Nuwellis (NUWE) 10-Q12 Nov 132013 Q3 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2013	Nov. 08, 2013
Document and Entity Information	'	'
Entity Registrant Name	'Sunshine Heart, Inc.	'
Entity Central Index Key	'0001506492	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	16,839,002
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Current assets	'	'
Cash and cash equivalents	$59,807	$14,224
Accounts receivable	59	'
Other current assets	511	333
Total current assets	60,377	14,557
Property, plant and equipment, net	431	479
TOTAL ASSETS	60,808	15,036
Current liabilities	'	'
Accounts payable	2,042	1,156
Accrued salaries, wages, and other compensation	910	931
Total current liabilities	2,952	2,087
Total liabilities	2,952	2,087
Commitments and contingencies	'	'
Stockholders' equity	'	'
Common stock as of September 30, 2013 and December 31, 2012, par value $0.0001 per share; authorized 100,000,000 shares: issued and outstanding 16,805,411 and 9,282,724 shares, respectively	2	1
Additional paid-in capital	150,667	91,017
Accumulated other comprehensive income:	'	'
Foreign currency translation adjustment	1,095	1,185
Accumulated deficit	-93,908	-79,254
Total stockholders' equity	57,856	12,949
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	60,808	15,036
Series A junior participating preferred stock	'	'
Stockholders' equity	'	'
Preferred stock	'	'
Preferred stock	'	'
Stockholders' equity	'	'
Preferred stock	'	'

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	16,805,411	9,282,724
Common stock, shares outstanding	16,805,411	9,282,724
Series A junior participating preferred stock	'	'
Preferred Stock, par value (in dollars per share)	$0.00	$0.00
Preferred Stock, shares authorized	30,000	30,000
Preferred stock	'	'
Preferred Stock, par value (in dollars per share)	$0.00	$0.00
Preferred Stock, shares authorized	39,970,000	39,970,000

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations and Comprehensive Loss (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Condensed Consolidated Statements of Operations and Comprehensive Loss	'	'	'	'
Net sales	$59	'	$59	'
Operating expenses	'	'	'	'
Selling, general and administrative	2,486	1,495	6,612	5,004
Research and development	3,747	1,802	9,323	5,755
Total operating expenses	6,233	3,297	15,935	10,759
Loss from operations	-6,174	-3,297	-15,876	-10,759
Interest income	3	1	9	30
Loss before income taxes	-6,171	-3,296	-15,867	-10,729
Income tax benefit	-136	'	-1,213	-730
Net loss	-6,035	-3,296	-14,654	-9,999
Basic and diluted loss per share (in dollars per share)	($0.47)	($0.42)	($1.29)	($1.49)
Weighted average shares outstanding - basic and diluted (in shares)	12,732	7,789	11,354	6,727
Comprehensive loss	($6,200)	($3,308)	($14,744)	($9,948)

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Condensed Consolidated Statements of Cash Flows	'	'
Net loss	($14,654)	($9,999)
Adjustments to reconcile net loss to cash flows used in operating activities:	'	'
Depreciation	130	98
Loss on disposal of plant and equipment	'	63
Stock-based compensation expense, net	1,821	907
Amortization of warrants for service agreements	240	160
Changes in assets and liabilities	'	'
Accounts receivable	-59	'
Other current assets	-179	-321
Accounts payable and accrued expenses	946	-574
Net cash used in operations	-11,755	-9,666
Cash flows used in investing activities:	'	'
Purchases of property and equipment	-82	-132
Net cash used in investing activities	-82	-132
Cash flows provided by financing activities:	'	'
Net proceeds from the sale of common stock	57,591	20,620
Net cash provided by financing activities	57,591	20,620
Effect of exchange rate changes on cash	-171	61
Net increase in cash and cash equivalents	45,583	10,883
Cash and cash equivalents - beginning of period	14,224	6,563
CASH AND CASH EQUIVALENTS - END OF PERIOD	$59,807	$17,446

Nature_of_Business_and_Signifi

Nature of Business and Significant Accounting Policies	9 Months Ended
Nature of Business and Significant Accounting Policies	Sep. 30, 2013
Nature of Business and Significant Accounting Policies	'
Nature of Business and Significant Accounting Policies	'
	Note 1 - Nature of Business and Significant Accounting Policies

	Nature of Business: Sunshine Heart (*“we”* or the *“Company”*) was founded in November 1999 and incorporated in Delaware in August 2002. The Company’s headquarters are located in Eden Prairie, MN and the Company also has a wholly owned subsidiary, Sunshine Heart Company Pty Ltd, located in Clontarf, New South Wales, Australia. We are a medical device company developing innovative technologies for cardiac and coronary disease. The Company’s primary product, the C-Pulse® Heart Assist System, or C-Pulse Heart System, is an implantable, non-blood contacting, heart assist therapy for the treatment of moderate to severe heart failure, which can be implanted using a minimally invasive procedure. The C-Pulse Heart System is designed to relieve the symptoms of heart failure through the use of counterpulsation technology by enabling an increase in cardiac function, an increase in coronary blood flow, and a reduction in the heart’s pumping load. The Company received approval from the U.S. Food and Drug Administration, or FDA, to conduct a U.S. pivotal clinical trial with the C-Pulse Heart System. Our shares of common stock in the form of CHESS Depositary Interests, or CDIs, were publicly traded in Australia on the Australian Securities Exchange, or ASX, from September 2004 until our delisting from the ASX, effective May 6, 2013.

	Going Concern: The Company’s financial statements have been prepared and presented on a basis assuming it continues as a going concern.

	During the years ended December 31, 2012 and 2011 and through September 30, 2013, the Company incurred losses from operations and net cash outflows from operating activities as disclosed in the consolidated statements of operations and cash flows, respectively. At December 31, 2012, we had an accumulated deficit of $79,254 and we expect to incur losses for the foreseeable future. To date, the Company has been funded by private and public equity financings. Although we believe that we will be able to successfully fund our operations, there can be no assurance that we will be able to do so or that we will ever operate profitably.

	The Company’s ability to continue as a going concern is dependent on the Company’s ability to raise additional capital based on the achievement of existing milestones as and when required. Should the future capital raising not be successful, the Company may not be able to continue as a going concern. Furthermore, the ability of the Company to continue as a going concern is subject to the ability of the Company to develop and successfully commercialize the product being developed. If the Company is unable to obtain such funding of an amount and timing necessary to meet its future operational plans, or to successfully commercialize its intellectual property, the Company may be unable to continue as a going concern. No adjustments have been made relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company not continue as a going concern.

	Basis of Presentation: The accompanying consolidated financial statements include the accounts of Sunshine Heart, Inc. and its wholly-owned subsidiary, Sunshine Heart Company Pty Ltd. (collectively, *“Sunshine Heart”* or the *“Company”*). All intercompany accounts and transactions between consolidated entities have been eliminated.

	Unaudited Interim Condensed Consolidated Financial Information: The interim condensed consolidated balance sheet as of September 30, 2013 and statements of operations and comprehensive loss for the three and nine month periods ended September 30, 2013 and 2012, as well as the statements of cash flows for the nine months ended September 30, 2013 and 2012 and related interim information contained in the notes to the condensed consolidated financial statements are unaudited. The accompanying condensed consolidated financial statements have been prepared in accordance with Regulation S-X of the Securities Act of 1933, as amended. In the opinion of management, such unaudited interim condensed consolidated information has been prepared in accordance with accounting principles generally accepted in the United States (*“U.S. GAAP”*) and includes all adjustments consisting of normal recurring accruals necessary for the fair presentation of this interim condensed consolidated information when read in conjunction with the audited consolidated financial statements and notes thereto included in its report on Form 10-K for the year ended December 31, 2012. Certain information and disclosures normally included in the consolidated financial statements have been condensed or omitted pursuant to such rules and regulations, although management believes that disclosures are adequate to make information presented not misleading. Results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013 or any other interim period or for any other future year.

	Use of Estimates: The preparation of interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the interim condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

	Revenue Recognition: We recognize revenue when (i) persuasive evidence of a customer arrangement exists; (ii) the price is fixed or determinable and free of contingencies or uncertainties; (iii) collectability is reasonably assured; and (iv) product delivery has occurred, which is when product title transfers to the customer, or services have been rendered. Sales are not conditional based on customer acceptance provisions or installation obligations. Our C-Pulse Heart System is not approved for commercial sale. However, the FDA has assigned the C-Pulse System to Category B designation, making it eligible for reimbursement at certain US sites during our clinical trials. Consequently, we are able to invoice hospitals and clinics that are eligible for reimbursement by Medicare, Medicaid or private insurance Companies. Our revenue consists solely of sales of the C-Pulse Heart System to hospitals and clinics who participate in our clinical trials per the terms of the clinical trial contracts. For clinical trial implant revenue, the product title generally transfers on the date the product is implanted. Product costs incurred for our clinical trials are deemed to be development costs and, accordingly, are expensed to research and development as incurred. Upon commercialization, product costs will be capitalized in inventory and recorded to cost of sales as the inventory is sold. We do not charge hospitals and clinics for shipping. We expense shipping costs at the time we report the related revenue and record such costs in cost of sales.

	Net Loss per Share: Basic net loss attributable to common stockholders, on a per share basis, is computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) during the period. Shares issued during the period and shares reacquired during the period are weighted for the portion of the period that they were outstanding. The computation of diluted earnings per share (*“EPS”*) is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued and computed in accordance with the treasury stock method. In addition, in computing the dilutive effect of convertible securities, the numerator is adjusted to add back the after-tax amount of interest recognized in the period associated with any convertible debt. Shares reserved for outstanding stock warrants and options totaling 3,325,816 and 2,551,456 for the nine months ended September 30, 2013 and 2012, respectively, were excluded from the computation of loss per share as their effect was antidilutive due to the Company’s net loss in each of those periods.

	Fair Value of Financial Instruments: Our financial instruments consist of cash, accounts receivable, accounts payable and accrued liabilities. We believe that the carrying amounts of the financial instruments approximate their respective current fair values due to their relatively short maturities.

	Pursuant to the requirements of the Financial Accounting Standards Board (*“FASB”), Audit Standards Codification (“ASC”*) Topic 820, Fair Value Measurement, the Company’s financial assets and liabilities measured at fair value on a recurring basis are classified and disclosed in one of the following three categories:

	Level 1: Financial instruments with unadjusted quoted prices listed on active market exchanges.

	Level 2: Financial instruments lacking unadjusted, quoted prices from active market exchanges, including over the counter traded financial instruments. The prices for the financial instruments are determined using prices for recently traded financial instruments with similar underlying terms as well as directly or indirectly observable inputs, such as interest rates and yield curves that are observable at commonly quoted intervals.

	Level 3: Financial instruments that are not actively traded on a market exchange. This category includes situations where there is little, if any, market activity for the financial instrument. The prices are determined using significant unobservable inputs or valuation techniques.

	All cash and cash equivalents are considered Level 1 measurements for all periods presented. We do not have any financial instruments classified as Level 2 or Level 3 and thus, for any period presented, there were no movements between these categories.

	Recent Accounting Pronouncements: In February 2013, the FASB issued guidance adding new disclosure requirements for items reclassified out of accumulated other comprehensive income (*“AOCI”), which became effective for us on January 1, 2013. The guidance is intended to help entities improve the transparency of changes in other comprehensive income (“OCI”*) and items reclassified out of AOCI in financial statements. It does not amend any existing requirements for reporting net income or OCI in financial statements. The implementation of the guidance did not have a material impact on our condensed consolidated financial statements.

Equity

Equity	9 Months Ended
Equity	Sep. 30, 2013
Equity	'
Equity	'
	Note 2 — Equity

	Stockholder Rights Plan

	On June 14, 2013, the Company adopted a stockholder rights plan (the *“Rights Plan”), which entitles the holders of the rights to purchase from the Company 1/1,000th of a share of Series A Junior Participating Preferred Stock, par value $0.0001 per share, at a purchase price of $35.00 per share, as adjusted (a “Right”*), upon certain trigger events. In connection therewith, on June 14, 2013, the Company’s board of directors authorized 30,000 shares of Series A Junior Participating Preferred Stock and it declared a dividend of one Right per each share of common stock of the Company outstanding as of June 24, 2013. Each 1/1,000th of a share of Series A Junior Participating Preferred Stock has terms that are substantially the economic and voting equivalent of one share of the Company’s common stock. However, until a Right is exercised or exchanged in accordance with the provisions of the Rights Plan, the holder thereof will have no rights as a stockholder of the Company, including, but not limited to, the right to vote for the election of directors or upon any matter submitted to stockholders of the Company. The Rights Plan has a three-year term and the board of directors may terminate the Rights Plan at any time (subject to the redemption of the Rights for a nominal value). The Rights may cause substantial dilution to a person or group (together with all affiliates and associates of such person or group and any person or group of persons acting in concert therewith) that acquires beneficial ownership of 15% or more of the Company’s stock on terms not approved by the board of directors or takes other specified actions.

	Common Stock Purchase Agreement

	On January 15, 2013, we entered into a Common Stock Purchase Agreement (the *“Purchase Agreement”) with Aspire Capital Fund, LLC (“Aspire Capital”), which provides that, upon the terms and subject to the conditions and limitations set forth therein, Aspire Capital is committed to purchase up to an aggregate of $25.0 million in shares of our common stock (the “Purchase Shares”*) over a two-year period at purchase prices determined in accordance with the Purchase Agreement. Pursuant to the terms of the Purchase Agreement, we have filed and maintain a registration statement on Form S-1 with the SEC under which we have registered 3,000,000 shares of our common stock for resale by Aspire Capital.

	In consideration for entering into the Purchase Agreement, concurrently with the execution of the Purchase Agreement, we issued to Aspire Capital 80,257 shares of our common stock as a commitment fee (the *“Commitment Shares”*). The Purchase Agreement provides that we may not issue and sell more than 1,856,616 shares, or 19.99% of the Company’s outstanding shares as of January 15, 2013.

	As of September 30, 2013, we have sold 146,886 shares of common stock to Aspire Capital pursuant to the Purchase Agreement. Including the Commitment Shares, an aggregate of 227,143 shares of common stock have been issued to Aspire Capital pursuant to the Purchase Agreement.

	The Purchase Agreement contains customary representations, warranties, covenants, closing conditions and indemnification and termination provisions by, among and for the benefit of the parties. The Purchase Agreement may be terminated by us at any time, at our discretion, without any cost or penalty to us. Aspire Capital has covenanted not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of our shares. We did not pay Aspire Capital any expense reimbursement in connection with the transaction. There are no limitations on use of proceeds, financial or business covenants, restrictions on future financings, rights of first refusal, participation rights, penalties or liquidated damages in the Purchase Agreement.

	Public Offerings

	On April 16, 2013 we sold 2,875,000 shares of common stock in a public offering at $5.25 per share, including 375,000 shares of common stock pursuant to the exercise of the over-allotment option by our underwriters. Proceeds in the public offering and exercise of the over-allotment option, net of transaction costs were $14,036 in the aggregate.

	On September 24, 2013 we sold 4,381,500 shares of common stock in a public offering at $10.50 per share, including 571,500 shares of common stock pursuant to the exercise of the over-allotment option by our underwriters. Proceeds in the public offering and exercise of the over-allotment option, net of transaction costs were $42,674 in the aggregate.

	Stock-Based Compensation

	The Company recognizes all share-based payments, including grants of stock options and compensatory employee stock purchase plans, in the income statement as an operating expense, based on their fair value over the requisite service period. We recorded $888 and $328 of related compensation expense to selling, general and administrative expense and research and development expense, respectively, for the three months ended September 30, 2013, as compared to $192 and $23, respectively, of related compensation expense for the three months ended September 30, 2012. We recorded $1,491 and $614 of related compensation expense to selling, general and administrative expense and research and development expense, respectively, for the nine months ended September 30, 2013, as compared to $594 and $315, respectively, of related compensation expense for the nine months ended September 30, 2012. As of September 30, 2013, a total of $4,906 of unrecognized compensation costs related to non-vested stock option awards was outstanding and is expected to be recognized within the next 4 fiscal years.

	The Company uses the Black-Scholes option pricing model to determine the weighted average fair value of options. The volatility factor used in the Black-Scholes option pricing model is based on historical stock price fluctuations. The current forfeiture rate is based on a reasonable estimate by management. Expected dividend yield is based upon the Company’s historical and projected dividend activity and the risk free interest rate is based upon US Treasury rates appropriate for the expected term of the options. The expected term is based on estimates regarding projected employee stock option exercise behavior. Stock Awards are valued at the stock price on the date of grant and expensed for the full value on the date of grant. Restricted Stock Unit (RSU) grants are valued at the stock price on the date of grant. Fully vested RSUs are expensed for the full value at the date of grant. RSUs issued that vest over a twelve month period are re-valued using the Black- Scholes method as they vest monthly and expensed to operations and recognizing a corresponding liability.

	During the third quarter ended September 30, 2013, the following equity awards were made:

	· Common stock grants of 46,509 shares (27,451 net of income tax withholdings) valued at $507 were awarded to certain executives and included in operating expense. The executives elected to have 19,508 shares withheld to fund income tax withholding payments.
	· RSUs were awarded to certain directors for a total of 10,597 shares. These RSU’s were fully vested at the date of grant and valued at $7.50 per share, the closing stock price that day The total value of $79 was included in selling, general and administrative expense. These RSU’s will be settled for common shares according to the terms of the awards, but no later than the first quarter of Fiscal 2014.
	· RSUs totaling 46,509 shares were awarded to certain executives. These RSU’s will vest over the next twelve months at a rate of 1/12 per month and were valued at $10.90 per share, the closing share price on the date of the award. These RSU’s will be re-valued every period as they vest and will be expensed accordingly using the liability method of accounting. Vesting on these RSU’s commences in October 2013, at which point the corresponding liability and expense will be recorded. The vested RSU’s will be settled for common shares beginning in 2014, according to the terms of the awards.

	For the nine months ended September 30, 2013, the Company had 21,803 stock options granted to non-employees with a fair value of $76. The awards are revalued every period and expensed accordingly using the liability method of accounting.

	The Company’s stock options generally vest over four years of service and have a contractual life of 10 years. We have 254,768 shares authorized for grant under our Amended and Restated 2011 Equity Incentive Plan, 318,993 shares authorized for grant under our 2013 New Hire Plan and 177,099 shares authorized for grant under our 2013 Non-Executive Directors’ Equity Incentive Plan.

	Warrants

	Warrants to purchase 1,632,257 shares of common stock were outstanding at September 30, 2013, versus 1,633,253 outstanding at December 31, 2012.

	During the nine months ended September 30, 2013, warrants to purchase 996 shares of common stock were exercised at a price of AU$6.40 per share for total proceeds of $6.

Balance_Sheet_Information

Balance Sheet Information	9 Months Ended
	Sep. 30, 2013
Balance Sheet Information	'
Balance Sheet Information	'
	Note 3 - Balance Sheet Information

	Property, Plant and Equipment

	Property, plant and equipment were as follows:

		September 30,			December 31,
		2013			2012

	Office Furniture & Fixtures	$	110		$	102
	Leasehold Improvements	145			145
	Software	33			12
	Production Equipment	486			425
	Computer Equipment	110			118
	Total	884			802
	Accumulated Depreciation	(453		)	(323		)
		$	431		$	479

	Depreciation expense for the three and nine months ended September 30, 2013 was $47 and $130, respectively, versus $36 and $98 for the comparable periods in 2012.

Income_Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2013
Income Taxes	'
Income Taxes	'
	Note 4 — Income Taxes

	We completed our Minnesota tax return for the twelve month period ended December 31, 2012 and recorded a $136 research and development tax credit refund during the third quarter of fiscal 2013. For the twelve month period ended December 31, 2011 we received a Minnesota research and development tax credit refund of $69. The Minnesota research and development tax credit is no longer in effect for tax years beyond 2012. We received a $1,077 research and development tax credit refund in the quarter ended June 30, 2013, based upon qualified research and development expenditures of our Australian subsidiary for its tax period ended June 30, 2012. We received a $730 research and development tax credit refund in the quarter ended June 30, 2012 based upon qualified research and development expenditures of our Australian subsidiary for its tax period ended June 30, 2011. We have not completed the Australian tax return for the period ended June 30, 2013; therefore, we have not reflected a benefit related to the Australian research and development tax credit for that period as we recognize any benefit only upon receipt.

Nature_of_Business_and_Signifi1

Nature of Business and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2013
Nature of Business and Significant Accounting Policies	'
Nature of Business	'
Nature of Business	Nature of Business: Sunshine Heart (*“we”* or the *“Company”*) was founded in November 1999 and incorporated in Delaware in August 2002. The Company’s headquarters are located in Eden Prairie, MN and the Company also has a wholly owned subsidiary, Sunshine Heart Company Pty Ltd, located in Clontarf, New South Wales, Australia. We are a medical device company developing innovative technologies for cardiac and coronary disease. The Company’s primary product, the C-Pulse® Heart Assist System, or C-Pulse Heart System, is an implantable, non-blood contacting, heart assist therapy for the treatment of moderate to severe heart failure, which can be implanted using a minimally invasive procedure. The C-Pulse Heart System is designed to relieve the symptoms of heart failure through the use of counterpulsation technology by enabling an increase in cardiac function, an increase in coronary blood flow, and a reduction in the heart’s pumping load. The Company received approval from the U.S. Food and Drug Administration, or FDA, to conduct a U.S. pivotal clinical trial with the C-Pulse Heart System. Our shares of common stock in the form of CHESS Depositary Interests, or CDIs, were publicly traded in Australia on the Australian Securities Exchange, or ASX, from September 2004 until our delisting from the ASX, effective May 6, 2013.
Going Concern	'
	Going Concern: The Company’s financial statements have been prepared and presented on a basis assuming it continues as a going concern.

	During the years ended December 31, 2012 and 2011 and through September 30, 2013, the Company incurred losses from operations and net cash outflows from operating activities as disclosed in the consolidated statements of operations and cash flows, respectively. At December 31, 2012, we had an accumulated deficit of $79,254 and we expect to incur losses for the foreseeable future. To date, the Company has been funded by private and public equity financings. Although we believe that we will be able to successfully fund our operations, there can be no assurance that we will be able to do so or that we will ever operate profitably.

	The Company’s ability to continue as a going concern is dependent on the Company’s ability to raise additional capital based on the achievement of existing milestones as and when required. Should the future capital raising not be successful, the Company may not be able to continue as a going concern. Furthermore, the ability of the Company to continue as a going concern is subject to the ability of the Company to develop and successfully commercialize the product being developed. If the Company is unable to obtain such funding of an amount and timing necessary to meet its future operational plans, or to successfully commercialize its intellectual property, the Company may be unable to continue as a going concern. No adjustments have been made relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company not continue as a going concern.
Basis of Presentation	'
Basis of Presentation	Basis of Presentation: The accompanying consolidated financial statements include the accounts of Sunshine Heart, Inc. and its wholly-owned subsidiary, Sunshine Heart Company Pty Ltd. (collectively, *“Sunshine Heart”* or the *“Company”*). All intercompany accounts and transactions between consolidated entities have been eliminated.
Unaudited Interim Condensed Consolidated Financial Information	'
	Unaudited Interim Condensed Consolidated Financial Information: The interim condensed consolidated balance sheet as of September 30, 2013 and statements of operations and comprehensive loss for the three and nine month periods ended September 30, 2013 and 2012, as well as the statements of cash flows for the nine months ended September 30, 2013 and 2012 and related interim information contained in the notes to the condensed consolidated financial statements are unaudited. The accompanying condensed consolidated financial statements have been prepared in accordance with Regulation S-X of the Securities Act of 1933, as amended. In the opinion of management, such unaudited interim condensed consolidated information has been prepared in accordance with accounting principles generally accepted in the United States (*“U.S. GAAP”*) and includes all adjustments consisting of normal recurring accruals necessary for the fair presentation of this interim condensed consolidated information when read in conjunction with the audited consolidated financial statements and notes thereto included in its report on Form 10-K for the year ended December 31, 2012. Certain information and disclosures normally included in the consolidated financial statements have been condensed or omitted pursuant to such rules and regulations, although management believes that disclosures are adequate to make information presented not misleading. Results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013 or any other interim period or for any other future year.
Use of Estimates	'
Use of Estimates	Use of Estimates: The preparation of interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the interim condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Revenue Recognition	'
Revenue Recognition	Revenue Recognition: We recognize revenue when (i) persuasive evidence of a customer arrangement exists; (ii) the price is fixed or determinable and free of contingencies or uncertainties; (iii) collectability is reasonably assured; and (iv) product delivery has occurred, which is when product title transfers to the customer, or services have been rendered. Sales are not conditional based on customer acceptance provisions or installation obligations. Our C-Pulse Heart System is not approved for commercial sale. However, the FDA has assigned the C-Pulse System to Category B designation, making it eligible for reimbursement at certain US sites during our clinical trials. Consequently, we are able to invoice hospitals and clinics that are eligible for reimbursement by Medicare, Medicaid or private insurance Companies. Our revenue consists solely of sales of the C-Pulse Heart System to hospitals and clinics who participate in our clinical trials per the terms of the clinical trial contracts. For clinical trial implant revenue, the product title generally transfers on the date the product is implanted. Product costs incurred for our clinical trials are deemed to be development costs and, accordingly, are expensed to research and development as incurred. Upon commercialization, product costs will be capitalized in inventory and recorded to cost of sales as the inventory is sold. We do not charge hospitals and clinics for shipping. We expense shipping costs at the time we report the related revenue and record such costs in cost of sales.
Net Loss per Share	'
Net Loss per Share	Net Loss per Share: Basic net loss attributable to common stockholders, on a per share basis, is computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) during the period. Shares issued during the period and shares reacquired during the period are weighted for the portion of the period that they were outstanding. The computation of diluted earnings per share (*“EPS”*) is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued and computed in accordance with the treasury stock method. In addition, in computing the dilutive effect of convertible securities, the numerator is adjusted to add back the after-tax amount of interest recognized in the period associated with any convertible debt. Shares reserved for outstanding stock warrants and options totaling 3,325,816 and 2,551,456 for the nine months ended September 30, 2013 and 2012, respectively, were excluded from the computation of loss per share as their effect was antidilutive due to the Company’s net loss in each of those periods.
Fair Value of Financial Instruments	'
	Fair Value of Financial Instruments: Our financial instruments consist of cash, accounts receivable, accounts payable and accrued liabilities. We believe that the carrying amounts of the financial instruments approximate their respective current fair values due to their relatively short maturities.

	Pursuant to the requirements of the Financial Accounting Standards Board (*“FASB”), Audit Standards Codification (“ASC”*) Topic 820, Fair Value Measurement, the Company’s financial assets and liabilities measured at fair value on a recurring basis are classified and disclosed in one of the following three categories:

	Level 1: Financial instruments with unadjusted quoted prices listed on active market exchanges.

	Level 2: Financial instruments lacking unadjusted, quoted prices from active market exchanges, including over the counter traded financial instruments. The prices for the financial instruments are determined using prices for recently traded financial instruments with similar underlying terms as well as directly or indirectly observable inputs, such as interest rates and yield curves that are observable at commonly quoted intervals.

	Level 3: Financial instruments that are not actively traded on a market exchange. This category includes situations where there is little, if any, market activity for the financial instrument. The prices are determined using significant unobservable inputs or valuation techniques.

	All cash and cash equivalents are considered Level 1 measurements for all periods presented. We do not have any financial instruments classified as Level 2 or Level 3 and thus, for any period presented, there were no movements between these categories.
Recent Accounting Pronouncements	'
Recent Accounting Pronouncements	Recent Accounting Pronouncements: In February 2013, the FASB issued guidance adding new disclosure requirements for items reclassified out of accumulated other comprehensive income (*“AOCI”), which became effective for us on January 1, 2013. The guidance is intended to help entities improve the transparency of changes in other comprehensive income (“OCI”*) and items reclassified out of AOCI in financial statements. It does not amend any existing requirements for reporting net income or OCI in financial statements. The implementation of the guidance did not have a material impact on our condensed consolidated financial statements.

Balance_Sheet_Information_Tabl

Balance Sheet Information (Tables)	9 Months Ended
	Sep. 30, 2013
Balance Sheet Information	'
Schedule of property, plant and equipment	'


		September 30,			December 31,
		2013			2012

	Office Furniture & Fixtures	$	110		$	102
	Leasehold Improvements	145			145
	Software	33			12
	Production Equipment	486			425
	Computer Equipment	110			118
	Total	884			802
	Accumulated Depreciation	(453		)	(323		)
		$	431		$	479

Nature_of_Business_and_Signifi2

Nature of Business and Significant Accounting Policies (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Going Concern	'	'
Accumulated deficit	$93,908	$79,254

Nature_of_Business_and_Signifi3

Nature of Business and Significant Accounting Policies (Details 2)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Antidilutive securities	'	'
Shares reserved for outstanding stock warrants and options excluded from the computation of loss per share due to their antidilutive effect	3,325,816	2,551,456

Equity_Details

Equity (Details) (USD $)	9 Months Ended		0 Months Ended			9 Months Ended	0 Months Ended			0 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 24, 2013	Apr. 16, 2013	Jan. 15, 2013	Sep. 30, 2013	Jan. 15, 2013	Sep. 30, 2013	Dec. 31, 2012	Jun. 14, 2013	Jun. 14, 2013
			Common stock purchase agreement	Common stock purchase agreement	Common stock purchase agreement	Common stock purchase agreement	Maximum	Series A Junior Participating Preferred Stock	Series A Junior Participating Preferred Stock	Rights Plan	Rights Plan
					Aspire Capital	Aspire Capital	Common stock purchase agreement				Series A Junior Participating Preferred Stock
							Aspire Capital
Common Stock Purchase Agreement	'	'	'	'	'	'	'	'	'	'	'
Number of shares of preferred stock that the holder is entitled against each right	'	'	'	'	'	'	'	'	'	'	0.001
Par value of preferred stock that the holder of rights is entitled to purchase (in dollars per share)	'	'	'	'	'	'	'	$0.00	$0.00	'	$0.00
Purchase price (in dollars per share)	'	'	'	'	'	'	'	'	'	'	$35
Authorized shares	'	'	'	'	'	'	'	30,000	30,000	'	30,000
Dividend right declared per share of common stock (in shares)	'	'	'	'	'	'	'	'	'	'	1
Number of common stock for which their voting right is equivalent to voting right of 1/1,000th of a share of Series A Junior Participating Preferred Stock	'	'	'	'	'	'	'	'	'	'	1
Term of plan	'	'	'	'	'	'	'	'	'	'3 years	'
Minimum percentage of stock that may be required to be acquired by a person or group to cause substantial dilution	'	'	'	'	'	'	'	'	'	15.00%	'
Value of common stock purchase commitment	'	'	'	'	'	'	$25,000,000	'	'	'	'
Term for purchase of shares by Aspire Capital	'	'	'	'	'2 years	'	'	'	'	'	'
Number of shares of common stock registered on Form S-1 for resale by Aspire	'	'	'	'	3,000,000	'	'	'	'	'	'
Number of shares of common stock issued to Aspire Capital as commitment fee	'	'	'	'	80,257	'	'	'	'	'	'
Number of shares authorized for sale and issuance (in shares)	'	'	'	'	'	'	1,856,616	'	'	'	'
Shares authorized for sale and issuance (as a percent)	'	'	'	'	'	'	19.99%	'	'	'	'
Common stock sold (in shares)	'	'	4,381,500	2,875,000	'	146,886	'	'	'	'	'
Common stock sold including commitment shares (in shares)	'	'	'	'	'	227,143	'	'	'	'	'
Public Offering	'	'	'	'	'	'	'	'	'	'	'
Common stock sold (in shares)	'	'	4,381,500	2,875,000	'	146,886	'	'	'	'	'
Common stock offering price (in dollars per share)	'	'	$10.50	$5.25	'	'	'	'	'	'	'
Shares issued upon exercise of over-allotment options by underwriters	'	'	571,500	375,000	'	'	'	'	'	'	'
Proceeds, net of transaction costs	$57,591,000	$20,620,000	$42,674,000	$14,036,000	'	'	'	'	'	'	'

Equity_Details_2

Equity (Details 2)

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

In Thousands, except Share data, unless otherwise specified

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

USD ($)

RSUs

Warrants

Amended and Restated 2011 Equity Incentive Plan

2013 New Hire Plan

2013 Non-Executive Directors' Equity Incentive Plan

Selling, general and administrative expense

Research and development expense

Director

Executive

Exercise price of AU$6.40

USD ($)

RSUs

USD ($)

AUD

USD ($)

Stock-Based Compensation

Compensation expense

$888

$192

$1,491

$594

$79

$328

$23

$614

$315

Stock-Based Compensation

Unrecognized compensation costs related to non-vested stock option awards

4,906

Unrecognized compensation costs related to non-vested stock option awards, recognition period

'4 years

Shares granted (in shares)

46,509

10,597

46,509

Vested (in dollar per share)

$7.50

$10.90

Stock options granted to non employees

21,803

Fair value of stock options granted

Vesting percentage per month

83.33%

Common stock grants, net of income tax withholdings (in shares)

27,451

Value of common stock granted

507

Number of shares withheld to fund income tax withholdings

19,508

Vesting period of options

'4 years

Contractual life of options

'10 years

Shares authorized for grant

254,768

318,993

177,099

Warrants

Number of shares of common stock that outstanding warrants can purchase

1,632,257

1,633,253

Number of shares of common stocks were purchased by exercising warrants

996

Price of common stock per share in exercising warrants (in dollars per share)

6.4

Total proceeds on exercise of warrants

Balance_Sheet_Information_Deta

Balance Sheet Information (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Property, Plant and Equipment	'	'	'	'	'
Total	$884	'	$884	'	$802
Accumulated Depreciation	-453	'	-453	'	-323
Property, plant and equipment, net	431	'	431	'	479
Depreciation expense	47	36	130	98	'
Office Furniture & Fixtures	'	'	'	'	'
Property, Plant and Equipment	'	'	'	'	'
Total	110	'	110	'	102
Leasehold Improvements	'	'	'	'	'
Property, Plant and Equipment	'	'	'	'	'
Total	145	'	145	'	145
Software	'	'	'	'	'
Property, Plant and Equipment	'	'	'	'	'
Total	33	'	33	'	12
Production Equipment	'	'	'	'	'
Property, Plant and Equipment	'	'	'	'	'
Total	486	'	486	'	425
Computer Equipment	'	'	'	'	'
Property, Plant and Equipment	'	'	'	'	'
Total	$110	'	$110	'	$118

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended			12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2011
Income Taxes	'	'	'	'
Research and development tax credit refund recorded for the Minnesota tax return	$136	'	'	'
Research and development tax credit refunds for the Minnesota tax return	'	'	'	69
Research and development tax credit refunds	'	$1,077	$730	'