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Subsequent Events | 6 Months Ended
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Jun. 30, 2012
Subsequent Events [Abstract] |
Subsequent Events [Text Block] | Note 16 – Subsequent Events Since June 30, 2012, the Company has raised an aggregate of approximately $7 million through the private placement of its securities and the exercise of outstanding warrants. In July 2012, warrant holders from the March 2012 Offering exercised of an aggregate of 3,080,044 warrants at an exercise price of $.51 per share for an aggregate consideration of approximately $1.6 million. In July 2012, the Company consummated a private placement and issued an aggregate of 58,140 Units (the “Units”) with a unit price of $.43, each Unit consisting of one share of common stock and one warrant for an aggregate consideration of $25,000. The warrants have an exercise price of $0.51, expiring five years from the date of issuance and are exercisable immediately upon issuance. In connection with the July 2012 exercise of 2,808,140 of the warrants issued in our May-July 2012 private placement warrants (issued as described in Note 11 above, in our Form 10-Q filed on May 11, 2012 and in the immediately preceding paragraph) at an exercise price of $0.51 per share for an aggregate consideration of $1.4 million, we issued to each exercising holder in consideration of such exercise a new warrant, (each, a "July 2012 New Warrant") to purchase the identical number of shares of our Common Stock as had been covered by such portion of the old May-July 2012 Private Placement Warrant as had been exercised (July 2012 New Warrants covering an aggregate of 2,808,140 shares were issued). Each July 2012 New Warrant is exercisable for five years and is subject to substantially the same terms as the old May-July 2012 Private Placement Warrant that was exercised, except that the per share exercise price of each July 2012 New Warrant is between $.66 and $.69, the closing price of our Common Stock on the date the old May-July 2012 Private Placement Warrant was exercised. On July 5, 2012 (the “Grant Date”), the Compensation Committee of the Company’s Board of Directors granted Robin L. Smith, M.D., the Company’s Chief Executive Officer and Chairman of the Board, an option (the “Option”) to purchase 700,000 shares of NeoStem common stock at an exercise price of $.52 per share (the closing price of a share of NeoStem common stock on the NYSE Mkt on the Grant Date), and issued 150,000 shares (the “Shares”) to her pursuant and subject to the terms of the Company’s 2009 Equity Compensation Plan. The Option and Shares were fully vested on the Grant Date and the Option has a term of ten years despite termination of employment. The Company agreed to pay to or on behalf of Dr. Smith the amount of $69,660 to cover Dr. Smith's tax liability in respect of the Shares. On August 10, 2012, we issued an additional 1,219,512 Units in accordance with the terms of the May-July 2012 Private Placement at $.41 per Unit, which was equal to the greater of $.40 or one penny above the market price on the date of execution of the subscription agreement by the investor, each unit consisting of one share of common stock and one warrant, for an aggregate consideration of $0.5 million. We have determined that under Delaware law, stockholder approval is not necessary for the consummation of the sale of our Erye Interest. As a result, we will not be delivering a proxy statement or holding a special meeting in connection with the Erye Sale. We are currently working with the Purchasers to document the waiver of the shareholder approval provisions of the Equity Purchase Agreement. As reported in our Current Report on Form 8-K filed on July 9, 2012 with the SEC, on July 9, 2012 we received from the Purchasers the initial $1,228,000 down payment (10% of the total cash purchase price for the Erye Sale). Additionally, in August 2012, the Purchasers paid $4,912,000 (being 40% of the total cash purchase price for the Erye Sale) into escrow (the "Second Purchase Price Payment"), as follows: (x) $2,456,000 (the "Offshore Second Purchase Price Payment") was deposited by the Purchasers into a U.S.-based escrow account (the "Offshore Escrow Account") (the Equity Purchase Agreement providing that the Offshore Second Purchase Price Payment shall be released to our subsidiary CBH upon the receipt of approval of the Erye Sale by the PRC Ministry of Commerce and/or its local counterparts as applicable ("MOFCOM Transfer Approval")) and (y) the RMB equivalent of $2,456,000 (the "Onshore Second Purchase Price Payment") was deposited by the Purchasers into an escrow account inside the PRC (the "Onshore Escrow Account"). Pursuant to the Equity Purchase Agreement, the RMB equivalent of $6,140,000 (the remaining 50% of the total cash purchase price for the Erye Sale) is due to be deposited by the Purchasers into the Onshore Escrow Account by the earlier of (a) the date the application seeking MOFCOM Transfer Approval is submitted or (b) September 30, 2012. On August 10, 2012, a warrant holder exercised its warrants to purchase 2,100,000 shares of the Company' common stock at an exercise price of $0.51 per share, for gross proceeds to the Company of approximately $1.1 million. The warrants were originally issued in 2009 with an exercise price of $2.50 per share. The Company's board of directors authorized the exercise modification in July 2012. On August 10, 2012, a warrant holder exercised its warrants to purchase 344,828 shares of common stock at $1.85, and 300,000 shares of common stock at $1.45 per share, respectively, for gross proceeds to the Company of approximately $1.1 million. Since the exercise prices of the warrants were significantly above the Company's stock price, the Company issued the warrant holder 1,458,952 shares of the Company's common stock as an inducement to exercise. The Company's board of directors authorized the exercise inducement in July 2012. On August 10, 2012, the Company consummated a private placement and issued an aggregate of 2,254,385 Units (the “Units”), each Unit consisting of one share of common stock and one warrant for an aggregate consideration of 1,285,000. The warrants have an exercise price of the greater of (i) $0.70; or (ii) a penny above the closing price of Common stock on the date the subscription agreement was executed, expiring five years from the date of issuance and are exercisable immediately upon issuance. In August 2012, the Company signed a new lease for a larger space at its current executive offices at 420 Lexington Avenue, New York, NY 10170. The new lease is believed to be sufficient space for the near future. The lease term is to begin around September 2012 and extend through June 2015. The base monthly rent, which includes storage space, averages approximately $27,000 per month. This property is used as the Company's corporate headquarters.

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- Definition The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business. + References No definition available. + Details
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