Nuwellis (NUWE) 10-Q 13 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	2-May-14
Document and Entity Information	'	'
Entity Registrant Name	'Sunshine Heart, Inc.	'
Entity Central Index Key	'0001506492	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
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	'	16,879,823
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Current assets	'	'
Cash and cash equivalents	$47,421	$54,136
Accounts receivable	59	59
Other current assets	824	448
Total current assets	48,304	54,643
Property, plant and equipment, net	572	587
TOTAL ASSETS	48,876	55,230
Current liabilities	'	'
Accounts payable	2,030	2,188
Accrued salaries, wages, and other compensation	637	1,315
Total current liabilities	2,667	3,503
Total liabilities	2,667	3,503
Commitments and contingencies	'	'
Stockholders' equity	'	'
Common stock as of March 31, 2014 and December 31, 2013, par value $0.0001 per share; authorized 100,000,000 shares: issued and outstanding 16,875,116 and 16,825,284 shares, respectively	2	2
Additional paid-in capital	152,363	151,530
Accumulated other comprehensive income:	'	'
Foreign currency translation adjustment	1,188	1,207
Accumulated deficit	-107,344	-101,012
Total stockholders' equity	46,209	51,727
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	48,876	55,230
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 $)	Mar. 31, 2014	Dec. 31, 2013
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	16,875,116	16,825,284
Common stock, shares outstanding	16,875,116	16,825,284
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
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Condensed Consolidated Statements of Operations and Comprehensive Loss	'	'
Net sales	$59	'
Operating expenses:	'	'
Selling, general and administrative	2,361	1,976
Research and development	4,063	2,426
Total operating expenses	6,424	4,402
Loss from operations	-6,365	-4,402
Other income, net	33	3
Loss before income taxes	-6,332	-4,399
Net loss	-6,332	-4,399
Basic and diluted loss per share (in dollars per share)	($0.38)	($0.47)
Weighted average shares outstanding - basic and diluted (in shares)	16,859	9,417
Other comprehensive income:	'	'
Foreign currency translation adjustments	-19	-8
Total comprehensive loss	($6,351)	($4,407)

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Condensed Consolidated Statements of Cash Flows	'	'
Net loss	($6,332)	($4,399)
Adjustments to reconcile net loss to cash flows used in operating activities:	'	'
Depreciation	61	40
Stock-based compensation expense, net	632	367
Amortization of warrants for service agreements	'	120
Changes in assets and liabilities	'	'
Other current assets	-468	-171
Accounts payable and accrued expenses	-580	-71
Net cash used in operations	-6,687	-4,114
Cash flows used in investing activities:	'	'
Purchases of property and equipment	-46	-9
Net cash used in investing activities	-46	-9
Cash flows provided by financing activities:	'	'
Net proceeds from the sale of common stock	16	874
Net cash provided by financing activities	16	874
Effect of exchange rate changes in cash	2	-5
Net decrease in cash and cash equivalents	-6,715	-3,254
Cash and cash equivalents - beginning of period	54,136	14,224
CASH AND CASH EQUIVALENTS - END OF PERIOD	47,421	10,970
Supplement schedule of non-cash activities	'	'
Stock options and restricted stock units classified as liabilities, net	($278)	'

Nature_of_Business_and_Signifi

Nature of Business and Significant Accounting Policies	3 Months Ended
	Mar. 31, 2014
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. (“Sunshine Heart,” the “Company,” “we,” “us” and “our”) 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 (the “C-Pulse 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 coronary blood flow and a reduction in the heart’s pumping load. The Company has received approval from the U.S. Food and Drug Administration (the “FDA”) to conduct a U.S. pivotal clinical study with the C-Pulse System. Commencing February 16, 2012, our shares of common stock began trading on the NASDAQ Capital Market under the symbol “SSH.”  Chess Depositary Instruments representing beneficial ownership of our common stock previously traded on the Australian Securities Exchange (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 and through March 31, 2014, 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, we had an accumulated deficit of $101,012 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 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 intercompany accounts and transactions between consolidated entities have been eliminated.
	Unaudited Interim Condensed Consolidated Financial Information
	The interim condensed consolidated balance sheet as of March 31, 2014 and statements of operations and comprehensive loss for the three months ended March 31, 2014 and 2013, as well as the statements of cash flows for the three months ended March 31, 2014 and 2013 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 (the “Securities Act”).  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, 2013.  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 months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014 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 System is not approved for commercial sale in the U.S. 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 studies per the terms of the clinical study contracts. For clinical study implant revenue, the product title generally transfers on the date the product is implanted. Product costs incurred for our clinical studies 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 of shipment.
	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, (or “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, stock options and restricted stock units (“RSUs”) totaling 3,512,005 and 2,746,497 for the three months ended March 31, 2014 and 2013, 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.
	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 March 31, 2014 or December 31, 2013.
	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 the Financial Accounting Standards Board, Audit Standards Codification 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.

Equity

Equity	3 Months Ended
	Mar. 31, 2014
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 an approximate two-year period at purchase prices determined in accordance with the Purchase Agreement. Pursuant to the terms of the Purchase Agreement, we filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (the “SEC”) under which we 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 March 31, 2014 and 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.
	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 $468 and $267 of related compensation expense to selling, general and administrative expense and research and development expense, respectively, for the three months ended March 31, 2014, as compared to $227 and $140, respectively, of related compensation expense for the three months ended March 31, 2013. As of March 31, 2014, a total of $5,568 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 by analyzing their historical forfeiture and termination information and considering how future termination rates are expected to differ from historical rates.  Expected dividend yield is based upon the Company’s historical and projected dividend activity and the risk-free interest rate is based upon U.S. 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 options generally vest over four years of service and have contractual lives of 10 years.  Fully vested stock awards are valued at the stock price on the date of grant and expensed for the full value on the date of grant.  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 12-month period are re-valued using the Black- Scholes method as they vest monthly and expensed to operations and recognizing a corresponding liability.
	Options for 55,700 shares were granted during the three months ended March 31, 2014, and the weighted average fair value of these options was $365, determined using an expected dividend yield of 0%, an expected stock price volatility of 92%, a risk-free interest rate of 2.1% and expected option lives of 6.25 years.  Options for 39,700 shares were granted during the three months ended March 31, 2013, and the weighted average fair value of these options was $185, determined using an expected dividend yield of 0%, an expected stock price volatility of 99%, a risk-free interest rate of 1.3% and expected option lives of 5 years.
	For the three months ended March 31, 2014, the Company had 25,604 stock options granted to non-employees with a fair value of $58. The awards are revalued every period and expensed accordingly using the liability method of accounting.
	Warrants
	Warrants to purchase 1,613,006 shares of common stock were outstanding at March 31, 2014, as compared to warrants to purchase 1,630,804 shares of common stock outstanding at December 31, 2013.
	During the three months ended March 31, 2014, warrants to purchase 2,798 shares of common stock were exercised at a price of AU$6.40 per share for total cash proceeds of $16, and warrants to purchase 15,000 shares of common stock were exercised at a price of AU$6.40 per share in a cashless exercise in which 9,603 shares were surrendered to fund the exercise.

Balance_Sheet_Information

Balance Sheet Information	3 Months Ended
	Mar. 31, 2014
Balance Sheet Information	'
Balance Sheet Information	'
	Note 3—Balance Sheet Information
	Property, Plant and Equipment
	Property, plant and equipment were as follows:
		March 31,			December 31,
		2014			2013
	Office Furniture & Fixtures	$	111		111
	Leasehold Improvements	145			145
	Software	63			61
	Production Equipment	585			574
	Computer Equipment	237			204
	Total	1,141			1,095
	Accumulated Depreciation	(569		)	(508		)
		$	572		$	587
	Depreciation expense for the three months ended March 31, 2014 and 2013 was $61 and $40, respectively.

Nature_of_Business_and_Signifi1

Nature of Business and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2014
Nature of Business and Significant Accounting Policies	'
Nature of Business	'
	Nature of Business
	Sunshine Heart, Inc. (“Sunshine Heart,” the “Company,” “we,” “us” and “our”) 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 (the “C-Pulse 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 coronary blood flow and a reduction in the heart’s pumping load. The Company has received approval from the U.S. Food and Drug Administration (the “FDA”) to conduct a U.S. pivotal clinical study with the C-Pulse System. Commencing February 16, 2012, our shares of common stock began trading on the NASDAQ Capital Market under the symbol “SSH.”  Chess Depositary Instruments representing beneficial ownership of our common stock previously traded on the Australian Securities Exchange (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 and through March 31, 2014, 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, we had an accumulated deficit of $101,012 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 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 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 March 31, 2014 and statements of operations and comprehensive loss for the three months ended March 31, 2014 and 2013, as well as the statements of cash flows for the three months ended March 31, 2014 and 2013 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 (the “Securities Act”).  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, 2013.  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 months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014 or any other interim period or for any other future year.
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
	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 in the U.S. 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 studies per the terms of the clinical study contracts. For clinical study implant revenue, the product title generally transfers on the date the product is implanted. Product costs incurred for our clinical studies 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 of shipment.
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, (or “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, stock options and restricted stock units (“RSUs”) totaling 3,512,005 and 2,746,497 for the three months ended March 31, 2014 and 2013, 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.
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 March 31, 2014 or December 31, 2013.
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 the Financial Accounting Standards Board, Audit Standards Codification 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.

Balance_Sheet_Information_Tabl

Balance Sheet Information (Tables)	3 Months Ended
	Mar. 31, 2014
Balance Sheet Information	'
Schedule of property, plant and equipment	'
		March 31,			December 31,
		2014			2013
	Office Furniture & Fixtures	$	111		111
	Leasehold Improvements	145			145
	Software	63			61
	Production Equipment	585			574
	Computer Equipment	237			204
	Total	1,141			1,095
	Accumulated Depreciation	(569		)	(508		)
		$	572		$	587

Nature_of_Business_and_Signifi2

Nature of Business and Significant Accounting Policies (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Going Concern	'	'
Accumulated deficit	$107,344	$101,012

Nature_of_Business_and_Signifi3

Nature of Business and Significant Accounting Policies (Details 2) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
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	3,512,005	2,746,497	'
Accounts Receivable	'	'	'
Period of payment due from the invoice date	'30 years	'	'
Allowance for doubtful accounts	$0	'	$0

Equity_Details

Equity (Details) (USD $)	0 Months Ended	3 Months Ended	12 Months Ended	0 Months Ended			0 Months Ended
In Millions, except Share data, unless otherwise specified	Jan. 15, 2013	Mar. 31, 2014	Dec. 31, 2013	Jan. 15, 2013	Mar. 31, 2014	Dec. 31, 2013	Jun. 14, 2013	Jun. 14, 2013
	Aspire Capital	Aspire Capital	Aspire Capital	Maximum	Series A Junior Participating Preferred Stock	Series A Junior Participating Preferred Stock	Rights Plan	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	$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	'	'	'	'
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)	'	146,886	146,886	'	'	'	'	'
Common stock sold including commitment shares (in shares)	'	227,143	'	'	'	'	'	'

Equity_Details_2

Equity (Details 2) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Selling, general and administrative expense	'	'
Stock-Based Compensation	'	'
Compensation expense	$468	$227
Research and development expense	'	'
Stock-Based Compensation	'	'
Compensation expense	$267	$140

Equity_Details_3

Equity (Details 3) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Stock-based compensation	'	'
Unrecognized compensation costs related to non-vested stock option awards	$5,568	'
Unrecognized compensation costs related to non-vested stock option awards, recognition period	'4 years	'
Vesting period of options	'4 years	'
Contractual life of options	'10 years	'
Non-employee	'	'
Weighted-average assumptions used in calculating the fair value of options granted	'	'
Stock options granted to non employees	25,604	'
Fair value of stock options granted	$58	'
Stock Option	'	'
Stock-based compensation	'	'
Award granted (in shares)	55,700	39,700
Weighted average grant date fair value of award (in dollars per share)	$365	$185
Weighted-average assumptions used in calculating the fair value of options granted	'	'
Expected dividend yield (as a percent)	0.00%	0.00%
Expected volatility (as a percent)	92.00%	99.00%
Risk-free interest rate (as a percent)	2.10%	1.30%
Expected life	'6 years 3 months	'5 years

Equity_Details_4

Equity (Details 4) (Warrants)	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2014	Mar. 31, 2014
In Thousands, except Share data, unless otherwise specified			Exercise price of AU$6.40	Exercise price of AU$6.40
			USD ($)	AUD
Warrants	'	'	'	'
Warrants outstanding (in shares)	1,613,006	1,630,804	'	'
Number of shares of common stocks were purchased by exercising warrants	'	'	2,798	2,798
Price of common stock per share in exercising warrants (in dollars per share)	'	'	'	6.4
Total proceeds on exercise of warrants	'	'	$16	'
Number of shares of common stock purchased by exercising warrants in cashless exercise	'	'	15,000	15,000
Price of common stock per share in exercising warrants in cashless exercise (in dollars per share)	'	'	'	6.4
Number of shares of common stock surrendered to fund cashless exercise	'	'	9,603	9,603

Balance_Sheet_Information_Deta

Balance Sheet Information (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Property, Plant and Equipment	'	'	'
Total	$1,141	'	$1,095
Accumulated Depreciation	-569	'	-508
Property, plant and equipment, net	572	'	587
Depreciation expense	61	40	'
Office Furniture & Fixtures	'	'	'
Property, Plant and Equipment	'	'	'
Total	111	'	111
Leasehold Improvements	'	'	'
Property, Plant and Equipment	'	'	'
Total	145	'	145
Software	'	'	'
Property, Plant and Equipment	'	'	'
Total	63	'	61
Production Equipment	'	'	'
Property, Plant and Equipment	'	'	'
Total	585	'	574
Computer Equipment	'	'	'
Property, Plant and Equipment	'	'	'
Total	$237	'	$204