Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2012

Significant Accounting Policies [Abstract]

Allocation of Depreciation to Operating Departments

The following table shows the allocation of depreciation for the years ended December 31, 2012 and 2011, to operating departments:

	Year Ended December 31,
Depreciation expense included in:	2012		2011
Cost of products sold	$	155,987	$	104,950
Research and development		120,260		118,565
Selling, general and administrative		189,120		222,987
	$	465,367	$	446,502

Allocation of Share-based Compensation

Share-based compensation for the years ended December 31, 2012 and 2011, was approximately $2,539,000 and $1,659,000, respectively, an increase of approximately $880,000 or 53.0%. Increased employee stock option grants reflecting management's philosophy of aligning employee compensation with investor objectives and the increase in the market price of MiMedx common stock was the primary reason for the increase in expense.  The following table shows the allocation of share-based compensation for the years ended December 31, 2012 and 2011, to operating departments:

	Year Ended December 31,
Share-based compensation included in:	2012		2011
Cost of products sold	$	97,970	$	98,366
Research and development		289,341		254,997
Selling, General and administrative		2,151,410		1,305,720
	$	2,538,721	$	1,659,083

Computation of basic and diluted net loss per share

The following table sets forth the computation of basic and diluted net loss per share for the fiscal years ended December 31, 2012 and 2011:

	Year ended December 31,
	2012			2011
Net loss	$	(7,662,376	)	$	(10,193,986	)
Denominator for basic earnings per share - weighted average shares		81,646,295			72,450,337
Effect of dilutive securities: Stock options and warrants outstanding and convertible debt (a)		—			—
Denominator for diluted earnings per share - weighted average shares adjusted for dilutive securities		81,646,295			72,450,337
Loss per common share - basic and diluted	$	(0.09	)	$	(0.14	)

(a) Securities outstanding that were excluded from the computation, prior to the use of the treasury stock method, because they would have been anti-dilutive are as follows:

Summary of antidilutive securities

(a) Securities outstanding that were excluded from the computation, prior to the use of the treasury stock method, because they would have been anti-dilutive are as follows:

	December 31, 2012		December 31, 2011
Outstanding Stock Options		13,614,135		10,333,583
Outstanding Warrants		3,129,168		9,388,817
Convertible Debt, promissory notes		5,313,645		5,007,732
Convertible Line of Credit with Related Party		-		1,342,726
Convertible Debt, Acquisition		-		1,299,315
		22,056,948		27,372,173