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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Jun. 30, 2014	Aug. 01, 2014
Document and Entity Information
Entity Registrant Name	Sunshine Heart, Inc.
Entity Central Index Key	0001506492
Document Type	10-Q
Document Period End Date	Jun. 30, 2014
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		16,898,109
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2014	Dec. 31, 2013
Current assets
Cash and cash equivalents	$ 42,125	$ 54,136
Accounts receivable		59
Other current assets	675	448
Total current assets	42,800	54,643
Property, plant and equipment, net	572	587
TOTAL ASSETS	43,372	55,230
Current liabilities
Accounts payable	2,092	2,188
Accrued salaries, wages, and other compensation	757	1,315
Total current liabilities	2,849	3,503
Total liabilities	2,849	3,503
Commitments and contingencies
Stockholders' equity
Common stock as of June 30, 2014 and December 31, 2013, par value $0.0001 per share; authorized 100,000,000 shares: issued and outstanding 16,891,317 and 16,825,284 shares, respectively	2	2
Additional paid-in capital	153,060	151,530
Accumulated other comprehensive income:
Foreign currency translation adjustment	1,185	1,207
Accumulated deficit	(113,724)	(101,012)
Total stockholders' equity	40,523	51,727
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	43,372	55,230
Series A Junior Participating Preferred Stock [Member]
Stockholders' equity
Preferred stock
Preferred Stock [Member]
Stockholders' equity
Preferred stock

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2014	Dec. 31, 2013
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	16,891,317	16,825,284
Common stock, shares outstanding	16,891,317	16,825,284
Series A Junior Participating Preferred Stock [Member]
Preferred Stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred Stock, shares authorized	30,000	30,000
Preferred Stock [Member]
Preferred Stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred Stock, shares authorized	39,970,000	39,970,000

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Condensed Consolidated Statements of Operations and Comprehensive Loss
Net sales			$ 59
Operating expenses:
Selling, general and administrative	$ 2,243	$ 2,150	4,604	$ 4,126
Research and development	4,413	3,150	8,476	5,576
Total operating expenses	6,656	5,300	13,080	9,702
Loss from operations	(6,656)	(5,300)	(13,021)	(9,702)
Other income, net	11	3	44	6
Loss before income taxes	(6,645)	(5,297)	(12,977)	(9,696)
Income tax benefit	(265)	(1,077)	(265)	(1,077)
Net loss	$ (6,380)	$ (4,220)	$ (12,712)	$ (8,619)
Basic and diluted loss per share (in dollars per share)	$ (0.38)	$ (0.35)	$ (0.75)	$ (0.81)
Weighted average shares outstanding - basic and diluted (in shares)	16,882	11,911	16,870	10,664
Other comprehensive income:
Foreign currency translation adjustments	$ (3)	$ 83	$ (22)	$ 75
Total comprehensive loss	$ (6,383)	$ (4,137)	$ (12,734)	$ (8,544)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Condensed Consolidated Statements of Cash Flows
Net loss	$ (12,712)	$ (8,619)
Adjustments to reconcile net loss to cash flows used in operating activities:
Depreciation	128	83
Stock-based compensation expense, net	1,321	838
Amortization of warrants for service agreements		240
Changes in assets and liabilities
Accounts receivable	59
Other current assets	(319)	(371)
Accounts payable and accrued expenses	(399)	258
Net cash used in operations	(11,922)	(7,571)
Cash flows used in investing activities:
Purchases of property and equipment	(113)	(17)
Net cash used in investing activities	(113)	(17)
Cash flows provided by financing activities:
Net proceeds from the sale of common stock	16	14,910
Net cash provided by financing activities	16	14,910
Effect of exchange rate changes in cash	8	(20)
Net decrease in cash and cash equivalents	(12,011)	7,302
Cash and cash equivalents - beginning of period	54,136	14,224
CASH AND CASH EQUIVALENTS - END OF PERIOD	42,125	$ 21,526
Supplement schedule of non-cash activities
Stock options and restricted stock units classified as liabilities, net	$ (286)

Nature of Business and Significant Accounting Policies	6 Months Ended
Nature of Business and Significant Accounting Policies	Jun. 30, 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 June 30, 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 June 30, 2014 and statements of operations and comprehensive loss for the three and six months ended June 30, 2014 and 2013, as well as the statements of cash flows for the six months ended June 30, 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 and six months ended June 30, 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 costs and we expense them 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 3,643,632 and 3,247,311 for the three and six month periods ended June 30, 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 management’s 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 June 30, 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 instruments 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. Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance will supersede the current revenue recognition requirements. The amendments in ASU 2014-09 are effective for annual reporting period beginning after December 15, 2016, including interim periods within that reporting period. The effect of this guidance, as well as the transition method, is being evaluated and will depend on the method of transition as well as the nature and significance of transactions upon adoption. The Company will adopt the new guidance beginning in fiscal year 2017.

Equity

6 Months Ended

Jun. 30, 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 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 June 30, 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 $485 and $268 of related compensation expense to selling, general and administrative expense and research and development expense, respectively, for the three months ended June 30, 2014, as compared to $483 and $174, respectively, of related compensation expense for the three months ended June 30, 2013. We recorded $953 and $535 of related compensation expense to selling, general and administrative expense and research and development expense, respectively, for the six months ended June 30, 2014, as compared to $603 and $286, respectively, of related compensation expense for the six months ended June 30, 2013. As of June 30, 2014, a total of $4,935 of unrecognized compensation costs related to non-vested stock option awards was outstanding and is expected to be recognized within the next 3.9 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.

During the six months ended June 30, 2014, the following equity awards were made:

Stock option grants of 198,796 shares were granted with a weighted average fair value of $969, determined using an expected dividend yield of 0%, expected stock volatility ranging from 91% to 92%, risk-free interest rates ranging from 2.0% to 2.1% and expected lives of 6.25 years.

RSUs were awarded to certain directors for a total of 25,134 shares. These RSU’s will vest over the next twelve months at a rate of 1/12 per month. These RSU’s will be settled for common shares according to the terms of the awards, on the vesting dates.

Warrants

Warrants to purchase 1,613,006 shares of common stock were outstanding at June 30, 2014, as compared to warrants to purchase 1,630,804 shares of common stock outstanding at December 31, 2013.

During the six months ended June 30, 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.

Nature of Business and Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 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 June 30, 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 June 30, 2014 and statements of operations and comprehensive loss for the three and six months ended June 30, 2014 and 2013, as well as the statements of cash flows for the six months ended June 30, 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 and six months ended June 30, 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 costs and we expense them 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 3,643,632 and 3,247,311 for the three and six month periods ended June 30, 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 management’s 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 June 30, 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 instruments 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.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance will supersede the current revenue recognition requirements. The amendments in ASU 2014-09 are effective for annual reporting period beginning after December 15, 2016, including interim periods within that reporting period. The effect of this guidance, as well as the transition method, is being evaluated and will depend on the method of transition as well as the nature and significance of transactions upon adoption. The Company will adopt the new guidance beginning in fiscal year 2017.

Equity (Details) $ / shares in Units, $ in Millions			3 Months Ended	6 Months Ended
Equity (Details) $ / shares in Units, $ in Millions	Jun. 14, 2013 $ / shares $ / item shares	Jan. 15, 2013 USD ($) shares	Dec. 31, 2013 $ / shares shares	Jun. 30, 2014 $ / shares shares
Aspire Capital [Member]
Sales of common stocks
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
Common stock sold (in shares)			146,886	146,886
Common stock sold including commitment shares (in shares)				227,143
Maximum [Member] \| Aspire Capital [Member]
Sales of common stocks
Value of common stock purchase commitment \| $		$ 25.0
Number of shares authorized for sale and issuance (in shares)		1,856,616
Shares authorized for sale and issuance (as a percent)		19.99%
Series A Junior Participating Preferred Stock [Member]
Sales of common stocks
Par value of preferred stock that the holder of rights is entitled to purchase (in dollars per share) \| $ / shares			$ 0.0001	$ 0.0001
Authorized shares			30,000	30,000
Stockholder Rights [Member]
Sales of common stocks
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%
Stockholder Rights [Member] \| Series A Junior Participating Preferred Stock [Member]
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) \| $ / shares	$ 0.0001
Purchase price (in dollars per share) \| $ / item	35.00
Authorized shares	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

Equity (Details 3) $ in Thousands	3 Months Ended	6 Months Ended
Equity (Details 3) $ in Thousands	Jun. 30, 2014 USD ($) shares	Jun. 30, 2014 USD ($) shares
Stock-based compensation
Unrecognized compensation costs related to non-vested stock option awards \| $	$ 4,935	$ 4,935
Unrecognized compensation costs related to non-vested stock option awards, recognition period		3 years 10 months 24 days
Vesting period		4 years
Contractual life of options		10 years
Stocks Option [Member]
Weighted-average assumptions used in calculating the fair value of options granted
Expected dividend yield (as a percent)		0.00%
Expected life		6 years 3 months
Stock options granted \| shares		198,796
Average fair value of stock options granted \| $		$ 969
Stocks Option [Member] \| Minimum [Member]
Weighted-average assumptions used in calculating the fair value of options granted
Expected volatility (as a percent)		91.00%
Risk-free interest rate (as a percent)		2.00%
Stocks Option [Member] \| Maximum [Member]
Weighted-average assumptions used in calculating the fair value of options granted
Expected volatility (as a percent)		92.00%
Risk-free interest rate (as a percent)		2.10%
Restricted Stock Units (RSUs) [Member]
Stock-based compensation
Vesting period		12 months
Restricted Stock Units (RSUs) [Member] \| Director [Member]
Stock-based compensation
Award granted (in shares) \| shares	25,134

Equity (Details 4) $ in Thousands	6 Months Ended
Equity (Details 4) $ in Thousands	Jun. 30, 2014 USD ($) shares	Jun. 30, 2014 $ / shares shares	Dec. 31, 2013 shares
Warrants with Exercise Price of Australian Dollars 6.40 [Member]
Warrants
Number of shares of common stocks were purchased by exercising warrants	2,798
Price of common stock per share in exercising warrants (in dollars per share) \| $ / shares		$ 6.40
Total proceeds on exercise of warrants \| $	$ 16
Number of shares of common stock purchased by exercising warrants in cashless exercise	15,000
Price of common stock per share in exercising warrants in cashless exercise (in dollars per share) \| $ / shares		$ 6.40
Number of shares of common stock surrendered to fund cashless exercise	9,603
Warrant [Member]
Warrants
Warrants outstanding (in shares)		1,613,006	1,630,804

Balance Sheet Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Property, Plant and Equipment
Total	$ 1,208		$ 1,208		$ 1,095
Accumulated Depreciation	(636)		(636)		(508)
Property, plant and equipment, net	572		572		587
Depreciation expense	67	$ 43	128	$ 83
Furniture and Fixtures [Member]
Property, Plant and Equipment
Total	112		112		111
Leasehold Improvements [Member]
Property, Plant and Equipment
Total	145		145		145
Software and Software Development Costs [Member]
Property, Plant and Equipment
Total	63		63		61
Equipment [Member]
Property, Plant and Equipment
Total	648		648		574
Computer Equipment [Member]
Property, Plant and Equipment
Total	$ 240		$ 240		$ 204

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2014
Income Taxes
Income Taxes	Note 4 — Income Taxes We received a $265 research and development tax credit refund in the quarter ended June 30, 2014, based upon qualified research and development expenditures of our Australian subsidiary for its tax period ended June 30, 2013. We received a $1,077 research and development tax credit refund in the quarter ended June 30, 2013, based upon qualified research and development expenditures of our Australian subsidiary for its tax period ended June 30, 2012. We have not completed the Australian tax return for the period ended June 30, 2014; therefore, we have not determined if we will receive a refund and have not reflected a benefit related to the Australian research and development tax credit for that period, as we recognize any benefit only upon receipt. The Minnesota research and development tax credit is no longer refundable to taxpayers after 2012. Instead, on a go forward basis, any credit will result in net operating loss carryforwards as the Company currently does not generate taxable income.

Nature of Business and Significant Accounting Policies (Details) - USD ($) $ in Thousands	Jun. 30, 2014	Dec. 31, 2013
Going Concern
Accumulated deficit	$ 113,724	$ 101,012

Equity (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Equity (Details 2) - USD ($) $ in Thousands	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Selling, General and Administrative Expenses [Member]
Stock-Based Compensation
Compensation expense	$ 485	$ 483	$ 953	$ 603
Research and Development Expense [Member]
Stock-Based Compensation
Compensation expense	$ 268	$ 174	$ 535	$ 286

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2014	Jun. 30, 2013
Income Taxes
Research and development tax credit refunds	$ 265	$ 1,077