10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

x Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2014

¨ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission file number 001-35853

HARVARD APPARATUS

REGENERATIVE TECHNOLOGY,

INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	45-5210462
(State or Other Jurisdiction of Incorporation or Organization)	(IRS Employer Identification No.)

84 October Hill Road, Holliston, MA	01746
(Address of Principal Executive Offices)	(Zip Code)

(774) 233-7300

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   x YES ¨ NO

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). x YES ¨ NO

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨	Accelerated filer ¨
Non-accelerated filer ¨ (Do not check if a smaller reporting company)	Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ¨ YES x NO

As of November 6, 2014, there were 7,856,607 shares of common stock, par value $0.01 per share, outstanding.

HARVARD APPARATUS REGENERATIVE TECHNOLOGY, INC.

Form 10-Q

For the Quarter Ended September 30, 2014

INDEX

		Page
PART I-FINANCIAL INFORMATION		3
Item 1.	Financial Statements	3
	Consolidated Balance Sheets as of September 30, 2014 and December 31, 2013 (unaudited)	3
	Consolidated Statements of Operations and Comprehensive Loss for the Three and Nine Months Ended September 30, 2014 and 2013 (unaudited)	4
	Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2014 and 2013 (unaudited)	5
	Notes to Unaudited Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	12
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	16
Item 4.	Controls and Procedures	16
PART II-OTHER INFORMATION		16
Item 1A.	Risk Factors	16
Item 6.	Exhibits	17
SIGNATURES		18

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PART I. FINANCIAL INFORMATION

Item 1.  Financial Statements.

HARVARD APPARATUS REGENERATIVE TECHNOLOGY, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands, except par value and per share data)

	September 30,			December 31,
	2014			2013
ASSETS
Current assets:
Cash	$	7,722		$	14,008
Related party receivables		3			22
Other non-trade receivables		29			-
Inventories, net		157			38
Prepaid expenses		117			421
Other current assets		30			-
Total current assets		8,058			14,489
Property, plant and equipment, net of accumulated depreciation of $504 and $248 at September 30, 2014 and December 31, 2013, respectively		1,354			575
Total non-current assets		1,354			575
Total assets	$	9,412		$	15,064
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	254		$	244
Related party payable		32			90
Accrued and other current liabilities		430			161
Total current liabilities		716			495
Total non-current liabilities		-			-
Total liabilities		716			495
Commitments and contingencies (note 8)
Stockholders' equity:
Preferred stock, par value $0.01 per share, 2,000,000 shares authorized; 0 shares issued and outstanding at September 30, 2014 and December 31, 2013		-			-
Common stock, par value $0.01 per share, 30,000,000 shares authorized; 7,856,607 and 7,742,080  shares issued and outstanding at September 30, 2014 and December 31 2013, respectively		79			77
Additional paid-in capital		18,810			16,466
Accumulated deficit		(10,193	)		(1,974	)
Accumulated other comprehensive loss		-			-
Total stockholders' equity		8,696			14,569
Total liabilities and stockholders' equity	$	9,412		$	15,064

See accompanying notes to unaudited consolidated financial statements.

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HARVARD APPARATUS REGENERATIVE TECHNOLOGY, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(unaudited, in thousands, except per share data)

	Three months ended September 30,						Nine months ended September 30,
	2014			2013			2014			2013
Revenues	$	2		$	-		$	48		$	-
Cost of revenues		1			-			25			-
Gross profit		1			-			23			-
Operating expenses:
Research and development		1,401			1,058			3,832			3,483
Sales and marketing		77			28			241			82
General and administrative		1,199			974			4,165			2,604
Total operating expenses		2,677			2,060			8,238			6,169
Operating loss		(2,676	)		(2,060	)		(8,215	)		(6,169	)
Other income (expense), net		(4	)		-			(4	)		-
Loss before income taxes		(2,680	)		(2,060	)		(8,219	)		(6,169	)
Income taxes		-			-			-			-
Net loss	$	(2,680	)	$	(2,060	)	$	(8,219	)	$	(6,169	)
Basic and diluted net loss per share	$	(0.34	)	$	(0.27	)	$	(1.05	)	$	(0.80	)
Weighted average common shares, basic and diluted		7,851			7,740			7,809			7,740
Comprehensive loss:
Net loss	$	(2,680	)	$	(2,060	)	$	(8,219	)	$	(6,169	)
Foreign currency translation adjustments		(3	)		-			-			-
Total comprehensive loss	$	(2,683	)	$	(2,060	)	$	(8,219	)	$	(6,169	)

See accompanying notes to unaudited consolidated financial statements.

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HARVARD APPARATUS REGENERATIVE TECHNOLOGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

	Nine Months ended September 30,
	2014			2013
Cash flows used in operating activities:
Net loss:	$	(8,219	)	$	(6,169	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense		1,926			514
Depreciation		256			123
Changes in operating assets and liabilities:
Decrease in related party receivables		19			-
(Increase) in other non-trade receivables		(29	)		-
(Increase) in inventories		(119	)		-
Decrease (increase) in  prepaid expenses		304			(33	)
(Increase) in other current assets		(30	)		-
Increase (decrease) in accounts payable		10			(53	)
(Decrease) in related party payable		(58	)		-
Increase in accrued and other current liabilities		269			21
Net cash used in operating activities		(5,671	)		(5,597	)
Cash flows used in investing activities:
Additions to property, plant and equipment		(1,033	)		(145	)
Net cash used in investing activities		(1,033	)		(145	)
Cash flows from financing activities:
Proceeds from funding provided by Harvard Bioscience, Inc.		-			5,742
Proceeds from issuance of common stock		418			-
Net cash provided by financing activities		418			5,742
Effect of exchange rate changes on cash		-			-
Net (decrease) in cash		(6,286	)		-
Cash at the beginning of the period		14,008			-
Cash at the end of the period	$	7,722		$	-

See accompanying notes to unaudited consolidated financial statements.

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HARVARD APPARATUS REGENERATIVE TECHNOLOGY, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. Overview and Basis of Presentation

Overview

Prior to November 1, 2013, Harvard Apparatus Regenerative Technology, Inc. (“HART” or the “Company”) was a business segment of Harvard Bioscience, Inc. (“Harvard Bioscience”). The Company is engaged in the development and commercialization of regenerated organs for human transplant.

Since inception, the Company has devoted substantially all of its efforts to business planning, research and development, recruiting management and technical staff, and acquiring operating assets.

HART was incorporated in Delaware on May 3, 2012 by Harvard Bioscience, as a wholly-owned subsidiary, to provide a means for separating Harvard Bioscience’s regenerative medicine business from its other businesses. Harvard Bioscience has been designing and manufacturing devices for life science researchers for over 100 years. Harvard Bioscience first focused on providing devices to scientists involved in regenerative medicine research in 2008. Since early 2009, Harvard Bioscience’s regenerative medicine business initiative was operated as a segment of Harvard Bioscience.

On October 31, 2013, Harvard Bioscience contributed its regenerative medicine business assets, plus $15 million of cash, into HART (the “Separation”). On November 1, 2013, the previously announced spin-off of the Company from Harvard Bioscience was completed. On that date, the Company became an independent company that operates the regenerative medicine business previously owned by Harvard Bioscience. The spin-off was completed through the distribution to Harvard Bioscience stockholders of all the shares of common stock of HART (the “Distribution”).

Basis of Presentation

The Company historically operated as part of Harvard Bioscience, and not as a stand-alone company. For periods prior to the Separation on October 31, 2013, the consolidated financial statements presented herein, which include periods prior to the Separation, and are discussed below, have been prepared on a stand-alone basis and are derived from the financial statements and accounting records of Harvard Bioscience using the historical basis of assets and liabilities of HART. The Company’s financial statements from that period include expenses of Harvard Bioscience allocated to HART for certain functions provided by Harvard Bioscience, including, but not limited to, general corporate expenses related to executive services, finance, treasury, corporate income tax, human resources, legal services and investor relations. These expenses were allocated to HART on the basis of headcount, time devoted to HART activities, percentage of operating expenses or other relevant measures. The Company believes the assumptions and allocations underlying the financial statements are reasonable and appropriate under the circumstances. Both HART and Harvard Bioscience consider the basis on which the expenses have been allocated to be a reasonable reflection of the utilization of services provided to or the benefits received by the Company during the periods presented. However, the amounts recorded for these transactions and allocations are not necessarily representative of the amounts that would have been reflected in the financial statements had HART operated independently of Harvard Bioscience. Accordingly, the financial statements for these periods are not necessarily indicative of HART’s future results of operations, financial position and cash flows.

Prior to the Separation on October 31, 2013, Harvard Bioscience used a centralized approach to manage substantially all of its liquid resources and to finance its operations and, as a result, no separate cash accounts for HART were historically maintained, and debt and liquid resources maintained at the Harvard Bioscience group level are not included in the accompanying consolidated financial statements prior to the Separation. Harvard Bioscience funded all of HART’s operating and capital resource requirements prior to the Distribution. After October 31, 2013, the accompanying consolidated financial statements reflect the consolidated financial position and results of operations of the Company as an independent publicly traded company.

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Basic and diluted shares outstanding are the same for each period presented as all common stock equivalents would be antidilutive due to the net losses incurred.

The financial statements reflect the Company’s financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States (“GAAP”).

Unaudited Interim Financial Information

 The accompanying interim balance sheet as of September 30, 2014 and consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2014 and 2013 are unaudited. The accompanying interim consolidated statements of cash flows for the nine months ended September 30, 2014 and 2013 are unaudited. The interim unaudited consolidated financial statements have been prepared in accordance with GAAP on the same basis as the annual audited financial statements and, in the opinion of management, reflect all adjustments necessary for a fair statement of the Company’s financial position as of September 30, 2014, its results of operations for the three and nine months ended September 30, 2014 and 2013, and the Company’s consolidated statements of cash flows for the nine months ended September 30, 2014 and 2013.  The financial data and other information disclosed in these notes related to the three and nine month periods ended September 30, 2014 and 2013 are unaudited. The results for the three and nine months ended September 30, 2014 and 2013 are not necessarily indicative of results to be expected for the year ending December 31, 2014, any other interim periods or any future year or period.

2. Summary of Significant Accounting Policies and Recently Issued Accounting Pronouncements

In June 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2014-10, Development Stage Entities (Topic 915): “Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation”, which removes the definition of a development stage entity from the Accounting Standards Codification, eliminated the requirement that development stage entities present inception-to-date information in the company’s financial statements, label those financial statements as those of a development stage entity, disclose a description of the development stage activities in which they engage and disclose in the first year the entity is no longer a development stage entity that in prior years it had been. The ASU is effective retrospectively for fiscal years, and interim periods within those years, beginning after December 14, 2014. The Company has elected the permissible early application of the changes in the accompanying interim unaudited consolidated financial statements, and for all future periods.

The accounting policies, other than the change noted above, underlying the accompanying unaudited consolidated financial statements are those set forth in Note 2 to the financial statements for the year ended December 31, 2013 included in the Company’s Annual Report on Form 10-K.

There are no other recently issued accounting standards that are not yet effective that the Company believes would materially impact the financial statements.

3. Liquidity

The Company has incurred net losses since inception through September 30, 2014. Since inception, through the Separation, the Company received funding for operating losses from Harvard Bioscience and a $15.0 million cash contribution at the Separation. During the nine month period ended September 30, 2014 the Company received an additional $0.4 million of cash proceeds from stock option exercises. The Company is currently investing significant resources in development and commercialization of products for use in the field of regenerative medicine. The Company expects to continue to incur operating losses and negative cash flows from operations.

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4. Inventories

Inventories consisted of the following:

	September 30, 2014		December 31, 2013
	(in thousands)
Finished goods	$	-	$	7
Raw Materials		157		31
Total	$	157	$	38

5. Related Party Transactions

Harvard Bioscience is considered to be a related party to the Company because David Green, the Company’s Chairman and CEO, is also a director of Harvard Bioscience.

Cost Allocations

For periods presented prior to the Separation, HART’s operations were fully integrated with Harvard Bioscience, including executive services, finance, treasury, corporate income tax, human resources, legal services and investor relations. The accompanying financial statements for periods prior to the Separation reflect the application of certain estimates and allocations of operating expenses and the Company believes the methods used to allocate these operating expenses were reasonable. The allocation methods included time devoted to HART activities, headcount, percentage of operating expenses or other relevant measures. Allocations of expenses for these services were $0.7 million for the three month period ended September 30, 2013 and $1.9 million for the nine month period ended September 30, 2013. These allocated expenses are reflected in the total operating expenses in the consolidated statements of operations, in addition to direct expenses.

Agreements with Harvard Bioscience

In connection with the Separation of the Company from Harvard Bioscience, on October 31, 2013 the Company entered into a series of agreements with Harvard Bioscience, including a separation and distribution agreement, a transition services agreement, a tax sharing agreement, a sublicense agreement, a product distribution agreement, an intellectual property matters agreement and a sublease agreement. Some of these agreements require the Company to pay fees to Harvard Bioscience for services provided subsequent to the Separation, and will remain in place through at least October 31, 2014. Expenses recorded under these agreements were $0.1 million and $0.2 million for the three and nine months ended September 30, 2014, respectively.

6. Concentrations

At the time of the Separation, the Company entered into a 10-year product distribution agreement with Harvard Bioscience under which each company will become the exclusive distributor for the other party for products such other party develops for sale in the markets served by the other. In addition, Harvard Bioscience has agreed that except for certain existing activities of its German subsidiary, to the extent that any Harvard Bioscience businesses desire to resell or distribute any bioreactor that is then manufactured by HART, HART will be the exclusive manufacturer of such bioreactors and Harvard Bioscience will purchase such bioreactors from the Company. Sales to Harvard Bioscience accounted for 100% of the Company’s revenues for the nine months ended September 30, 2014, and its receivables as of September 30, 2014.

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7. Stock-Based Compensation

Harvard Bioscience maintains the Third Amended and Restated 2000 Stock Option and Incentive Plan, (as amended, the “Harvard Bioscience Plan”) for the benefit of certain of its officers, directors and employees. The disclosure of stock-based compensation for the periods prior to the Separation represent the Company’s portion of such plan maintained by Harvard Bioscience in which the Company’s employees and directors participated. The securities underlying all options and awards granted under the Harvard Bioscience Plan consist of shares of Harvard Bioscience common stock.

HART maintains the 2013 Equity Incentive Plan (the “2013 Plan”) for the benefit of certain of its officers, directors and employees. The securities underlying all options and awards granted under the 2013 Plan consist of shares of HART common stock. Additionally, equity awards related to shares of the Company’s common stock were issued from the 2013 Plan at the time of the Distribution to the holders of Harvard Bioscience equity awards as part of an adjustment (the “Adjustment”) to those equity awards to prevent a loss of value to the holders due to the Distribution.

Prior to the Separation, HART stock-based compensation expense represented an allocation from Harvard Bioscience’s stock-based compensation expense for employees whose time had been allocated to HART. After the Separation, HART continues to record the expense on stock-based awards of Harvard Bioscience stock options and restricted stock units, issued by Harvard Bioscience, to former Harvard Bioscience employees now employed by HART.

As noted above relating to the Adjustment, Harvard Bioscience award holders were also issued stock-based compensation awards in HART stock options and restricted stock units. HART recognizes compensation expense on those awards to former Harvard Bioscience employees who now are employed by HART, and does not recognize expense on the Adjustment awards given to individuals not now employed by HART. Additionally, HART records expense on grants made under the 2013 Plan to HART officers, directors and employees granted subsequent to the Adjustment.

Harvard Bioscience Plan Award Information

During the nine months ended September 30, 2013, all awards were granted to employees and directors at exercise prices equal to or greater than fair market value of the Harvard Bioscience’s common stock on the date of grant.

The following is a summary of stock option and restricted stock unit activity for the nine months ended September 30, 2014:

	Stock Options					Restricted Stock Units
	Stock Options Outstanding			Weighted Average Exercise Price		Restricted Stock Units Outstanding			Grant Date Fair Value
Balance at December 31, 2013		2,500,339		$	3.20		326,185		$	5.46
Granted		-			-		-			-
Exercised		(24,704	)		3.38		-			-
Vested (RSUs)		-			-		(154,628	)		4.70
Cancelled/forfeited		(311,635	)		5.58		-			-
Balance at September 30, 2014		2,164,000		$	2.85		171,557		$	6.14

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Stock-based compensation expense for the three and nine months ended September 30, 2014 and 2013, respectively, was allocated as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
	(in thousands)				(in thousands)
Research and development	$	17	$	32	$	48	$	69
Sales and marketing		4		-		11		-
General and administrative		181		188		505		445
Total stock-based compensation	$	202	$	220	$	564	$	514

The Company did not capitalize any stock-based compensation related to the Harvard Bioscience Plan.

 Harvard Apparatus Regenerative Technology, Inc. 2013 Equity Incentive Plan

The 2013 Plan was adopted by the Board of Directors on October 11, 2013. The aggregate number of shares authorized for issuance under the Plan is 3,000,000 shares of common stock.

The Company currently has 3,000,000 shares of its common stock reserved for the issuance, exercise or vesting of awards under the 2013 Plan. During the nine months ended September 30, 2014, 150,000 options were granted under the 2013 Plan to HART employees at exercise prices equal to or greater than fair market value of the Company’s common stock on the date of grant.

The following is a summary of stock option and restricted stock unit activity for the nine months ended September 30, 2014:

	Stock Options					Restricted Stock Units
	Stock Options Outstanding			Weighted Average Exercise Price		Restricted Stock Units Outstanding			Grant Date Fair Value
Balance at December 31, 2013		2,075,707		$	4.34		19,492		$	6.00
Granted		150,000			8.40		-			-
Exercised		(115,950	)		4.90		-			-
Vested (RSUs)		-			-		(9,796	)		6.00
Cancelled/forfeited		(173,634	)		4.43		(1,716	)		6.00
Balance at September 30, 2014		1,936,123		$	4.62		7,980		$	6.00

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The following assumptions were used to estimate the fair value of stock options granted during the three and nine months ended September 30, 2014:

	Three Months Ended		Nine Months Ended
	September 30, 2014		September 30, 2014
Volatility		-		74	%
Risk-free interest rate		-		1.66	%
Expected holding period		-		6.22 years
Dividend Yield		-		- %

No stock options were granted under the 2013 Plan during the three months ended September 30, 2014.

The weighted average fair values of the options granted under the 2013 Plan during the nine months ended September 30, 2014 was $5.55, using the Black-Scholes option-pricing model.

Stock-based compensation expense for the three and nine months ended September 30, 2014 and 2013, respectively, was allocated as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
	(in thousands)				(in thousands)
Research and development	$	83	$	-	$	396	$	-
Sales and marketing		8		-		73		-
General and administrative		162		-		893		-
Total stock-based compensation	$	253	$	-	$	1,362	$	-

The Company did not capitalize any stock-based compensation related to the 2013 Plan.

8. Commitments and Contingencies

From time to time, the Company may be involved in various claims and legal proceedings arising in the ordinary course of business. There are no such matters pending that the Company expects to be material in relation to its business, financial condition, and results of operations or cash flows.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Forward Looking Statements

This Quarterly Report on Form 10-Q contains statements that are not statements of historical fact and are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”). The forward-looking statements are principally, but not exclusively, contained in “Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Forward-looking statements include, but are not limited to, statements about management’s confidence or expectations, and our plans, objectives, expectations and intentions that are not historical facts. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “could,” “would,” “expects,” “plans,” “anticipates,” “believes,” “goals,” “sees,” “estimates,” “projects,” “predicts,” “intends,” “think,” “potential,” “objectives,” “optimistic,” “strategy,” and similar expressions intended to identify forward-looking statements. These statements reflect our current views with respect to future events and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Factors that may cause our actual results to differ materially from those in the forward-looking statements include our ability to obtain and maintain regulatory approval for the bioreactors, scaffolds and other devices and product candidates we pursue, including without limitation the HART-Trachea; the success of our clinical trials and device and product development programs and the number of patients who can be treated with our products; the amount and timing of costs associated with our development of bioreactors, scaffolds and other devices and products; our failure to comply with regulations and any changes in regulations; our ability to access debt and equity markets; unpredictable difficulties or delays in the development of new technology; our collaborators not devoting sufficient time and resources to successfully carry out their duties or meet expected deadlines; our ability to attract and retain qualified personnel and key employees and retain senior management; our inability to operate effectively as a stand-alone, publicly traded company; the actual costs of separation may be higher than expected; the availability and price of acceptable raw materials and components from third-party suppliers; difficulties in obtaining or retaining the management and other human resource competencies that we need to achieve our business objectives; increased competition in the field of regenerative medicine and the financial resources of our competitors; our ability to obtain and maintain intellectual property protection for our device and product candidates; our inability to implement our growth strategy; plus factors described under the heading “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on March 31, 2014 or described in our other public filings. Our results may also be affected by factors of which we are not currently aware. We may not update these forward-looking statements, even though our situation may change in the future, unless we have obligations under the federal securities laws to update and disclose material developments related to previously disclosed information.

Overview

Our Business

We are a clinical-stage regenerative medicine company developing life-saving regenerated organs for transplant. Our first product, the HART-Trachea, is intended to be used by surgeons to restore the structure and/or function of a severely damaged airway in patients who need an airway transplant. The HART-Trachea is comprised of the patient’s own bone marrow cells seeded on our proprietary porous plastic scaffolding in our proprietary InBreath^TM organ bioreactor.  Our HART-Trachea has been used in six successful human airway transplant surgeries to date, each approved under compassionate use exemptions, but none of our products are yet approved by a government regulatory authority for marketing. In addition to pursuing our HART-Trachea product, we are also working with a number of leading researchers in their efforts to regenerate other organs. We use our depth of knowledge, our existing technologies and products and continued research and development to develop and provide devices to be used for growing organs outside the body for transplant.

Business Drivers/Factors Affecting Results of Operations

Our business efforts focus on developing and providing new synthetic scaffolds and organ bioreactor products to regenerative medicine researchers and practitioners. Going forward, we intend to generate revenues from the sale of regenerated organs and related bioreactors and scaffolds. Until we are able to commercialize our HART-Trachea product upon receipt of regulatory agency approvals to market that product for clinical use we expect our costs to exceed our revenues.

Once we receive regulatory agency approvals to market the HART-Trachea product for surgeons to use in human trachea transplants, we expect to generate meaningful revenues. At that time, we anticipate that we will be paid on a per-procedure basis for the use of the HART-Trachea. Although we hope to eventually receive regulatory approvals to market additional regenerated organs, we expect that approval for the HART-Trachea and successful commercialization thereof could lead to sufficient sales for us to achieve profitability.

Regulatory Update

During the third quarter, the U.S. Food and Drug Administration, or FDA, granted orphan drug status to our HART-Trachea product. Orphan designation is granted when the FDA determines that (a) the drug or biologic addresses an indication affecting less than 200,000 U.S. patients annually and (b) that the Company has provided sufficient information about the product, or the disease or condition for which it is intended, to establish a medically plausible basis for expecting that the product will be effective for the treatment of that disease or condition.

Also, in the third quarter we made progress on our preclinical program in preparation for filing an application for Clinical Trial Authorization, or CTA, with the Medicines and Healthcare Products Regulatory Agency of the U.K., or MHRA. We also, began large animal studies as part of the preclinical program being pursued in preparation for filing an Investigational New Drug application, or IND, with the FDA. As previously disclosed, we expect the preclinical program to continue well into 2015 and for the submissions of a CTA and IND to take place during 2015.

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Clinical Update

During the third quarter, we were informed by the principal investigator in the Russian regenerated trachea transplant studies in which we are taking part that one of the patients in that study passed away. We have not been informed of the cause of death. The patient survived more than two years from the initial regenerated trachea transplant surgery that took place in 2012. Prior to that surgery, the patient had suffered several instances of life threatening respiratory failure and infections. The patient was indicated for the initial transplant surgery because there was both a progression of the respiratory failure and traditional tracheal surgery was impossible.

In October 2014, the principal investigator in the Russian regenerated trachea transplant studies informed us that an additional patient had passed away. After the implementation of the HART-Trachea the patient returned to his home country and was lost to clinical follow-up post-surgery. It was reported to the Company by the principle investigator that the cause of death was alcohol-related acute liver failure and that the HART-Trachea did not contribute to the cause of death. This patient survived for mor than a year following his trachea transplant.

Basis of Presentation

Historically, we operated as part of Harvard Bioscience, and not as a stand-alone company. On October 31, 2013, Harvard Bioscience contributed the assets of its regenerative medicine business and $15 million of cash to our company, or HART, and on November 1, 2013 distributed all of the outstanding common shares of HART to Harvard Bioscience’s shareholders on a pro-rata basis. The contribution and related separation is referred to herein as the “Separation” and the distribution is referred to herein as the “Distribution” and the “spin-off”. The consolidated HART financial statements for periods prior to the Separation were prepared on a stand-alone basis and were derived from the financial statements and accounting records of Harvard Bioscience using the historical basis of assets and liabilities of HART. Our financial statements from the periods prior to the Separation include expenses of Harvard Bioscience allocated to HART for certain functions provided by Harvard Bioscience, including, but not limited to, general corporate expenses related to executive services, finance, treasury, corporate income tax, human resources, legal services and investor relations. These expenses were allocated to HART on the basis of headcount, time devoted to HART activities, percentage of operating expenses or other relevant measures. Prior to the Separation, Harvard Bioscience used a centralized approach to manage substantially all of its liquid resources and to finance its operations and, as a result, no separate cash accounts for HART were historically maintained, and debt and liquid resources maintained at the Harvard Bioscience group level are not included in the accompanying consolidated financial statements prior to the Separation. Harvard Bioscience funded all of HART’s operating and capital resource requirements prior to the Distribution. After October 31, 2013, the financial statements reflect the consolidated financial position and results of operations of the Company as an independent publicly traded company.

Relationship with Harvard Bioscience

Prior to November 1, 2013, we were a wholly-owned subsidiary of Harvard Bioscience, Inc. We were incorporated on May 3, 2012 by Harvard Bioscience to provide a means for separating its regenerative medicine device business from its other businesses. Harvard Bioscience first focused on providing devices to scientists involved in regenerative medicine research in 2008. From early 2009 to the Separation, Harvard Bioscience’s regenerative medicine device business initiative operated as a division of Harvard Bioscience. Harvard Bioscience decided to separate its regenerative medicine business into our company, a separate corporate entity, and then to spin off its interest in our business to its stockholders. On October 31, 2013, Harvard Bioscience contributed the assets of its regenerative medicine business and approximately $15 million in cash to us. On November 1, 2013, Harvard Bioscience spun off its interest in our company via a pro-rata distribution of its HART common shares to Harvard Bioscience’s stockholders. As a result of that distribution, Harvard Bioscience is no longer a stockholder of our common stock and no longer controls our operations.   We had no material assets or activities as a separate corporate entity until the contribution to us by Harvard Bioscience of those assets and that business.

On October 31, 2013, we entered into agreements with Harvard Bioscience that will govern the Separation and various interim and ongoing relationships. They provide for, among other things, the transfer from Harvard Bioscience to us of assets and the assumption by us of liabilities comprising our businesses. In accordance with such agreements, we will pay Harvard Bioscience to provide continued services in the areas of accounting, payroll, facilities usage, benefits administration, human resources, information services and various other corporate services, operations, and engineering for periods of up to one year following the Distribution. All of the agreements relating to the Separation were made in the context of a parent-subsidiary relationship and were entered into in the overall context of the Separation. The terms of these agreements may be more or less favorable to us than if they had been negotiated with unaffiliated third parties.

Harvard Bioscience is considered to be a related party to us because David Green, our Chairman and CEO, is also a director of Harvard Bioscience.

Results of Operations

Components of Operating Loss

Research and development expense. Research and development expense consists of salaries and related expenses, including stock-based compensation, for personnel and contracted consultants and various materials and other costs to develop our new products, primarily: synthetic organ scaffolds, including investigation and development of materials and investigation and optimization of cellularization; 3D organ bioreactors; and for periods prior to 2014, development costs of a stem cell injector, a product that we are not currently pursuing. Other research and development expenses include the costs of outside service providers and material costs for prototype and test units and outside testing facilities performing cell growth and materials experiments, as well as the costs of all other preclinical research and testing and expenses related to potential patents. We expense research and development costs as incurred.

Sales and marketing expense. Sales and marketing expense consists primarily of salaries and related expenses, including stock-based compensation, for personnel performing sales, marketing, and business development roles, and costs associated with their travel and participation in trade shows and conferences. It also includes the costs of catalogs, marketing communications and web site development and maintenance.

General and administrative expense. General and administrative expense consists primarily of salaries and other related expenses, including stock-based compensation, for personnel in executive, accounting, information technology and human resources roles. Other costs include professional fees for legal and accounting services, insurance, investor relations and facility costs.

13

Comparison of the three months ended September 30, 2014 to the three months ended September 30, 2013:

Research and Development Expense

Research and development expense increased $0.3 million, or 32%, to $1.4 million for the three months ended September 30, 2014 compared with $1.1 million for the three months ended September 30, 2013. An increase in consulting and recruiting fees totaling $0.3 million and increased depreciation for lab and test equipment were offset by a year to year reduction of costs related to our stem cell injector development project which we terminated during 2013.

Sales and Marketing Expense

Sales and marketing expense increased approximately $49,000, or 174%, to $77,000 for the three months ended September 30, 2014 compared with $28,000 for the three months ended September 30, 2013. The increase was primarily due to additional salary-related costs.

General and Administrative Expense

General and administrative expense increased $0.2 million, or 23%, to $1.2 million for the three months ended September 30, 2014 compared with $1.0 million for the three months ended September 30, 2013. Of the $0.2 million increase, direct salary costs increased by $0.1 million over those allocated to our company by Harvard Bioscience and non-cash stock-based compensation expense increased by $0.1 million, primarily due to the initial stock option grants made to employees at the time of the spin-off. General and administrative costs also increased by $0.2 million due to costs associated with being a stand-alone public company, such as external and internal accountants, information technology, legal fees, investor relations, director fees and insurance, those cost increases were offset by a $0.2 million reduction in recruiting expenses.

Comparison of the nine months ended September 30, 2014 to the nine months ended September 30, 2013:

Research and Development Expense

Research and development expense increased $0.3 million, or 10%, to $3.8 million for the nine months ended September 30, 2014 compared with $3.5 million for the nine months ended September 30, 2013. The effects of a $0.4 million year to year increase in non-cash stock-based compensation expense related to the initial stock option grants made to employees at the time of the spin-off, a $0.2 million increase in recruiting fees, and $0.1million of additional consulting fees were partially offset by a year to year reduction of costs related to our stem cell injector development project which we terminated during 2013.

Sales and Marketing Expense

Sales and marketing expense increased approximately $159,000, or 194%, to $241,000 for the nine months ended September 30, 2014 compared with $82,000 for the nine months ended September 30, 2013. The increase was primarily due to additional salary-related costs of $201,000.

General and Administrative Expense

General and administrative expense increased $1.6 million, or 60%, to $4.2 million for the nine months ended September 30, 2014 compared with $2.6 million for the nine months ended September 30, 2013. Of the $1.6 million increase, $0.9 million was related to an increase in non-cash stock-based compensation expense related to the initial stock option grants made to employees at the time of the spin-off. Additionally, direct salary costs increased by $0.3 million over those allocated to our company by Harvard Bioscience for the nine months ended September 30, 2013. General and administrative expense also increased by $0.5 million due to costs associated with being a stand-alone public company, such as external and internal accountants, information technology, legal fees, investor relations, director fees and insurance.

14

Financial Condition, Liquidity and Capital Resources

Sources of liquidity.

We have incurred net losses since inception. Since inception, through the Separation, we received funding for operating losses from Harvard Bioscience and a $15.0 million cash contribution at the Separation.

During the nine month period ended September 30, 2014 we received $0.4 million of cash proceeds from exercises of stock options.

We are currently investing significant resources in development and commercialization of products for use by clinicians and researchers in the field of regenerative medicine and have incurred operating losses to date. We expect to continue to incur operating losses and negative cash flows from operations at least until we receive regulatory approval to market a clinical product, as revenues from research bioreactors sales will not generate sufficient gross profits to offset our operating expenses.

Operating activities.   Net cash used in operating activities of $5.7 million for the nine months ended September 30, 2014 reflected our $8.2 million net loss, offset by a $1.9 million add-back of non-cash stock-based compensation expense, a $0.3 million add-back for depreciation and $0.3 million of changes in working capital items.

Net cash used in operating activities of $5.6 million for the nine months ended September 30, 2013 reflected our $6.2 million net loss, offset by a $0.5 million add-back of non-cash stock-based compensation expense and a $0.1 million add-back for depreciation.

Investing activities.   Net cash used in investing activities during the nine month periods ended September 30, 2014 and 2013 reflected additions to property, plant and equipment.

Financing activities. Cash generated from financing activities during the nine months ended September 30, 2014 was primarily a result of employees’ exercises of stock options.

Cash generated from financing activities during the nine months ended September 30, 2013 represented Harvard Bioscience’s funding of our business activities.

Recent Authoritative Accounting Guidance

In June 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2014-10, Development Stage Entities (Topic 915): “Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation”, which removes the definition of a development stage entity from the Accounting Standards Codification, eliminated the requirement that development stage entities present inception-to-date information in the company’s financial statements, label those financial statements as those of a development stage entity, disclose a description of the development stage activities in which they engage and disclose in the first year the entity is no longer a development stage entity that in prior years it had been. The ASU is effective retrospectively for fiscal years, and interim periods within those years, beginning after

December 14, 2014. We have elected the permissible early application of the changes in the accompanying interim unaudited consolidated financial statements, and for all future periods.

Critical Accounting Policies and Estimates

The critical accounting policies underlying the accompanying unaudited consolidated financial statements are those set forth in Part II, Item 7 included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013, which was filed with the SEC on March 31, 2014.

15

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

We do not have any material foreign currency exchange risks, we do not enter into derivative agreements, we do not have any off balance-sheet arrangements, and we do not have any interest rate risks. Also, we have no debt outstanding.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

As required by Rules 13a-15(e) and 15d-15(e) under the Exchange Act, our management, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of September 30, 2014.   Based upon the evaluation described above, our Chief Executive Officer and Chief Financial Officer have concluded that they believe that our disclosure controls and procedures were effective as of the end of the period covered by this Quarterly Report on Form 10-Q.

Changes in Internal Control over Financial Reporting

During the period covered by this report, we have concluded that there were no changes during the fiscal quarter in our internal control over financial reporting, as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act, which have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1A. Risk Factors

To our knowledge and except to the extent additional factual information disclosed in this Quarterly Report on Form 10-Q relates to such risk factors, there have been no material changes in the risk factors described in “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2013, which was filed with the SEC on March 31, 2014.

16

Item 6.	Exhibits
Exhibit Index
31.1+	Certification of Chief Financial Officer of Harvard Apparatus Regenerative Technology, Inc., pursuant to Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2+	Certification of Chief Executive Officer of Harvard Apparatus Regenerative Technology, Inc., pursuant to Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Chief Financial Officer of Harvard Apparatus Regenerative Technology, Inc., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of Chief Executive Officer of Harvard Apparatus Regenerative Technology, Inc., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS**	XBRL Instance Document
101.SCH**	XBRL Taxonomy Extension Schema Document
101.CAL**	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB**	XBRL Taxonomy Extension Labels Linkbase Document
101.PRE**	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF**	XBRL Taxonomy Extension Definition Linkbase Document

+	Filed herewith.
*	This certification shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, nor shall it be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.
**	XBRL (Extensive Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.

17

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by undersigned thereunto duly authorized.

Date: November 13, 2014

HARVARD APPARATUS REGENERATIVE TECHNOLOGY, INC.
By:	/s/ David Green
	David Green
	President and Chief Executive Officer
By:	/s/ Thomas McNaughton
	Thomas McNaughton
	Chief Financial Officer

18

INDEX TO EXHIBITS

31.1+	Certification of Chief Financial Officer of Harvard Apparatus Regenerative Technology, Inc., pursuant to Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2+	Certification of Chief Executive Officer of Harvard Apparatus Regenerative Technology, Inc., pursuant to Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Chief Financial Officer of Harvard Apparatus Regenerative Technology, Inc., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of Chief Executive Officer of Harvard Apparatus Regenerative Technology, Inc., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS**	XBRL Instance Document
101.SCH**	XBRL Taxonomy Extension Schema Document
101.CAL**	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB**	XBRL Taxonomy Extension Labels Linkbase Document
101.PRE**	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF**	XBRL Taxonomy Extension Definition Linkbase Document

+	Filed herewith.
*	This certification shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, nor shall it be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.
**	XBRL (Extensive Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.

19

EX-31.1

Exhibit 31.1

Certification

I, Thomas McNaughton, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Harvard Apparatus Regenerative Technology, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)), and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 13, 2014

/s/ Thomas McNaughton

Thomas McNaughton

Chief Financial Officer

EX-31.2

 Exhibit 31.2

Certification

I, David Green, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Harvard Apparatus Regenerative Technology, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)), and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 13, 2014

/s/ David Green

David Green

President and Chief Executive Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF PERIODIC FINANCIAL REPORT

PURSUANT TO 18 U.S.C. SECTION 1350

The undersigned officer of Harvard Apparatus Regenerative Technology, Inc. (the “Company”) hereby certifies to his knowledge that the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2014 (the “Report”) to which this certification is being furnished as an exhibit, as filed with the Securities and Exchange Commission on the date hereof, fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. This certification is provided solely pursuant to 18 U.S.C. Section 1350 and Item 601(b)(32) of Regulation S-K (“Item 601(b)(32)”) promulgated under the Securities Act of 1933, as amended (the “Securities Act”), and the Exchange Act. In accordance with clause (ii) of Item 601(b) (32), this certification (A) shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and (B) shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.

Date: November 13, 2014

	/s/ Thomas McNaughton
Name:	Thomas McNaughton
Title:	Chief Financial Officer

EX-32.2

Exhibit 32.2

CERTIFICATION OF PERIODIC FINANCIAL REPORT

PURSUANT TO 18 U.S.C. SECTION 1350

The undersigned officer of Harvard Apparatus Regenerative Technology, Inc. (the “Company”) hereby certifies to his knowledge that the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2014 (the “Report”) to which this certification is being furnished as an exhibit, as filed with the Securities and Exchange Commission on the date hereof, fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. This certification is provided solely pursuant to 18 U.S.C. Section 1350 and Item 601(b)(32) of Regulation S-K (“Item 601(b)(32)”) promulgated under the Securities Act of 1933, as amended (the “Securities Act”), and the Exchange Act. In accordance with clause (ii) of Item 601(b) (32), this certification (A) shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and (B) shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.

Date: November 13, 2014		/s/ David Green
	Name:	David Green
	Title:	President and Chief Executive Officer

XML

Stock-Based Compensation (Details Textual) (USD $)	9 Months Ended
	Sep. 30, 2014
Harvard Bioscience Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0
Equity Incentive Plan 2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 5.55
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	3,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	150,000
Common Stock, Capital Shares Reserved for Future Issuance	3,000,000

XML

Inventories

9 Months Ended

Sep. 30, 2014

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

4. Inventories

Inventories consisted of the following:

	September 30,		December 31,
	2014		2013
	(in thousands)
Finished goods	$	-	$	7
Raw Materials		157		31
Total	$	157	$	38

XML

Liquidity

9 Months Ended

Sep. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Liquidity And Going Concern Disclosure [Text Block]

3. Liquidity

The Company has incurred net losses since inception through September 30, 2014. Since inception, through the Separation, the Company received funding for operating losses from Harvard Bioscience and a $15.0 million cash contribution at the Separation. During the nine month period ended September 30, 2014 the Company received an additional $0.4 million of cash proceeds from stock option exercises. The Company is currently investing significant resources in development and commercialization of products for use in the field of regenerative medicine. The Company expects to continue to incur operating losses and negative cash flows from operations.

XML

CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Current assets:
Cash	$ 7,722	$ 14,008
Related party receivables	3	22
Other non-trade receivables	29	0
Inventories, net	157	38
Prepaid expenses	117	421
Other current assets	30	0
Total current assets	8,058	14,489
Property, plant and equipment, net of accumulated depreciation of $504 and $248 at September 30, 2014 and December 31, 2013, respectively	1,354	575
Total non-current assets	1,354	575
Total assets	9,412	15,064
Current liabilities:
Accounts payable	254	244
Related party payable	32	90
Accrued and other current liabilities	430	161
Total current liabilities	716	495
Total non-current liabilities	0	0
Total liabilities	716	495
Commitments and contingencies (note 8)
Stockholders' equity:
Preferred stock, par value $0.01 per share, 2,000,000 shares authorized; 0 shares issued and outstanding at September 30, 2014 and December 31, 2013	0	0
Common stock, par value $0.01 per share, 30,000,000 shares authorized; 7,856,607 and 7,742,080 shares issued and outstanding at September 30, 2014 and December 31 2013, respectively	79	77
Additional paid-in capital	18,810	16,466
Accumulated deficit	(10,193)	(1,974)
Accumulated other comprehensive loss	0	0
Total stockholders' equity	8,696	14,569
Total liabilities and stockholders' equity	$ 9,412	$ 15,064

XML

Overview and Basis of Presentation

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Business Description and Basis of Presentation [Text Block]

1. Overview and Basis of Presentation

Overview

Prior to November 1, 2013, Harvard Apparatus Regenerative Technology, Inc. (“HART” or the “Company”) was a business segment of Harvard Bioscience, Inc. (“Harvard Bioscience”). The Company is engaged in the development and commercialization of regenerated organs for human transplant.

Since inception, the Company has devoted substantially all of its efforts to business planning, research and development, recruiting management and technical staff, and acquiring operating assets.

HART was incorporated in Delaware on May 3, 2012 by Harvard Bioscience, as a wholly-owned subsidiary, to provide a means for separating Harvard Bioscience’s regenerative medicine business from its other businesses. Harvard Bioscience has been designing and manufacturing devices for life science researchers for over 100 years. Harvard Bioscience first focused on providing devices to scientists involved in regenerative medicine research in 2008. Since early 2009, Harvard Bioscience’s regenerative medicine business initiative was operated as a segment of Harvard Bioscience.

On October 31, 2013, Harvard Bioscience contributed its regenerative medicine business assets, plus $15 million of cash, into HART (the “Separation”). On November 1, 2013, the previously announced spin-off of the Company from Harvard Bioscience was completed. On that date, the Company became an independent company that operates the regenerative medicine business previously owned by Harvard Bioscience. The spin-off was completed through the distribution to Harvard Bioscience stockholders of all the shares of common stock of HART (the “Distribution”).

Basis of Presentation

The Company historically operated as part of Harvard Bioscience, and not as a stand-alone company. For periods prior to the Separation on October 31, 2013, the consolidated financial statements presented herein, which include periods prior to the Separation, and are discussed below, have been prepared on a stand-alone basis and are derived from the financial statements and accounting records of Harvard Bioscience using the historical basis of assets and liabilities of HART. The Company’s financial statements from that period include expenses of Harvard Bioscience allocated to HART for certain functions provided by Harvard Bioscience, including, but not limited to, general corporate expenses related to executive services, finance, treasury, corporate income tax, human resources, legal services and investor relations. These expenses were allocated to HART on the basis of headcount, time devoted to HART activities, percentage of operating expenses or other relevant measures. The Company believes the assumptions and allocations underlying the financial statements are reasonable and appropriate under the circumstances. Both HART and Harvard Bioscience consider the basis on which the expenses have been allocated to be a reasonable reflection of the utilization of services provided to or the benefits received by the Company during the periods presented. However, the amounts recorded for these transactions and allocations are not necessarily representative of the amounts that would have been reflected in the financial statements had HART operated independently of Harvard Bioscience. Accordingly, the financial statements for these periods are not necessarily indicative of HART’s future results of operations, financial position and cash flows.

Prior to the Separation on October 31, 2013, Harvard Bioscience used a centralized approach to manage substantially all of its liquid resources and to finance its operations and, as a result, no separate cash accounts for HART were historically maintained, and debt and liquid resources maintained at the Harvard Bioscience group level are not included in the accompanying consolidated financial statements prior to the Separation. Harvard Bioscience funded all of HART’s operating and capital resource requirements prior to the Distribution. After October 31, 2013, the accompanying consolidated financial statements reflect the consolidated financial position and results of operations of the Company as an independent publicly traded company.

Basic and diluted shares outstanding are the same for each period presented as all common stock equivalents would be antidilutive due to the net losses incurred.

The financial statements reflect the Company’s financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States (“GAAP”).

Unaudited Interim Financial Information

 The accompanying interim balance sheet as of September 30, 2014 and consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2014 and 2013 are unaudited. The accompanying interim consolidated statements of cash flows for the nine months ended September 30, 2014 and 2013 are unaudited. The interim unaudited consolidated financial statements have been prepared in accordance with GAAP on the same basis as the annual audited financial statements and, in the opinion of management, reflect all adjustments necessary for a fair statement of the Company’s financial position as of September 30, 2014, its results of operations for the three and nine months ended September 30, 2014 and 2013, and the Company’s consolidated statements of cash flows for the nine months ended September 30, 2014 and 2013.  The financial data and other information disclosed in these notes related to the three and nine month periods ended September 30, 2014 and 2013 are unaudited. The results for the three and nine months ended September 30, 2014 and 2013 are not necessarily indicative of results to be expected for the year ending December 31, 2014, any other interim periods or any future year or period.

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Stock-Based Compensation (Details) (USD $)	9 Months Ended
	Sep. 30, 2014
Harvard Bioscience Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Options Outstanding, Balance	2,500,339
Stock Options Outstanding, Granted	0
Stock Options Outstanding, Exercised	(24,704)
Stock Options Outstanding, Cancelled / forfeited	(311,635)
Stock Options Outstanding, Balance	2,164,000
Weighted Average Exercise Price, Balance	$ 3.20
Weighted Average Exercise Price, Granted	$ 0
Weighted Average Exercise Price, Exercised	$ 3.38
Weighted Average Exercise Price, Cancelled / forfeited	$ 5.58
Weighted Average Exercise Price, Balance	$ 2.85
Equity Incentive Plan 2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Options Outstanding, Balance	2,075,707
Stock Options Outstanding, Granted	150,000
Stock Options Outstanding, Exercised	(115,950)
Stock Options Outstanding, Cancelled / forfeited	(173,634)
Stock Options Outstanding, Balance	1,936,123
Weighted Average Exercise Price, Balance	$ 4.34
Weighted Average Exercise Price, Granted	$ 8.40
Weighted Average Exercise Price, Exercised	$ 4.90
Weighted Average Exercise Price, Cancelled / forfeited	$ 4.43
Weighted Average Exercise Price, Balance	$ 4.62
Restricted Stock Units (RSUs) [Member] | Harvard Bioscience Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted Stock Units Outstanding, Balance	326,185
Restricted Stock Units Outstanding, Granted	0
Restricted Stock Units Outstanding, Vested (RSUs)	(154,628)
Restricted Stock Units Outstanding, Cancelled / forfeited	0
Restricted Stock Units Outstanding, Balance	171,557
GrantDate Fair Value, Balance	$ 5.46
GrantDate Fair Value, Granted	$ 0
GrantDate Fair Value, Vested (RSUs)	$ 4.70
GrantDate Fair Value, Cancelled / forfeited	$ 0
GrantDate Fair Value, Balance	$ 6.14
Restricted Stock Units (RSUs) [Member] | Equity Incentive Plan 2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted Stock Units Outstanding, Balance	19,492
Restricted Stock Units Outstanding, Granted	0
Restricted Stock Units Outstanding, Vested (RSUs)	(9,796)
Restricted Stock Units Outstanding, Cancelled / forfeited	(1,716)
Restricted Stock Units Outstanding, Balance	7,980
GrantDate Fair Value, Balance	$ 6.00
GrantDate Fair Value, Granted	$ 0
GrantDate Fair Value, Vested (RSUs)	$ 6.00
GrantDate Fair Value, Cancelled / forfeited	$ 6.00
GrantDate Fair Value, Balance	$ 6.00

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Stock-Based Compensation (Details 2) (Equity Incentive Plan 2013 [Member])	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014
Equity Incentive Plan 2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility	0.00%	74.00%
Risk-free interest rate	0.00%	1.66%
Expected holding period	0 years	6 years 2 months 19 days
Dividend Yield	0.00%	0.00%

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Summary of Significant Accounting Policies and Recently Issued Accounting Pronouncements

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

2. Summary of Significant Accounting Policies and Recently Issued Accounting Pronouncements

In June 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2014-10, Development Stage Entities (Topic 915): “Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation”, which removes the definition of a development stage entity from the Accounting Standards Codification, eliminated the requirement that development stage entities present inception-to-date information in the company’s financial statements, label those financial statements as those of a development stage entity, disclose a description of the development stage activities in which they engage and disclose in the first year the entity is no longer a development stage entity that in prior years it had been. The ASU is effective retrospectively for fiscal years, and interim periods within those years, beginning after December 14, 2014. The Company has elected the permissible early application of the changes in the accompanying interim unaudited consolidated financial statements, and for all future periods.

The accounting policies, other than the change noted above, underlying the accompanying unaudited consolidated financial statements are those set forth in Note 2 to the financial statements for the year ended December 31, 2013 included in the Company’s Annual Report on Form 10-K.

There are no other recently issued accounting standards that are not yet effective that the Company believes would materially impact the financial statements.

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CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	7,856,607	7,742,080
Common stock, shares outstanding	7,856,607	7,742,080
Property, plant and equipment, net of accumulated depreciation	$ 504	$ 248

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Overview and Basis of Presentation (Details Textual) (USD $) In Thousands, unless otherwise specified	9 Months Ended		18 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Oct. 31, 2013
Overview And Basis Of Presentation [Line Items]
Proceeds from Contributions from Parent	$ 0	$ 5,742	$ 15,000

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Document And Entity Information	9 Months Ended
	Sep. 30, 2014	Nov. 06, 2014
Document Information [Line Items]
Entity Registrant Name	Harvard Apparatus Regenerative Technology, Inc.
Entity Central Index Key	0001563665
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	HART
Entity Common Stock, Shares Outstanding		7,856,607
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2014
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2014

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Liquidity (Details Textual) (USD $)	9 Months Ended		18 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Oct. 31, 2013
Liquidity Disclosure [Line Items]
Proceeds from Contributions from Parent	$ 0	$ 5,742,000	$ 15,000,000
Proceeds from Stock Options Exercised	$ 400,000

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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Revenues	$ 2	$ 0	$ 48	$ 0
Cost of revenues	1	0	25	0
Gross profit	1	0	23	0
Operating expenses:
Research and development	1,401	1,058	3,832	3,483
Sales and marketing	77	28	241	82
General and administrative	1,199	974	4,165	2,604
Total operating expenses	2,677	2,060	8,238	6,169
Operating loss	(2,676)	(2,060)	(8,215)	(6,169)
Other income (expense), net	(4)	0	(4)	0
Loss before income taxes	(2,680)	(2,060)	(8,219)	(6,169)
Income taxes	0	0	0	0
Net loss	(2,680)	(2,060)	(8,219)	(6,169)
Basic and diluted net loss per share (in dollars per share)	$ (0.34)	$ (0.27)	$ (1.05)	$ (0.80)
Weighted average common shares, basic and diluted (in shares)	7,851	7,740	7,809	7,740
Comprehensive loss:
Net loss	(2,680)	(2,060)	(8,219)	(6,169)
Foreign currency translation adjustments	(3)	0	0	0
Total comprehensive loss	$ (2,683)	$ (2,060)	$ (8,219)	$ (6,169)

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Stock-Based Compensation

9 Months Ended

Sep. 30, 2014

Share-based Compensation [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

7. Stock-Based Compensation

Harvard Bioscience maintains the Third Amended and Restated 2000 Stock Option and Incentive Plan, (as amended, the “Harvard Bioscience Plan”) for the benefit of certain of its officers, directors and employees. The disclosure of stock-based compensation for the periods prior to the Separation represent the Company’s portion of such plan maintained by Harvard Bioscience in which the Company’s employees and directors participated. The securities underlying all options and awards granted under the Harvard Bioscience Plan consist of shares of Harvard Bioscience common stock.

HART maintains the 2013 Equity Incentive Plan (the “2013 Plan”) for the benefit of certain of its officers, directors and employees. The securities underlying all options and awards granted under the 2013 Plan consist of shares of HART common stock. Additionally, equity awards related to shares of the Company’s common stock were issued from the 2013 Plan at the time of the Distribution to the holders of Harvard Bioscience equity awards as part of an adjustment (the “Adjustment”) to those equity awards to prevent a loss of value to the holders due to the Distribution.

Prior to the Separation, HART stock-based compensation expense represented an allocation from Harvard Bioscience’s stock-based compensation expense for employees whose time had been allocated to HART. After the Separation, HART continues to record the expense on stock-based awards of Harvard Bioscience stock options and restricted stock units, issued by Harvard Bioscience, to former Harvard Bioscience employees now employed by HART.

As noted above relating to the Adjustment, Harvard Bioscience award holders were also issued stock-based compensation awards in HART stock options and restricted stock units. HART recognizes compensation expense on those awards to former Harvard Bioscience employees who now are employed by HART, and does not recognize expense on the Adjustment awards given to individuals not now employed by HART. Additionally, HART records expense on grants made under the 2013 Plan to HART officers, directors and employees granted subsequent to the Adjustment.

Harvard Bioscience Plan Award Information

During the nine months ended September 30, 2013, all awards were granted to employees and directors at exercise prices equal to or greater than fair market value of the Harvard Bioscience’s common stock on the date of grant.

The following is a summary of stock option and restricted stock unit activity for the nine months ended September 30, 2014:

	Stock Options				Restricted Stock Units
			Weighted
	Stock Options		Average Exercise		Restricted Stock		Grant Date
	Outstanding		Price		Units Outstanding		Fair Value
Balance at December 31, 2013		2,500,339	$	3.20		326,185	$	5.46
Granted		-		-		-		-
Exercised		(24,704)		3.38		-		-
Vested (RSUs)		-		-		(154,628)		4.70
Cancelled/forfeited		(311,635)		5.58		-		-
Balance at September 30, 2014		2,164,000	$	2.85		171,557	$	6.14

Stock-based compensation expense for the three and nine months ended September 30, 2014 and 2013, respectively, was allocated as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014		2013
	(in thousands)				(in thousands)
Research and development	$	17	$	32	$	48	$	69
Sales and marketing		4		-		11		-
General and administrative		181		188		505		445
Total stock-based compensation	$	202	$	220	$	564	$	514

The Company did not capitalize any stock-based compensation related to the Harvard Bioscience Plan.

 Harvard Apparatus Regenerative Technology, Inc. 2013 Equity Incentive Plan

The 2013 Plan was adopted by the Board of Directors on October 11, 2013. The aggregate number of shares authorized for issuance under the Plan is 3,000,000 shares of common stock.

The Company currently has 3,000,000 shares of its common stock reserved for the issuance, exercise or vesting of awards under the 2013 Plan. During the nine months ended September 30, 2014, 150,000 options were granted under the 2013 Plan to HART employees at exercise prices equal to or greater than fair market value of the Company’s common stock on the date of grant.

The following is a summary of stock option and restricted stock unit activity for the nine months ended September 30, 2014:

	Stock Options				Restricted Stock Units
			Weighted
	Stock Options		Average Exercise		Restricted Stock		Grant Date
	Outstanding		Price		Units Outstanding		Fair Value
Balance at December 31, 2013		2,075,707	$	4.34		19,492	$	6.00
Granted		150,000		8.40		-		-
Exercised		(115,950)		4.90		-		-
Vested (RSUs)		-		-		(9,796)		6.00
Cancelled/forfeited		(173,634)		4.43		(1,716)		6.00
Balance at September 30, 2014		1,936,123	$	4.62		7,980	$	6.00

The following assumptions were used to estimate the fair value of stock options granted during the three and nine months ended September 30, 2014:

	Three Months Ended		Nine Months Ended
	September 30, 2014		September 30, 2014
Volatility		-		74	%
Risk-free interest rate		-		1.66	%
Expected holding period		-		6.22 years
Dividend Yield		-		-	%

No stock options were granted under the 2013 Plan during the three months ended September 30, 2014.

The weighted average fair values of the options granted under the 2013 Plan during the nine months ended September 30, 2014 was $5.55, using the Black-Scholes option-pricing model.

Stock-based compensation expense for the three and nine months ended September 30, 2014 and 2013, respectively, was allocated as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014		2013
	(in thousands)				(in thousands)
Research and development	$	83	$	-	$	396	$	-
Sales and marketing		8		-		73		-
General and administrative		162		-		893		-
Total stock-based compensation	$	253	$	-	$	1,362	$	-

The Company did not capitalize any stock-based compensation related to the 2013 Plan.

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Concentrations

9 Months Ended

Sep. 30, 2014

Risks and Uncertainties [Abstract]

Concentration Risk Disclosure [Text Block]

6. Concentrations

At the time of the Separation, the Company entered into a 10-year product distribution agreement with Harvard Bioscience under which each company will become the exclusive distributor for the other party for products such other party develops for sale in the markets served by the other. In addition, Harvard Bioscience has agreed that except for certain existing activities of its German subsidiary, to the extent that any Harvard Bioscience businesses desire to resell or distribute any bioreactor that is then manufactured by HART, HART will be the exclusive manufacturer of such bioreactors and Harvard Bioscience will purchase such bioreactors from the Company. Sales to Harvard Bioscience accounted for 100% of the Company’s revenues for the nine months ended September 30, 2014, and its receivables as of September 30, 2014.

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Stock-Based Compensation (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Harvard Bioscience Plan [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 202	$ 220	$ 564	$ 514
Equity Incentive Plan 2013 [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	253	0	1,362	0
Research and Development [Member] | Harvard Bioscience Plan [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	17	32	48	69
Research and Development [Member] | Equity Incentive Plan 2013 [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	83	0	396	0
Selling and Marketing [Member] | Harvard Bioscience Plan [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	4	0	11	0
Selling and Marketing [Member] | Equity Incentive Plan 2013 [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	8	0	73	0
General and Administrative [Member] | Harvard Bioscience Plan [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	181	188	505	445
General and Administrative [Member] | Equity Incentive Plan 2013 [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 162	$ 0	$ 893	$ 0

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Inventories (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Inventory [Line Items]
Finished goods	$ 0	$ 7
Raw Materials	157	31
Total	$ 157	$ 38

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Inventories (Tables)

9 Months Ended

Sep. 30, 2014

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

Inventories consisted of the following:

	September 30,		December 31,
	2014		2013
	(in thousands)
Finished goods	$	-	$	7
Raw Materials		157		31
Total	$	157	$	38

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

8. Commitments and Contingencies

From time to time, the Company may be involved in various claims and legal proceedings arising in the ordinary course of business. There are no such matters pending that the Company expects to be material in relation to its business, financial condition, and results of operations or cash flows.

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Summary of Significant Accounting Policies and Recently Issued Accounting Pronouncements (Policies)

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

New Accounting Pronouncements, Policy [Policy Text Block]

In June 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2014-10, Development Stage Entities (Topic 915): “Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation”, which removes the definition of a development stage entity from the Accounting Standards Codification, eliminated the requirement that development stage entities present inception-to-date information in the company’s financial statements, label those financial statements as those of a development stage entity, disclose a description of the development stage activities in which they engage and disclose in the first year the entity is no longer a development stage entity that in prior years it had been. The ASU is effective retrospectively for fiscal years, and interim periods within those years, beginning after December 14, 2014. The Company has elected the permissible early application of the changes in the accompanying interim unaudited consolidated financial statements, and for all future periods.

The accounting policies, other than the change noted above, underlying the accompanying unaudited consolidated financial statements are those set forth in Note 2 to the financial statements for the year ended December 31, 2013 included in the Company’s Annual Report on Form 10-K.

There are no other recently issued accounting standards that are not yet effective that the Company believes would materially impact the financial statements.

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Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2014

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

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

The following assumptions were used to estimate the fair value of stock options granted during the three and nine months ended September 30, 2014:

	Three Months Ended		Nine Months Ended
	September 30, 2014		September 30, 2014
Volatility		-		74	%
Risk-free interest rate		-		1.66	%
Expected holding period		-		6.22 years
Dividend Yield		-		-	%

Harvard Bioscience Plan [Member]

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

Schedule of Share-based Compensation, Activity [Table Text Block]

The following is a summary of stock option and restricted stock unit activity for the nine months ended September 30, 2014:

	Stock Options				Restricted Stock Units
			Weighted
	Stock Options		Average Exercise		Restricted Stock		Grant Date
	Outstanding		Price		Units Outstanding		Fair Value
Balance at December 31, 2013		2,500,339	$	3.20		326,185	$	5.46
Granted		-		-		-		-
Exercised		(24,704)		3.38		-		-
Vested (RSUs)		-		-		(154,628)		4.70
Cancelled/forfeited		(311,635)		5.58		-		-
Balance at September 30, 2014		2,164,000	$	2.85		171,557	$	6.14

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

Stock-based compensation expense for the three and nine months ended September 30, 2014 and 2013, respectively, was allocated as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014		2013
	(in thousands)				(in thousands)
Research and development	$	17	$	32	$	48	$	69
Sales and marketing		4		-		11		-
General and administrative		181		188		505		445
Total stock-based compensation	$	202	$	220	$	564	$	514

Equity Incentive Plan 2013 [Member]

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

Schedule of Share-based Compensation, Activity [Table Text Block]

The following is a summary of stock option and restricted stock unit activity for the nine months ended September 30, 2014:

	Stock Options				Restricted Stock Units
			Weighted
	Stock Options		Average Exercise		Restricted Stock		Grant Date
	Outstanding		Price		Units Outstanding		Fair Value
Balance at December 31, 2013		2,075,707	$	4.34		19,492	$	6.00
Granted		150,000		8.40		-		-
Exercised		(115,950)		4.90		-		-
Vested (RSUs)		-		-		(9,796)		6.00
Cancelled/forfeited		(173,634)		4.43		(1,716)		6.00
Balance at September 30, 2014		1,936,123	$	4.62		7,980	$	6.00

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

Stock-based compensation expense for the three and nine months ended September 30, 2014 and 2013, respectively, was allocated as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014		2013
	(in thousands)				(in thousands)
Research and development	$	83	$	-	$	396	$	-
Sales and marketing		8		-		73		-
General and administrative		162		-		893		-
Total stock-based compensation	$	253	$	-	$	1,362	$	-

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Concentrations (Details Textual)	9 Months Ended
	Sep. 30, 2014
Concentration Risk [Line Items]
Product Distribution Agreement Term	10 years
Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	100.00%

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash flows used in operating activities:
Net loss:	$ (8,219)	$ (6,169)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	1,926	514
Depreciation	256	123
Changes in operating assets and liabilities:
Decrease in related party receivables	19	0
(Increase) in other non-trade receivables	(29)	0
(Increase) in inventories	(119)	0
Decrease (increase) in prepaid expenses	304	(33)
(Increase) in other current assets	(30)	0
Increase (decrease) in accounts payable	10	(53)
(Decrease) in related party payable	(58)	0
Increase in accrued and other current liabilities	269	21
Net cash used in operating activities	(5,671)	(5,597)
Cash flows used in investing activities:
Additions to property, plant and equipment	(1,033)	(145)
Net cash used in investing activities	(1,033)	(145)
Cash flows from financing activities:
Proceeds from funding provided by Harvard Bioscience, Inc.	0	5,742
Proceeds from issuance of common stock	418	0
Net cash provided by financing activities	418	5,742
Effect of exchange rate changes on cash	0	0
Net (decrease) in cash	(6,286)	0
Cash at the beginning of the period	14,008	0
Cash at the end of the period	$ 7,722	$ 0

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Related Party Transactions

9 Months Ended

Sep. 30, 2014

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

5. Related Party Transactions

Harvard Bioscience is considered to be a related party to the Company because David Green, the Company’s Chairman and CEO, is also a director of Harvard Bioscience.

Cost Allocations

For periods presented prior to the Separation, HART’s operations were fully integrated with Harvard Bioscience, including executive services, finance, treasury, corporate income tax, human resources, legal services and investor relations. The accompanying financial statements for periods prior to the Separation reflect the application of certain estimates and allocations of operating expenses and the Company believes the methods used to allocate these operating expenses were reasonable. The allocation methods included time devoted to HART activities, headcount, percentage of operating expenses or other relevant measures. Allocations of expenses for these services were $0.7 million for the three month period ended September 30, 2013 and $1.9 million for the nine month period ended September 30, 2013. These allocated expenses are reflected in the total operating expenses in the consolidated statements of operations, in addition to direct expenses.

Agreements with Harvard Bioscience

In connection with the Separation of the Company from Harvard Bioscience, on October 31, 2013 the Company entered into a series of agreements with Harvard Bioscience, including a separation and distribution agreement, a transition services agreement, a tax sharing agreement, a sublicense agreement, a product distribution agreement, an intellectual property matters agreement and a sublease agreement. Some of these agreements require the Company to pay fees to Harvard Bioscience for services provided subsequent to the Separation, and will remain in place through at least October 31, 2014. Expenses recorded under these agreements were $0.1 million and $0.2 million for the three and nine months ended September 30, 2014, respectively.

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Related Party Transactions (Details Textual) (Harvard Bioscience, Inc [Member], USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Harvard Bioscience, Inc [Member]
Related Party Transaction [Line Items]
Costs and Expenses, Related Party	$ 0.1	$ 0.7	$ 0.2	$ 1.9