Nuwellis (NUWE) 10-Q 9 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 06, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	CHF Solutions, Inc.
Entity Central Index Key	1,506,492
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
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 Common Stock, Shares Outstanding		7,074,362
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 6,995	$ 15,595
Accounts receivable	652	545
Inventory	2,315	1,588
Other current assets	205	136
Total current assets	10,167	17,864
Property, plant and equipment, net	576	570
Other assets	195	21
TOTAL ASSETS	10,938	18,455
Current liabilities
Accounts payable and accrued expenses	838	862
Accrued compensation	979	1,021
Other current liabilities	186	208
Total current liabilities	2,003	2,091
Other liabilities	126	126
Total liabilities	2,129	2,217
Commitments and contingencies
Stockholders' equity
Preferred stock	0	0
Common stock as of June 30, 2018 and December 31, 2017, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 4,505,953 and 3,798,929, respectively	0	0
Additional paid-in capital	198,474	197,367
Accumulated other comprehensive income:
Foreign currency translation adjustment	1,226	1,227
Accumulated deficit	(190,891)	(182,356)
Total stockholders' equity	8,809	16,238
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	10,938	18,455
Series A Junior Participating Preferred Stock [Member]
Stockholders' equity
Preferred stock	0	0
Series F Convertible Preferred Stock [Member]
Stockholders' equity
Preferred stock	$ 0	$ 0

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Stockholders' equity
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	39,969,390	39,966,220
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	4,505,953	3,798,929
Common stock, shares outstanding (in shares)	4,505,953	3,798,929
Series A Junior Participating Preferred Stock [Member]
Stockholders' equity
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	30,000	30,000
Preferred stock, shares outstanding (in shares)	0	0
Series F Convertible Preferred Stock [Member]
Stockholders' equity
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	610	3,780
Preferred stock, shares issued (in shares)	610	3,780
Preferred stock, shares outstanding (in shares)	610	3,780

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) [Abstract]
Net sales	$ 1,099	$ 864	$ 2,136	$ 1,765
Costs and expenses:
Cost of goods sold	870	616	1,771	1,130
Selling, general and administrative	3,765	2,420	7,776	4,807
Research and development	643	327	1,122	635
Total costs and expenses	5,278	3,363	10,669	6,572
Loss from operations	(4,179)	(2,499)	(8,533)	(4,807)
Other income (expense):
Other income, net	0	5	0	11
Warrant valuation expense	0	0	0	(67)
Change in fair value of warrant liability	0	37	0	1,466
Total other income, net	0	42	0	1,410
Loss before income taxes	(4,179)	(2,457)	(8,533)	(3,397)
Income tax expense, net	(2)	(1)	(2)	(1)
Net loss	$ (4,181)	$ (2,458)	$ (8,535)	$ (3,398)
Basic and diluted loss per share (in dollars per share)	$ (0.93)	$ (9.38)	$ (2)	$ (27.77)
Weighted average shares outstanding - basic and diluted (in shares)	4,494	371	4,263	225
Other comprehensive loss:
Foreign currency translation adjustments	$ (2)	$ (5)	$ (1)	$ (6)
Total comprehensive loss	$ (4,183)	$ (2,463)	$ (8,536)	$ (3,404)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating Activities
Net loss	$ (8,535)	$ (3,398)
Adjustments to reconcile net loss to cash flows used in operating activities:
Depreciation and amortization expense	115	436
Stock-based compensation expense, net	1,107	281
Change in fair value of warrant liability	0	(1,466)
Warrant valuation expense	0	67
Changes in operating assets and liabilities:
Accounts receivable	(107)	(336)
Inventory	(727)	(187)
Other current assets	(48)	8
Accounts payable and accrued expenses	(283)	(1,103)
Net cash used in operations	(8,478)	(5,698)
Investing Activities:
Purchases of property and equipment	(121)	(20)
Net cash used in investing activities	(121)	(20)
Financing Activities:
Net proceeds from public stock offering	0	8,002
Net proceeds from exercise of warrants	0	1,768
Net proceeds from the sale of preferred stock and warrants	0	184
Net cash provided by financing activities	0	9,954
Effect of exchange rate changes on cash	(1)	(1)
Net (decrease) increase in cash and cash equivalents	(8,600)	4,235
Cash and cash equivalents - beginning of period	15,595	1,323
Cash and cash equivalents - end of period	6,995	5,558
Supplemental schedule of non-cash activities
Warrants issued as inducement to warrant exercise	0	509
Conversion of temporary equity to permanent equity	0	485
Financing fees incurred for subsequent equity financing included in long-term assets and accounts payable	$ 195	$ 0

Nature of Business and Basis of

Nature of Business and Basis of Presentation	6 Months Ended
	Jun. 30, 2018
Nature of Business and Basis of Presentation [Abstract]
Nature of Business and Basis of Presentation	Note 1 – Nature of Business and Basis of Presentation Nature of Business : Prior to July 2016, the Company was focused on developing the C-Pulse® Heart Assist System for treatment of Class III and ambulatory Class IV heart failure. In August 2016, the Company acquired the Aquadex business from a subsidiary of Baxter International, Inc. (“Baxter”), a global leader in the hospital products and dialysis markets (herein referred to as the “Aquadex Business”). On September 29, 2016, the Company announced a strategic refocus of its strategy that included halting all clinical evaluations of its C-Pulse technology to fully focus its resources on its recently acquired Aquadex Business. On May 23, 2017, the Company announced it was changing its name from Sunshine Heart, Inc. to CHF Solutions, Inc. to more appropriately reflect the direction of its business. During 2017, the Company’s board of directors and stockholders approved two reverse stock splits (together, the Reverse Stock Splits). Neither reverse stock split changed the par value of the Company’s common stock or the number of common or preferred shares authorized by the Company’s Fourth Amended and Restated Certificate of Incorporation. The first reverse stock split was a 1-for-30 reverse split of the Company’s outstanding common stock that became effective after trading on January 12, 2017. The second reverse stock split was a 1-for-20 reverse split of the Company’s outstanding common stock that became effective after trading on October 12, 2017. All share and per-share amounts have been retroactively adjusted to reflect the Reverse Stock Splits for all periods presented. Principles of Consolidation: For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Going Concern: The Company became a revenue generating company after acquiring the Aquadex Business in August 2016. The Company expects to incur additional losses in the near-term as it grows the Aquadex Business, including investments in expanding its sales and marketing capabilities, purchasing inventory, manufacturing components, and complying with the requirements related to being a U.S. public company. To become and remain profitable, the Company must succeed in expanding the adoption and market acceptance of Aquadex. This will require the Company to succeed in training personnel at hospitals and in effectively and efficiently manufacturing, marketing and distributing Aquadex and related components. There can be no assurance that the Company will succeed in these activities, and it may never generate revenues sufficient to achieve profitability. On April 24, 2017 and on November 27, 2017, the Company closed on underwritten public equity offerings for net proceeds of approximately $24.2 million after deducting the underwriting discounts and commissions and other costs associated with the offerings (see Note 4 - Equity). After the end of the quarter, on July 3, 2018, the Company closed on an underwritten public offering for net proceeds of approximately $4.7 million after deducting the underwriting discounts and commissions and other costs associated with the offering (see Note 9 - Subsequent Events). The Company will require additional funding to grow its Aquadex Business, which may not be available on terms favorable to the Company, or at all. The Company may receive those funds from the proceeds from future warrant exercises, issuances of equity securities, or other financing transactions. Should warrant exercises not materialize or future capital raising be unsuccessful, the Company may not be able 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. Revenue Recognition: Revenue from Contracts with Customers Accounts Receivable Inventories (in thousands) June 30, 2018 December 31, 2017 Finished Goods $ 936 $ 902 Work in Process 274 217 Raw Materials 1,105 469 Total $ 2,315 $ 1,588 Contingent consideration Loss per share: The following table sets forth the potential shares of common stock that are not included in the calculation of diluted net loss per share because to do so would be anti-dilutive as of the end of each period presented: June 30 2018 2017 Stock options 2,128,296 32,613 Restricted stock units 135 405 Warrants to purchase common stock 8,522,684 506,335 Series F convertible preferred stock 136,030 - Total 10,787,145 539,353 The following table reconciles reported net loss with reported net loss per share for the periods ended June 30, 2017: (in thousands, except per share amounts) Three months Six Months Net loss $ (2,458 ) $ (3,398 ) Deemed dividend to preferred shareholders (see Note 4) (1,022 ) (2,851 ) Net loss after deemed dividend (3,480 ) (6,249 ) Weighted average shares outstanding 371 225 Basic and diluted loss per share $ (9.38 ) $ (27.77 ) New Accounting Pronouncements: In February 2016, the FASB issued updated guidance to improve financial reporting about leasing transactions. This guidance will require organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. This guidance is effective for the Company’s annual periods beginning January 1, 2019, and for quarterly periods therein. The Company is evaluating the impact that the adoption of this standard will have, if any, on its consolidated financial statements and disclosures.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2018
Revenue Recognition [Abstract]
Revenue Recognition	Note 2 – Revenue Recognition Net Sales The Company sells its products in the United States primarily through a direct sales force. Customers who purchase the Company’s products include hospitals and clinics throughout the United States. In countries outside the United States, the Company sells its products through a limited number of specialty healthcare distributors in the United Kingdom, Italy, Spain, Germany, and Southeast Asia. The majority of these distributors resell the Company’s products to hospitals and clinics in their respective geographies. Revenue from product sales are recognized when the customer or distributor obtains control of the product, which occurs at a point in time, most frequently upon shipment of the product or receipt of the product, depending on shipment terms. The Company’s standard shipping terms are FOB shipping point, unless the customer requests that control and title to the inventory transfer upon delivery. Revenue includes shipment and handling fees charged to customers. Revenue is measured as the amount of consideration the Company expects to receive, adjusted for any applicable estimates of variable consideration and other factors affecting the transaction price, which is based on the invoiced price, in exchange for transferring products. All revenue is recognized when the Company satisfies its performance obligations under the contract. The majority of the Company’s contracts have a single performance obligation and are short term in nature. The Company has entered into extended service plans with customers that are recognized over time. This revenue represents less than 1% of net sales for the periods ended June 30, 2018. The unfulfilled performance obligations related to these extended service plans is included in deferred revenue in the amount of $30,000 and $38,000 as of June 30, 2018 and December 31, 2017, respectively. Deferred revenue is included in other current liabilities on the condensed consolidated balance sheet. The majority of the deferred revenue is expected to be recognized within one year. Sales taxes and value added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales. Revenue includes shipment and handling fees charged to customers. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of goods sold. Product Returns: believes that future returns of its products will be minimal. Therefore, revenue recognized is not currently impacted by variable consideration related to product returns.

Debt

Debt	6 Months Ended
	Jun. 30, 2018
Debt [Abstract]
Debt	Note 3 - Debt On August 5, 2016, the Company entered into a loan and security agreement with Silicon Valley Bank (the “Bank”) for a $1.0 million revolving line of credit (the “Revolving Line”). Under the Revolving Line, the Company may borrow the lesser of $1.0 million or 80% of its eligible accounts (subject to customary exclusions), minus the outstanding principal balance of any advances under the Revolving Line. Advances under the Revolving Line, if any, accrue interest at a floating annual rate equal to 1.75% or 1.0% above the prime rate, depending on liquidity factors. The loan agreement contains customary representations, as well as customary affirmative and negative covenants. Outstanding borrowings, if any, are collateralized by all of the Company’s assets, excluding intellectual property which is subject to a negative pledge. Advances under the Revolving Line are subject to various conditions precedent, including compliance with financial covenants relating to net liquidity relative to monthly cash burn. The Revolving Line expires March 31, 2020. There were no borrowings outstanding under this facility as of June 30, 2018 or December 31, 2017. Warrants:

Equity

Equity	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Equity	Note 4 - Equity Series B/B-1 Convertible Preferred Stock Series C and D Convertible Preferred Stock . Series E Convertible Preferred Stock Series F Convertible Preferred Stock The offering was comprised of Series F preferred stock, convertible into shares of the Company’s common stock at a conversion price of $4.50 per share. Each share of Series F preferred stock was accompanied by a Series 1 warrant, which expires on the first anniversary of its issuance, to purchase 223 shares of the Company’s common stock at an exercise price of $4.50 per share, and a Series 2 warrant, which expires on the seventh anniversary of its issuance, to purchase 223 shares of the Company’s common stock at an exercise price of $4.50 per share. The Series F preferred stock and the warrants were immediately separable and were issued separately . Placement Agent Fees Investor Warrants In connection with the issuance of the Series C and D Convertible Preferred Stock in November 2016, the Company issued the investor, at no additional cost, warrants to purchase 35,295 shares of common stock at an exercise price of $108 per share. In connection with the issuance of the Series D Convertible Preferred Stock at the second closing in January 2017, the Company issued the investor, at no additional cost, warrants to purchase 1,961 shares of common stock at an exercise price of $108 per share. The warrants were exercisable for 60 months commencing on the earlier of the day of the receipt of approval of the Company’s stockholders of a proposal to approve the issuance of the shares of common stock underlying the warrants, or the six-month anniversary of the date of issuance. These warrants were subject to a reduction of the exercise price if the Company subsequently issued common stock or equivalents at an effective price less than the current exercise price of such warrants. Warrant Exercise Agreement: The Company entered into the letter agreement with the investors to incent the exercise of the Original Warrants in order to receive the cash proceeds from the exercise of the Original Warrants and because the exercise of the Original Warrants would allow the Company to remove the warrant liability from its balance sheet and avoid future fair value adjustments and associated volatility in its consolidated financial statements, as the Replacement Warrants are not accounted for as liabilities based on their terms. As of June 30, 2018, and December 31, 2017, there were no Original Warrants outstanding and all Replacement Warrants under the letter agreement had been issued. Placement Agent Warrant: Warrant Valuation The Replacement Warrants were valued at $0.5 million using the Black Scholes valuation model with the following assumptions: an expected dividend yield of 0%, expected stock price volatility of 49.65%-50.38%, risk-free interest rates of 1.95%-1.97% and an expected life of 5 years. The warrants have a five-year life and were fully vested at the date of grant. The terms of these warrants do not require them to be accounted for as liabilities and are therefore recorded in equity. As in incentive to early exercise the Original Warrants, the fair value provided to investors through the Replacement Warrants exceeded the fair value of the Original Warrants that was relinquished by the warrant holders by approximately $0.1 million, which has been reflected as an expense in the statement of operations for the six-month period ending June 30, 2017.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2018
Stock-Based Compensation [Abstract]
Stock-Based Compensation	Note 5 - Stock-Based Compensation Under the fair value recognition provisions of U.S. GAAP for accounting for stock-based compensation, the Company measures stock-based compensation expense at the grant date based on the fair value of the award and recognizes the compensation expense over the requisite service period, which is generally the vesting period. The following table presents the classification of stock-based compensation expense recognized for the periods below: Six months ended June 30, (in thousands) 2018 2017 Selling, general and administrative expense $ 1,006 $ 245 Research and development expense 101 38 Total stock-based compensation expense $ 1,107 $ 283

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2018
Fair Value of Financial Instruments [Abstract]
Fair Value of Financial Instruments	Note 6 - Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, warrants, and contingent consideration. Pursuant to the requirements of ASC Topic 820 Fair Value Measurement, · Level 1 · Level 2 · Level 3 The fair value of the Company’s common stock warrant liability related to the Original Warrants was calculated using a Monte Carlo valuation model and was classified as Level 3 in the fair value hierarchy. All investor warrants classified as warrant liability were exercised during the six months ended June 30, 2017. The following is a rollforward of the fair value of Level 3 warrants: Six months ended June 30, 2017 (in thousands) Balance December 31, 2016 $ 1,843 Change in fair value (1,466 ) Exercise of warrants (368 ) Ending balance as of June 30, 2017 $ 9 The fair value of the Company’s common stock warrant liability related to the placement agent warrants is calculated using a Black Scholes valuation model and is classified as Level 3 in the fair value hierarchy. Fair values were calculated using the following assumptions: As of Dec. 31, 2016 As of Date of Exercise Risk-free interest rates, adjusted for continuous compounding 1.47/1.96 % 1.45-1.99 % Term (years) 3.1/5.3 2.84-5.50 Expected volatility 55.3/49.8 % 49.9-58.5 % Dates and probability of future equity raises various various The fair value of the Company's contingent consideration related to the acquisition of the Aquadex Business from Baxter in August 2016 (see Note 8 – Commitments and Contingencies), was $126,000 as of June 30, 2018 and December 31, 2017. The fair value was initially measured based on the consideration expected to be transferred (probability-weighted), discounted back to present value, and it is considered a Level 3 instrument. The discount rate used was determined at the time of measurement in accordance with accepted valuation methods. The Company measures the liability on a recurring basis using Level 3 inputs including probabilities of payment and projected payment dates. Changes to any of the inputs may result in significantly higher or lower fair value measurements. There were no changes in the fair value of the contingent consideration subsequent to the initial measurement. All cash equivalents are considered Level 1 measurements for all periods presented. The Company does not have any financial instruments classified as Level 2 or any other classified as Level 3 and there were no movements between these categories during the periods ended June 30, 2018 and December 31, 2017. The Company believes that the carrying amounts of all remaining financial instruments approximate their fair value due to their relatively short maturities.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
Income Taxes [Abstract]
Income Taxes	Note 7 – Income Taxes The Company provides for a valuation allowance when it is more likely than not that it will not realize a portion of the deferred tax assets. The Company has established a full 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, the Company has not reflected any benefit of such deferred tax assets in the accompanying consolidated financial statements. As of June 30, 2018, there were no material changes to what the Company disclosed regarding tax uncertainties or penalties in its Annual Report on Form 10-K for the year ended December 31, 2017.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 8 - Commitments and Contingencies Leases: Employee Retirement Plan: Contingent Consideration:

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	Note 9- Subsequent Events On July 3, 2018, the Company closed on an underwritten public offering of 2,547,169 shares of its common stock at a public offering price of $2.12 per share, for gross proceeds of $5.4 million, including the full exercise of the underwriters’ over-allotment option to purchase additional shares of the Company’s common stock, prior to deducting underwriting discounts and commissions and offering expenses payable by CHF Solutions (the “July 2018 Offering”). In connection with the July 2018 Offering, and to induce certain institutional investors who hold warrants issued by the Company in November 2017 (“November 2017 Warrants”) to participate in the July 2018 Offering, the Company entered into letter agreements with such institutional investors (collectively, the “Warrant Reprice Agreements”). Pursuant to the terms of the Warrant Reprice Agreements, the Company agreed, effective July 3, 2018, to (a) reduce the per share exercise price of the November 2017 Warrants held by such institutional investors (the “Repriced Warrants”) to $2.12 and (b) extend the expiration date of the Repriced Warrants that were to expire on November 27, 2018 to November 27, 2019. The number of shares underlying the Repriced Warrants after the price reduction did not change. The Repriced Warrants are exercisable for 7,760,400 shares of common stock in the aggregate, of which, following such amendment, half expire on November 27, 2019 and half expire on November 27, 2024. Additionally, the Company’s outstanding Series F preferred stock is subject to full-ratchet anti-dilution protection in the event the Company sells any common stock at a price lower than the then-conversion price of the Series F preferred stock. As a result of the July 2018 Offering, effective July 3, 2018, the conversion price of the Series F preferred stock was reduced from $4.50 to $2.12, the per share price to public in the July 2018 Offering. On August 3, the Company amended its office and manufacturing space lease agreement for its facility in Eden Prairie, Minnesota, to extend it for an additional thirty-six months beyond the previous expiration date. This amended lease agreement expires in March 31, 2022.

Nature of Business and Basis 15

Nature of Business and Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2018
Nature of Business and Basis of Presentation [Abstract]
Principles of Consolidation	Principles of Consolidation: For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.
Going Concern	Going Concern: The Company became a revenue generating company after acquiring the Aquadex Business in August 2016. The Company expects to incur additional losses in the near-term as it grows the Aquadex Business, including investments in expanding its sales and marketing capabilities, purchasing inventory, manufacturing components, and complying with the requirements related to being a U.S. public company. To become and remain profitable, the Company must succeed in expanding the adoption and market acceptance of Aquadex. This will require the Company to succeed in training personnel at hospitals and in effectively and efficiently manufacturing, marketing and distributing Aquadex and related components. There can be no assurance that the Company will succeed in these activities, and it may never generate revenues sufficient to achieve profitability. On April 24, 2017 and on November 27, 2017, the Company closed on underwritten public equity offerings for net proceeds of approximately $24.2 million after deducting the underwriting discounts and commissions and other costs associated with the offerings (see Note 4 - Equity). After the end of the quarter, on July 3, 2018, the Company closed on an underwritten public offering for net proceeds of approximately $4.7 million after deducting the underwriting discounts and commissions and other costs associated with the offering (see Note 9 - Subsequent Events). The Company will require additional funding to grow its Aquadex Business, which may not be available on terms favorable to the Company, or at all. The Company may receive those funds from the proceeds from future warrant exercises, issuances of equity securities, or other financing transactions. Should warrant exercises not materialize or future capital raising be unsuccessful, the Company may not be able 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.
Revenue Recognition	Revenue Recognition: Revenue from Contracts with Customers
Accounts Receivable	Accounts Receivable
Inventories	Inventories (in thousands) June 30, 2018 December 31, 2017 Finished Goods $ 936 $ 902 Work in Process 274 217 Raw Materials 1,105 469 Total $ 2,315 $ 1,588
Contingent Consideration	Contingent consideration
Loss per Share	Loss per share: The following table sets forth the potential shares of common stock that are not included in the calculation of diluted net loss per share because to do so would be anti-dilutive as of the end of each period presented: June 30 2018 2017 Stock options 2,128,296 32,613 Restricted stock units 135 405 Warrants to purchase common stock 8,522,684 506,335 Series F convertible preferred stock 136,030 - Total 10,787,145 539,353 The following table reconciles reported net loss with reported net loss per share for the periods ended June 30, 2017: (in thousands, except per share amounts) Three months Six Months Net loss $ (2,458 ) $ (3,398 ) Deemed dividend to preferred shareholders (see Note 4) (1,022 ) (2,851 ) Net loss after deemed dividend (3,480 ) (6,249 ) Weighted average shares outstanding 371 225 Basic and diluted loss per share $ (9.38 ) $ (27.77 )
New Accounting Pronouncements	New Accounting Pronouncements: In February 2016, the FASB issued updated guidance to improve financial reporting about leasing transactions. This guidance will require organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. This guidance is effective for the Company’s annual periods beginning January 1, 2019, and for quarterly periods therein. The Company is evaluating the impact that the adoption of this standard will have, if any, on its consolidated financial statements and disclosures.

Nature of Business and Basis 16

Nature of Business and Basis of Presentation (Tables)	6 Months Ended
	Jun. 30, 2018
Nature of Business and Basis of Presentation [Abstract]
Inventories	Inventories consisted of the following: (in thousands) June 30, 2018 December 31, 2017 Finished Goods $ 936 $ 902 Work in Process 274 217 Raw Materials 1,105 469 Total $ 2,315 $ 1,588
Potential Shares of Common Stock not Included in Diluted Net Loss Per Share	The following table sets forth the potential shares of common stock that are not included in the calculation of diluted net loss per share because to do so would be anti-dilutive as of the end of each period presented: June 30 2018 2017 Stock options 2,128,296 32,613 Restricted stock units 135 405 Warrants to purchase common stock 8,522,684 506,335 Series F convertible preferred stock 136,030 - Total 10,787,145 539,353
Reconciliation of Reported Net Loss with Reported Net Loss Per Share	The following table reconciles reported net loss with reported net loss per share for the periods ended June 30, 2017: (in thousands, except per share amounts) Three months Six Months Net loss $ (2,458 ) $ (3,398 ) Deemed dividend to preferred shareholders (see Note 4) (1,022 ) (2,851 ) Net loss after deemed dividend (3,480 ) (6,249 ) Weighted average shares outstanding 371 225 Basic and diluted loss per share $ (9.38 ) $ (27.77 )

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2018
Stock-Based Compensation [Abstract]
Classification of Stock-Based Compensation Expense	The following table presents the classification of stock-based compensation expense recognized for the periods below: Six months ended June 30, (in thousands) 2018 2017 Selling, general and administrative expense $ 1,006 $ 245 Research and development expense 101 38 Total stock-based compensation expense $ 1,107 $ 283

Fair Value of Financial Instr18

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value of Financial Instruments [Abstract]
Fair Value of Common Stock Warrant Liability Calculated Using a Monte Carlo Valuation Model Classified as Level 3 in Fair Value Hierarchy	The following is a rollforward of the fair value of Level 3 warrants: Six months ended June 30, 2017 (in thousands) Balance December 31, 2016 $ 1,843 Change in fair value (1,466 ) Exercise of warrants (368 ) Ending balance as of June 30, 2017 $ 9
Summary of Fair Value Assumptions Used in Calculation of Monte Carlo Valuation Model	Fair values were calculated using the following assumptions: As of Dec. 31, 2016 As of Date of Exercise Risk-free interest rates, adjusted for continuous compounding 1.47/1.96 % 1.45-1.99 % Term (years) 3.1/5.3 2.84-5.50 Expected volatility 55.3/49.8 % 49.9-58.5 % Dates and probability of future equity raises various various

Nature of Business and Basis 19

Nature of Business and Basis of Presentation, Nature of Business, Going Concern, Accounts Receivable and Inventory (Details) $ in Thousands	Jul. 03, 2018USD ($)	Nov. 27, 2017USD ($)	Oct. 12, 2017	Apr. 24, 2017USD ($)	Jan. 12, 2017	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)StockSplit
Nature of Business [Abstract]
Number of reverse stock split | StockSplit								2
Reverse stock split ratio			20		30
Going Concern [Abstract]
Accumulated deficit						$ (190,891)		$ (182,356)
Net proceeds from public stock offering		$ 24,200		$ 24,200		$ 0	$ 8,002
Accounts Receivable [Abstract]
Accounts receivables maximum credit period from invoice date						30 days
Allowance for doubtful accounts						$ 0		0
Inventory [Abstract]
Finished Goods						936		902
Work in Process						274		217
Raw Materials						1,105		469
Total						$ 2,315		$ 1,588
Subsequent Event [Member]
Going Concern [Abstract]
Net proceeds from public stock offering	$ 4,700

Nature of Business and Basis 20

Nature of Business and Basis of Presentation, Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Potential shares of common stock that are not included in the calculation of diluted net loss per share [Abstract]
Potential shares of common stock that are not included in the calculation of diluted net loss per share (in shares)			10,787,145	539,353
Reported net loss with reported net loss per share [Abstract]
Net loss	$ (4,181)	$ (2,458)	$ (8,535)	$ (3,398)
Deemed dividend to preferred shareholders (see Note 4)		(1,022)		(2,851)
Net loss after deemed dividend		$ (3,480)		$ (6,249)
Weighted average shares outstanding (in shares)	4,494,000	371,000	4,263,000	225,000
Basic and diluted loss per share (in dollars per share)	$ (0.93)	$ (9.38)	$ (2)	$ (27.77)
Series C and D Convertible Preferred Stock [Member]
Reported net loss with reported net loss per share [Abstract]
Deemed dividend to preferred shareholders (see Note 4)				$ 1,800
Series E Convertible Preferred Stock [Member]
Reported net loss with reported net loss per share [Abstract]
Deemed dividend to preferred shareholders (see Note 4)		$ 1,000		$ 1,000
Series F Convertible Preferred Stock [Member]
Potential shares of common stock that are not included in the calculation of diluted net loss per share [Abstract]
Potential shares of common stock that are not included in the calculation of diluted net loss per share (in shares)			136,030	0
Stock Options [Member]
Potential shares of common stock that are not included in the calculation of diluted net loss per share [Abstract]
Potential shares of common stock that are not included in the calculation of diluted net loss per share (in shares)			2,128,296	32,613
Restricted Stock Units [Member]
Potential shares of common stock that are not included in the calculation of diluted net loss per share [Abstract]
Potential shares of common stock that are not included in the calculation of diluted net loss per share (in shares)			135	405
Warrants to Purchase Common Stock [Member]
Potential shares of common stock that are not included in the calculation of diluted net loss per share [Abstract]
Potential shares of common stock that are not included in the calculation of diluted net loss per share (in shares)			8,522,684	506,335

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Revenue, Performance Obligation [Abstract]
Deferred revenue	$ 30	$ 38
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction, period	1 year
Sales Revenue [Member] | Maximum [Member] | ASC 606 [Member]
Revenue, Performance Obligation [Abstract]
Percentage of net sales	1.00%

Debt, New Loan Agreement (Detai

Debt, New Loan Agreement (Details) - Revolving Line [Member] - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Line of Credit Facility [Abstract]
Maximum borrowing capacity	$ 1,000
Maximum borrowing capacity percentage of eligible accounts	80.00%
Maturity date	Mar. 31, 2020
Total borrowings outstanding	$ 0	$ 0
Floating Annual Rate [Member]
Line of Credit Facility [Abstract]
Interest rate	1.75%
Prime Rate [Member]
Line of Credit Facility [Abstract]
Interest rate	1.00%

Debt, Warrants (Details)

Debt, Warrants (Details)	Jun. 30, 2018$ / sharesshares
Affiliates [Member]
Warrants and Rights Note Disclosure [Abstract]
Warrants issued (in shares) | shares	55
Exercise price of warrants (in dollars per share)	$ 2,208
Value of warrants (in dollars per share)	$ 1,626
Affiliates [Member] | Expected Dividend Yield [Member]
Warrants and Rights Note Disclosure [Abstract]
Warrants measurement input	0
Affiliates [Member] | Expected Stock Price Volatility [Member]
Warrants and Rights Note Disclosure [Abstract]
Warrants measurement input	0.8704
Affiliates [Member] | Risk-Free Interest Rate [Member]
Warrants and Rights Note Disclosure [Abstract]
Warrants measurement input	0.0220
Affiliates [Member] | Expected Warrant Option Life [Member]
Warrants and Rights Note Disclosure [Abstract]
Expected warrant option life	6 years 3 months
Silicon Valley Bank [Member]
Warrants and Rights Note Disclosure [Abstract]
Warrants issued (in shares) | shares	115
Exercise price of warrants (in dollars per share)	$ 3,132
Value of warrants (in dollars per share)	$ 2,316
Silicon Valley Bank [Member] | Expected Dividend Yield [Member]
Warrants and Rights Note Disclosure [Abstract]
Warrants measurement input	0
Silicon Valley Bank [Member] | Expected Stock Price Volatility [Member]
Warrants and Rights Note Disclosure [Abstract]
Warrants measurement input	0.8807
Silicon Valley Bank [Member] | Risk-Free Interest Rate [Member]
Warrants and Rights Note Disclosure [Abstract]
Warrants measurement input	0.0186
Silicon Valley Bank [Member] | Expected Warrant Option Life [Member]
Warrants and Rights Note Disclosure [Abstract]
Expected warrant option life	6 years 3 months

Equity, Convertible Preferred S

Equity, Convertible Preferred Stock (Details) - USD ($)	Nov. 27, 2017	Apr. 24, 2017	Jan. 10, 2017	Nov. 03, 2016	Oct. 30, 2016	Jul. 20, 2016	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Class of Stock Disclosures [Abstract]
Proceeds from issuance of convertible preferred stock and Warrants				$ 3,600,000	$ 3,800,000	$ 3,500,000	$ 0	$ 184,000
Preferred stock, shares outstanding (in shares)							0		0
Common stock, shares issued (in shares)							4,505,953		3,798,929
Series B-1 Convertible Preferred Stock [Member]
Class of Stock Disclosures [Abstract]
Proceed from issuance of preferred stock					$ 1,600,000
Series B and B-1 Convertible Preferred Stock [Member]
Class of Stock Disclosures [Abstract]
Preferred stock, shares outstanding (in shares)							0		0
Series C Convertible Preferred Stock [Member]
Class of Stock Disclosures [Abstract]
Beneficial conversion amount			$ 1,300,000
Series D Convertible Preferred Stock [Member]
Class of Stock Disclosures [Abstract]
Proceeds from issuance of convertible preferred stock and Warrants			200,000
Beneficial conversion amount			$ 500,000
Series C and D Convertible Preferred Stock [Member]
Class of Stock Disclosures [Abstract]
Preferred stock, shares outstanding (in shares)							0		0
Series E Convertible Preferred Stock [Member]
Class of Stock Disclosures [Abstract]
Proceed from issuance of preferred stock		$ 9,200,000
Preferred stock, shares outstanding (in shares)							0		0
Net proceeds from issuance of convertible preferred stock		$ 8,000,000
Percentage of underwriting discounts and commissions							9.00%
Series E Convertible Preferred Stock [Member] | Warrants [Member]
Class of Stock Disclosures [Abstract]
Warrants issued to underwriter (in shares)							0
Series F Convertible Preferred Stock [Member]
Class of Stock Disclosures [Abstract]
Proceed from issuance of preferred stock	$ 18,000,000
Preferred stock, shares outstanding (in shares)							610		3,780
Beneficial conversion amount	8,700,000
Net proceeds from issuance of convertible preferred stock	$ 16,200,000
Conversion price (in dollars per share)	$ 4.50
Number of convertible preferred shares converted (in shares)							17,390		14,220
Number of preferred shares converted to common stock (in shares)	4,000,000						3,877,970		3,171,060
Percentage of volume weighted average price of common stock, minimum	300.00%
Minimum trading volume for each trading day	$ 200,000
Preferred stock issued (in shares)	18,000						610		3,780
Percentage of underwriting discounts and commissions							8.00%
Series F Convertible Preferred Stock [Member] | Warrants [Member]
Class of Stock Disclosures [Abstract]
Warrants to purchase shares of common stock (in shares)	8,000,000
Warrants issued to underwriter (in shares)							0
Series F Convertible Preferred Stock [Member] | Warrant Series 1 [Member]
Class of Stock Disclosures [Abstract]
Number of preferred shares converted to common stock (in shares)	223
Exercise price of warrants (in dollars per share)	$ 4.50
Series F Convertible Preferred Stock [Member] | Warrant Series 2 [Member]
Class of Stock Disclosures [Abstract]
Number of preferred shares converted to common stock (in shares)	223
Exercise price of warrants (in dollars per share)	$ 4.50
Series B, C And D Convertible Preferred Stock [Member]
Class of Stock Disclosures [Abstract]
Percentage of placement fee offered in cash							6.00%

Equity, Warrants (Details)

Equity, Warrants (Details) $ / shares in Units, $ in Thousands	Jan. 10, 2017USD ($)$ / sharesshares	Nov. 03, 2016USD ($)$ / sharesshares	Jul. 26, 2016USD ($)$ / sharesshares	Mar. 31, 2017USD ($)$ / sharesshares	Jun. 30, 2018USD ($)$ / sharesshares	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)$ / sharesshares	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)	Feb. 15, 2017	Dec. 31, 2016
Warrants and Rights Disclosure [Abstract]
Proceeds from exercise of warrants							$ 0	$ 1,768
Change in fair value of warrant liability					$ 0	$ 37	0	1,466
Minimum [Member] | Risk-Free Interest Rate [Member]
Warrants and Rights Disclosure [Abstract]
Warrants measurement input										0.0145	0.0147
Minimum [Member] | Expected Warrant Option Life [Member]
Warrants and Rights Disclosure [Abstract]
Expected warrant option life										2 years 10 months 2 days	3 years 1 month 6 days
Maximum [Member] | Risk-Free Interest Rate [Member]
Warrants and Rights Disclosure [Abstract]
Warrants measurement input										0.0199	0.0196
Maximum [Member] | Expected Warrant Option Life [Member]
Warrants and Rights Disclosure [Abstract]
Expected warrant option life										5 years 6 months	5 years 3 months 18 days
Replacement Warrants [Member]
Warrants and Rights Disclosure [Abstract]
Warrants outstanding					$ 500		$ 500
Replacement Warrants [Member] | Expected Dividend Yield [Member]
Warrants and Rights Disclosure [Abstract]
Warrants measurement input					0		0
Replacement Warrants [Member] | Expected Warrant Option Life [Member]
Warrants and Rights Disclosure [Abstract]
Expected warrant option life					5 years		5 years
Replacement Warrants [Member] | Minimum [Member] | Expected Stock Price Volatility [Member]
Warrants and Rights Disclosure [Abstract]
Warrants measurement input					0.4965		0.4965
Replacement Warrants [Member] | Minimum [Member] | Risk-Free Interest Rate [Member]
Warrants and Rights Disclosure [Abstract]
Warrants measurement input					0.0195		0.0195
Replacement Warrants [Member] | Maximum [Member] | Expected Stock Price Volatility [Member]
Warrants and Rights Disclosure [Abstract]
Warrants measurement input					0.5038		0.5038
Replacement Warrants [Member] | Maximum [Member] | Risk-Free Interest Rate [Member]
Warrants and Rights Disclosure [Abstract]
Warrants measurement input					0.0197		0.0197
Series B Convertible Preferred Stock [Member] | Investor Warrants [Member]
Warrants and Rights Disclosure [Abstract]
Warrants issuance cost			$ 0
Warrants to purchase shares of common stock (in shares) | shares			6,149
Exercise price of warrants (in dollars per share) | $ / shares			$ 564
Warrants exercisable period							36 months
Period warrants became exercisable from closing date							6 months
Series D Convertible Preferred Stock [Member] | Investor Warrants [Member]
Warrants and Rights Disclosure [Abstract]
Warrants issuance cost	$ 0
Warrants to purchase shares of common stock (in shares) | shares	1,961
Exercise price of warrants (in dollars per share) | $ / shares	$ 108
Warrants exercisable period							60 months
Period warrants became exercisable from closing date							6 months
Series C and D Convertible Preferred Stock [Member] | Investor Warrants [Member]
Warrants and Rights Disclosure [Abstract]
Warrants issuance cost		$ 0
Warrants to purchase shares of common stock (in shares) | shares		35,295
Exercise price of warrants (in dollars per share) | $ / shares		$ 108
Adjusted exercise price of warrants (in dollars per share) | $ / shares		$ 102
Series B, C And D Convertible Preferred Stock [Member] | Placement Agent Warrant [Member]
Warrants and Rights Disclosure [Abstract]
Warrants issuance cost							$ 0
Warrants to purchase shares of common stock (in shares) | shares					2,605		2,605
Expiration term of warrants							5 years
Series B, C And D Convertible Preferred Stock [Member] | Placement Agent Warrant [Member] | Minimum [Member]
Warrants and Rights Disclosure [Abstract]
Exercise price of warrants (in dollars per share) | $ / shares					$ 126		$ 126
Series B, C And D Convertible Preferred Stock [Member] | Placement Agent Warrant [Member] | Maximum [Member]
Warrants and Rights Disclosure [Abstract]
Exercise price of warrants (in dollars per share) | $ / shares					$ 810		$ 810
Warrant Exercise Agreement [Member] | Original Warrants [Member]
Warrants and Rights Disclosure [Abstract]
Proceeds from exercise of warrants				$ 2,000
Warrants outstanding					$ 0		$ 0		$ 0
Relinquished amount of warrants								$ 100
Warrant Exercise Agreement [Member] | Replacement Warrants [Member]
Warrants and Rights Disclosure [Abstract]
Warrants to purchase shares of common stock (in shares) | shares				43,396
Warrant Exercise Agreement [Member] | Replacement Warrants [Member] | Minimum [Member]
Warrants and Rights Disclosure [Abstract]
Exercise price of warrants (in dollars per share) | $ / shares				$ 34.6
Warrant Exercise Agreement [Member] | Replacement Warrants [Member] | Maximum [Member]
Warrants and Rights Disclosure [Abstract]
Exercise price of warrants (in dollars per share) | $ / shares				$ 99.8

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Stock-Based Compensation Expense Items [Abstract]
Stock-based compensation expense	$ 1,107	$ 283
Selling, General and Administrative Expense [Member]
Stock-Based Compensation Expense Items [Abstract]
Stock-based compensation expense	1,006	245
Research and Development Expense [Member]
Stock-Based Compensation Expense Items [Abstract]
Stock-based compensation expense	$ 101	$ 38

Fair Value of Financial Instr27

Fair Value of Financial Instruments (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)	Feb. 15, 2017	Dec. 31, 2016
Fair value of Level 3 [Roll Forward]
Change in fair value	$ 0	$ 37	$ 0	$ 1,466
Fair Value Transfers between levels [Abstract]
Level 1 to Level 2 Asset Transfers	0		0		$ 0
Level 2 to Level 1 Asset Transfers	0		0		0
Level 1 to Level 2 Liability Transfers	0		0		0
Level 2 to Level 1 Liability Transfers	0		0		0
Aquadex Product Line [Member]
Fair Value Transfers between levels [Abstract]
Fair value of contingent consideration	$ 126		$ 126		$ 126
Minimum [Member] | Risk-Free Interest Rates, Adjusted for Continuous Compounding [Member]
Fair Value Assumptions [Abstract]
Fair value assumptions measurement input						0.0145	0.0147
Minimum [Member] | Term [Member]
Fair Value Assumptions [Abstract]
Term						2 years 10 months 2 days	3 years 1 month 6 days
Minimum [Member] | Expected Volatility [Member]
Fair Value Assumptions [Abstract]
Fair value assumptions measurement input						0.499	0.498
Maximum [Member] | Risk-Free Interest Rates, Adjusted for Continuous Compounding [Member]
Fair Value Assumptions [Abstract]
Fair value assumptions measurement input						0.0199	0.0196
Maximum [Member] | Term [Member]
Fair Value Assumptions [Abstract]
Term						5 years 6 months	5 years 3 months 18 days
Maximum [Member] | Expected Volatility [Member]
Fair Value Assumptions [Abstract]
Fair value assumptions measurement input						0.585	0.553
Level 3 [Member]
Fair value of Level 3 [Roll Forward]
Balance				1,843
Change in fair value				(1,466)
Exercise of warrants				(368)
Ending balance		$ 9		$ 9

Commitments and Contingencies -

Commitments and Contingencies - (Details) - Aquadex Product Line [Member] - USD ($) $ in Thousands	1 Months Ended	6 Months Ended
	Aug. 31, 2016	Jun. 30, 2018
Contingent Consideration [Abstract]
Sale or disposal of business assets threshold for contingent consideration	$ 4,000
Percentage of additional payments on disposes of business assets	40.00%
Maximum [Member]
Contingent Consideration [Abstract]
Contingent consideration period		3 years

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions	Aug. 03, 2018	Jul. 03, 2018	Nov. 27, 2017
Series F Convertible Preferred Stock [Member]
Subsequent Event [Line Items]
Conversion price (in dollars per share)			$ 4.50
Subsequent Event [Member]
Subsequent Event [Line Items]
Common stock issued (in shares)		2,547,169
Public offering price (in dollars per share)		$ 2.12
Gross proceeds from public stock offering		$ 5.4
Warrants exercisable (in shares)		7,760,400
Renewal lease term	36 months
Lease expiration date	Mar. 31, 2022
Subsequent Event [Member] | Series F Convertible Preferred Stock [Member]
Subsequent Event [Line Items]
Conversion price (in dollars per share)		$ 2.12