Significant Accounting Policies (Policies)

6 Months Ended

Dec. 31, 2016

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

Revenues from the sale of the Company’s products and services are recognized when persuasive evidence of an arrangement exists, delivery has occurred (or services have been rendered), the price is fixed or determinable, and collectability is reasonably assured. The Company generally ships products F.O.B. shipping point. There is no conditional evaluation on any product sold and recognized as revenue. Amounts billed in excess of revenue recognized are recorded as deferred revenue on the balance sheet.

The Company’s sales are generally through distributors. There is no right of return. For sales of products made to distributors, the Company considers a number of factors in determining whether revenue is recognized upon transfer of title to the distributor, or when payment is received. These factors include, but are not limited to, whether the payment terms offered to the distributor are considered to be non-standard, the distributor history of adhering to the terms of its contractual arrangements, the level of inventories maintained by the distributor, whether the Company has a pattern of granting concessions for the benefit of the distributor, and whether there are other conditions that

may

indicate that the sale to the distributor is not substantive. The Company currently recognizes revenue primarily on the sell-in method with its distributors.

Revenue arrangements with multiple deliverables are divided into units of accounting if certain criteria are met, including whether the deliverable item(s) has (have) value to the customer on a stand-alone basis. Revenue for each unit of accounting is recognized as the unit of accounting is delivered. Arrangement consideration is allocated to each unit of accounting based upon the relative estimated selling prices of the separate units of accounting contained within an arrangement containing multiple deliverables. Estimated selling prices are determined using vendor specific objective evidence of value (VSOE), when available, or an estimate of selling price when VSOE is not available for a given unit of accounting. Significant inputs for the estimates of the selling price of separate units of accounting include market and pricing trends and a customer’s geographic location. The Company accounts for training and installation, service agreements and the collection, processing and testing of the umbilical cord blood and the storage as separate units of accounting.

Service revenue generated from contracts for providing maintenance of equipment is amortized over the life of the agreement. Revenue generated from storage contracts is deferred and recorded ratably over the life of the agreement, up to

years.

All other service revenue is recognized at the time the service is completed.

Revenues are net of normal discounts. Shipping and handling fees billed to customers are included in net revenues, while the related costs are included in cost of revenues.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value Measurements

In accordance with ASC

820,

“

Fair Value Measurements and Disclosures

,” fair value is defined as the exit price, or the amount that would be received for the sale of an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date.

The guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors that market participants would use in valuing the asset or liability. The guidance establishes

three

levels of inputs that

may

be used to measure fair value:

Level

Quoted market prices in active markets for identical assets or liabilities.

Level

Observable market-based inputs or unobservable inputs that are corroborated by market data.

Level

Unobservable inputs reflecting the reporting entity’s own assumptions.

The carrying values of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value due to their short duration. The fair value of the Company’s derivative obligation liability is classified as Level

within the fair value hierarchy since the valuation model of the derivative obligation is based on unobservable inputs.

Segment Reporting, Policy [Policy Text Block]

Segment Reporting

The Company has

one

reportable business segment: the research, development and commercialization of autologous cell-based therapies for use in regenerative medicine.

Earnings Per Share, Policy [Policy Text Block]

Net Loss per Share

Net loss per share is computed by dividing the net loss to common stockholders by the weighted average number of common shares outstanding. The calculation of the basic and diluted earnings per share is the same for all periods presented, as the effect of the potential common stock equivalents is anti-dilutive due to the Company’s net loss position for all periods presented. Anti-dilutive securities consisted of the following at

December

31:

	2016			2015
Common stock equivalents of convertible debentures		--			404,412
Vested Series A warrants		404,410			404,410
Unvested Series A warrants		698,529	(1)		698,529	(1)
Vested Series B warrants		--			197,242
Unvested Series B warrants		--			384,191
Warrants – other		3,725,782			252,620
Stock options		321,868			146,838
Restricted stock units		65,148			59,854
Total		5,215,737			2,548,096

(1)

The unvested Series A warrants were subject to vesting based upon the amount of funds actually received by the Company in the

second

close of the

August

2015

financing which never occurred. The warrants will remain outstanding but unvested until they expire in

February

2021

Reclassification, Policy [Policy Text Block]

Reclassifications

Certain reclassifications have been made from the fiscal

2016

amounts to conform to the fiscal

2017

presentation. These reclassifications did not have any effect on our net loss or stockholders’ equity.

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Adopted Accounting Pronouncements

June

2014,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.

2014

12,

“

Compensation - Stock Compensation (Topic

718);

Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period

”. The amendments in ASU

2014

apply to all reporting entities that grant their employees share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition that affects the vesting of the award. The Company adopted ASU

2014

effective

July

2016.

The Company applies the amendments in ASU

2014

prospectively to all awards granted or modified after the effective date. Adoption of the new update to ASU

2014

did not have any impact on the financial statements of the Company.

Recently

Issued

Accounting Pronouncements

January

2017,

the FASB issued ASU

2017

which removes Step

from the goodwill impairment test. It is effective for annual and interim periods beginning after

December

15,

2019.

Early adoption is permitted for interim or annual goodwill impairment test performed with a measurement date after

January

2017.

The Company has not yet determined the effect that ASU

2017

will have on its results of operations, statement of financial position or financial statement disclosures.

March

2016

the FASB issued ASU No.

2016

06,

“

Derivatives and Hedging (Topic

815):

Contingent Put and Call Options in Debt Instruments

” (“ASU

2016

06”).

This new standard simplifies the embedded derivative analysis for debt instruments containing contingent call or put options by removing the requirement to assess whether a contingent event is related to interest rates or credit risks. This new standard will be effective for us on

January

2017.

The adoption of this standard is not expected to have an impact on the Company’s financial position or results of operations.

May

2014,

the FASB issued ASU

2014

09,

“

Revenue from Contracts with Customers (Topic

606)

” (“ASU

2014

09”).

ASU

2014

supersedes the revenue recognition requirements in ASC Topic

605,

“Revenue Recognition” and some cost guidance included in ASC Subtopic

605

35,

Revenue Recognition - Construction-Type and Production-Type Contracts

.” The core principle of ASU

2014

is that revenue is recognized when the transfer of goods or services to customers occurs in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. ASU

2014

requires the disclosure of sufficient information to enable readers of the Company’s financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. ASU

2014

also requires disclosure of information regarding significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. ASU

2014

provides

two

methods of retrospective application. The

first

method would require the Company to apply ASU

2014

to each prior reporting period presented. The

second

method would require the Company to retrospectively apply ASU

2014

with the cumulative effect recognized at the date of initial application. ASU

2014

will be effective for the Company beginning in fiscal

2019

as a result of ASU

2015

14,

Revenue from Contracts with Customers (Topic

606):

Deferral of the Effective Date

," which was issued by the FASB in

August

2015

and extended the original effective date by

one

year. The Company is currently evaluating the impact of adopting the available methodologies of ASU

2014

and

2015

upon its financial statements in future reporting periods. The Company has not yet selected a transition method. The Company is in the process of evaluating the new standard against its existing accounting policies, including the timing of revenue recognition, and its contracts with customers to determine the effect the guidance will have on its financial statements and what changes to systems and controls

may

be warranted.

There have been

four

new ASUs issued amending certain aspects of ASU

2014

09,

ASU

2016

08,

Principal versus Agent Considerations (Reporting Revenue Gross Versus Net)

," was issued in

March,

2016

to clarify certain aspects of the principal versus agent guidance in ASU

2014

09.

In addition, ASU

2016

10,

Identifying Performance Obligations and Licensing

," issued in

April

2016,

amends other sections of ASU

2014

including clarifying guidance related to identifying performance obligations and licensing implementation. ASU

2016

12,

Revenue from Contracts with Customers - Narrow Scope Improvements and Practical Expedients

" provides amendments and practical expedients to the guidance in ASU

2014

in the areas of assessing collectability, presentation of sales taxes received from customers, noncash consideration, contract modification and clarification of using the full retrospective approach to adopt ASU

2014

09.

Finally, ASU

2016

20,

“

Technical Corrections and Improvements to Topic

606,

Revenue from Contracts with Customers,

” was issued in

December

2016,

and provides elections regarding the disclosures required for remaining performance obligations in certain cases and also makes other technical corrections and improvements to the standard. With its evaluation of the impact of ASU

2014

09,

the Company will also consider the impact on its financial statements related to the updated guidance provided by these

four

new ASUs.