Nuwellis (NUWE) 10-K14 Mar 142013 FY Annual reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
In Millions, except Share data, unless otherwise specified	Dec. 31, 2013	Feb. 27, 2014	Jun. 28, 2013
Document and Entity Information	'	'	'
Entity Registrant Name	'Sunshine Heart, Inc.	'	'
Entity Central Index Key	'0001506492	'	'
Document Type	'10-K	'	'
Document Period End Date	31-Dec-13	'	'
Amendment Flag	'false	'	'
Current Fiscal Year End Date	'--12-31	'	'
Entity Well-known Seasoned Issuer	'No	'	'
Entity Voluntary Filers	'No	'	'
Entity Current Reporting Status	'Yes	'	'
Entity Filer Category	'Smaller Reporting Company	'	'
Entity Public Float	'	'	$46.30
Entity Common Stock, Shares Outstanding	'	16,862,596	'
Document Fiscal Year Focus	'2013	'	'
Document Fiscal Period Focus	'FY	'	'

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Current assets	'	'
Cash and cash equivalents	$54,136	$14,224
Accounts receivable	59	'
Other current assets	448	333
Total current assets	54,643	14,557
Property, plant and equipment, net	587	479
TOTAL ASSETS	55,230	15,036
Current liabilities	'	'
Accounts payable	2,188	1,156
Accrued salaries, wages, and other compensation	1,315	931
Total current liabilities	3,503	2,087
Total liabilities	3,503	2,087
Commitments and contingencies	'	'
Stockholders' equity	'	'
Common stock as of December 31, 2013 and December 31, 2012, par value $0.0001 per share; authorized 100,000,000 shares; issued and outstanding 16,825,284 and 9,282,724, respectively	2	1
Additional paid-in capital	151,530	91,017
Accumulated other comprehensive income:	'	'
Foreign currency translation adjustment	1,207	1,185
Accumulated deficit	-101,012	-79,254
Total stockholders' equity	51,727	12,949
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	55,230	15,036
Series A junior participating preferred stock	'	'
Stockholders' equity	'	'
Preferred stock	'	'
Preferred stock	'	'
Stockholders' equity	'	'
Preferred stock	'	'

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Dec. 31, 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	16,825,284	9,282,724
Common stock, shares outstanding	16,825,284	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

Consolidated_Statements_of_Ope

Consolidated Statements of Operations and Comprehensive Loss (USD $)	12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Consolidated Statements of Operations and Comprehensive Loss	'	'
Net sales	$59	'
Operating expenses	'	'
Selling, general and administrative	9,426	6,866
Research and development	13,504	8,003
Total operating expenses	22,930	14,869
Loss from operations	-22,871	-14,869
Other income (expense), net	-100	33
Loss before income taxes	-22,971	-14,836
Income tax benefit	1,213	771
Net loss	-21,758	-14,065
Basic and diluted loss per share (in dollars per share)	($1.71)	($1.98)
Weighted average shares outstanding-basic and diluted (in shares)	12,723	7,099
Other comprehensive income:	'	'
Foreign currency translation adjustments	22	53
Total comprehensive loss	($21,736)	($14,012)

Consolidated_Statements_of_Sto

Consolidated Statements of Stockholders' Equity (USD $)	Total	Common Stock	Additional Paid in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Comprehensive Loss
In Thousands, except Share data, unless otherwise specified	Total	Common Stock	Additional Paid in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Comprehensive Loss
Balance at Dec. 31, 2011	$4,596	$1	$68,652	$1,132	($65,189)	'
Balance (in shares) at Dec. 31, 2011	'	6,019,000	'	'	'	'
Comprehensive loss:	'	'	'	'	'	'
Net loss	-14,065	'	'	'	-14,065	-14,065
Foreign currency translation adjustment	53	'	'	53	'	53
Total comprehensive loss	-14,012	'	'	'	'	-14,012
Stock based compensation	1,248	'	1,248	'	'	'
Issuance of common stock, net	20,837	'	20,837	'	'	'
Issuance of common stock, net (in shares)	'	3,264,000	'	'	'	'
Issuance of warrants for service agreement	280	'	280	'	'	'
Balance at Dec. 31, 2012	12,949	1	91,017	1,185	-79,254	'
Balance (in shares) at Dec. 31, 2012	9,282,724	9,283,000	'	'	'	'
Comprehensive loss:	'	'	'	'	'	'
Net loss	-21,758	'	'	'	-21,758	-21,758
Foreign currency translation adjustment	22	'	'	22	'	22
Total comprehensive loss	-21,736	'	'	'	'	-21,736
Stock based compensation	2,804	'	2,804	'	'	'
Stock based compensation (in shares)	'	56,000	'	'	'	'
Reclassification of stock options as liability awards	-95	'	-95	'	'	'
Issuance of common stock, net	57,566	1	57,565	'	'	'
Issuance of common stock, net (in shares)	'	7,486,000	'	'	'	'
Issuance of warrants for service agreement	239	'	239	'	'	'
Balance at Dec. 31, 2013	$51,727	$2	$151,530	$1,207	($101,012)	'
Balance (in shares) at Dec. 31, 2013	16,825,284	16,825,000	'	'	'	'

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Consolidated Statements of Cash Flows	'	'
Net loss	($21,758)	($14,065)
Adjustments to reconcile net loss to cash flows from operating activities:	'	'
Depreciation	185	138
Stock based compensation expense, net	2,953	1,248
Abandonment of fixed assets	'	63
Amortization of warrants for service agreements	239	280
Changes in assets and liabilities:	'	'
Accounts receivable	-59	'
Other current assets	-22	13
Accounts payable and accrued expenses	1,100	-760
Net cash used in operations	-17,362	-13,083
Cash flows used in investing activities:	'	'
Purchase of property and equipment	-293	-158
Net cash used in investing activities	-293	-158
Cash flows provided by financing activities:	'	'
Net proceeds from the sale of common stock	57,566	20,837
Net cash provided by financing activities	57,566	20,837
Effect of exchange rate changes on cash	1	65
Net increase in cash and cash equivalents	39,912	7,661
Cash and cash equivalents-beginning of period	14,224	6,563
Cash and cash equivalents-end of period	54,136	14,224
Supplemental Schedule of non-cash activities	'	'
Stock options and restricted stock units classified as liabilities, net	$206	'

Nature_of_Business_and_Signifi

Nature of Business and Significant Accounting Policies	12 Months Ended
	Dec. 31, 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, Inc. was founded in November 1999 and incorporated in Delaware in August 2002. We are headquartered in Eden Prairie, Minnesota and have a wholly owned subsidiary, Sunshine Heart Company Pty Ltd., located in Clontarf, New South Wales, Australia and a wholly owned subsidiary, Sunshine Heart Ireland Limited, located in Dublin, Ireland. 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, 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 System is designed to relieve the symptoms of heart failure through the use of counter-pulsation technology by enabling an increase in cardiac output, an increase in coronary blood flow, and a reduction in the heart’s pumping load. The Company has received approval from the FDA to conduct a U.S. feasibility clinical study with the C-Pulse System. Commencing February 16, 2012, our shares of common stock began trading on NASDAQ under the symbol “SSH.” Our shares of common stock previously traded in the form of CDIs on the ASX under the symbol “SHC” from September 2004 until our delisting from the ASX, which occurred at the close of trading on 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, 2013 and 2012, 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, 2013, the Company had an accumulated deficit of $101.0 million and expects to incur losses for the foreseeable future. To date, the Company has been funded by private and public equity financings. Although the Company believes that it will be able to successfully fund its operations, there can be no assurance the Company we will be able to do so or that the Company 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 future capital raising be unsuccessful, 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 subsidiaries, Sunshine Heart Company Pty Ltd. and Sunshine Heart Ireland Limited. All inter-company accounts and transactions between consolidated entities have been eliminated.

	Use of Estimates

	The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

	Fair Value of Financial Instruments

	Our financial instruments consist of cash and cash equivalents, 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 Financial Accounting Standards Board (the *“FASB”) Accounting Standards Codification (the“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 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 there were no movements between these categories.

	Cash and Cash Equivalents

	Cash and cash equivalents consist of cash, money market funds and term deposits with original maturities of three months or less. The carrying value of these instruments approximates fair value. The balances, at times, may exceed federally insured limits. We have not experienced any losses on our cash and cash equivalents.

	Accounts Receivable

	Accounts receivable are unsecured, are recorded at net realizable value, and do not bear interest. We make judgments as to our ability to collect outstanding receivables based upon significant patterns of uncollectiblity, historical experience, and managements’ evaluation of specific accounts and will provide an allowance for credit losses when collection becomes doubtful. The Company performs credit evaluations of its customers’ financial condition on an as-needed basis. Payment is generally due 30 days from the invoice date and accounts past 30 days are individually analyzed for collectability. When all collection efforts have been exhausted, the account is written off against the related allowance. No allowance for doubtful accounts was considered necessary as of December 31, 2013 or December 31, 2012.

	Other Current Assets

	Other current assets represent prepayments and deposits made by the Company.

	Property, Plant and Equipment

	Property and equipment is stated at cost less accumulated depreciation. Depreciation is computed based upon the estimated useful lives of the respective assets. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the assets. Repairs and maintenance costs are expensed as incurred. Major betterments and improvements, which extend the useful life of the item, are capitalized and depreciated. The cost and accumulated depreciation of property, plant and equipment retired or otherwise disposed of are removed from the related accounts, and any residual values are charged or credited to expenses. Depreciation expense has been calculated using the following estimated useful lives:

	Office furniture and equipment	5-15 years
	Computer software and equipment	3-4 years
	Laboratory and research equipment	3-15 years
	Production equipment	3-7 years

	Depreciation expense was $185 and $138 for the years ended December 31, 2013 and 2012, respectively.

	Impairment of Long-lived Assets

	Long-lived assets, such as property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the impairment tests indicate that the carrying value of the asset is greater than the expected undiscounted cash flows to be generated by such asset, further analysis is performed to determine the fair value of the asset. To the extent the fair value of the asset is less than its carrying value, an impairment loss is recognized. We generally measure fair value by considering sale prices for similar assets or by discounting estimated future cash flows from such assets using an appropriate discount rate. Assets to be disposed of are carried at the lower of their carrying value or fair value less costs to sell. Considerable management judgment is necessary to estimate the fair value of assets, and accordingly, actual results could vary significantly from such estimates. There have been no impairment losses for long-lived assets, for the years ended December 31, 2013 and 2012.

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 System is not approved for commercial sale. However, the FDA has assigned the C-Pulse System to a Category B designation, making it eligible for reimbursement at certain U.S. sites during our clinical studies. 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 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 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 of shipment.

Foreign Currency Translation and Transactions

Foreign denominated monetary assets and liabilities of our foreign subsidiaries are translated at the rate of exchange prevailing at the balance sheet date. Results of operations are translated using the average rates prevailing during the reporting period. The translation adjustment has not been included in determining the Company’s net loss, but has been reported separately and is accumulated in a separate component of equity. For financial reporting purposes, the reporting currency of the Company is the U.S. Dollar. When a transaction is denominated in a currency other than the entity’s functional currency, the Company recognizes a transaction gain or loss in net earnings.

Stock-Based Compensation

The Company recognizes all share-based payments, including grants of stock options, restricted stock units and common stock awards in the income statement as an operating expense, based on their fair value. The Company’s stock awards use a graded vesting schedule. We recognize the option expense over the requisite service period.

The Company computes the estimated fair values of stock options using the Black-Scholes option pricing model. Market price at the date of grant is used to calculate the fair value of restricted stock units and common stock awards. No tax benefit has been recorded due to the full valuation allowance on deferred tax assets that the Company has recorded.

Stock-based compensation expense is based on awards ultimately expected to vest and is reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

Equity instruments issued to non-employees, and for services and goods are shares of the Company’s common stock, warrants or options to purchase shares of the Company’s common stock. These shares, warrants or options are either fully-vested and exercisable at the date of grant or vest over a certain period during which services are provided. The Company expenses the fair market value of these securities over the period in which the related services are received, in most cases, and is recognized based upon liability measurement at each reporting period for awards to consultants.

See Note 3 for further information regarding the assumptions used to calculate the fair value of share-based compensation.

Income Taxes

Deferred income taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards. Deferred tax liabilities are recognized for taxable temporary differences, which are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

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 and restricted stock units totaling 3,623,806 and 2,746,497 for the years ended December 31, 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 years.

Research and Development

Research and development expenses consist primarily of development personnel and non-employee contractor costs related to the development of new products and services, enhancement of existing products and services, quality assurance and testing. The Company incurred research and development expenses of $13,504 and $8,003 for the years ended December 31, 2013 and 2012, respectively.

Reverse Stock Split

On January 24, 2012, the board of directors declared a 1-for-200 reverse stock split and a corresponding inverse change in the transmutation ratio of CDIs trading on the ASX in Australia such that from and after such date, one CDI represented 1/200th of a share. The reverse split and change in transmutation ratio became effective for trading on the ASX on January 30, 2012. All share and per share data included in the consolidated financial statements and accompanying notes have been adjusted to reflect this reverse stock split.

Subsequent Events

The Company evaluates events through the date the financial statements are filed for events requiring adjustment to or disclosure in the financial statements.

Balance_Sheet_Information

Balance Sheet Information	12 Months Ended
	Dec. 31, 2013
Balance Sheet Information	'
Balance Sheet Information	'
	Note 2—Balance Sheet Information

	Property, Plant and Equipment

	Property, plant and equipment were as follows:

		December 31, 2013			December 31, 2012
	Office Furniture & Fixtures	$	111		$	102
	Leasehold Improvements	145			145
	Software	61			12
	Production Equipment	574			425
	Computer Equipment	204			118
	Total	1,095			802
	Accumulated Depreciation	(508		)	(323		)
		$	587		$	479

Equity

Equity	12 Months Ended
	Dec. 31, 2013
Equity	'
Equity	'
	Note 3—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 million in shares of our common stock (the “Purchase Shares”*) over an approximately 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 December 31, 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.

	Private Placement

	In February 2012, the Company placed 256,875 shares of common stock (in the form of CDIs) for proceeds, net of transaction costs, of $2,061.

	Public Offering

	On August 15, 2012 we sold 2,875,000 shares of common stock in a public offering at a price of $7.00 per share and on August 20, 2012, we sold 94,800 shares of common stock upon the exercise of an over-allotment option by our underwriters, at a price of $7.00 per share. Proceeds in the public offering and exercise of the over-allotment option, net of transaction costs, were $18,552 in the aggregate.

	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 Options and Restricted Stock Units

	The Company has various share-based compensation plans, including the Amended and Restated 2002 Stock Plan, the Second Amended and Restated 2011 Equity Incentive Plan, the 2013 Non-Employee Directors’ Equity Incentive Plan and the New-Hire Equity Incentive Plan (collectively, the *“Plans”*). The Plans are designed to assist in attracting, motivating and retaining employees and directors and to recognize the importance of employees to the long-term performance and success of the Company. The Company has also granted stock options to certain consultants outside of the Plans.

	The Company recognized share-based compensation expense related to grants of stock options, restricted stock units and common stock awards to employees, directors and consultants of $3,604 and $1,248 during the years ended December 31, 2013 and 2012, respectively. The following table summarizes the stock-based compensation expense which was recognized in the Consolidated Statements of Operations for the years ended December 31, 2013 and 2012:

			December 31, 2013			December 31, 2012
	Selling, general and administrative		$	2,722		$	806
	Research and development		882			442
	Total		$	3,604		$	1,248

	The Company has granted stock options to certain employees, directors and consultants under the Plans. The majority of the options to purchase common stock vest on the anniversary of the date of grant, which ranges from one to four years. Share-based compensation expense related to these awards is recognized on a straight-line basis over the related vesting term in most cases, and is recognized based upon liability measurement at each reporting period for awards to consultants. It is the Company’s policy to issue new shares upon the exercise of options.

	The following is a summary of the Plan and non-Plan stock option activity during the year ended December 31, 2013 and 2012.

			Options		Weighted			Remaining	Aggregate
			Outstanding		Average			Average	Intrinsic
					Exercise			Contractual	Value
					Price			Term
								(Years)
	Outstanding, December 31, 2011		886,833		$	10.05		9.21	$	63
	2012 Granted		284,875		6.63
	2012 Exercised		(3,990	)	3.1
	2012 Forfeited/expired		(54,474	)	7.65
	Outstanding, December 31, 2012		1,113,244		9.47			8.61	1
	Exercisable at December 31, 2012		418,439		13.08			7.76	1
	2013 Granted		905,900		8.17
	2013 Exercised		—		—
	2013 Forfeited/expired		(132,565	)	10.06
	Outstanding, December 31, 2013		1,886,579		8.8			8.32	4,788
	Exercisable at December 31, 2013		801,480		$	8.95		7.55	$	2,154

	The aggregate intrinsic value is defined as the difference between the market value of the Company’s common stock as of the end of the period and the exercise price of the in-the-money stock options. The total intrinsic value of stock options exercised during the years ended December 31, 2013 and 2012 was $0 and $14, respectively. Of the 1,085,099 non-vested options at December 31, 2013, 15,000 were held by consultants. Total cash proceeds from exercised options were $0 and $10 for the years ended December 31, 2013 and 2012, respectively.

	The weighted-average fair value of stock options granted during the years ended December 31, 2013 and 2012 was $5.54 and $4.97, respectively.

The fair value of each stock option is estimated at the grant date using the Black-Scholes option pricing model. The Company has not historically paid cash dividends to its stockholders, and currently does not anticipate paying any cash dividends in the foreseeable future. As a result the Company has assumed a dividend yield of 0%. The 2013 risk free interest rate is based upon the rates of U.S. Treasury bills with a term equal to the expected term of the option. The expected term of the stock options to purchase common stock is based upon the outstanding contractual expected life of the stock option on the date of grant. The Company used the following weighted-average assumptions in calculating the fair value of options granted during the years ended December 31, 2013 and 2012.

		Year ended December 31
		2013		2012
Expected dividend yield		0	%	0	%
Risk-free interest rate		1.31	%	1.52	%
Expected volatility		96	%	101	%
Expected life (in years)		5.5		5

As of December 31, 2013, the total compensation cost related to all non-vested stock option awards not yet recognized was $5,891 and is expected to be recognized over the remaining weighted-average period of 2.8 years.

During the year ended December 31, 2013, a total of 105,605 restricted stock units were granted, at weighted average grant date fair value of $11.32 per share. Restricted stock units vesting during the year totaled 21,477 and tendered restricted stock units were 9,779. Non-vested restricted stock units totaled 84,128 shares at December 31, 2013. There was no restricted stock unit activity prior to 2013.

Fully vested common stock awards totaling 105,605 shares at a weighted average value of $11.32 per share were issued in the year ended December 31, 2013. Of these shares awarded, 49,137 shares were tendered to the Company to cover related employee payroll tax withholdings.

Warrants

Warrants to purchase 1,630,804 and 1,633,253 shares of common stock were outstanding at December 31, 2013 and 2012, respectively.

As part of the private placement completed during 2012, the Company issued (i) 8,553 warrants to purchase common stock at an exercise price of A$8.00 per share, with a stated life of five years, and (ii) 77,063 warrants to purchase common stock at an exercise price of A$11.20 per share, with a stated life of four years.

On September 7, 2012, the Company issued 100,000 non-forfeitable and fully exercisable warrants to purchase common stock, having an exercise price of $7.00 per share and a term of five years, pursuant to a professional services agreement extending through June 2013. These warrants were determined to have a fair value of $519, of which $239 and $280 was charged to expense during 2013 and 2012, respectively. These warrants were issued pursuant to the terms and conditions of the Company’s Second Amended and Restated 2011 Equity Incentive Plan.

During the years ended December 31, 2013 and 2012, 2,449 and 32,396 warrants were exercised at a price of A$6.40 and A$6.40 for total proceeds of $15 and $212, respectively.

Income_Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2013
Income Taxes	'
Income Taxes	'
	Note 4—Income Taxes

	Domestic and foreign loss after provision for income taxes consists of the following:

		December 31, 2013			December 31, 2012
	Domestic	$	(22,013	)	$	(13,373	)
	Foreign	255			(692		)
	Total	$	(21,758	)	$	(14,065	)

	The components of income tax expense for the years ended December 31, 2013 and 2012 consist of the following:

		December 31, 2013			December 31, 2012
	Income tax provision:
	Current:
	United States and state	$	(136	)	$	(41	)
	Foreign	(1,077		)	(730		)
	Deferred:
	United States and state	—			—
	Foreign	—			—
	Total income tax benefit	$	(1,213	)	$	(771	)

	Actual income tax expense differs from statutory federal income tax benefit for the years ended December 31, 2013 and 2012 as follows:

		December 31, 2013			December 31, 2012
	Statutory federal income tax benefit	$	(7,810	)	$	(5,043	)
	State tax benefit, net of federal taxes	(1,363		)	(824		)
	Foreign tax	33			57
	R&D tax credit	(1,213		)	(771		)
	Valuation allowance increase	8,654			5,632
	Non deductible/nontaxable items	367			231
	Other	119			(53		)
	Total income tax (benefit) expense	$	(1,213	)	$	(771	)

	Deferred taxes as of December 31, 2013 and 2012 consist of the following:

		December 31, 2013			December 31, 2012
	Deferred tax assets:
	Current:
	Accrued leave	$	76		$	56
	Other accrued expenses	114			—
	Total current deferred tax asset	190			56
	Noncurrent:
	Stock based compensation	1,476			852
	Net operating losses	31,958			27,136
	Deferred rent	76			81
	Other	46			124
	R&D credits	531			245
	Total noncurrent deferred tax assets	34,087			28,438
	Total deferred tax assets	$	34,277		$	28,494
	Deferred tax liabilities:
	Current:	$	—		$	—
	Noncurrent:
	Fixed assets	(37		)	(50		)
	Total deferred tax liabilities	(37		)	(50		)
	Net deferred tax asset	34,240			28,444
	Less: valuation allowance	(34,240		)	(28,444		)
		$	—		$	—

	The Company has revised certain 2012 amounts related to its presentation of gross deferred taxes, as well as the presentation of the components of its 2012 effective tax rate reconciliation. The revision to gross deferred tax assets results in a corresponding change in the Company’s valuation allowance as of December 31, 2012; because of the corresponding change in the Company’s valuation allowance the revision to gross deferred tax assets does not affect amounts recognized in the Company’s consolidated balance sheet or the Company’s overall effective tax rate as of and for the year ended December 31, 2012.

	As of December 31, 2013, the Company had U.S. net operating loss carryforwards of approximately $45.7 million for U.S. federal income tax purposes, which expire between 2023 through 2033, and NOLs in the Commonwealth of Australia of approximately A$50.5 million which the Company can carry forward indefinitely. U.S. NOL carryforwards cannot be used to offset taxable income in foreign jurisdictions. In addition, future utilization of NOL carryforwards in the United States may be subject to certain limitations under Section 382 of the Internal Revenue Code. This section generally relates to a 50% change in ownership of a company over a three-year period. No formal study has been prepared as of the balance sheet date to determine any applicable limitations on the utilization of the U.S. NOLs.

	We received a $1,077 fully refundable research and development tax credit in 2013, determined as a combined average of 44% of qualified research and development expenditures of our Australian subsidiary for its tax year ended June 30, 2012. The Australian research and development tax credit is paid as a refundable credit for total research and development expenses of our Australian subsidiary. We have not completed the Australian tax return for the period ended June 30, 2013, and we cannot be reasonably assured of the amount or eligibility of the refundable research and development credit resulting from our research and development expenses. Therefore, we have reflected $0 net benefit related to the research and development credit for the twelve months ended June 30, 2013. During 2013, we also received refundable research and development tax credits totaling $136 for the State of Minnesota for the fiscal year ended December 31, 2012. This credit is computed as a percentage of qualified research expenditures that were incurred in the State of Minnesota during the calendar year. The Minnesota research and development tax credit is no longer in effect for tax years beyond 2012.

We provide for a valuation allowance when it is more likely than not that we will not realize a portion of the deferred tax assets. We have established a valuation allowance for U.S. and foreign deferred tax assets due to the uncertainty that enough taxable income will be generated in those taxing jurisdictions to utilize the assets. Therefore, we have not reflected any benefit of such deferred tax assets in the accompanying financial statements. For the years ended December 31, 2013 and 2012, the valuation allowance increased by $5.8 million and $5.1 million, respectively.

The accounting guidance related to uncertain tax positions prescribes a recognition threshold and measurement attribute for recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company had no material uncertain tax positions as of December 31, 2013 or December 31, 2012.

We recognize interest and penalties on unrecognized tax benefits as well as interest received from favorable tax settlements within income tax expense. During the years ended December 31, 2013 and 2012, we recorded no accrued interest or penalties related to uncertain tax positions.

The fiscal tax years ended June 30, 2010 through December 31, 2013 remain open to examination by the Internal Revenue Service. For the states of California and Minnesota, all years subsequent to the fiscal tax year ended June 30, 2010 are also open to examination. Additionally, the returns of the Company’s Australian subsidiary are subject to examination by Australian tax authorities for the fiscal tax years ended June 30, 2009 through June 30, 2013.

Commitments_and_Contingencies

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2013
Commitments and Contingencies.	'
Commitments and Contingencies	'
	Note 5—Commitments and Contingencies

	Leases

	We lease office space under a non-cancelable operating lease that expires in March 2016. We lease office equipment under non-cancelable operating leases that expire at various times through May 2016. The lease included several months abated rent and contains future rent escalation provisions based upon Consumer Price Indexes. Rent expense is being recorded across all periods covered by the lease. Rent expense related to operating leases was approximately $196 and $256 for the years ended December 31, 2013 and 2012, respectively. Future minimum lease payments under non-cancelable operating leases as of December 31, 2013, were approximately $278, $272, $70, $0 and $0 for each of the years ended December 31, 2014, through 2018, respectively.

	Employee Benefits

	All U.S. employees and all Australian employees are entitled to varying levels of benefits on retirement, disability or death. The superannuation plans provide accumulated benefits. Employees contribute to the plans at various percentages of their wages and salaries. Contributions by the Company to the U.S retirement plan are discretionary and no matching contributions were made for the years ended December 31, 2013 and 2012. Contributions by the Company of up to 9% of employees’ wages and salaries are legally enforceable in Australia. For the years ended December 31, 2013 and 2012, the Company incurred expenses of $14 and $30, respectively.

	In 2012, the Company converted its health insurance plan to a high deductible plan with a Health Savings Account. The Company incurred an expense of $90 and $18 for the years ended December 31, 2013 and 2012, respectively.

Segment_and_Geographic_Informa

Segment and Geographic Information	12 Months Ended
Segment and Geographic Information	Dec. 31, 2013
Segment and Geographic Information	'
Segment and Geographic Information	'
	Note 6—Segment and Geographic Information

	The Company has one reportable segment, cardiac and coronary disease products. Beginning in 2012, interest income has been primarily earned in the United States. Previously, interest income was primarily earned in Australia.

	At December 31, 2013, long-lived assets are located primarily in the United States.

Nature_of_Business_and_Signifi1

Nature of Business and Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2013
Nature of Business and Significant Accounting Policies	'
Nature of Business	'
	Nature of Business

	Sunshine Heart, Inc. was founded in November 1999 and incorporated in Delaware in August 2002. We are headquartered in Eden Prairie, Minnesota and have a wholly owned subsidiary, Sunshine Heart Company Pty Ltd., located in Clontarf, New South Wales, Australia and a wholly owned subsidiary, Sunshine Heart Ireland Limited, located in Dublin, Ireland. 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, 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 System is designed to relieve the symptoms of heart failure through the use of counter-pulsation technology by enabling an increase in cardiac output, an increase in coronary blood flow, and a reduction in the heart’s pumping load. The Company has received approval from the FDA to conduct a U.S. feasibility clinical study with the C-Pulse System. Commencing February 16, 2012, our shares of common stock began trading on NASDAQ under the symbol “SSH.” Our shares of common stock previously traded in the form of CDIs on the ASX under the symbol “SHC” from September 2004 until our delisting from the ASX, which occurred at the close of trading on 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, 2013 and 2012, 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, 2013, the Company had an accumulated deficit of $101.0 million and expects to incur losses for the foreseeable future. To date, the Company has been funded by private and public equity financings. Although the Company believes that it will be able to successfully fund its operations, there can be no assurance the Company we will be able to do so or that the Company 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 future capital raising be unsuccessful, 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

	The accompanying consolidated financial statements include the accounts of Sunshine Heart, Inc. and its wholly owned subsidiaries, Sunshine Heart Company Pty Ltd. and Sunshine Heart Ireland Limited. All inter-company accounts and transactions between consolidated entities have been eliminated.

Use of Estimates	'
	Use of Estimates

	The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Fair Value of Financial Instruments	'
	Fair Value of Financial Instruments

	Our financial instruments consist of cash and cash equivalents, 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 Financial Accounting Standards Board (the *“FASB”) Accounting Standards Codification (the“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 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 there were no movements between these categories.

Cash and Cash Equivalents	'
	Cash and Cash Equivalents

	Cash and cash equivalents consist of cash, money market funds and term deposits with original maturities of three months or less. The carrying value of these instruments approximates fair value. The balances, at times, may exceed federally insured limits. We have not experienced any losses on our cash and cash equivalents.

Accounts Receivable	'
	Accounts Receivable

	Accounts receivable are unsecured, are recorded at net realizable value, and do not bear interest. We make judgments as to our ability to collect outstanding receivables based upon significant patterns of uncollectiblity, historical experience, and managements’ evaluation of specific accounts and will provide an allowance for credit losses when collection becomes doubtful. The Company performs credit evaluations of its customers’ financial condition on an as-needed basis. Payment is generally due 30 days from the invoice date and accounts past 30 days are individually analyzed for collectability. When all collection efforts have been exhausted, the account is written off against the related allowance. No allowance for doubtful accounts was considered necessary as of December 31, 2013 or December 31, 2012.

Other Current Assets	'
	Other Current Assets

	Other current assets represent prepayments and deposits made by the Company.

Property, Plant and Equipment	'
	Property, Plant and Equipment

	Property and equipment is stated at cost less accumulated depreciation. Depreciation is computed based upon the estimated useful lives of the respective assets. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the assets. Repairs and maintenance costs are expensed as incurred. Major betterments and improvements, which extend the useful life of the item, are capitalized and depreciated. The cost and accumulated depreciation of property, plant and equipment retired or otherwise disposed of are removed from the related accounts, and any residual values are charged or credited to expenses. Depreciation expense has been calculated using the following estimated useful lives:

	Office furniture and equipment	5-15 years
	Computer software and equipment	3-4 years
	Laboratory and research equipment	3-15 years
	Production equipment	3-7 years

	Depreciation expense was $185 and $138 for the years ended December 31, 2013 and 2012, respectively.

Impairment of Long-lived Assets	'
	Impairment of Long-lived Assets

	Long-lived assets, such as property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the impairment tests indicate that the carrying value of the asset is greater than the expected undiscounted cash flows to be generated by such asset, further analysis is performed to determine the fair value of the asset. To the extent the fair value of the asset is less than its carrying value, an impairment loss is recognized. We generally measure fair value by considering sale prices for similar assets or by discounting estimated future cash flows from such assets using an appropriate discount rate. Assets to be disposed of are carried at the lower of their carrying value or fair value less costs to sell. Considerable management judgment is necessary to estimate the fair value of assets, and accordingly, actual results could vary significantly from such estimates. There have been no impairment losses for long-lived assets, for the years ended December 31, 2013 and 2012.

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 System is not approved for commercial sale. However, the FDA has assigned the C-Pulse System to a Category B designation, making it eligible for reimbursement at certain U.S. sites during our clinical studies. 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 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 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 of shipment.

Foreign Currency Translation and Transactions	'
	Foreign Currency Translation and Transactions

	Foreign denominated monetary assets and liabilities of our foreign subsidiaries are translated at the rate of exchange prevailing at the balance sheet date. Results of operations are translated using the average rates prevailing during the reporting period. The translation adjustment has not been included in determining the Company’s net loss, but has been reported separately and is accumulated in a separate component of equity. For financial reporting purposes, the reporting currency of the Company is the U.S. Dollar. When a transaction is denominated in a currency other than the entity’s functional currency, the Company recognizes a transaction gain or loss in net earnings.

Stock-Based Compensation	'
	Stock-Based Compensation

	The Company recognizes all share-based payments, including grants of stock options, restricted stock units and common stock awards in the income statement as an operating expense, based on their fair value. The Company’s stock awards use a graded vesting schedule. We recognize the option expense over the requisite service period.

	The Company computes the estimated fair values of stock options using the Black-Scholes option pricing model. Market price at the date of grant is used to calculate the fair value of restricted stock units and common stock awards. No tax benefit has been recorded due to the full valuation allowance on deferred tax assets that the Company has recorded.

	Stock-based compensation expense is based on awards ultimately expected to vest and is reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

	Equity instruments issued to non-employees, and for services and goods are shares of the Company’s common stock, warrants or options to purchase shares of the Company’s common stock. These shares, warrants or options are either fully-vested and exercisable at the date of grant or vest over a certain period during which services are provided. The Company expenses the fair market value of these securities over the period in which the related services are received, in most cases, and is recognized based upon liability measurement at each reporting period for awards to consultants.

	See Note 3 for further information regarding the assumptions used to calculate the fair value of share-based compensation.

Income Taxes	'
	Income Taxes

	Deferred income taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards. Deferred tax liabilities are recognized for taxable temporary differences, which are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

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 and restricted stock units totaling 3,623,806 and 2,746,497 for the years ended December 31, 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 years.

Research and Development	'
	Research and Development

	Research and development expenses consist primarily of development personnel and non-employee contractor costs related to the development of new products and services, enhancement of existing products and services, quality assurance and testing. The Company incurred research and development expenses of $13,504 and $8,003 for the years ended December 31, 2013 and 2012, respectively.

Reverse Stock Split	'
	Reverse Stock Split

	On January 24, 2012, the board of directors declared a 1-for-200 reverse stock split and a corresponding inverse change in the transmutation ratio of CDIs trading on the ASX in Australia such that from and after such date, one CDI represented 1/200th of a share. The reverse split and change in transmutation ratio became effective for trading on the ASX on January 30, 2012. All share and per share data included in the consolidated financial statements and accompanying notes have been adjusted to reflect this reverse stock split.

Subsequent Events	'
	Subsequent Events

	The Company evaluates events through the date the financial statements are filed for events requiring adjustment to or disclosure in the financial statements.

Nature_of_Business_and_Signifi2

Nature of Business and Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2013
Nature of Business and Significant Accounting Policies	'
Schedule of estimated useful lives	'


	Office furniture and equipment	5-15 years
	Computer software and equipment	3-4 years
	Laboratory and research equipment	3-15 years
	Production equipment	3-7 years

Balance_Sheet_Information_Tabl

Balance Sheet Information (Tables)	12 Months Ended
	Dec. 31, 2013
Balance Sheet Information	'
Schedule of property, plant and equipment	'

		31-Dec-13			31-Dec-12
	Office Furniture & Fixtures	$	111		$	102
	Leasehold Improvements	145			145
	Software	61			12
	Production Equipment	574			425
	Computer Equipment	204			118
	Total	1,095			802
	Accumulated Depreciation	(508		)	(323		)
		$	587		$	479

Equity_Tables

Equity (Tables)	12 Months Ended
Equity (Tables)	Dec. 31, 2013
Equity	'
Summary of stock-based compensation expense	'

		31-Dec-13			31-Dec-12
	Selling, general and administrative	$	2,722		$	806
	Research and development	882			442
	Total	$	3,604		$	1,248
Summary of the Plan and non-Plan stock option activity	'

		Options		Weighted			Remaining	Aggregate
		Outstanding		Average			Average	Intrinsic
				Exercise			Contractual	Value
				Price			Term
							(Years)
	Outstanding, December 31, 2011	886,833		$	10.05		9.21	$	63
	2012 Granted	284,875		6.63
	2012 Exercised	(3,990	)	3.1
	2012 Forfeited/expired	(54,474	)	7.65
	Outstanding, December 31, 2012	1,113,244		9.47			8.61	1
	Exercisable at December 31, 2012	418,439		13.08			7.76	1
	2013 Granted	905,900		8.17
	2013 Exercised	—		—
	2013 Forfeited/expired	(132,565	)	10.06
	Outstanding, December 31, 2013	1,886,579		8.8			8.32	4,788
	Exercisable at December 31, 2013	801,480		$	8.95		7.55	$	2,154
Schedule of weighted-average assumptions used in calculating the fair value of options granted	'

		Year ended December 31
		2013		2012
	Expected dividend yield	0	%	0	%
	Risk-free interest rate	1.31	%	1.52	%
	Expected volatility	96	%	101	%
	Expected life (in years)	5.5		5

Income_Taxes_Tables

Income Taxes (Tables)	12 Months Ended
Income Taxes (Tables)	Dec. 31, 2013
Income Taxes	'
Schedule of domestic and foreign loss after provision for income taxes	'


		December 31, 2013			December 31, 2012
	Domestic	$	(22,013	)	$	(13,373	)
	Foreign	255			(692		)
	Total	$	(21,758	)	$	(14,065	)

Schedule of components of income tax expense	'


		December 31, 2013			December 31, 2012
	Income tax provision:
	Current:
	United States and state	$	(136	)	$	(41	)
	Foreign	(1,077		)	(730		)
	Deferred:
	United States and state	—			—
	Foreign	—			—
	Total income tax benefit	$	(1,213	)	$	(771	)

Summary showing actual income tax expense differing from statutory federal income tax benefit	'


		December 31, 2013			December 31, 2012
	Statutory federal income tax benefit	$	(7,810	)	$	(5,043	)
	State tax benefit, net of federal taxes	(1,363		)	(824		)
	Foreign tax	33			57
	R&D tax credit	(1,213		)	(771		)
	Valuation allowance increase	8,654			5,632
	Non deductible/nontaxable items	367			231
	Other	119			(53		)
	Total income tax (benefit) expense	$	(1,213	)	$	(771	)

Schedule of components of deferred taxes	'


		December 31, 2013			December 31, 2012
	Deferred tax assets:
	Current:
	Accrued leave	$	76		$	56
	Other accrued expenses	114			—
	Total current deferred tax asset	190			56
	Noncurrent:
	Stock based compensation	1,476			852
	Net operating losses	31,958			27,136
	Deferred rent	76			81
	Other	46			124
	R&D credits	531			245
	Total noncurrent deferred tax assets	34,087			28,438
	Total deferred tax assets	$	34,277		$	28,494
	Deferred tax liabilities:
	Current:	$	—		$	—
	Noncurrent:
	Fixed assets	(37		)	(50		)
	Total deferred tax liabilities	(37		)	(50		)
	Net deferred tax asset	34,240			28,444
	Less: valuation allowance	(34,240		)	(28,444		)
		$	—		$	—

Nature_of_Business_and_Signifi3

Nature of Business and Significant Accounting Policies (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Going Concern	'	'
Accumulated deficit	$101,012	$79,254
Accounts Receivable	'	'
Period of payment due from the invoice date	'30 days	'
Allowance for doubtful accounts	0	0
Property, plant and equipment	'	'
Depreciation expense	185	138
Impairment losses for long-lived assets	0	0
Share based compensation disclosures	'	'
Share based compensation tax benefit	$0	'
Office furniture and equipment \| Minimum	'	'
Property, plant and equipment	'	'
Estimated useful lives	'5 years	'
Office furniture and equipment \| Maximum	'	'
Property, plant and equipment	'	'
Estimated useful lives	'15 years	'
Computer software and equipment \| Minimum	'	'
Property, plant and equipment	'	'
Estimated useful lives	'3 years	'
Computer software and equipment \| Maximum	'	'
Property, plant and equipment	'	'
Estimated useful lives	'4 years	'
Laboratory and research equipment \| Minimum	'	'
Property, plant and equipment	'	'
Estimated useful lives	'3 years	'
Laboratory and research equipment \| Maximum	'	'
Property, plant and equipment	'	'
Estimated useful lives	'15 years	'
Production equipment \| Minimum	'	'
Property, plant and equipment	'	'
Estimated useful lives	'3 years	'
Production equipment \| Maximum	'	'
Property, plant and equipment	'	'
Estimated useful lives	'7 years	'

Nature_of_Business_and_Signifi4

Nature of Business and Significant Accounting Policies (Details 2) (USD $)	0 Months Ended	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Jan. 30, 2012	Dec. 31, 2013	Dec. 31, 2012
Antidilutive securities	'	'	'
Shares reserved for outstanding stock warrants and options and restricted stock units excluded from the computation of loss per share due to their antidilutive effect	'	3,623,806	2,746,497
Research and Development	'	'	'
Research and Development Expense	'	$13,504	$8,003
Reverse Stock Split	'	'	'
Reverse stock transmutation ratio	0.005	'	'

Balance_Sheet_Information_Deta

Balance Sheet Information (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment	'	'
Total	$1,095	$802
Accumulated Depreciation	-508	-323
Property, plant and equipment, net	587	479
Office Furniture & Fixtures	'	'
Property, Plant and Equipment	'	'
Total	111	102
Leasehold Improvements	'	'
Property, Plant and Equipment	'	'
Total	145	145
Software	'	'
Property, Plant and Equipment	'	'
Total	61	12
Production Equipment	'	'
Property, Plant and Equipment	'	'
Total	574	425
Computer Equipment	'	'
Property, Plant and Equipment	'	'
Total	$204	$118

Equity_Details

Equity (Details) (USD $)

0 Months Ended

12 Months Ended

1 Months Ended

0 Months Ended

12 Months Ended

0 Months Ended

Sep. 24, 2013

Apr. 16, 2013

Aug. 20, 2012

Aug. 15, 2012

Dec. 31, 2013

Dec. 31, 2012

Feb. 29, 2012

Jan. 15, 2013

Dec. 31, 2013

Jan. 15, 2013

Dec. 31, 2013

Dec. 31, 2012

Jun. 14, 2013

Private placement

Aspire Capital

Maximum

Series A Junior Participating Preferred Stock

Rights Plan

Aspire Capital

Series A Junior Participating Preferred Stock

Sales of common stocks

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

Purchase price (in dollars per share)

$35

Authorized shares

30,000

Dividend right declared per share of common stock (in shares)

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

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

256,875

146,886

Common stock sold including commitment shares (in shares)

227,143

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

94,800

Proceeds, net of transaction costs

$42,674,000

$14,036,000

$18,552,000

$57,566,000

$20,837,000

$2,061,000

Equity_Details_2

Equity (Details 2) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Stock-based compensation	'	'
Compensation expense	$3,604	$1,248
Selling, general and administrative expense	'	'
Stock-based compensation	'	'
Compensation expense	2,722	806
Research and development expense	'	'
Stock-based compensation	'	'
Compensation expense	$882	$442

Equity_Details_3

Equity (Details 3) (USD $)	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Minimum	'	'	'
Stock-based compensation	'	'	'
Vesting period	'1 year	'	'
Maximum	'	'	'
Stock-based compensation	'	'	'
Vesting period	'4 years	'	'
Stock Option	'	'	'
Options Outstanding	'	'	'
Outstanding at the beginning of the period (in shares)	1,113,244	886,833	'
Granted (in shares)	905,900	284,875	'
Exercised (in shares)	'	-3,990	'
Forfeitures/expiration (in shares)	-132,565	-54,474	'
Outstanding at the end of the period (in shares)	1,886,579	1,113,244	886,833
Exercisable at the end of the period (in shares)	801,480	418,439	'
Weighted Average Exercise Price	'	'	'
Outstanding at the beginning of the period (in dollars per share)	$9.47	$10.05	'
Granted (in dollars per share)	$8.17	$6.63	'
Exercised (in dollars per share)	'	$3.10	'
Forfeited/expired (in dollars per share)	$10.06	$7.65	'
Outstanding at the end of the period (in dollars per share)	$8.80	$9.47	$10.05
Exercisable at the end of the period (in dollars per share)	$8.95	$13.08	'
Remaining Average Contractual Term	'	'	'
Outstanding at the end of the period	'8 years 3 months 25 days	'8 years 7 months 10 days	'9 years 2 months 16 days
Exercisable at the end of the period	'7 years 6 months 18 days	'7 years 9 months 4 days	'
Aggregate Intrinsic Value	'	'	'
Outstanding at the end of the period (in dollars)	$4,788	$1	$63
Exercisable at the end of the period (in dollars)	2,154	1	'
Total intrinsic value	0	14	'
Additional disclosures	'	'	'
Nonvested options (in shares)	1,085,099	'	'
Cash proceeds from exercised options	0	10	'
Weighted-average fair value of options granted (in dollars per share)	$5.54	$4.97	'
Weighted-average assumptions used in calculating the fair value of options granted	'	'	'
Expected dividend yield (as a percent)	0.00%	0.00%	'
Risk-free interest rate (as a percent)	1.31%	1.52%	'
Expected volatility (as a percent)	96.00%	101.00%	'
Expected life	'5 years 6 months	'5 years	'
Total unrecognized compensation costs related to non-vested stock option awards	$5,891	'	'
Unrecognized compensation costs related to non-vested stock option awards, recognition period	'2 years 9 months 18 days	'	'
Stock Option \| Consultants	'	'	'
Additional disclosures	'	'	'
Nonvested options (in shares)	15,000	'	'
Restricted stock units	'	'	'
Weighted-average assumptions used in calculating the fair value of options granted	'	'	'
Award granted (in shares)	105,605	'	'
Weighted average grant date fair value of award (in dollars per share)	$11.32	'	'
Award vested (in shares)	21,477	'	'
Award tendered (in shares)	9,779	'	'
Awards Outstanding (in shares)	84,128	'	'
Common stock awards	'	'	'
Weighted-average assumptions used in calculating the fair value of options granted	'	'	'
Weighted average grant date fair value of award (in dollars per share)	$11.32	'	'
Award tendered (in shares)	49,137	'	'
Awards Outstanding (in shares)	105,605	'	'

Equity_Details_4

Equity (Details 4)	12 Months Ended						12 Months Ended		0 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2012	Dec. 31, 2012	Sep. 07, 2012	Dec. 31, 2013	Dec. 31, 2012
	USD ($)	USD ($)	Exercise price of A$6.40	Exercise price of A$6.40	Exercise price of A$6.40	Exercise price of A$6.40	Exercise price of A$11.20	Exercise price of A$8.00	Warrant with five year term	Warrants	Warrants
			USD ($)	USD ($)	AUD	AUD	AUD	AUD	USD ($)
Warrants	'	'	'	'	'	'	'	'	'	'	'
Warrants outstanding (in shares)	'	'	'	'	'	'	'	'	'	1,630,804	1,633,253
Warrants issued (in shares)	'	'	'	'	'	'	77,063	8,553	100,000	'	'
Exercise price of warrants (in dollars per share)	'	'	'	'	6.4	6.4	11.2	8	$7	'	'
Term of warrants	'	'	'	'	'	'	'4 years	'5 years	'5 years	'	'
Total fair value of warrants issued	'	'	'	'	'	'	'	'	$519	'	'
Expense for warrants issued in conjunction with service agreement	239	280	'	'	'	'	'	'	'	'	'
Warrants exercised (in shares)	'	'	2,449	32,396	'	'	'	'	'	'	'
Total proceeds on exercise of warrants	'	'	$15	$212	'	'	'	'	'	'	'

Income_Taxes_Details

Income Taxes (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Income Taxes	'	'
Domestic	($22,013)	($13,373)
Foreign	255	-692
Net loss	-21,758	-14,065
Current:	'	'
United States and state	-136	-41
Foreign	-1,077	-730
Total income tax (benefit) expense	-1,213	-771
Income tax reconciliation	'	'
Statutory federal income tax benefit	-7,810	-5,043
State tax benefit, net of federal taxes	-1,363	-824
Foreign tax	33	57
R&D tax credit	-1,213	-771
Valuation allowance increase	8,654	5,632
Non deductible/nontaxable items	367	231
Other	119	-53
Total income tax (benefit) expense	-1,213	-771
Current:	'	'
Accrued leave	76	56
Other accrued expenses	114	'
Total current deferred tax asset	190	56
Noncurrent:	'	'
Stock based compensation	1,476	852
Net operating losses	31,958	27,136
Deferred rent	76	81
Other	46	124
R&D credits	531	245
Total noncurrent deferred tax assets	34,087	28,438
Total deferred tax assets	34,277	28,494
Noncurrent:	'	'
Fixed assets	-37	-50
Total deferred tax liabilities	-37	-50
Net deferred tax asset	34,240	28,444
Less: valuation allowance	($34,240)	($28,444)

Income_Taxes_Details_2

Income Taxes (Details 2)	12 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2013
	United States	Commonwealth of Australia
	USD ($)	AUD
Operating loss carryforwards	'	'
Net operating loss (NOL) carryforwards	$45.70	50.5
Percentage of cumulative change in ownership which may substantially limit the annual utilization of the entity's net operating loss carryforwards	50.00%	'
Period over which cumulative change in percentage of ownership is considered for determining the limitation on the annual utilization of the entity's net operating loss and tax credit carryforwards	'3 years	'

Income_Taxes_Details_3

Income Taxes (Details 3) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Jun. 30, 2012	Dec. 31, 2013	Jun. 30, 2012
			Research and development tax credit	Research and development tax credit	Research and development tax credit	Research and development tax credit
			State of Minnesota	Australian subsidiary	Australian subsidiary	Australian subsidiary
					Australian	Australian
Income Taxes	'	'	'	'	'	'
Uncertain tax positions	$0	$0	'	'	'	'
Interest and penalties related to uncertain tax positions accrued during the period	0	0	'	'	'	'
Tax credit carryforward	'	'	'	'	'	'
Research and development credit received	'	'	136,000	'	1,077,000	'
Percentage of qualified research and development expenditures	'	'	'	'	'	44.00%
Benefit related to tax credit	1,213,000	771,000	'	0	'	'
Increase in valuation allowance	$5,800,000	$5,100,000	'	'	'	'

Commitments_and_Contingencies_

Commitments and Contingencies (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Commitments and Contingencies.	'	'
Rent expense related to operating leases	$196	$256
Future minimum lease payments	'	'
2014	278	'
2015	272	'
2016	70	'
2017	0	'
2018	0	'
Superannuation plan	'	'
Employee Benefits	'	'
Employer's matching contribution	0	0
Expense incurred	14	30
Superannuation plan \| Maximum	'	'
Employee Benefits	'	'
Contribution by the company as a percentage of employees' wages and salaries	9.00%	'
Health insurance plan	'	'
Employee Benefits	'	'
Expense incurred	$90	$18

Segment_and_Geographic_Informa1

Segment and Geographic Information (Details)	12 Months Ended
	Dec. 31, 2013
	item
Segment and Geographic Information	'
Number of reportable segments	1