000,000
Warrants to purchase common shares	2,000,000
Dr. Jane Hsiao [Member] \| Notes Payable, Other Payables [Member] \| Subsequent Event [Member]
Subsequent Events (Textual) [Abstract]
Hsiao Note, principal note \| $					$ 200,000
Hsiao Note, interest rate					10.00%
Jeffrey Spragens [Member] \| Subsequent Event [Member]
Subsequent Events (Textual) [Abstract]
Issuance of common shares in private offering, Shares	400,000
Warrants to purchase common shares	200,000