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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2012	Jul. 31, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	MIMEDX GROUP, INC.
Entity Central Index Key	0001376339
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 Common Stock, Shares Outstanding		83,063,139
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2012

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($)

Jun. 30, 2012

Dec. 31, 2011

Current assets:

Cash and cash equivalents

$ 2,654,694

$ 4,112,326

Accounts receivable, net

3,946,333

1,891,919

Inventory, net

961,939

712,602

Prepaid expenses and other current assets

292,223

164,664

Total current assets

7,855,189

6,881,511

Property and equipment, net of accumulated depreciation of $2,045,964 and $1,814,473, respectively

948,720

869,411

Goodwill

4,040,443

Intangible assets, net of accumulated amortization of $4,136,469 and $3,468,515, respectively

^[1]

14,422,531

15,090,485

Deposits and other long term assets

204,803

214,342

Total assets

27,471,686

27,096,192

Current liabilities:

Accounts payable and accrued expenses

1,902,349

2,300,638

Other current liabilities

69,981

6,620

Convertible line of credit with related party, net of unamortized discount of $398,899 and $46,746, respectively, plus accrued interest of $75,137 and $42,726, respectively

976,238

1,295,980

Convertible debt related to acquisition, net of unamortized discount of $3,821 and $170,509, respectively, plus accrued interest of $69,808 and $49,315, respectively

1,065,987

1,128,806

Current portion of earn-out liability payable In MiMedx common stock

4,225,280

3,185,223

Total current liabilities

8,239,835

7,917,267

Earn-out liability payable in MiMedx common stock, net of current portion

4,225,280

Convertible Senior Secured Promissory Notes, net of unamortized discount of $1,818,446 and $2,263,145, respectively, plus accrued interest of $61,933 and $7,732, respectively

3,243,487

2,744,587

Other liabilities

320,055

312,493

Total liabilities

11,803,377

15,199,627

Commitments and contingencies (Note 12)

Stockholders' equity:

Preferred stock; $.001 par value; 5,000,000 shares authorized and 0 shares issued and outstanding

Common stock; $.001 par value; 110,000,000 shares authorized; 81,052,359 issued and 81,002,359 outstanding for 2012 and 74,306,895 issued and 74,256,895 outstanding for 2011

81,052

74,307

Additional paid-in capital

79,471,324

73,868,604

Treasury stock (50,000 shares at cost)

(25,000)

Accumulated deficit

(63,859,067)

(62,021,346)

Total stockholders' equity

15,668,309

11,896,565

Total liabilities and stockholders' equity

$ 27,471,686

$ 27,096,192

[1]	On January 5, 2011, the Company acquired Surgical Biologics, LLC. As a result, the Company recorded intangible assets for customer and supplier relationships, patents and know-how, licenses/permits, trade names and trademarks and in-process research and development.

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($)	Jun. 30, 2012	Dec. 31, 2011
ASSETS
Property and equipment, accumulated depreciation	$ 2,045,964	$ 1,814,473
Intangible assets, accumulated amortization	4,136,469	3,468,515
Current liabilities:
Convertible line of credit with related party, unamortized discount	398,899	46,746
Convertible line of credit with related party, accrued interest	75,137	42,726
Convertible debt, unamortized discount	3,821	170,509
Convertible debt, accrued interest	69,808	49,315
Convertible Senior Secured Promissory Notes, unamortized discount	1,818,446	2,263,145
Convertible Senior Secured Promissory Notes, accrued interest	$ 61,933	$ 7,732
Stockholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	110,000,000	110,000,000
Common stock, shares issued (in shares)	81,052,359	74,306,895
Common stock, shares outstanding (in shares)	81,002,359	74,256,895
Treasury stock, shares (in shares)	50,000	50,000

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
REVENUES:
Net sales	$ 4,884,256	$ 1,929,399	$ 8,590,064	$ 2,972,886
OPERATING COSTS AND EXPENSES:
Cost of products sold	1,114,926	844,941	2,073,781	1,555,058
Research and development expenses	503,086	791,952	910,158	1,754,176
Selling, general and administrative expenses	3,383,760	2,708,941	6,355,006	5,336,435
LOSS FROM OPERATIONS	(117,516)	(2,416,435)	(748,881)	(5,672,783)
OTHER INCOME (EXPENSE), net
Financing expense associated with the debt discount recognized in connection with the senior secured promissory notes	(472,749)	(60,599)	(783,226)	(133,517)
Interest expense, net	(153,804)	(26,471)	(305,614)	(44,767)
LOSS BEFORE INCOME TAXES	(744,069)	(2,503,505)	(1,837,721)	(5,851,067)
Income taxes	0	0	0	0
NET LOSS	$ (744,069)	$ (2,503,505)	$ (1,837,721)	$ (5,851,067)
Net loss per common share
Basic and diluted (in dollars per share)	$ (0.01)	$ (0.03)	$ (0.02)	$ (0.08)
Shares used in computing net loss per common share
Basic and diluted (in shares)	79,952,542	71,819,017	77,416,073	71,098,976

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) - 6 months ended Jun. 30, 2012 - USD ($)	Series A Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2011	$ 0	$ 74,307	$ 73,868,604	$ (25,000)	$ (62,021,346)	$ 11,896,565
Balance (in shares) at Dec. 31, 2011	0	74,306,895
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Employee share-based compensation expense	$ 0	$ 0	878,491	0	0	878,491
Other share-based compensation expense	0	0	207,709	0	0	207,709
Exercise of stock options	0	$ 325	314,970	0	0	315,295
Exercise of stock options (in shares)		324,750
Exercise of warrants	0	$ 3,453	320,185	0	0	323,638
Exercise of warrants (in shares)		3,453,869
Cashless exercise of warrants	0	$ 167	(167)	0	0	$ 0
Cashless exercise of warrants (in shares)		167,183				167,183
Common stock issued for accrued Director fees	0	$ 167	184,486	0	0	$ 184,653
Common stock issued for accrued Director fees (in shares)		167,086				167,086
Common stock issued for Earn-out liability	0	$ 2,633	3,182,590	0	0	$ 3,185,223
Common stock issued for Earn-out liability (in shares)		2,632,576
Discount on beneficial conversion feature recognized on vested contingent warrants on the line of credit with related party	0	$ 0	514,456	0	0	514,456
Net loss for the period	0	0	0	0	(1,837,721)	(1,837,721)
Balance at Jun. 30, 2012	$ 0	$ 81,052	$ 79,471,324	$ (25,000)	$ (63,859,067)	$ 15,668,309
Balance (in shares) at Jun. 30, 2012	0	81,052,359

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)	6 Months Ended
	Jun. 30, 2012 USD ($) shares	Jun. 30, 2011 USD ($) shares
Cash flows from operating activities:
Net loss	$ (1,837,721)	$ (5,851,067)
Adjustments to reconcile net loss to net cash flows from operating activities:
Depreciation	231,491	231,862
Amortization of intangible assets	667,954	667,954
Amortization of debt discount and deferred financing costs	783,226	133,517
Employee share-based compensation expense	878,491	809,469
Other share-based compensation expense	207,709	222,208
Increase (decrease) in cash resulting from changes in (net of effects of acquisition):
Accounts receivable	(2,054,414)	(559,044)
Inventory	(249,337)	(103,257)
Prepaid expenses and other current assets	(127,559)	(140,508)
Accounts payable and accrued expenses	(338,636)	574,521
Accrued interest	232,107	37,698
Other liabilities	7,878	57,127
Net cash flows from operating activities	(1,598,811)	(3,919,520)
Cash flows from investing activities:
Purchases of equipment	(238,498)	(143,427)
Cash paid for acquisition, net of cash acquired of $33,583	0	(466,417)
Net cash flows from investing activities	(238,498)	(609,844)
Cash flows from financing activities:
Proceeds from exercise of warrants	323,638	0
Proceeds from exercise of stock options	315,295	3
Repayment of Convertible Debt related to acquisition	(250,000)	0
Repayment of Equipment Lease	(9,256)	0
Proceeds from Line of Credit with related party	0	1,300,000
Repayment of Line of Credit	0	(99,000)
Repayment of Notes Payable	0	(30,932)
Proceeds from sale of common stock and warrants and common stock with registration rights, net	0	3,632,721
Net cash flows from financing activities	379,677	4,802,792
Net change in cash	(1,457,632)	273,428
Cash, beginning of period	4,112,326	1,340,922
Cash, end of period	2,654,694	1,614,350
Supplemental disclosure of cash flow information:
Cash paid for interest	5,435	2,833
Cash paid for income taxes	0	0
Supplemental disclosure of non-cash financing activity:
Common stock issued for accrued Director fees	$ 184,653
Common stock issued for accrued Director fees (in shares) \| shares	167,086
Cashless exercise of warrants (in shares) \| shares	167,183
Deferred financing costs	$ 9,537
Beneficial conversion feature recognized	514,456	$ 80,000
Shares issued for conversion of convertible debt and accrued interest to equity (in shares) \| shares		406,664
Shares issued in conjunction with the acquisition of Surgical Biologics, LLC (in shares) \| shares		5,250,000
Stock valued in conjunction with the acquisition of Surgical Biologics, LLC		$ 7,087,500
Beneficial conversion feature value related to the convertible debt issued with regard to the acquisition of Surgical Biologics, LLC		437,500
Convertible debt issued with regard to acquisition of Surgical Biologics		$ 1,250,000
Stock valued for payment of earn out liability related to acquisition of Surgical Biologics, LLC	$ 3,185,223
Stock valued for payment of earn out liability related to acquisition of Surgical Biologics, LLC (in shares) \| shares	2,632,576
Equipment acquired under capital lease	$ 72,302

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (Parenthetical)	6 Months Ended
	Jun. 30, 2011 USD ($)
Cash flows from investing activities:
Acquisition, cash acquired	$ 33,583

Basis of Presentation

6 Months Ended

Jun. 30, 2012

Basis of Presentation [Abstract]

Basis of Presentation

1.	Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulations S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Changes to GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of accounting standards updates ("ASU's") to the FASB's Accounting Standards Codification ("ASC"). In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results of operations for the periods presented have been included. Operating results for the three and six months ended June 30, 2012 and 2011, are not necessarily indicative of the results that may be expected for the fiscal year. The balance sheet at December 31, 2011, has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements.

You should read these condensed consolidated financial statements together with the historical consolidated financial statements of the Company for the year ended December 31, 2011 included in our Annual Report on Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission ("SEC") on March 30, 2012, as amended by Amendment No. 1 filed on April 27, 2012, and by Amendment No. 2 filed on June 21, 2012.

The Company operates in one business segment, Biomaterials, which includes the design, manufacture, and marketing of products and amnion tissue processing for a variety of surgical applications using the Company's proprietary biomaterials-CollaFix™, HydroFix®, EpiFix® and AmnioFix®.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2134480

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 852
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-URI http://asc.fasb.org/subtopic&trid=2209116

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2122150

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/subtopic&trid=2197480

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=7880789&loc=SL6228881-111685

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6373374&loc=d3e70478-108055

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-URI http://asc.fasb.org/subtopic&trid=2122524

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=7668296&loc=d3e288-107754

Reference 9: http://www.xbrl.org/2003/role/presentationRef
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=18733093&loc=d3e5614-111684

Reference 12: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6359566&loc=d3e326-107755

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 94-6
-Paragraph 10
-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 Research Bulletin (ARB)
-Number 51
-Paragraph 2-6
-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 FASB
-Name FASB Interpretation (FIN)
-Number 46R
-Paragraph 4, 14, 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 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS140-4/FIN46(R)-8
-Paragraph 8, C1, C7
-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

Significant accounting policies

6 Months Ended

Jun. 30, 2012

Significant accounting policies [Abstract]

Significant accounting policies

2.	Significant accounting policies

Please see Note 2 to our Consolidated Financial Statements included in the Company's Form 10-K for the fiscal year ended December 31, 2011, for a description of all significant accounting policies.

Reclassifications

Certain amounts in the prior year financial statements have been reclassified to conform to the current year financial statement presentation.

Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Accounts Receivable

Accounts receivable represent amounts due from customers for which revenue has been recognized. Generally, the Company does not require collateral or any other security to support its receivables.

The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses in the Company's existing receivables. The Company determines the allowance based on factors such as historical collection experience, customer's current creditworthiness, customer concentration, age of accounts receivable balance and general economic conditions that may affect the customer's ability to pay. The Company has $53,000 and $20,000 in the allowance for doubtful accounts as of June 30, 2012 and December 31, 2011, respectively. Actual customer collections could differ from estimates. The approximate provision during the six months ended June 30, 2012 was $51,000, and there were approximately $18,000 of write-offs during the same period.

Inventories

Inventories are valued at the lower of actual cost or market, using the first-in, first-out ("FIFO") method. Work in process is calculated by estimating the number of units that will be successfully converted to finished goods, based upon a build-up in the stage of completion using estimated labor inputs for each stage and historical yields reduced by estimated usage for quality control testing. Idle facility expense, excessive spoilage, extra freight, and handling costs are expensed, as necessary, in cost of products sold and are not capitalized into inventories. Allocation of fixed production overheads is based on the normal capacity of production facilities.

Goodwill and intangible assets

Goodwill is tested at least annually for impairment, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Intangible assets with finite useful lives are amortized into Selling, General and Administrative Expenses in the condensed consolidated statements of operations using the straight-line method over various periods depending upon the specific asset.

Debt Instruments with Detachable Warrants and Beneficial Conversion Features

According to ASC-470 Debt Instruments with Detachable Warrants, proceeds from the sale of debt instruments with stock purchase warrants (detachable call options) shall be allocated to the two elements based upon the relative fair values of the debt instrument without the warrants and of the warrants themselves at the time of issuance. The portion of the proceeds so allocated to the warrants shall be accounted for as paid-in capital. The remainder of the proceeds shall be allocated to the debt instrument portion of the transaction. Also, the embedded beneficial conversion feature present in the convertible instrument shall be recognized separately at issuance by allocating a portion of the proceeds equal to the intrinsic value of that feature to additional paid-in capital.

Revenue Recognition

The Company sells its products primarily through a combination of independent stocking distributors and representatives in the U.S. and independent distributors in international markets. The Company recognizes revenue when title to the goods and risk of loss transfers to customers, provided there are no material remaining performance obligations required of the Company or any matters of customer acceptance. In cases where the Company utilized distributors or ships product directly to the end user, it recognizes revenue upon shipment provided all revenue recognition criteria have been met. A portion of the Company's revenue is generated from inventory maintained at hospitals or with field representatives. For these products, revenue is recognized at the time the product has been used or implanted. The Company records estimated sales returns, discounts and allowances as a reduction of net sales in the same period revenue is recognized. The Company recorded approximately $107,000 and $94,000 for net sales returns provisions for the three months ended June 30, 2012 and 2011, respectively, and there were approximately $26,000 and $9,000 of charges against the provision during the three months ended June 30, 2012 and 2011, respectively. The Company recorded approximately $146,000 and $137,000 for net sales returns provisions for the six months ended June 30, 2012 and 2011, respectively, and there were approximately $26,000 and $102,000 of charges against the provision during the six months ended June 30, 2012 and 2011, respectively.

Fair value of financial instruments

The carrying value of accounts payable and accrued expenses approximate their fair value due to the short-term nature of these liabilities. The fair value of our short term and long term convertible debt approximates $5,286,000 which represents the face value less the unamortized discount of any beneficial conversion feature plus accrued but unpaid interest at June 30, 2012. The fair value of warrants issued in conjunction with placement fees was approximately $11,000 which represents the face value less the unamortized discount of any beneficial conversion feature at June 30, 2012.

Net loss per share

Basic net loss per common share is computed using the weighted-average number of common shares outstanding during the period. Diluted net loss per common share is computed using the weighted-average number of common and dilutive common equivalent shares from stock options, warrants and convertible debt using the treasury stock method. For all periods presented, diluted net loss per share is the same as basic net loss per share, as the inclusion of equivalent shares from outstanding common stock options, warrants and convertible debt would be anti-dilutive.

The following table sets forth the computation of basic and diluted net loss per share:

	Three months ended June 30,						Six months ended June 30,
	2012			2011			2012			2011
Net loss	$	(744,069	)	$	(2,503,505	)	$	(1,837,721	)	$	(5,851,067	)
Denominator for basic earnings per share - weighted average shares		79,952,542			71,819,017			77,416,073			71,098,976
Effect of dilutive securities: Stock options and warrants outstanding and convertible debt (a)		-			-			-			-

Denominator for diluted earnings per share - weighted average shares adjusted for dilutive securities		79,952,542			71,819,017			77,416,073			71,098,976

Loss per common share - basic and diluted	$	(0.01	)	$	(0.03	)	$	(0.02	)	$	(0.08	)

(a)

Securities outstanding that were excluded from the computation, because they would have been anti-dilutive are as follows:

	June 30, 2012		June 30, 2011
Outstanding Stock Options		12,794,250		10,434,667
Outstanding Warrants		7,763,817		8,023,917
Convertible Debt, promissory notes		5,186,933		-
Convertible Line of Credit with Related Party		1,375,137		1,300,000
Convertible Debt, Acquisition		1,069,808		1,250,000
		28,189,945		21,008,584

The table above excludes all securities with contingencies including the earnout liability and contingent warrants.

Recent Accounting Pronouncements

The Company considers the applicability and impact of all ASU's. ASU's not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations.

Goodwill

The FASB issued updated authoritative guidance in September 2011 to amend previous guidance on the annual and interim testing of goodwill for impairment; the guidance became effective for MiMedx at the beginning of its 2012 fiscal year. The guidance provides entities with the option of first assessing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is determined, on the basis of qualitative factors, that the fair value of the reporting unit is more likely than not less than the carrying amount, the two-step impairment test would still be required. Annual impairment tests are performed by the Company in the fourth quarter of each year. The adoption of this updated authoritative guidance did not have a significant impact on the Company's condensed consolidated financial statements.

Fair Value Measurements

The FASB issued updated authoritative guidance in May 2011 to amend fair value measurements and related disclosures; the guidance became effective for MiMedx at the beginning of its 2012 fiscal year. This guidance relates to a major convergence project of the FASB and the International Accounting Standards Board to improve International Financial Reporting Standards ("IFRS") and GAAP. This guidance results in a consistent definition of fair value and common requirements for measurement of and disclosure about fair value between IFRS and GAAP. The guidance also changes some fair value measurement principles and enhances disclosure requirements related to activities in Level 3 of the fair value hierarchy. The adoption of this updated authoritative guidance had no impact on the Company's condensed consolidated financial statements.

Intangibles - Goodwill and Other

In July 2012, the FASB issued an accounting standards update that gives an entity the option to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. If, after assessing the totality of events and circumstances, an entity concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action. This guidance will be effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012, which will be the Company's fiscal year 2013, with early adoption permitted. The Company does not expect the adoption of the guidance will have a material impact on the Company's consolidated financial statements.

Recently issued accounting pronouncements not yet adopted:

In December 2011, the FASB issued new accounting guidance that will require entities to disclose information about instruments (including derivatives) and transactions eligible for offset in the statement of financial position or subject to an agreement similar to a master netting arrangement. These new provisions are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods, and should be applied retrospectively for all comparative periods presented. We do not expect this accounting standard to have an impact on our condensed consolidated financial statements.

Liquidity and management's plans

6 Months Ended

Jun. 30, 2012

Liquidity and management's plans [Abstract]

Liquidity and management's plans

3.	Liquidity and management's plans

As of June 30, 2012, the Company had approximately $2,655,000 of cash and cash equivalents. The Company reported total current assets of approximately $7,855,000 and current liabilities payable in cash of approximately $4,015,000 after adjusting for the short term earn-out liability payable in MiMedx common stock in the second quarter of 2013. The Company believes that its anticipated cash from operating and financing activities and existing cash and cash equivalents will enable the Company to meet its operational liquidity needs, fund its planned investing activities and pay its debt when due for the next twelve months.

Acquisition of Surgical Biologics, LLC

6 Months Ended

Jun. 30, 2012

Acquisition of Surgical Biologics, LLC [Abstract]

Acquisition of Surgical Biologics, LLC

4.	Acquisition of Surgical Biologics, LLC

On December 21, 2010, we entered into an Agreement and Plan of Merger ("the Merger Agreement") with Membrane Products Holdings, LLC and OnRamp Capital Investments, LLC, the owners of Surgical Biologics, LLC ("Surgical Biologics"), a privately held company headquartered in Kennesaw, Georgia. This transaction closed on January 5, 2011 and as a result we acquired all of the outstanding shares of Surgical Biologics in exchange for $500,000 cash, a total of $1,250,000 in 4% Convertible Secured Promissory Notes, and $7,087,500 in stock, represented by 5,250,000 shares of our common stock (525,000 of which were held in escrow for the purpose of securing the indemnification obligations outlined in the Merger Agreement). Contingent consideration may be payable in a formula determined by sales and certain expenses for the years 2011 and 2012. The contingent consideration was initially valued at $7,404,700 and is shown in the schedule below as fair value of earn-out. We completed the acquisition of Surgical Biologics in an effort to extend our biomaterials product lines. As of December 31, 2011, the Company evaluated the contingent liability based on operating results for the year, and adjusted the earn-out liability to $7,410,503. On April 30, 2012, the Company issued 2,632,576 shares of its Common Stock valued at $3,185,223 in payment of the 2011 earn-out. No additional adjustment was required as of June 30, 2012.

In total, the 4% Convertible Promissory Notes are convertible into up to 1,250,000 shares of the Company's common stock at $1.00 per share (a) at any time upon the election of the holder of the Convertible Notes; or (b) at the election of the Company, at any such time as the closing price per share of the Company's common stock (as reported by the OTCBB or on any national securities exchange on which the Company's shares may be listed, as the case may be) closes at no less than $1.75 per share for not less than 20 consecutive trading days in any period prior to the maturity date. If converted, the Common Stock will be available to be sold following satisfaction of the applicable conditions as set forth in Rule 144. The 4% Convertible Promissory Notes mature in eighteen (18) months and earn interest at 4% per annum on the outstanding principal amount payable in cash on the maturity date or convertible into shares of common stock of the Company as provided for above. The 4% Convertible Promissory Notes are secured by a security interest in the Intellectual Property, including the Patents and know-how and trade secrets related thereto, owned by, or exclusively licensed to, Surgical Biologics, LLC.

The Company has evaluated the 4% Convertible Promissory Notes for accounting purposes under GAAP and has determined that the conversion feature meets the conventional-convertible exemption and, accordingly, bifurcation and fair-value measurement of the conversion feature is not required. We are required to re-evaluate this conclusion upon each financial statement closing date while the 4% Convertible Promissory Notes are outstanding. Notwithstanding, the 4% Convertible Promissory Notes were issued with a beneficial conversion feature having an intrinsic value of $437,500. The intrinsic value of the beneficial conversion feature was determined by comparing the contracted conversion price to the fair value of the common on the date the respective 4% Convertible Promissory Notes were issued. A beneficial conversion feature only exists when the embedded conversion feature is "in-the-money" at the commitment date.

As a result of the beneficial conversion feature, the 4% Convertible Promissory Notes were recorded net of a discount of $437,500 related to the beneficial conversion feature, the offset of which is recorded in paid-in capital, and the discount will be amortized through periodic charges to interest expense over the tem of the 4% Convertible Notes using the effective interest method.

The contingent consideration which was initially valued at $7,404,700 was classified as a liability. The Company has evaluated the contingent consideration for accounting purposes under GAAP and has determined that the contingent consideration is within the scope of ASC 480 Distinguishing Liabilities from Equity whereby a financial instrument other than an outstanding share, that embodies a conditional obligation that the issuer may settle by issuing a variable number of its equity shares, shall be classified as a liability if, at inception, the monetary value of the obligation is based solely or predominantly on variations in something other than the fair value of the issuer's equity shares.

The actual purchase price was based on cash paid, the fair value of our stock on the date of the Surgical Biologics acquisition, and direct costs associated with the combination. The actual purchase price was allocated as follows:

Value of 5,250,000 shares issued at $1.35 per share	$	7,087,500
Cash paid at closing		350,000
Cash retained for working capital		150,000
Assumed Debt		182,777
Convertible Secured Promissory Note		1,250,000
Fair value of earn-out		7,404,700
Total fair value of purchase price	$	16,424,977

Assets purchased:
Tangible assets:
Debt-free working capital	$	671,880
Other assets, net		385
Property, plant and equipment		72,866
		745,131
Intangible assets:
Customer relationships		3,520,000
Supplier relationships		241,000
Patents and know-how		5,530,000
Trade names and trademarks		1,008,000
In-process research and development - liquid		2,160,000
In-process research and development - other		25,000
Licenses and permits		13,000
		12,497,000

Goodwill		3,182,846
Total Assets Purchased	$	16,424,977

Working capital and other assets were composed of the following:

Working capital:
Cash	$	33,583
Prepaid Expenses		2,738
Accounts Receivable		181,087
License Receivable		340,000
Inventory		347,106
Accounts payable and accrued expenses		(196,101	)
Deferred rent and customer deposits		(36,533	)
Debt-free working capital		671,880

Current portion of debt		(62,590	)
Long-term debt		(21,187	)
Line of credit		(99,000	)
Net working capital	$	489,103

Deposits	$	16,582
Deferred rent (non-current)		(16,197	)
	$	385

The combination was accounted for as a purchase business combination as defined by ASC Topic 805 - Business Combinations. The allocation of the purchase price to the assets acquired and liabilities assumed was based on an independent valuation report obtained by us.

The values assigned to intangible assets are subject to amortization. The intangible assets were assigned the following lives for amortization purposes:

		Estimated useful
Intangible asset:		life (in years)
Customer relationships		14
Supplier relationships		14
Patents and know-how		14
Trade names and trademarks		indefinite
In-process research and development - liquid		indefinite
In-process research and development - other		indefinite
Licenses and permits		3

Goodwill consists of the excess of the purchase price paid over the identifiable net assets and liabilities acquired at fair value. Goodwill was determined using the residual method based on an independent appraisal of the assets and liabilities acquired in the transaction. Goodwill is tested for impairment as defined by ASC Topic 350 - Intangibles - Goodwill and Other.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
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-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6927-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1500-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1524-128463

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
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-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7000-128479

Reference 11: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4926-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6996-128479

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1383-128463

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 88-16
-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 FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph F4
-Subparagraph e
-Appendix F

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 51, 52
-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 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 67-73
-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

Inventories

6 Months Ended

Jun. 30, 2012

Inventories [Abstract]

Inventories

5.	Inventories

Inventories consisted of the following items as of June 30, 2012 and December 31, 2011:

	June 30, 2012			December 31, 2011
Raw materials	$	186,707		$	95,288
Work in process		492,017			308,763
Finished goods		338,070			361,007
	$	1,016,794		$	765,058
Reserve for obsolescence		(54,855	)		(52,456	)
Inventory, net	$	961,939		$	712,602

Property and equipment

6 Months Ended

Jun. 30, 2012

Property and equipment [Abstract]

Property and equipment

6.	Property and equipment

Property and equipment consist of the following as of June 30, 2012 and December 31, 2011:

	June 30, 2012			December 31, 2011
Leasehold improvements	$	978,550		$	925,086
Lab and clean room equipment (a)		1,660,399			1,463,144
Furniture and office equipment (a)		355,735			295,654
		2,994,684			2,683,884
Less accumulated depreciation		(2,045,964	)		(1,814,473	)
	$	948,720		$	869,411

(a)

The table above includes reclassifications of production equipment previously included in the furniture and office equipment category.

- 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

Intangible assets and royalty agreement

6 Months Ended

Jun. 30, 2012

Intangible assets and royalty agreement [Abstract]

Intangible assets and royalty agreement

7.	Intangible assets and royalty agreement

Intangible assets activity is summarized as follows:

		June 30, 2012							December 31, 2011
	Weighted
	Average	Gross					Net		Gross					Net
	Amortization	Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
	Lives	Value		Amortization			Value		Value		Amortization			Value
Intangible assets subject to amortization:
License-Shriners Hsp for Children & USF Research (a)	10 years	$	996,000	$	(537,833	)	$	458,167	$	996,000	$	(488,033	)	$	507,967
License - SaluMedica LLC Spine Repair (b)	10 years		2,399,000		(1,461,581	)		937,419		2,399,000		(1,313,573	)		1,085,427
License - Polyvinyl Alcohol Cryogel (c)	10 years		2,667,000		(1,135,091	)		1,531,909		2,667,000		(998,932	)		1,668,068
Customer Relationships (d)	14 years		3,520,000		(377,143	)		3,142,857		3,520,000		(251,429	)		3,268,571
Supplier Relationships (d)	14 years		241,000		(25,821	)		215,179		241,000		(17,215	)		223,785
Patents & Know-How (d)	14 years		5,530,000		(592,500	)		4,937,500		5,530,000		(395,000	)		5,135,000
Licenses/Permits (d)	3 years		13,000		(6,500	)		6,500		13,000		(4,333	)		8,667
			15,366,000		(4,136,469	)		11,229,531		15,366,000		(3,468,515	)		11,897,485
Intangible assets not subject to amortization:
Trade Names/Trademarks (d)	indefinite		1,008,000		-			1,008,000		1,008,000		-			1,008,000
In-process Research & Development-Liquid (d)	indefinite		2,160,000		-			2,160,000		2,160,000		-			2,160,000
In-process Research & Development-Other (d)	indefinite		25,000		-			25,000		25,000		-			25,000
		$	18,559,000	$	(4,136,469	)	$	14,422,531	$	18,559,000	$	(3,468,515	)	$	15,090,485

(a)

On January 29, 2007, the Company acquired a license from Shriners Hospitals for Children and University of South Florida Research Foundation, Inc. The acquisition price of this license was a one-time fee of $100,000 and 1,120,000 shares of common stock valued at $896,000 (based upon the estimated fair value of the common stock on the transaction date). Within 30 days after the receipt by the Company of approval by the FDA allowing the sale of the first licensed product, the Company is required to pay an additional $200,000 to the licensor. Due to its contingent nature, this amount is not recorded as a liability. The Company will also be required to pay a royalty of 3% on all commercial sales revenue from the licensed products.

(b)

License from SaluMedica, LLC (SaluMedica) for the use of certain developed technologies related to spine repair. This license was acquired through the acquisition of SpineMedica Corp.

(c)

On March 31, 2008, the Company entered into a license agreement for the use of certain developed technologies related to surgical sheets made of polyvinyl alcohol cryogel. The acquisition price of the asset was 400,000 shares of common stock valued at $2,596,000 (based upon the closing price of the common stock on the transaction date). The agreement also provides for the issuance of an additional 600,000 shares upon the Company meeting certain milestones related to future sales. On December 31, 2009, the Company completed the sale of its first commercial product and met its first milestone under this agreement. As a result, the Company issued an additional 100,000 shares of common stock to the licensor valued at $71,000. At June 30, 2012 and 2011, there are no additional amounts accrued for this obligation due to its contingent nature.

(d)

On January 5, 2011, the Company acquired Surgical Biologics, LLC. As a result, the Company recorded intangible assets for customer and supplier relationships, patents and know-how, licenses/permits, trade names and trademarks and in-process research and development.

Estimated future amortization expense related to the June 30, 2012 net carrying amount of $11,229,531 for intangible assets subject to amortization is as follows:

Year ending December 31,	Estimated Amortization Expense
2012 (a)	$	667,955
2013		1,335,909
2014		1,331,575
2015		1,225,337
2016		1,024,843
Thereafter		5,643,912
	$	11,229,531

(a)

Estimated amortization expense for the year ending December 31, 2012 includes only amortization to be recorded after June 30, 2012.

Debt

6 Months Ended

Jun. 30, 2012

Debt [Abstract]

Debt

The following disclosures reflect a summary of our outstanding convertible securities, as well as activity related to financing transactions. The table below summarizes the Company's financing, and further details regarding each transaction are provided following the table:

	Convertible Line of Credit with Related Party			Convertible Senior Secured Promissory Note			Total
Face Value of Note	$	1,300,000		$	5,000,000		$	6,300,000
Due date	(a)	12/31/2012		(b)	12/31/2013
Annual Interest rate		5	%		5	%

Contingent warrants issued at inception (c):
First Contingent Warrants	(d)	325,000		(e)	1,250,000			1,575,000
Second Contingent Warrants	(f)	325,000		(f)	1,250,000			1,575,000
Total Contingent Warrants		650,000			2,500,000			3,150,000

Vested Warrants as of June 30, 2012:
First Contingent Warrants	(d)	(325,000	)	(e)	(1,250,000	)		(1,575,000	)
Second Contingent Warrants		-			-			-

Contingent Warrants Outstanding as of June 30, 2012 (g)
First Contingent Warrants		-			-			-
Second Contingent Warrants		325,000			1,250,000			1,575,000
Total Contingent Warrants Outstanding as of June 30, 2012	$	325,000		$	1,250,000		$	1,575,000
Weighted average exercise price of warrants	$	0.01		$	0.01

(a)

The initial termination date of the Credit Agreement is December 31, 2012 and the Company may elect to extend the termination date until December 31, 2013 upon payment of an extension fee of 5% of the outstanding principle balance or $65,000.

(b)

Unless the Company has repaid the applicable lender's Notes in full prior to December 31, 2012, the Company must pay to each lender an additional interest payment in the amount of five percent (5%) of the aggregate outstanding principal amount of such lender's Notes as of December 31, 2012.

(c)

The Contingent Warrants have a term of five years from the date of issuance; however each is subject to automatic terminations as defined in the First Contingent Warrant and Second Contingent Warrant terms. The shares of Common Stock issuable upon exercise of the Contingent Warrants do not carry registration rights and may be exercised on a "cashless" basis. In the event of a change in control transaction on or prior to the First Measurement Date, then the Contingent Warrants shall be exercisable immediately prior to the closing of such change in control transaction. In the event (i) of a change in control transaction after the First Measurement Date and on or prior to the Second Measurement Date and (ii) the per share value of the consideration received by the holders of Common Stock in such change in control transaction is at least $1.75, the Second Contingent Warrant shall be null and void. If the value of the per share consideration received by the holders of Common Stock in such transaction is less than $1.75, the Second Contingent Warrant shall be exercisable immediately prior to the closing of such change in control transaction.

(d)

The First Contingent Warrant, (the "First Contingent Warrant") is issued to each investor to purchase 25% of the number of shares of Stock purchased, at an exercise price of $0.01 per share, provided that the First Contingent Warrant shall only be exercisable if the Company's Gross Revenue as reported in the Company's Audited Financial Statements for the year ended December 31, 2011, do not equal or exceed $11,500,000 and further provided that such Warrant shall be null and void in the event that prior to issuance of such Audited Financial Statements (the "First Measurement Date") the closing trading price of the Stock is at least $1.50 per share for ten or more consecutive trading days. As of March 31, 2012, the First Contingent Warrants vested due to the Company's Gross Revenue not exceeding $11,500,000 for the year ended December 31, 2011, and due to the closing trading price of the stock not equaling or exceeding $1.50 per share for ten or more consecutive trading days.

(e)

(f)

The Second Contingent Warrant, (the "Second Contingent Warrant") is issued to each investor to purchase 25% of the number of shares of Stock purchased, at an exercise price of $0.01 per share, provided that the Second Contingent Warrant shall only be exercisable if the Company's Gross Revenue as reported in the Company's Audited Financial Statements for the year ended December 31, 2012, do not equal or exceed $31,150,000 and further provided that such Warrant shall be null and void in the event that prior to issuance of such Audited Financial Statements (the "Second Measurement Date") the closing trading price of the Stock is at least $1.75 per share for ten or more consecutive trading days.

(g)

The contingent warrants have not been included in our earnings per share calculation per the guidance in ASC 260-10-45-13 Earnings per share: Treatment of Contingently Issuable Shares in Weighted-Average Shares Outstanding which states that shares issuable for little or no cash consideration upon the satisfaction of certain conditions (contingently issuable shares) shall be considered outstanding common shares and included in the computation of basic EPS as of the date that all necessary conditions have been satisfied (in essence, when issuance of the shares is no longer contingent).

Convertible Line of Credit with related party

On March 31, 2011, the Company and its Chairman of the Board and CEO ("the Lender") entered into a Subscription Agreement for a 5% Convertible Senior Secured Promissory Note ("Subscription Agreement") and, in connection therewith, agreed to issue a 5% Convertible Senior Secured Promissory Note ("Note") in the amount borrowed by the Company, and a First Contingent Warrant ("First Contingent Warrant") and a Second Contingent Warrant ("Second Contingent Warrant") to Purchase Common Stock.

The Lender agreed to issue a Revolving Secured Line of Credit Agreement ("Credit Agreement") to the Company of $1,300,000, after reductions for funds raised through other financing activities, to fund its working capital needs. The first borrowing in the amount of $800,000 was on March 31, 2011, resulting in the issuance of 400,000 contingent warrants to purchase shares of common stock at an exercise price of $0.01 per warrant. Additional borrowings in the amount of $500,000 were drawn during the three months ended June 30, 2011, resulting in the issuance of 250,000 contingent warrants at an exercise price of $0.01 per warrant.

The Company may repay and reborrow, provided there is no event of default, as needed. Collateral for the Credit Agreement includes (i) all of the Company's intellectual property with the exception of intellectual property owned by Surgical Biologics, LLC, and (ii) all accessions to, substitutions for and replacements, products and proceeds thereof, as more particularly set forth in the Security and Intercreditor Agreement.

At the option of the Lender, the Note is convertible into the number of shares of common stock of the Company equal to the quotient of the outstanding principal amount and accrued interest of the Note as of the date of such election divided by $1.00 per share.

On February 28, 2012, 325,000 First Contingent Warrants vested to the Lender at an exercise price of $0.01 per share. The vesting of the shares resulted in an additional beneficial conversion feature which requires recognition. According to GAAP, proceeds from the sale of debt instruments with stock purchase warrants (detachable call options) shall be allocated to the two elements based upon the relative fair values of the debt instrument without the warrants and of the warrants themselves at the time of issuance. The portion of the proceeds so allocated to the warrants shall be accounted for as paid-in capital. The remainder of the proceeds shall be allocated to the debt instrument portion of the transaction. Also, the embedded beneficial conversion feature present in the convertible instrument shall be recognized separately at issuance by allocating a portion of the proceeds equal to the intrinsic value of that feature to additional paid-in capital. The amount of the warrants and beneficial conversion feature totaled approximately $550,000 net of previously recognized interest expense which has been recorded as a debt discount that will be charged to interest expense over the life of the convertible note.

The issuance of the aforementioned securities was not registered in reliance on Section 4(2) of the Securities Act of 1933, as amended.

Senior Secured Promissory Notes

From December 27 to December 31, 2011, the Company sold 5% Convertible Senior Secured Promissory Notes (the "Notes") to individual accredited investors for aggregate proceeds of $5,000,000 and issued a First Contingent Warrant ("First Contingent Warrant") and a Second Contingent Warrant ("Second Contingent Warrant") to Purchase Common Stock.

The aggregate proceeds included $500,000 of Notes sold to the Company's Chairman of the Board and CEO, who had committed to lend the Company up to $1,500,000, to the extent other lenders did not subscribe to the Company's debt offering. The terms of those advances were subject to amendment as authorized by the Company's Board of Directors to be consistent with the final terms of the Company's debt offering.

In total, the principal of the Notes is convertible into up to 5,000,000 shares of common stock of the Company ("Common Stock") at $1.00 per share at any time upon the election of the holder of the note. The Notes mature on December 31, 2013, and bear interest at 5% per annum on the outstanding principal amount payable in cash on a quarterly basis, with all unpaid interest being due and payable on maturity. Unless the Company has repaid the applicable lender's Notes in full prior to December 31, 2012, the Company must pay to each lender an additional interest payment in the amount of five percent (5%) of the aggregate outstanding principal amount of such lender's Notes as of December 31, 2012. The additional interest is being accrued on a monthly basis. At the election of the holder, unpaid interest is convertible into shares of Common Stock at $1.00 per share. Common Stock issued upon conversion of the Notes is available to be sold following satisfaction of the applicable conditions set forth in Rule 144.

The Notes are secured by a first priority lien in all of the patents and other intellectual property owned by the Company and its subsidiaries, provided that until the Convertible Secured Promissory Notes in the principal sum of $1,250,000 issued January 5, 2011, in connection with the acquisition of Surgical Biologics, LLC, are paid in full, (i) the patents and other intellectual property owned by Surgical Biologics, LLC, and (ii) all accessions to, substitutions for and replacements, products and proceeds thereof, are excluded from the collateral. The maturity of the Notes may be accelerated upon the occurrence of certain Events of Default as set forth in the Notes. The lien is at an equal rate for all note holders in payment and lien priority with the notes outstanding under the Company's Line of Credit with Related Party Agreement dated March 31, 2011, (the "Prior Notes"), all of which are held by the Company's Chairman & CEO. In order to effectuate that, to conform the description of the collateral and Events of Default in the Prior Notes to the description of the collateral and Events of Default in the Notes, and to clarify certain adjustments that would be applicable in the event of a stock split, stock dividend or similar event, the Amended and Restated Security and Intercreditor Agreement executed by the Company's Chairman & CEO in connection with the Notes on December 27, 2011, superseded the Security and Intercreditor Agreement that was originally executed in connection with the Prior Notes and, on January 3, 2012, the parties also executed an amendment to certain of the other documents executed in connection with the Prior Notes.

Under the terms of the sale of the Convertible Senior Secured Promissory notes, each lender received a warrant (the "Conversion Warrant") to purchase that number of shares of Common Stock equal to the number of shares of Common Stock that would be issuable upon conversion of the principal of such lender's Note, at an exercise price of $1.00 per share, provided that such Conversion Warrant shall only be exercisable for the number of shares of Common Stock that would have been issued upon conversion of any portion of the principal of the lender's Note that is, in fact, prepaid prior to maturity of the Notes. The maximum number of shares of Common Stock issuable upon exercise of the Conversion Warrants is 5,000,000 shares. The Conversion Warrant expires on December 31, 2013. The shares of Common Stock issuable upon exercise of the Conversion Warrant do not carry registration rights. The Conversion Warrant must be exercised for cash.

According to GAAP, proceeds from the sale of debt instruments with stock purchase warrants (detachable call options) shall be allocated to the two elements based upon the relative fair values of the debt instrument without the warrants and of the warrants themselves at the time of issuance. The portion of the proceeds so allocated to the warrants shall be accounted for as paid-in capital. The remainder of the proceeds shall be allocated to the debt instrument portion of the transaction. Also, the embedded beneficial conversion feature present in the convertible instrument shall be recognized separately at issuance by allocating a portion of the proceeds equal to the intrinsic value of that feature to additional paid-in capital. The amount of the warrants (i.e. the exercisable First Contingent Warrants) and beneficial conversion feature totaled $2,278,052 which has been recorded as a debt discount that will be charged to interest expense using the effective interest rate over the life of the convertible note.

In conjunction with the sale of the Convertible Senior Secured Promissory notes, the Company incurred a placement fee of $32,800 and issued 42,400 common stock warrants to the placement agents at an exercise price of $1.09 per share. The warrants expire in five years. The fair value of the warrants was determined to be approximately $15,000 using the Black-Scholes-Merton valuation technique. The total direct costs of approximately $47,800 are recorded as deferred financing costs and are being amortized over the term of the Senior Notes using the effective interest method. Further, the placement agent warrants are classified in stockholders' equity because they achieved all of the requisite conditions for equity classification in accordance with GAAP.

- 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

Common Stock Placements

6 Months Ended

Jun. 30, 2012

Common Stock Placements [Abstract]

Common Stock Placements

9.	Common Stock Placements

October 2010 Private Placement

In October 2010, the Company commenced a private placement to sell common stock and warrants. From October 30, 2010, through December 31, 2010, the Company sold 2,405,000 shares of common stock at a price of $1.00 per share and received proceeds of $2,337,020 net of $67,980 in offering costs. For the nine months ended September 30, 2011, the Company sold an additional 3,778,321 shares of Common Stock and issued an additional 1,889,161 warrants and received net cash proceeds of $3,730,587 net of $47,733 in offering costs. Under the terms of the offering, for each share purchased, the investor received one 5-year warrant to purchase the common stock of the Company at an exercise price of $1.50 per share. The terms of the warrant, (the "Callable Warrant") are that for every two shares of common stock purchased, the holder is issued a 5-year warrant to purchase one share of the Company's Common Stock at an exercise price of $1.50 per share. The Callable Warrant does not carry registration rights and is callable by the Company at any time after the issuance if the closing sale price of the Stock exceeds $1.75 for fifteen (15) or more consecutive trading days. Upon written notice, the Company may redeem the Callable Warrant at a price of $0.01 per share. Additionally, the Company issued a First Contingent Warrant ("First Contingent Warrant") and a Second Contingent Warrant ("Second Contingent Warrant") to Purchase Common Stock.

The First Contingent Warrant, (the "First Contingent Warrant") vested during the three months ended March 31, 2012, resulting in the issuance of 1,672,742 warrants at an exercise price of $0.01 per share.

The warrants met all the requirements for equity classification under GAAP and are recorded in stockholders' equity.

The Company's Chairman and CEO invested $1,006,664 in the October 2010 Private Placement including the investment of principal and accrued interest from the October 2010 Bridge note converted under the same terms as the Private Placement, receiving 503,332 warrants with an exercise price of $1.50, 251,666 First Contingent warrants at an exercise price of $0.01 and 251,666 Second Contingent warrants at an exercise price of $0.01 as per the aforementioned terms of the offering.

In connection with the October 2010 Private Placement, the Company entered into a registration rights agreement that provides "Piggy-Back" registration rights to each investor.

- 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))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Section 50
-Paragraph 4
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
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-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=6228006&loc=d3e74512-122707

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-Name Accounting Standards Codification
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Section B
-Paragraph 7, 11A
-Chapter 1
-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
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
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Reference 17: http://www.xbrl.org/2003/role/presentationRef
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-Number 210
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Reference 18: http://www.xbrl.org/2003/role/presentationRef
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-Number 210
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Reference 19: http://www.xbrl.org/2003/role/presentationRef
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-Name Staff Accounting Bulletin (SAB)
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Reference 20: http://www.xbrl.org/2003/role/presentationRef
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-Number 210
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Reference 21: http://www.xbrl.org/2003/role/presentationRef
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Reference 22: http://www.xbrl.org/2003/role/presentationRef
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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 23: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

Equity

6 Months Ended

Jun. 30, 2012

Equity [Abstract]

Equity

10.

Equity

Stock Incentive Plans

The Company has three share-based compensation plans: the MiMedx Group, Inc. Assumed 2006 Stock Incentive Plan (the "2006 Plan"), the MiMedx Inc. 2007 Assumed Stock Plan (the "Assumed 2007 Plan") and the MiMedx Group Inc. Amended and Restated Assumed 2005 Stock Plan (the "Assumed 2005 Plan") which provide for the granting of qualified incentive and non-qualified stock options, stock appreciation awards and restricted stock awards to employees, directors, consultants and advisors. The awards are subject to a vesting schedule as set forth in each individual agreement. The Company intends to use only the 2006 Plan to make future grants. The number of assumed options under the Assumed 2005 Plan and Assumed 2007 Plan outstanding at June 30, 2012 totaled 375,000. On May 10, 2012, the Board of Directors approved 4,000,000 additional shares to be made available under the 2006 Plan, bringing the maximum number of shares of common stock which can be issued under the 2006 Plan to 16,500,000 at June 30, 2012.

Activity with respect to the stock options is summarized as follows:

	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at January 1, 2012		10,333,583		$	1.17
Granted		2,948,000		$	1.26
Exercised		(324,750	)	$	0.98
Forfeited or cancelled/expired		(162,583	)	$	1.11
Outstanding at June 30, 2012		12,794,250		$	1.20		7.3	$	11,728,020

Vested or expected to vest at June 30, 2012		7,106,810		$	1.17		5.9	$	6,763,936

The intrinsic value of the options exercised during the three months ended June 30, 2012, was approximately $83,000.

Following is a summary of stock options outstanding and exercisable at June 30, 2012:

		Options Outstanding						Options Exercisable
Range of Exercise Prices		Number outstanding		Weighted- Average Remaining Contractual Term (in years)		Weighted- Average Exercise Price		Number Exercisable		Weighted- Average Exercise Price
$	0.50		566,250		2.4	$	0.50		554,223	$	0.50
$	0.65 - $1.00		2,717,500		5.6	$	0.78		2,624,179	$	0.78
$	1.04 - $1.80		8,960,500		8.7	$	1.29		3,378,408	$	1.39
$	2.40		550,000		0.2	$	2.40		550,000	$	2.40
			12,794,250		7.3	$	1.20		7,106,810	$	1.17

A summary of the status of the Company's unvested stock options follows:

	Number of Shares			Weighted- Average Grant Date Fair Value
Unvested at January 1, 2012		4,333,086		$	0.72
Granted		2,948,000		$	0.67
Cancelled/expired		(162,583	)	$	0.68
Vested		(1,431,063	)	$	0.74
Unvested at June 30, 2012		5,687,440		$	0.69

Total unrecognized compensation expense related to granted stock options at June 30, 2012, was approximately $4,120,000 and will be charged to expense through July 2015.

The fair value of options granted by the Company is estimated on the date of grant using the Black-Scholes-Merton option-pricing model that uses assumptions for expected volatility, expected dividends, expected term, and the risk-free interest rate. Expected volatilities are based on historical volatility of peer companies and other factors estimated over the expected term of the options. The term of employee options granted is derived using the "simplified method" which computes expected term as the average of the sum of the vesting term plus the contract term. The term for non-employee options is generally based upon the contractual term of the option. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the period of the expected term or contractual term as described.

The assumptions used in calculating the fair value of options using the Black-Scholes-Merton option-pricing model are set forth in the following table:

	Six months ended June 30,
	2012			2011
Expected volatility		58.31 - 59.04	%		57.3 - 57.6	%
Expected life (in years)		6			6
Expected dividend yield		-			-
Risk-free interest rate		0.62% - 1.22	%		1.48% - 2.24	%

The weighted-average grant date fair value for options granted during the six months ended June 30, 2012 was approximately $0.67.

Warrants

The Company grants common stock warrants in connection with equity share purchases by investors as an additional incentive for providing long term equity capital to the Company and as additional compensation to consultants and advisors. The warrants are granted at negotiated prices in connection with the equity share purchases and at the market price of the common stock in other instances. The warrants have been issued for terms of five years.

Following is a summary of warrants outstanding at June 30, 2012:

	Number of Warrants			Weighted- Average Exercise Price per Warrant		Number of Contingent Warrants			Weighted- Average Exercise Price per Contingent Warrant
Warrants outstanding at January 1, 2012		9,388,817		$	1.00		5,245,484		$	0.01
Issued in connection with private placement of common stock		1,672,743		$	0.01		(1,672,743	)	$	0.01
Issued in connection with line of credit with related party		325,000		$	0.01		(325,000	)	$	0.01
Warrants exercised		(3,621,052	)	$	0.09		-			-
Warrants redeemed for cashless exercises		(1,691	)	$	0.09		-			-
Warrants outstanding at June 30, 2012		7,763,817		$	1.17		3,247,741		$	0.01

Warrants may be exercised in whole or in part by:

notice given by the holder accompanied by payment of an amount equal to the warrant exercise price multiplied by the number of warrant shares being purchased; or

election by the holder to exchange the warrant (or portion thereof) for that number of shares equal to the product of (a) the number of shares issuable upon exercise of the warrant (or portion) and (b) a fraction, (x) the numerator of which is the market price of the shares at the time of exercise minus the warrant exercise price per share at the time of exercise and (y) the denominator of which is the market price per share at the time of exercise.

These warrants are not mandatorily redeemable, do not obligate the Company to repurchase its equity shares by transferring assets or issue a variable number of shares.

The warrants require that the Company deliver shares as part of a physical settlement or a net-share settlement, at the option of the holder, and do not provide for a net-cash settlement.

All of our warrants are classified as equity as of June 30, 2012 and December 31, 2011.

- 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
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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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
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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.

+ Details

Income taxes

6 Months Ended

Jun. 30, 2012

Income taxes [Abstract]

Income taxes

11.	Income taxes

The Company has incurred net losses since its inception and, therefore, no current income tax liabilities have been incurred for the periods presented. Due to the Company's losses, management has established a valuation allowance equal to the amount of net deferred tax assets since management cannot determine that realization of these benefits is more likely than not.

- 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

Contractual Commitments

6 Months Ended

Jun. 30, 2012

Contractual Commitments [Abstract]

Contractual Commitments

12.	Contractual Commitments

The Company has entered into operating lease agreements for facility space and equipment, and employment agreements with some key employees acquired with Surgical Biologics. In addition, the Company has minimum royalty payments due in conjunction with one of its licenses. The estimated annual lease, royalty, and employment agreement expense are as follows:

12-month period ended June 30,
2013	$	730,000
2014		212,000
Thereafter		102,000
	$	1,044,000

- 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
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-Name FASB Interpretation (FIN)
-Number 14
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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

Subsequent Events

6 Months Ended

Jun. 30, 2012

Subsequent Events [Abstract]

Subsequent Events

13.	Subsequent Events

On July 5, 2012, the Company paid approximately $177,000 and issued 437,877 shares of common stock valued at approximately $893,000 for the Convertible Secured Promissory Notes related to the acquisition of Surgical Biologics.

As of the close of the stock market on July 3, 2012, the closing trading price of MiMedx common stock had traded at or above $1.75 for a total of ten (10) consecutive trading days, which rendered null and void all Second Contingent Warrants issued by the Company.

In July 2012, the Company decided to exercise its right to call approximately 3,345,000 warrants issued to investors in conjunction with the October 2010 Private Placement. As a result of calling the warrants, the Company raised approximately $4,900,000 and issued 3,288,733 shares of MiMedx common stock as of August 3, 2012. The balance of 56,750 warrants were repurchased at $.01 per share.

Significant accounting policies (Policies)	6 Months Ended
Significant accounting policies (Policies)	Jun. 30, 2012
Significant accounting policies [Abstract]
Reclassifications	Reclassifications Certain amounts in the prior year financial statements have been reclassified to conform to the current year financial statement presentation.
Use of estimates	Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Accounts Receivable	Accounts Receivable Accounts receivable represent amounts due from customers for which revenue has been recognized. Generally, the Company does not require collateral or any other security to support its receivables. The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses in the Company's existing receivables. The Company determines the allowance based on factors such as historical collection experience, customer's current creditworthiness, customer concentration, age of accounts receivable balance and general economic conditions that may affect the customer's ability to pay. The Company has $53,000 and $20,000 in the allowance for doubtful accounts as of June 30, 2012 and December 31, 2011, respectively. Actual customer collections could differ from estimates. The approximate provision during the six months ended June 30, 2012 was $51,000, and there were approximately $18,000 of write-offs during the same period.
Inventories	Inventories Inventories are valued at the lower of actual cost or market, using the first-in, first-out ("FIFO") method. Work in process is calculated by estimating the number of units that will be successfully converted to finished goods, based upon a build-up in the stage of completion using estimated labor inputs for each stage and historical yields reduced by estimated usage for quality control testing. Idle facility expense, excessive spoilage, extra freight, and handling costs are expensed, as necessary, in cost of products sold and are not capitalized into inventories. Allocation of fixed production overheads is based on the normal capacity of production facilities.
Goodwill and intangible assets	Goodwill and intangible assets Goodwill is tested at least annually for impairment, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Intangible assets with finite useful lives are amortized into Selling, General and Administrative Expenses in the condensed consolidated statements of operations using the straight-line method over various periods depending upon the specific asset.
Debt Instruments with Detachable Warrants and Beneficial Conversion Features	Debt Instruments with Detachable Warrants and Beneficial Conversion Features According to ASC-470 Debt Instruments with Detachable Warrants, proceeds from the sale of debt instruments with stock purchase warrants (detachable call options) shall be allocated to the two elements based upon the relative fair values of the debt instrument without the warrants and of the warrants themselves at the time of issuance. The portion of the proceeds so allocated to the warrants shall be accounted for as paid-in capital. The remainder of the proceeds shall be allocated to the debt instrument portion of the transaction. Also, the embedded beneficial conversion feature present in the convertible instrument shall be recognized separately at issuance by allocating a portion of the proceeds equal to the intrinsic value of that feature to additional paid-in capital.
Revenue Recognition	Revenue Recognition The Company sells its products primarily through a combination of independent stocking distributors and representatives in the U.S. and independent distributors in international markets. The Company recognizes revenue when title to the goods and risk of loss transfers to customers, provided there are no material remaining performance obligations required of the Company or any matters of customer acceptance. In cases where the Company utilized distributors or ships product directly to the end user, it recognizes revenue upon shipment provided all revenue recognition criteria have been met. A portion of the Company's revenue is generated from inventory maintained at hospitals or with field representatives. For these products, revenue is recognized at the time the product has been used or implanted. The Company records estimated sales returns, discounts and allowances as a reduction of net sales in the same period revenue is recognized. The Company recorded approximately $107,000 and $94,000 for net sales returns provisions for the three months ended June 30, 2012 and 2011, respectively, and there were approximately $26,000 and $9,000 of charges against the provision during the three months ended June 30, 2012 and 2011, respectively. The Company recorded approximately $146,000 and $137,000 for net sales returns provisions for the six months ended June 30, 2012 and 2011, respectively, and there were approximately $26,000 and $102,000 of charges against the provision during the six months ended June 30, 2012 and 2011, respectively.
Fair value of financial instruments	Fair value of financial instruments The carrying value of accounts payable and accrued expenses approximate their fair value due to the short-term nature of these liabilities. The fair value of our short term and long term convertible debt approximates $5,286,000 which represents the face value less the unamortized discount of any beneficial conversion feature plus accrued but unpaid interest at June 30, 2012. The fair value of warrants issued in conjunction with placement fees was approximately $11,000 which represents the face value less the unamortized discount of any beneficial conversion feature at June 30, 2012.
Net loss per share	Net loss per share Basic net loss per common share is computed using the weighted-average number of common shares outstanding during the period. Diluted net loss per common share is computed using the weighted-average number of common and dilutive common equivalent shares from stock options, warrants and convertible debt using the treasury stock method. For all periods presented, diluted net loss per share is the same as basic net loss per share, as the inclusion of equivalent shares from outstanding common stock options, warrants and convertible debt would be anti-dilutive.

Significant accounting policies (Tables)

6 Months Ended

Jun. 30, 2012

Significant accounting policies [Abstract]

Computation of basic and diluted net loss per share

The following table sets forth the computation of basic and diluted net loss per share:

	Three months ended June 30,						Six months ended June 30,
	2012			2011			2012			2011
Net loss	$	(744,069	)	$	(2,503,505	)	$	(1,837,721	)	$	(5,851,067	)
Denominator for basic earnings per share - weighted average shares		79,952,542			71,819,017			77,416,073			71,098,976
Effect of dilutive securities: Stock options and warrants outstanding and convertible debt (a)		-			-			-			-

Denominator for diluted earnings per share - weighted average shares adjusted for dilutive securities		79,952,542			71,819,017			77,416,073			71,098,976

Loss per common share - basic and diluted	$	(0.01	)	$	(0.03	)	$	(0.02	)	$	(0.08	)

Summary of antidilutive securities

(a)

Securities outstanding that were excluded from the computation, because they would have been anti-dilutive are as follows:

	June 30, 2012		June 30, 2011
Outstanding Stock Options		12,794,250		10,434,667
Outstanding Warrants		7,763,817		8,023,917
Convertible Debt, promissory notes		5,186,933		-
Convertible Line of Credit with Related Party		1,375,137		1,300,000
Convertible Debt, Acquisition		1,069,808		1,250,000
		28,189,945		21,008,584

Acquisition of Surgical Biologics, LLC (Tables)

6 Months Ended

Jun. 30, 2012

Acquisition of Surgical Biologics, LLC [Abstract]

Purchase Price Allocation

Value of 5,250,000 shares issued at $1.35 per share	$	7,087,500
Cash paid at closing		350,000
Cash retained for working capital		150,000
Assumed Debt		182,777
Convertible Secured Promissory Note		1,250,000
Fair value of earn-out		7,404,700
Total fair value of purchase price	$	16,424,977

Assets purchased:
Tangible assets:
Debt-free working capital	$	671,880
Other assets, net		385
Property, plant and equipment		72,866
		745,131
Intangible assets:
Customer relationships		3,520,000
Supplier relationships		241,000
Patents and know-how		5,530,000
Trade names and trademarks		1,008,000
In-process research and development - liquid		2,160,000
In-process research and development - other		25,000
Licenses and permits		13,000
		12,497,000

Goodwill		3,182,846
Total Assets Purchased	$	16,424,977

Working capital and other assets were composed of the following:

Working capital:
Cash	$	33,583
Prepaid Expenses		2,738
Accounts Receivable		181,087
License Receivable		340,000
Inventory		347,106
Accounts payable and accrued expenses		(196,101	)
Deferred rent and customer deposits		(36,533	)
Debt-free working capital		671,880

Current portion of debt		(62,590	)
Long-term debt		(21,187	)
Line of credit		(99,000	)
Net working capital	$	489,103

Deposits	$	16,582
Deferred rent (non-current)		(16,197	)
	$	385

Estimated useful lives of acquired intangible assets

The values assigned to intangible assets are subject to amortization. The intangible assets were assigned the following lives for amortization purposes:

		Estimated useful
Intangible asset:		life (in years)
Customer relationships		14
Supplier relationships		14
Patents and know-how		14
Trade names and trademarks		indefinite
In-process research and development - liquid		indefinite
In-process research and development - other		indefinite
Licenses and permits		3

Inventories (Tables)

6 Months Ended

Jun. 30, 2012

Inventories [Abstract]

Schedule of inventory

Inventories consisted of the following items as of June 30, 2012 and December 31, 2011:

	June 30, 2012			December 31, 2011
Raw materials	$	186,707		$	95,288
Work in process		492,017			308,763
Finished goods		338,070			361,007
	$	1,016,794		$	765,058
Reserve for obsolescence		(54,855	)		(52,456	)
Inventory, net	$	961,939		$	712,602

Property and equipment (Tables)

6 Months Ended

Jun. 30, 2012

Property and equipment [Abstract]

Property and equipment

Property and equipment consist of the following as of June 30, 2012 and December 31, 2011:

	June 30, 2012			December 31, 2011
Leasehold improvements	$	978,550		$	925,086
Lab and clean room equipment (a)		1,660,399			1,463,144
Furniture and office equipment (a)		355,735			295,654
		2,994,684			2,683,884
Less accumulated depreciation		(2,045,964	)		(1,814,473	)
	$	948,720		$	869,411

(a)

The table above includes reclassifications of production equipment previously included in the furniture and office equipment category.

Intangible assets and royalty agreement (Tables)

6 Months Ended

Jun. 30, 2012

Intangible assets and royalty agreement [Abstract]

Intangible assets activity summary

Intangible assets activity is summarized as follows:

		June 30, 2012							December 31, 2011
	Weighted
	Average	Gross					Net		Gross					Net
	Amortization	Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
	Lives	Value		Amortization			Value		Value		Amortization			Value
Intangible assets subject to amortization:
License-Shriners Hsp for Children & USF Research (a)	10 years	$	996,000	$	(537,833	)	$	458,167	$	996,000	$	(488,033	)	$	507,967
License - SaluMedica LLC Spine Repair (b)	10 years		2,399,000		(1,461,581	)		937,419		2,399,000		(1,313,573	)		1,085,427
License - Polyvinyl Alcohol Cryogel (c)	10 years		2,667,000		(1,135,091	)		1,531,909		2,667,000		(998,932	)		1,668,068
Customer Relationships (d)	14 years		3,520,000		(377,143	)		3,142,857		3,520,000		(251,429	)		3,268,571
Supplier Relationships (d)	14 years		241,000		(25,821	)		215,179		241,000		(17,215	)		223,785
Patents & Know-How (d)	14 years		5,530,000		(592,500	)		4,937,500		5,530,000		(395,000	)		5,135,000
Licenses/Permits (d)	3 years		13,000		(6,500	)		6,500		13,000		(4,333	)		8,667
			15,366,000		(4,136,469	)		11,229,531		15,366,000		(3,468,515	)		11,897,485
Intangible assets not subject to amortization:
Trade Names/Trademarks (d)	indefinite		1,008,000		-			1,008,000		1,008,000		-			1,008,000
In-process Research & Development-Liquid (d)	indefinite		2,160,000		-			2,160,000		2,160,000		-			2,160,000
In-process Research & Development-Other (d)	indefinite		25,000		-			25,000		25,000		-			25,000
		$	18,559,000	$	(4,136,469	)	$	14,422,531	$	18,559,000	$	(3,468,515	)	$	15,090,485

(a)

(b)

License from SaluMedica, LLC (SaluMedica) for the use of certain developed technologies related to spine repair. This license was acquired through the acquisition of SpineMedica Corp.

(c)

(d)

Estimated future amortization expense for intangible assets

Estimated future amortization expense related to the June 30, 2012 net carrying amount of $11,229,531 for intangible assets subject to amortization is as follows:

Year ending December 31,	Estimated Amortization Expense
2012 (a)	$	667,955
2013		1,335,909
2014		1,331,575
2015		1,225,337
2016		1,024,843
Thereafter		5,643,912
	$	11,229,531

Debt (Tables)

6 Months Ended

Jun. 30, 2012

Debt [Abstract]

Summary of financing

	Convertible Line of Credit with Related Party			Convertible Senior Secured Promissory Note			Total
Face Value of Note	$	1,300,000		$	5,000,000		$	6,300,000
Due date	(a)	12/31/2012		(b)	12/31/2013
Annual Interest rate		5	%		5	%

Contingent warrants issued at inception (c):
First Contingent Warrants	(d)	325,000		(e)	1,250,000			1,575,000
Second Contingent Warrants	(f)	325,000		(f)	1,250,000			1,575,000
Total Contingent Warrants		650,000			2,500,000			3,150,000

Vested Warrants as of June 30, 2012:
First Contingent Warrants	(d)	(325,000	)	(e)	(1,250,000	)		(1,575,000	)
Second Contingent Warrants		-			-			-

Contingent Warrants Outstanding as of June 30, 2012 (g)
First Contingent Warrants		-			-			-
Second Contingent Warrants		325,000			1,250,000			1,575,000
Total Contingent Warrants Outstanding as of June 30, 2012	$	325,000		$	1,250,000		$	1,575,000
Weighted average exercise price of warrants	$	0.01		$	0.01

(a)

(b)

(c)

(d)

(e)

(f)

(g)

Equity (Tables)

6 Months Ended

Jun. 30, 2012

Equity [Abstract]

Stock options activity

Activity with respect to the stock options is summarized as follows:

	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at January 1, 2012		10,333,583		$	1.17
Granted		2,948,000		$	1.26
Exercised		(324,750	)	$	0.98
Forfeited or cancelled/expired		(162,583	)	$	1.11
Outstanding at June 30, 2012		12,794,250		$	1.20		7.3	$	11,728,020

Vested or expected to vest at June 30, 2012		7,106,810		$	1.17		5.9	$	6,763,936

A summary of the status of the Company's unvested stock options follows:

	Number of Shares			Weighted- Average Grant Date Fair Value
Unvested at January 1, 2012		4,333,086		$	0.72
Granted		2,948,000		$	0.67
Cancelled/expired		(162,583	)	$	0.68
Vested		(1,431,063	)	$	0.74
Unvested at June 30, 2012		5,687,440		$	0.69

Summary of stock options outstanding and exercisable

Following is a summary of stock options outstanding and exercisable at June 30, 2012:

		Options Outstanding						Options Exercisable
Range of Exercise Prices		Number outstanding		Weighted- Average Remaining Contractual Term (in years)		Weighted- Average Exercise Price		Number Exercisable		Weighted- Average Exercise Price
$	0.50		566,250		2.4	$	0.50		554,223	$	0.50
$	0.65 - $1.00		2,717,500		5.6	$	0.78		2,624,179	$	0.78
$	1.04 - $1.80		8,960,500		8.7	$	1.29		3,378,408	$	1.39
$	2.40		550,000		0.2	$	2.40		550,000	$	2.40
			12,794,250		7.3	$	1.20		7,106,810	$	1.17

Fair value of options valuation assumptions

The assumptions used in calculating the fair value of options using the Black-Scholes-Merton option-pricing model are set forth in the following table:

	Six months ended June 30,
	2012			2011
Expected volatility		58.31 - 59.04	%		57.3 - 57.6	%
Expected life (in years)		6			6
Expected dividend yield		-			-
Risk-free interest rate		0.62% - 1.22	%		1.48% - 2.24	%

Summary of warrants outstanding

Following is a summary of warrants outstanding at June 30, 2012:

	Number of Warrants			Weighted- Average Exercise Price per Warrant		Number of Contingent Warrants			Weighted- Average Exercise Price per Contingent Warrant
Warrants outstanding at January 1, 2012		9,388,817		$	1.00		5,245,484		$	0.01
Issued in connection with private placement of common stock		1,672,743		$	0.01		(1,672,743	)	$	0.01
Issued in connection with line of credit with related party		325,000		$	0.01		(325,000	)	$	0.01
Warrants exercised		(3,621,052	)	$	0.09		-			-
Warrants redeemed for cashless exercises		(1,691	)	$	0.09		-			-
Warrants outstanding at June 30, 2012		7,763,817		$	1.17		3,247,741		$	0.01

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References + Details

Contractual Commitments (Tables)

6 Months Ended

Jun. 30, 2012

Contractual Commitments [Abstract]

Contractual Obligation, Fiscal Year Maturity

12-month period ended June 30,
2013	$	730,000
2014		212,000
Thereafter		102,000
	$	1,044,000

Basis of Presentation (Details)	6 Months Ended
Basis of Presentation (Details)	Jun. 30, 2012
Basis of Presentation [Abstract]
Number of business segments	1

Significant accounting policies (Details) - USD ($)

3 Months Ended

6 Months Ended

Jun. 30, 2012

Jun. 30, 2011

Jun. 30, 2012

Jun. 30, 2011

Dec. 31, 2011

Accounts Receivable [Abstract]

Allowance for doubtful accounts

$ 53,000

$ 20,000

Provision for doubtful accounts

51,000

Accounts receivable charge-offs

18,000

Revenue Recognition [Abstract]

Net sales returns provision

107,000

$ 94,000

146,000

$ 137,000

Provision charges

26,000

9,000

26,000

102,000

Fair value of financial instruments [Abstract]

Fair value of short term and long term convertible debt

5,286,000

Fair value of warrants issued in conjunction with placement fees

11,000

Computation of basic and diluted net loss per share [Abstract]

Net loss

$ (744,069)

$ (2,503,505)

$ (1,837,721)

$ (5,851,067)

Denominator for basic earnings per share - weighted average shares (in shares)

79,952,542

71,819,017

77,416,073

71,098,976

Effect of dilutive securities: Stock options and warrants outstanding and convertible debt (in shares)

^[1]

Denominator for diluted earnings per share - weighted average shares adjusted for dilutive securities (in shares)

79,952,542

71,819,017

77,416,073

71,098,976

Loss per common share - basic and diluted (in dollars per share)

$ (0.01)

$ (0.03)

$ (0.02)

$ (0.08)

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Antidilutive securities excluded from computation of earnings per share (in shares)

28,189,945

21,008,584

Outstanding Stock Options [Member]

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Antidilutive securities excluded from computation of earnings per share (in shares)

12,794,250

10,434,667

Outstanding Warrants [Member]

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Antidilutive securities excluded from computation of earnings per share (in shares)

7,763,817

8,023,917

Convertible Debt, promissory notes [Member]

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Antidilutive securities excluded from computation of earnings per share (in shares)

5,186,933

Convertible Line of Credit with Related Party [Member]

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Antidilutive securities excluded from computation of earnings per share (in shares)

1,375,137

1,300,000

Convertible Debt, Acquisition [Member]

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Antidilutive securities excluded from computation of earnings per share (in shares)

1,069,808

1,250,000

[1]

Securities outstanding that were excluded from the computation, because they would have been anti-dilutive are as follows: June 30, 2012 June 30, 2011 Outstanding Stock Options 12,794,250 10,434,667 Outstanding Warrants 7,763,817 8,023,917 Convertible Debt, promissory notes 5,186,933 - Convertible Line of Credit with Related Party 1,375,137 1,300,000 Convertible Debt, Acquisition 1,069,808 1,250,000 28,189,945 21,008,584

Liquidity and management's plans (Details) - USD ($)	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010
Liquidity and management's plans [Abstract]
Cash and cash equivalents	$ 2,654,694	$ 4,112,326	$ 1,614,350	$ 1,340,922
Total current assets	7,855,189	$ 6,881,511
Total current liabilities, net of short term earn-out liability	$ 4,015,000

- Definition

Amount of currency on hand as well as demand deposits with banks or financial institutions. Includes other kinds of accounts that have the general characteristics of demand deposits. Also includes short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Excludes cash and cash equivalents within disposal group and discontinued operation.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Cash
-URI http://asc.fasb.org/extlink&oid=6506951

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section 45
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6361293&loc=d3e6676-107765

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3044-108585

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Cash Equivalents
-URI http://asc.fasb.org/extlink&oid=6507016

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.1)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 1
-Article 5

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 7, 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.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 7
-Footnote 1
-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 95
-Paragraph 8, 9
-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

Acquisition of Surgical Biologics, LLC (Details)

1 Months Ended

6 Months Ended

Apr. 30, 2012

USD ($)

Jun. 30, 2012

USD ($)

$ / shares

Jun. 30, 2012

USD ($)

$ / shares

Dec. 31, 2011

USD ($)

Customer Relationships [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Weighted average useful life (in years)

^[1]

14 years

Supplier Relationships [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Weighted average useful life (in years)

^[1]

14 years

Patents and know-how [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Weighted average useful life (in years)

^[1]

14 years

Licenses and permits [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Weighted average useful life (in years)

^[1]

3 years

Surgical Biologics [Member]

Business Acquisition [Line Items]

Cash Paid

$ 500,000

Convertible Promissory Notes, number of shares issuable (in shares)

1,250,000

Convertible Promissory Notes, interest rate (in hundredths)

4.00%

Common Stock issued (in shares) | shares

2,632,576

5,250,000

Common Stock valued

$ 3,185,223

Common stock held in escrow (in shares) | shares

525,000

Terms Of Conversion Feature

The 4% Convertible Promissory Notes are convertible into up to 1,250,000 shares of the Company's common stock at $1.00 per share (a) at any time upon the election of the holder of the Convertible Notes; or (b) at the election of the Company, at any such time as the closing price per share of the Company's common stock (as reported by the OTCBB or on any national securities exchange on which the Company's shares may be listed, as the case may be) closes at no less than $1.75 per share for not less than 20 consecutive trading days in any period prior to the maturity date. If converted, the Common Stock will be available to be sold following satisfaction of the applicable conditions as set forth in Rule 144. The 4% Convertible Promissory Notes mature in eighteen (18) months and earn interest at 4% per annum on the outstanding principal amount payable in cash on the maturity date or convertible into shares of common stock of the Company as provided for above.

Convertible Promissory Note, conversion price (in dollars per share) | $ / shares

$ 1

Convertible Promissory Note, stock price trigger (in dollars per share) | $ / shares

$ 1.75

Beneficial Conversion Feature Recognized

$ 437,500

Convertible Promissory Notes, unamortized discount

$ 437,500

Actual purchase price allocated [Abstract]

Value of 5,250,000 shares issued at $1.35 per share

7,087,500

Cash paid at closing

350,000

Cash retained for working capital

150,000

Assumed Debt

182,777

Convertible Secured Promissory Note

1,250,000

Fair value of earn-out

7,404,700

$ 7,410,503

Total fair value of purchase price

16,424,977

Common Stock, share price (in dollars per share) | shares

shares 1.35

Tangible assets:

Debt-free working capital

671,880

Other assets, net

385

Property, plant and equipment

72,866

Tangible assets purchased

745,131

Acquired Indefinite-lived Intangible Assets [Line Items]

Total acquired intangible assets

12,497,000

Goodwill

3,182,846

Total Assets Purchased

16,424,977

Working capital [Abstract]

33,583

2,738

181,087

340,000

347,106

Accounts payable and accrued expenses

(196,101)

Deferred rent and customer deposits

(36,533)

Debt-free working capital

671,880

Current portion of debt

(62,590)

(21,187)

(99,000)

489,103

16,582

Deferred rent (non-current)

(16,197)

Other assets, net

385

Surgical Biologics [Member] | Trade names and trademarks [Member]

Acquired Indefinite-lived Intangible Assets [Line Items]

Acquired intangible asset

1,008,000

Surgical Biologics [Member] | In-process research and development - liquid [Member]

Acquired Indefinite-lived Intangible Assets [Line Items]

Acquired intangible asset

2,160,000

Surgical Biologics [Member] | In-process research and development - other [Member]

Acquired Indefinite-lived Intangible Assets [Line Items]

Acquired intangible asset

25,000

Surgical Biologics [Member] | Customer Relationships [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Acquired intangible assets

3,520,000

Weighted average useful life (in years)

14 years

Surgical Biologics [Member] | Supplier Relationships [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Acquired intangible assets

241,000

Weighted average useful life (in years)

14 years

Surgical Biologics [Member] | Patents and know-how [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Acquired intangible assets

5,530,000

Weighted average useful life (in years)

14 years

Surgical Biologics [Member] | Licenses and permits [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Acquired intangible assets

$ 13,000

Weighted average useful life (in years)

3 years

[1]	On January 5, 2011, the Company acquired Surgical Biologics, LLC. As a result, the Company recorded intangible assets for customer and supplier relationships, patents and know-how, licenses/permits, trade names and trademarks and in-process research and development.

Inventories (Details) - USD ($)	Jun. 30, 2012	Dec. 31, 2011
Inventories [Abstract]
Raw materials	$ 186,707	$ 95,288
Work in process	492,017	308,763
Finished goods	338,070	361,007
Gross Inventory	1,016,794	765,058
Reserve for obsolescence	(54,855)	(52,456)
Inventory, net	$ 961,939	$ 712,602

- Definition

The amount of the valuation account as of the balance sheet date which reduces the carrying amount of inventory to net realizable value; takes into consideration such factors as market value, excessive quantities based on expected sales, technological obsolescence, and shrinkage. May also provide for estimated product returns or price concessions pertaining to product cost.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 330
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 5.BB)
-URI http://asc.fasb.org/extlink&oid=6386940&loc=d3e100047-122729

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.6(a))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SX 210.12-09)
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e24092-122690

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 330
-SubTopic 10
-Section 35
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6386567&loc=d3e3927-108312

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Paragraph 14
-Chapter 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 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Paragraph 8, 9, 14
-Chapter 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 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Section A
-Paragraph 9
-Chapter 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 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 09
-Article 12

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 6
-Subparagraph a
-Article 5

+ Details

Property and equipment (Details) - USD ($)

Jun. 30, 2012

Dec. 31, 2011

Property and equipment [Line Items]

Property and equipment, gross

$ 2,994,684

$ 2,683,884

Less accumulated depreciation

(2,045,964)

(1,814,473)

Property and equipment, net

948,720

869,411

Leasehold Improvements [Member]

Property and equipment [Line Items]

Property and equipment, gross

978,550

925,086

Lab and clean room equipment [Member]

Property and equipment [Line Items]

Property and equipment, gross

^[1]

1,660,399

1,463,144

Furniture and office equipment [Member]

Property and equipment [Line Items]

Property and equipment, gross

^[1]

$ 355,735

$ 295,654

[1]	The table above includes reclassifications of production equipment previously included in the furniture and office equipment category.

- Definition

The cumulative amount of depreciation, depletion and amortization (related to property, plant and equipment, but not including land) that has been recognized in the income statement.

+ References + Details

Intangible assets and royalty agreement (Details) - USD ($)

6 Months Ended

Jun. 30, 2012

Dec. 31, 2011

Finite-Lived Intangible Assets [Line Items]

Gross Carrying Value

$ 15,366,000

Accumulated Amortization

(4,136,469)

(3,468,515)

Net Carrying Value

11,229,531

11,897,485

Indefinite-lived Intangible Assets [Line Items]

Intangible assets, gross carrying value

^[1]

18,559,000

Intangible assets, net carrying value

^[1]

14,422,531

15,090,485

Estimated future amortization expense [Abstract]

2012

^[2]

667,955

1,335,909

1,331,575

1,225,337

1,024,843

5,643,912

11,229,531

11,897,485

Trade names and trademarks [Member]

Indefinite-lived Intangible Assets [Line Items]

Gross Carrying Value

^[1]

1,008,000

Net Carrying Value

^[1]

1,008,000

In process research and development, liquid [Member]

Indefinite-lived Intangible Assets [Line Items]

Gross Carrying Value

^[1]

2,160,000

Net Carrying Value

^[1]

2,160,000

In process research and development, other [Member]

Indefinite-lived Intangible Assets [Line Items]

Gross Carrying Value

^[1]

25,000

Net Carrying Value

^[1]

$ 25,000

25,000

License-Shriners Hsp for Children & USF Research [Member]

Finite-Lived Intangible Assets [Line Items]

Weighted Average Amortization Lives

^[3]

10 years

Gross Carrying Value

^[3]

$ 996,000

996,000

Accumulated Amortization

^[3]

(537,833)

(488,033)

Net Carrying Value

^[3]

458,167

507,967

Acquisition price, one-time license fee

$ 100,000

Shares issued for intangibles (in shares)

1,120,000

Value of shares issued for intangibles

$ 896,000

Contingent payments to licensor

$ 200,000

Contingent royalty to be paid to licensor (in hundredths)

3.00%

Estimated future amortization expense [Abstract]

Total

^[3]

$ 458,167

507,967

License - SaluMedica LLC Spine Repair [Member]

Finite-Lived Intangible Assets [Line Items]

Weighted Average Amortization Lives

^[4]

10 years

Gross Carrying Value

^[4]

$ 2,399,000

2,399,000

Accumulated Amortization

^[4]

(1,461,581)

(1,313,573)

Net Carrying Value

^[4]

937,419

1,085,427

Estimated future amortization expense [Abstract]

Total

^[4]

$ 937,419

1,085,427

License - Polyvinyl Alcohol Cryogel [Member]

Finite-Lived Intangible Assets [Line Items]

Weighted Average Amortization Lives

^[5]

10 years

Gross Carrying Value

^[5]

$ 2,667,000

2,667,000

Accumulated Amortization

^[5]

(1,135,091)

(998,932)

Net Carrying Value

^[5]

$ 1,531,909

1,668,068

Shares issued for intangibles (in shares)

400,000

Value of shares issued for intangibles

$ 2,596,000

Number of shares issuable upon meeting certain milestones (in shares)

600,000

Contingent payments to licensor, shares issued (in shares)

100,000

Contingent payment to licensor, value of shares issued

$ 71,000

Estimated future amortization expense [Abstract]

Total

^[5]

$ 1,531,909

1,668,068

Customer Relationships [Member]

Finite-Lived Intangible Assets [Line Items]

Weighted Average Amortization Lives

^[1]

14 years

Gross Carrying Value

^[1]

$ 3,520,000

3,520,000

Accumulated Amortization

^[1]

(377,143)

(251,429)

Net Carrying Value

^[1]

3,142,857

3,268,571

Estimated future amortization expense [Abstract]

Total

^[1]

$ 3,142,857

3,268,571

Supplier Relationships [Member]

Finite-Lived Intangible Assets [Line Items]

Weighted Average Amortization Lives

^[1]

14 years

Gross Carrying Value

^[1]

$ 241,000

241,000

Accumulated Amortization

^[1]

(25,821)

(17,215)

Net Carrying Value

^[1]

215,179

223,785

Estimated future amortization expense [Abstract]

Total

^[1]

$ 215,179

223,785

Patents and know-how [Member]

Finite-Lived Intangible Assets [Line Items]

Weighted Average Amortization Lives

^[1]

14 years

Gross Carrying Value

^[1]

$ 5,530,000

5,530,000

Accumulated Amortization

^[1]

(592,500)

(395,000)

Net Carrying Value

^[1]

4,937,500

5,135,000

Estimated future amortization expense [Abstract]

Total

^[1]

$ 4,937,500

5,135,000

Licenses and permits [Member]

Finite-Lived Intangible Assets [Line Items]

Weighted Average Amortization Lives

^[1]

3 years

Gross Carrying Value

^[1]

$ 13,000

13,000

Accumulated Amortization

^[1]

(6,500)

(4,333)

Net Carrying Value

^[1]

6,500

8,667

Estimated future amortization expense [Abstract]

Total

^[1]

$ 6,500

$ 8,667

[1]	On January 5, 2011, the Company acquired Surgical Biologics, LLC. As a result, the Company recorded intangible assets for customer and supplier relationships, patents and know-how, licenses/permits, trade names and trademarks and in-process research and development.
[2]	Estimated amortization expense for the year ending December 31, 2012 includes only amortization to be recorded after June 30, 2012.
[3]	On January 29, 2007, the Company acquired a license from Shriners Hospitals for Children and University of South Florida Research Foundation, Inc. The acquisition price of this license was a one-time fee of $100,000 and 1,120,000 shares of common stock valued at $896,000 (based upon the estimated fair value of the common stock on the transaction date). Within 30 days after the receipt by the Company of approval by the FDA allowing the sale of the first licensed product, the Company is required to pay an additional $200,000 to the licensor. Due to its contingent nature, this amount is not recorded as a liability. The Company will also be required to pay a royalty of 3% on all commercial sales revenue from the licensed products.
[4]	License from SaluMedica, LLC (SaluMedica) for the use of certain developed technologies related to spine repair. This license was acquired through the acquisition of SpineMedica Corp.
[5]	On March 31, 2008, the Company entered into a license agreement for the use of certain developed technologies related to surgical sheets made of polyvinyl alcohol cryogel. The acquisition price of the asset was 400,000 shares of common stock valued at $2,596,000 (based upon the closing price of the common stock on the transaction date). The agreement also provides for the issuance of an additional 600,000 shares upon the Company meeting certain milestones related to future sales. On December 31, 2009, the Company completed the sale of its first commercial product and met its first milestone under this agreement. As a result, the Company issued an additional 100,000 shares of common stock to the licensor valued at $71,000. At June 30, 2012 and 2011, there are no additional amounts accrued for this obligation due to its contingent nature.

Debt (Details)

3 Months Ended

6 Months Ended

Dec. 31, 2011

USD ($)

$ / shares

Jun. 30, 2011

USD ($)

Mar. 31, 2011

USD ($)

$ / shares

Jun. 30, 2012

USD ($)

$ / shares

Feb. 28, 2012

USD ($)

Line of Credit Facility [Line Items]

Contingent warrants issued at inception (in shares)

^[1]

3,150,000

Contingent warrants outstanding

1,575,000

Terms of Conversion feature

Debt Instrument [Line Items]

Total face value of notes | $

$ 6,300,000

Contingent warrants issued at inception (in shares)

^[1]

3,150,000

Contingent warrants outstanding

1,575,000

Warrants, term

5 years

Terms of Conversion feature

Contingent Warrants [Member]

Line of Credit Facility [Line Items]

Weighted average exercise price of warrants (in dollars per share) | $ / shares

0.01

Debt Instrument [Line Items]

Weighted average exercise price of warrants (in dollars per share) | $ / shares

0.01

Warrants, term

5 years

First Contingent Warrants [Member]

Line of Credit Facility [Line Items]

Contingent warrants issued at inception (in shares)

^[1]

1,575,000

Warrants vested (in shares)

(1,575,000)

Contingent warrants outstanding

Debt Instrument [Line Items]

Contingent warrants issued at inception (in shares)

^[1]

1,575,000

Warrants vested (in shares)

(1,575,000)

Contingent warrants outstanding

Warrants, shares callable, maximum

25.00%

Second Contingent Warrants [Member]

Line of Credit Facility [Line Items]

Contingent warrants issued at inception (in shares)

^[1]

1,575,000

Warrants vested (in shares)

Contingent warrants outstanding

^[2]

1,575,000

Terms of Conversion feature

Debt Instrument [Line Items]

Contingent warrants issued at inception (in shares)

^[1]

1,575,000

Warrants vested (in shares)

Contingent warrants outstanding

^[2]

1,575,000

Warrants, shares callable, maximum

25.00%

Terms of Conversion feature

Conversion Warrant [Member]

Line of Credit Facility [Line Items]

Weighted average exercise price of warrants (in dollars per share) | $ / shares

1.00

Debt Instrument [Line Items]

Weighted average exercise price of warrants (in dollars per share) | $ / shares

1.00

Placement Fee Warrants [Member]

Line of Credit Facility [Line Items]

Weighted average exercise price of warrants (in dollars per share) | $ / shares

1.09

Debt Instrument [Line Items]

Weighted average exercise price of warrants (in dollars per share) | $ / shares

1.09

Warrants, term

5 years

Convertible Line of Credit with Related party [Member]

Line of Credit Facility [Line Items]

Face Value of Note | $

$ 1,300,000

Due date

^[3]

Dec. 31, 2012

Annual Interest rate (in hundredths)

5.00%

Contingent warrants issued at inception (in shares)

^[1]

650,000

Contingent warrants outstanding

^[2]

325,000

Weighted average exercise price of warrants (in dollars per share) | $ / shares

0.01

Extension fee, rate (in hundredths)

5.00%

Extension fee | $

$ 65,000

Borrowings during the period | $

$ 500,000

$ 800,000

Debt Instrument [Line Items]

Contingent warrants issued at inception (in shares)

^[1]

650,000

Contingent warrants outstanding

^[2]

325,000

Weighted average exercise price of warrants (in dollars per share) | $ / shares

0.01

Convertible Line of Credit with Related party [Member] | Contingent Warrants [Member]

Line of Credit Facility [Line Items]

Contingent warrants issued (in shares)

250,000

400,000

Warrant and beneficial conversion value | $

$ 550,000

Debt Instrument [Line Items]

Warrant and beneficial conversion value | $

$ 550,000

Convertible Line of Credit with Related party [Member] | First Contingent Warrants [Member]

Line of Credit Facility [Line Items]

Contingent warrants issued at inception (in shares)

^[1],[4]

325,000

Warrants vested (in shares)

^[4]

(325,000)

Contingent warrants outstanding

^[2]

Terms of Conversion feature

The First Contingent Warrant, (the "First Contingent Warrant") is issued to each investor to purchase 25% of the number of shares of Stock purchased, at an exercise price of $0.01 per share, provided that the First Contingent Warrant shall only be exercisable if the Company's Gross Revenue as reported in the Company's Audited Financial Statements for the year ended December 31, 2011, do not equal or exceed $11,500,000 and further provided that such Warrant shall be null and void in the event that prior to issuance of such Audited Financial Statements (the "First Measurement Date") the closing trading price of the Stock is at least $1.50 per share for ten or more consecutive trading days. During the three months ended March 31, 2012, the First Contingent Warrants vested due to the Company's Gross Revenue not exceeding $11,500,000 for the year ended December 31, 2011 and due to the closing trading price of the stock not equaling or exceeding $1.50 per share for ten or more consecutive trading days.

Debt Instrument [Line Items]

Contingent warrants issued at inception (in shares)

^[1],[4]

325,000

Warrants vested (in shares)

^[4]

(325,000)

Contingent warrants outstanding

^[2]

Terms of Conversion feature

The First Contingent Warrant, (the "First Contingent Warrant") is issued to each investor to purchase 25% of the number of shares of Stock purchased, at an exercise price of $0.01 per share, provided that the First Contingent Warrant shall only be exercisable if the Company's Gross Revenue as reported in the Company's Audited Financial Statements for the year ended December 31, 2011, do not equal or exceed $11,500,000 and further provided that such Warrant shall be null and void in the event that prior to issuance of such Audited Financial Statements (the "First Measurement Date") the closing trading price of the Stock is at least $1.50 per share for ten or more consecutive trading days. During the three months ended March 31, 2012, the First Contingent Warrants vested due to the Company's Gross Revenue not exceeding $11,500,000 for the year ended December 31, 2011 and due to the closing trading price of the stock not equaling or exceeding $1.50 per share for ten or more consecutive trading days.

Convertible Line of Credit with Related party [Member] | Second Contingent Warrants [Member]

Line of Credit Facility [Line Items]

Contingent warrants issued at inception (in shares)

^[1],[5]

325,000

Warrants vested (in shares)

^[4]

Contingent warrants outstanding

^[2]

325,000

Terms of Conversion feature

Debt Instrument [Line Items]

Contingent warrants issued at inception (in shares)

^[1],[5]

325,000

Warrants vested (in shares)

^[4]

Contingent warrants outstanding

^[2]

325,000

Terms of Conversion feature

Convertible Senior Secured Promissory Notes [Member]

Line of Credit Facility [Line Items]

Contingent warrants issued at inception (in shares)

^[1]

2,500,000

Contingent warrants outstanding

1,250,000

Weighted average exercise price of warrants (in dollars per share) | $ / shares

0.01

Warrant and beneficial conversion value | $

$ 2,278,052

Debt Instrument [Line Items]

Face Value of Note | $

$ 5,000,000

Due date

^[6]

Dec. 31, 2013

Annual interest rate (in hundredths)

5.00%

Contingent warrants issued at inception (in shares)

^[1]

2,500,000

Contingent warrants outstanding

1,250,000

Weighted average exercise price of warrants (in dollars per share) | $ / shares

0.01

Conversion price (in dollars per share) | $ / shares

$ 1.00

Warrant and beneficial conversion value | $

$ 2,278,052

Proceeds from issuance of Convertible Senior Secured Promissory Notes | $

$ 5,000,000

Proceeds from issuance of Notes to Chairman of the Board and CEO | $

500,000

Commitment to lend | $

$ 1,500,000

Convertible debt, shares issuable if converted (in shares)

5,000,000

Placement fee | $

$ 32,800

Direct costs of sale of notes | $

$ 47,800

Convertible Senior Secured Promissory Notes [Member] | First Contingent Warrants [Member]

Line of Credit Facility [Line Items]

Contingent warrants issued at inception (in shares)

^[1],[7]

1,250,000

Warrants vested (in shares)

^[7]

(1,250,000)

Contingent warrants outstanding

Terms of Conversion feature

Debt Instrument [Line Items]

Contingent warrants issued at inception (in shares)

^[1],[7]

1,250,000

Warrants vested (in shares)

^[7]

(1,250,000)

Contingent warrants outstanding

Terms of Conversion feature

Convertible Senior Secured Promissory Notes [Member] | Second Contingent Warrants [Member]

Line of Credit Facility [Line Items]

Contingent warrants issued at inception (in shares)

^[1],[5]

1,250,000

Warrants vested (in shares)

Contingent warrants outstanding

^[2]

1,250,000

Debt Instrument [Line Items]

Contingent warrants issued at inception (in shares)

^[1],[5]

1,250,000

Warrants vested (in shares)

Contingent warrants outstanding

^[2]

1,250,000

Convertible Senior Secured Promissory Notes [Member] | Placement Fee Warrants [Member]

Debt Instrument [Line Items]

Placement fee, warrants issued (in shares)

42,400

Fair value of placement fee warrants | $

$ 15,000

Convertible Secured Promissory Notes [Member]

Debt Instrument [Line Items]

Face Value of Note | $

$ 1,250,000

[1]	The Contingent Warrants have a term of five years from the date of issuance; however each is subject to automatic terminations as defined in the First Contingent Warrant and Second Contingent Warrant terms. The shares of Common Stock issuable upon exercise of the Contingent Warrants do not carry registration rights and may be exercised on a "cashless" basis. In the event of a change in control transaction on or prior to the First Measurement Date, then the Contingent Warrants shall be exercisable immediately prior to the closing of such change in control transaction. In the event (i) of a change in control transaction after the First Measurement Date and on or prior to the Second Measurement Date and (ii) the per share value of the consideration received by the holders of Common Stock in such change in control transaction is at least $1.75, the Second Contingent Warrant shall be null and void. If the value of the per share consideration received by the holders of Common Stock in such transaction is less than $1.75, the Second Contingent Warrant shall be exercisable immediately prior to the closing of such change in control transaction.
[2]	The contingent warrants have not been included in our earnings per share calculation per the guidance in ASC 260-10-45-13 Earnings per share: Treatment of Contingently Issuable Shares in Weighted-Average Shares Outstanding which states that shares issuable for little or no cash consideration upon the satisfaction of certain conditions (contingently issuable shares) shall be considered outstanding common shares and included in the computation of basic EPS as of the date that all necessary conditions have been satisfied (in essence, when issuance of the shares is no longer contingent).
[3]	The initial termination date of the Credit Agreement is December 31, 2012 and the Company may elect to extend the termination date until December 31, 2013 upon payment of an extension fee of 5% of the outstanding principle balance or $65,000.
[4]	The First Contingent Warrant, (the "First Contingent Warrant") is issued to each investor to purchase 25% of the number of shares of Stock purchased, at an exercise price of $0.01 per share, provided that the First Contingent Warrant shall only be exercisable if the Company's Gross Revenue as reported in the Company's Audited Financial Statements for the year ended December 31, 2011, do not equal or exceed $11,500,000 and further provided that such Warrant shall be null and void in the event that prior to issuance of such Audited Financial Statements (the "First Measurement Date") the closing trading price of the Stock is at least $1.50 per share for ten or more consecutive trading days. During the three months ended March 31, 2012, the First Contingent Warrants vested due to the Company's Gross Revenue not exceeding $11,500,000 for the year ended December 31, 2011 and due to the closing trading price of the stock not equaling or exceeding $1.50 per share for ten or more consecutive trading days.
[5]	The Second Contingent Warrant, (the "Second Contingent Warrant") is issued to each investor to purchase 25% of the number of shares of Stock purchased, at an exercise price of $0.01 per share, provided that the Second Contingent Warrant shall only be exercisable if the Company's Gross Revenue as reported in the Company's Audited Financial Statements for the year ended December 31, 2012, do not equal or exceed $31,150,000 and further provided that such Warrant shall be null and void in the event that prior to issuance of such Audited Financial Statements (the "Second Measurement Date") the closing trading price of the Stock is at least $1.75 per share for ten or more consecutive trading days.
[6]	Unless the Company has repaid the applicable lender's Notes in full prior to December 31, 2012, the Company must pay to each lender an additional interest payment in the amount of five percent (5%) of the aggregate outstanding principal amount of such lender's Notes as of December 31, 2012.
[7]	The First Contingent Warrant, (the "First Contingent Warrant") is issued to each investor to purchase 25% of the number of shares of Stock purchased, at an exercise price of $0.01 per share, provided that the First Contingent Warrant shall only be exercisable if the Company's Gross Revenue as reported in the Company's Audited Financial Statements for the year ended December 31, 2011, do not equal or exceed $11,500,000. As of ended December 31, 2011, the First Contingent warrants vested due to the Company's Gross Revenue not exceeding $11,500,000 for the year ended December 31, 2011.

Common Stock Placements (Details)	2 Months Ended	3 Months Ended	6 Months Ended	9 Months Ended
Common Stock Placements (Details)	Dec. 31, 2010 USD ($) $ / shares shares	Mar. 31, 2012 shares	Jun. 30, 2012 $ / shares	Sep. 30, 2011 USD ($) $ / shares shares
Sale of stocks and warrants [Line Items]
Warrants, term			5 years
Common Stock [Member]
Sale of stocks and warrants [Line Items]
Shares or warrants issued (in shares) \| shares	2,405,000			3,778,321
Share issue price (in dollars per share) \| $ / shares	$ 1.00
Net proceeds from private placement \| $	$ 2,337,020			$ 3,730,587
Private placement offering costs \| $	67,980			$ 47,733
Terms of offering and warrants			Under the terms of the offering, for each share purchased, the investor received one 5-year warrant to purchase the common stock of the Company at an exercise price of $1.50 per share.
Callable Warrants [Member]
Sale of stocks and warrants [Line Items]
Shares or warrants issued (in shares) \| shares				1,889,161
Warrants, term				5 years
Exercise price (in dollars per share) \| $ / shares				1.5
Redemption price (in dollars per share) \| $ / shares			0.01
Terms of offering and warrants			The terms of the warrant, (the "Callable Warrant") are that for every two shares of common stock purchased, the holder is issued a 5-year warrant to purchase one share of the Company's Common Stock at an exercise price of $1.50 per share. The Callable Warrant does not carry registration rights and is callable by the Company at any time after the issuance if the closing sale price of the Stock exceeds $1.75 for fifteen (15) or more consecutive trading days. Upon written notice, the Company may redeem the Callable Warrant at a price of $0.01 per share.
Warrants, shares callable, maximum (in hundredths)			25.00%
First Contingent Warrants [Member]
Sale of stocks and warrants [Line Items]
Shares or warrants issued (in shares) \| shares		1,672,742
Exercise price (in dollars per share) \| $ / shares			0.01
Second Contingent Warrants [Member]
Sale of stocks and warrants [Line Items]
Exercise price (in dollars per share) \| $ / shares			0.01
Terms of offering and warrants			The Second Contingent Warrant, (the "Second Contingent Warrant") is issued to each investor to purchase 25% of the number of shares of Stock purchased, at an exercise price of $0.01 per share, provided that the Second Contingent Warrant shall only be exercisable if the Company's Gross Revenue as reported in the Company's Audited Financial Statements for the year ended December 31, 2012, do not equal or exceed $31,150,000 and further provided that such Warrant shall be null and void in the event that prior to issuance of such Audited Financial Statements (the "Second Measurement Date") the closing trading price of the Stock is at least $1.75 per share for ten or more consecutive trading days.
Chairman and CEO [Member]
Sale of stocks and warrants [Line Items]
Net proceeds from private placement \| $	$ 1,006,664
Chairman and CEO [Member] \| Callable Warrants [Member]
Sale of stocks and warrants [Line Items]
Shares or warrants issued (in shares) \| shares	503,332
Exercise price (in dollars per share) \| $ / shares				1.5
Chairman and CEO [Member] \| First Contingent Warrants [Member]
Sale of stocks and warrants [Line Items]
Shares or warrants issued (in shares) \| shares	251,666
Chairman and CEO [Member] \| Second Contingent Warrants [Member]
Sale of stocks and warrants [Line Items]
Shares or warrants issued (in shares) \| shares	251,666

Equity (Details) - USD ($)	6 Months Ended
Equity (Details) - USD ($)	Jun. 30, 2012	Jun. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of share-based compensation plans	3
Stock options, additional disclosures [Abstract]
Exercised options, intrinsic value	$ 83,000
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Outstanding Options, weighted average remaining contractual term	7 years 3 months 18 days
Outstanding Options, weighted average exercise price (in dollars per share)	$ 1.20
Number of exercisable options (in shares)	7,106,810
Exercisable Options, weighted average exercise price (in dollars per share)	$ 1.17
Fair value options valuation assumptions [Abstract]
Expected volatility, minimum (in hundredths)	58.31%	57.30%
Expected volatility, maximum (in hundredths)	59.04%	57.60%
Expected life (in years)		6 years
Expected dividend yield (in hundredths)	0.00%	0.00%
Risk-free interest rate, minimum (in hundredths)	0.62%	1.48%
Risk-free interest rate, maximum (in hundredths)	0.122%	2.24%
Class of Warrant or Right [Line Items]
Warrants, term	5 years
Warrants [Member]
Warrants, Number of Warrants [Roll Forward]
Warrants outstanding, beginning of period (in shares)	9,388,817
Warrants exercised (in shares)	(3,622,743)
Warrants outstanding, end of period (in shares)	7,763,817
Warrants, Weighted-Average Exercise Price per Warrant [Roll Forward]
Warrants outstanding, beginning of period (in dollars per share)	1.00
Warrants exercised (in dollars per share)	$ 0.09
Warrants outstanding, end of period (in dollars per share)	1.17
Contingent Warrants [Member]
Class of Warrant or Right [Line Items]
Warrants, term	5 years
Warrants, Number of Warrants [Roll Forward]
Warrants outstanding, beginning of period (in shares)	5,245,484
Warrants exercised (in shares)	0
Warrants outstanding, end of period (in shares)	3,247,741
Warrants, Weighted-Average Exercise Price per Warrant [Roll Forward]
Warrants outstanding, beginning of period (in dollars per share)	0.01
Warrants exercised (in dollars per share)	$ 0
Warrants outstanding, end of period (in dollars per share)	0.01
Stock Options [Member]
Number of shares [Roll forward]
Outstanding, beginning of period (in shares)	10,333,583
Granted (in shares)	2,948,000
Exercised (in shares)	(324,750)
Forfeited or cancelled/Expired (in shares)	(162,583)
Outstanding, end of period (in shares)	12,794,250
Exercisable options, vested and expected to vest (in shares)	7,106,810
Weighted-Average Exercise Price [Roll forward]
Outstanding, weighted average exercise price, beginning of period (in dollars per share)	$ 1.17
Granted, weighted average exercise price (in dollars per share)	1.26
Exercised, weighted average exercise price (in dollars per share)	0.98
Forfeited or cancelled/expired, weighted average exercise price (in dollars per share)	1.11
Outstanding, weighted average exercise price, end of period (in dollars per share)	1.20
Vested and expected to vest, weighted average exercise price (in dollars per share)	$ 1.17
Stock options, additional disclosures [Abstract]
Outstanding, weighted average remaining contractual term	7 years 3 months 18 days
Vested and expected to vest, weighted average remaining contractual term	5 years 10 months 24 days
Outstanding, aggregate intrinsic value	$ 11,728,020
Vested and expected to vest, aggregate intrinsic value	6,763,936
Total unrecognized compensation expense	$ 4,120,000
Unvested Stock Options [Member]
Number of shares [Roll forward]
Outstanding, beginning of period (in shares)	4,333,086
Granted (in shares)	2,948,000
Exercised (in shares)	(162,583)
Vested (in shares)	(1,431,063)
Outstanding, end of period (in shares)	5,687,440
Share Based Compensation Arrangement By Share Based Payment Award Nonvested Stock Options, Weighted-Average Grant Date Fair Value [Roll Forward]
Unvested, beginning of period (in dollars per share)	$ 0.72
Granted (in dollars per share)	0.67
Cancelled/expired (in dollars per share)	0.68
Vested (in dollars per share)	0.74
Unvested, end of period (in dollars per share)	$ 0.69
Warrants Issued in Connection with Private Placement [Member] \| Warrants [Member]
Warrants, Number of Warrants [Roll Forward]
Warrants issued (in shares)	1,672,743
Warrants, Weighted-Average Exercise Price per Warrant [Roll Forward]
Warrants issued (in dollars per share)	$ 0.01
Warrants Issued in Connection with Private Placement [Member] \| Contingent Warrants [Member]
Warrants, Number of Warrants [Roll Forward]
Warrants issued (in shares)	(1,672,743)
Warrants, Weighted-Average Exercise Price per Warrant [Roll Forward]
Warrants issued (in dollars per share)	$ 0.01
Warrants Issued In Connection With Line of Credit with Related Party [Member] \| Warrants [Member]
Warrants, Number of Warrants [Roll Forward]
Warrants issued (in shares)	325,000
Warrants, Weighted-Average Exercise Price per Warrant [Roll Forward]
Warrants issued (in dollars per share)	$ 0.01
Warrants Issued In Connection With Line of Credit with Related Party [Member] \| Contingent Warrants [Member]
Warrants, Number of Warrants [Roll Forward]
Warrants issued (in shares)	(325,000)
Warrants, Weighted-Average Exercise Price per Warrant [Roll Forward]
Warrants issued (in dollars per share)	$ 0.01
Warrants Redeemed for Cashless Exercises [Member]
Warrants, Weighted-Average Exercise Price per Warrant [Roll Forward]
Warrants exercised (in dollars per share)	$ 0
Warrants Redeemed for Cashless Exercises [Member] \| Warrants [Member]
Warrants, Number of Warrants [Roll Forward]
Warrants exercised (in shares)	(1,691)
Warrants, Weighted-Average Exercise Price per Warrant [Roll Forward]
Warrants exercised (in dollars per share)	$ 0.09
Warrants Redeemed for Cashless Exercises [Member] \| Contingent Warrants [Member]
Warrants, Number of Warrants [Roll Forward]
Warrants exercised (in shares)	0
Assumed 2005 Plan and Assumed 2007 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding assumed options (in shares)	375,000
Assumed 2006 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional shares authorized by Board of Directors (in shares)	4,000,000
Shares authorized (in shares)	16,500,000
$0.50 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Price Range, upper range limit (in dollars per share)	$ 0.50
Number of outstanding options (in shares)	566,250
Outstanding Options, weighted average remaining contractual term	2 years 4 months 24 days
Outstanding Options, weighted average exercise price (in dollars per share)	$ 0.50
Number of exercisable options (in shares)	554,223
Exercisable Options, weighted average exercise price (in dollars per share)	$ 0.50
$0.65-$1.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Price Range, lower range limit (in dollars per share)	0.65
Exercise Price Range, upper range limit (in dollars per share)	$ 1.00
Number of outstanding options (in shares)	2,717,500
Outstanding Options, weighted average remaining contractual term	5 years 7 months 6 days
Outstanding Options, weighted average exercise price (in dollars per share)	$ 0.78
Number of exercisable options (in shares)	2,624,179
Exercisable Options, weighted average exercise price (in dollars per share)	$ 0.78
$1.04-$1.80 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Price Range, lower range limit (in dollars per share)	1.04
Exercise Price Range, upper range limit (in dollars per share)	$ 1.80
Number of outstanding options (in shares)	8,960,500
Outstanding Options, weighted average remaining contractual term	8 years 8 months 12 days
Outstanding Options, weighted average exercise price (in dollars per share)	$ 1.29
Number of exercisable options (in shares)	3,378,408
Exercisable Options, weighted average exercise price (in dollars per share)	$ 1.39
$2.40 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Price Range, upper range limit (in dollars per share)	$ 2.40
Number of outstanding options (in shares)	550,000
Outstanding Options, weighted average remaining contractual term	2 months 12 days
Outstanding Options, weighted average exercise price (in dollars per share)	$ 2.40
Number of exercisable options (in shares)	550,000
Exercisable Options, weighted average exercise price (in dollars per share)	$ 2.40

Contractual Commitments (Details)	Jun. 30, 2012 USD ($)
Contractual Obligation, Fiscal Year Maturity [Abstract]
2013	$ 730,000
2014	212,000
Thereafter	102,000
Total Contractual commitments	$ 1,044,000

Subsequent Events (Details)				6 Months Ended
Subsequent Events (Details)	Aug. 03, 2012 USD ($) $ / shares shares	Jul. 05, 2012 USD ($) shares	Jul. 03, 2012 $ / shares	Jun. 30, 2012 USD ($) shares	Jun. 30, 2011 USD ($)	Dec. 31, 2011 shares
Subsequent Event [Line Items]
Repayment of Convertible Debt related to acquisition \| $				$ (250,000)	$ 0
Common stock, shares issued (in shares)				81,052,359		74,306,895
Settlement of Acquisition Debt [Member]
Subsequent Event [Line Items]
Repayment of Convertible Debt related to acquisition \| $		$ 177,000
Common stock issued for payment of Convertible Secured Promissory Note related to the acquisition (in shares)		437,877
Common stock issued for payment of Convertible Secured Promissory Note related to the acquisition, value \| $		$ 893,000
Cancellation of Contingent Warrants [Member]
Subsequent Event [Line Items]
Common stock traded price (in dollars per share) \| $ / shares			$ 1.75
Number of days for which common stock was traded above specified price			10 days
Exercise of Callable Warrants [Member]
Subsequent Event [Line Items]
Outstanding warrants	3,345,000
Adjustments to Additional Paid in Capital, Warrant Issued \| $	$ 4,900,000
Common stock, shares issued (in shares)	3,288,733
Warrants repurchased (in shares)	56,750
Repurchase price (in dollars per share) \| $ / shares	0.01