Preferred Stock Warrant Liability (Aldagen Inc [Member])

12 Months Ended

Dec. 31, 2011

Aldagen Inc [Member]

Preferred Stock Warrant Liability Disclosure [Text Block]

7. Preferred Stock Warrant Liability

The Company’s outstanding preferred stock warrants are revalued at the end of each reporting period using the Black-Scholes option pricing valuation model. Changes in fair value, based on the fair value of the Company’s redeemable convertible preferred stock and other valuation assumptions, are reflected in the Company’s statements of operations as other income or expense. As of December 31, 2011 and 2010, each share of Junior Preferred is convertible into 1.163 shares of common stock, and each share of Series C Preferred and Series C-1 Preferred is convertible into one share of common stock. All preferred stock warrants were immediately exercisable upon their issuance.

The following table sets forth the fair values for each of the categories of preferred stock warrants as of December 31, 2011 and 2010, as well as changes in fair value for the year ended December 31, 2011:

												Change in Fair Value During the
		Exercise		Shares as of				Fair Value as of				Year Ended
	Expiration	Price Per		December 31				December 31				December 31,
Warrant Holder	Date	Share		2011		2010		2011		2010		2011
Series B Preferred:
Warrants issued with equipment notes	12/23/2012	$	1.00		187,500		187,500	$	–	$	67,655	$	(67,655	)
Warrants issued with equipment notes and term loan	6/25/2010		1.00		–		–		–		–		–
	7/24/2010		1.00		–		–		–		–		–
	3/11/2011		1.00		–		11,282		–		1,060		(1,060	)
	3/21/2013		1.00		75,000		75,000		–		28,700		(28,700	)
	8/30/2013		1.00		75,000		75,000		–		34,680		(34,680	)
	12/04/2013		1.00		45,000		45,000		–		21,724		(21,724	)
Series C Preferred:
Warrants issued with 2005 notes	12/15/2011		0.7278		–		1,326,605		–		453,491		(453,491	)
Series C-1 Preferred:
Warrants issued with term loan	7/28/2016		1.0411		38,421		38,421		14,266		33,592		(19,326	)
Warrants issued with convertible debt October 2009	10/22/2014		1.0411		1,400,033		1,400,033		382,800		1,117,649		(734,849	)
Warrants issued with convertible debt June 2011	6/20/2016		1.0411		207,545		–		76,127		–		(97,377	)
Warrants issued with convertible debt September 2011	9/16/2016		1.0411		100,850		–		38,031		–		(386	)
					2,129,349		3,158,841	$	511,224	$	1,758,551	$	(1,459,248	)

The fair value of the preferred stock warrant liability was determined using the Black-Scholes valuation model with the following weighted-average assumptions:

	Year Ended December 31
	2011			2010
Dividend yield		0.00	%		0.00	%
Volatility		83.25	%		83.90	%
Risk-free interest rate		0.48	%		1.15	%
Remaining contractual term (in years)		3.25			2.97