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Transactions with Olympus Corporation (Tables)
 12 Months Ended
Dec. 31, 2012
Transactions with Olympus Corporation [Abstract]  
Fair Value Assumptions
The following assumptions were employed in estimating the value of the Put:

 
December 31, 2012
 
 
December 31, 2011
 
 
November 4, 2005
 
 
 
 
 
 
 
 
 
 
Expected volatility of Cytori
 
 
79.40
%
 
 
76.07
%
 
 
63.20
%
Expected volatility of the Joint Venture
 
 
79.40
%
 
 
76.07
%
 
 
69.10
%
Bankruptcy recovery rate for Cytori
 
 
28.00
%
 
 
28.00
%
 
 
21.00
%
Bankruptcy threshold for Cytori
 
$
12,622,000
 
 
$
8,594,000
 
 
$
10,780,000
 
Probability of a change of control event for Cytori
 
 
1.54
%
 
 
3.33
%
 
 
3.04
%
Expected correlation between fair values of Cytori and the Joint Venture in the future
 
 
46.00
%
 
 
99.00
%
 
 
99.00
%
Risk free interest rate
 
 
1.78
%
 
 
1.89
%
 
 
4.66
%
Condensed Financial Information of Joint Venture
A summary of the unaudited condensed financial information for the Joint Venture as of December 31, 2012 and 2011 and for the years ended December 31, 2012, 2011 and 2010 and reconciliation of net income (loss) of the joint venture to Cytori's equity loss from investment in joint venture is as follows:

 
December 31, 2012
 
 
December 31, 2011
 
 
(Unaudited)
 
 
(Unaudited)
 
Balance Sheets
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
Cash
 
$
64,000
 
 
$
69,000
 
Amounts due from  related party
 
 
160,000
 
 
 
104,000
 
Prepaid insurance
 
 
-
 
 
 
19,000
 
Computer equipment and software, net
 
 
566,000
 
 
 
797,000
 
Total assets
 
$
790,000
 
 
$
989,000
 
 
 
 
 
 
 
 
 
Liabilities and Stockholders' Equity:
 
 
 
 
 
 
 
 
Accrued expenses
 
$
9,000
 
 
$
48,000
 
Amounts due to related party
 
 
9,000
 
 
 
95,000
 
Stockholders' equity
 
 
772,000
 
 
 
846,000
 
Total liabilities and stockholders' equity
 
$
790,000
 
 
$
989,000
 

 
Years ended December 31,
 
 
2012
 
 
2011
 
 
2010
 
Statements of Operations
 
(Unaudited)
 
 
(Unaudited)
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
  Product revenue
 
$
972,000
 
 
$
90,000
 
 
$
458,000
 
 
 
 
 
 
 
 
 
 
 
 
 
  Cost of product revenue
 
 
892,000
 
 
 
87,000
 
 
 
458,000
 
 
 
 
 
 
 
 
 
 
 
 
 
  Gross profit
 
 
80,000
 
 
 
3,000
 
 
 
—
 
 
 
 
 
 
 
 
 
 
 
 
 
     Royalty revenue
 
 
232,000
 
 
 
166,000
 
 
 
253,000
 
 
 
 
 
 
 
 
 
 
 
 
 
  Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
    Research and development
 
 
—
 
 
 
—
 
 
 
14,000
 
    General and administrative:
 
 
 
 
 
 
 
 
 
 
 
 
     Accounting and other corporate services
 
 
96,000
 
 
 
164,000
 
 
 
88,000
 
     Regulatory and quality system services
 
 
48,000
 
 
 
145,000
 
 
 
135,000
 
     Depreciation expense for tooling equipment
 
 
231,000
 
 
 
230,000
 
 
 
130,000
 
     Other
 
 
11,000
 
 
 
23,000
 
 
 
33,000
 
          Operating expenses
 
 
386,000
 
 
 
562,000
 
 
 
400,000
 
          Operating loss
 
 
(74,000
)
 
 
(393,000
)
 
 
(147,000
)
  Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
 
    Interest income
 
 
—
 
 
 
—
 
 
 
1,000
 
          Net loss
 
$
(74,000
)
 
$
(393,000
)
 
$
(146,000
)
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of net loss to equity loss from investment in joint venture
 
 
 
 
 
 
 
 
 
 
 
 
          Net loss
 
$
(74,000
)
 
$
(393,000
)
 
$
(146,000
)
          Intercompany eliminations
 
 
256,000
 
 
 
25,000
 
 
 
156,000
 
          Net loss after intercompany eliminations
 
 
(330,000
)
 
 
(418,000
)
 
 
(302,000
)
          Cytori's percentage of interest in joint venture
 
 
50
%
 
 
50
%
 
 
50
%
          Cytori's equity loss from investment in joint
          venture
 
$
(165,000
)
 
$
(209,000
)
 
$
(151,000
)