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Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2012	Mar. 01, 2013	Jun. 30, 2012
Document and Entity Information
Entity Registrant Name	Sunshine Heart, Inc.
Entity Central Index Key	0001506492
Document Type	10-K
Document Period End Date	Dec. 31, 2012
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 8.8
Entity Common Stock, Shares Outstanding		9,509,867
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Current assets
Cash and cash equivalents	$ 14,224	$ 6,563
Other current assets	333	346
Total current assets	14,557	6,909
Property, plant and equipment, net	479	522
TOTAL ASSETS	15,036	7,431
Current liabilities
Accounts payable	1,156	1,857
Accrued salaries, wages, and other compensation	931	978
Total current liabilities	2,087	2,835
Total liabilities	2,087	2,835
Stockholders' equity
Preferred stock as of December 31, 2012 and December 31, 2011, $0.0001 par value per share; authorized 40,000,000 shares
Common stock as of December 31, 2012 and December 31, 2011, par value $0.0001 per share; authorized 100,000,000 shares; issued and outstanding 9,282,724 and 6,019,663, respectively	1	1
Additional paid-in capital	91,017	68,652
Accumulated other comprehensive income:
Foreign currency translation adjustment	1,185	1,132
Accumulated deficit	(79,254)	(65,189)
Total stockholders' equity	12,949	4,596
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 15,036	$ 7,431

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2012	Dec. 31, 2011
Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	40,000,000	40,000,000
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	9,282,724	6,019,663
Common stock, shares outstanding	9,282,724	6,019,663

Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Consolidated Statements of Operations and Comprehensive Loss
Net sales	$ 0
Operating expenses
Selling, general and administrative	6,866	$ 5,363
Research and development	8,003	11,199
Total operating expenses	14,869	16,562
Loss from operations	(14,869)	(16,562)
Interest income	33	251
Loss before income taxes	(14,836)	(16,311)
Income tax benefit	771	115
Net loss	$ (14,065)	$ (16,196)
Basic and diluted loss per share (in dollars per share)	$ (1.98)	$ (2.98)
Weighted average shares outstanding-basic and diluted (in shares)	7,099	5,442
Other comprehensive income
Foreign currency translation adjustments	$ 53	$ 137
Total comprehensive loss	$ (14,012)	$ (16,059)

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid in Capital	Accumulated Other Comprehensive Income Foreign Currency Translation Adjustment	Accumulated Deficit	Comprehensive Loss
Balance at Dec. 31, 2010	$ 12,089	$ 1	$ 60,086	$ 995	$ (48,993)
Balance (in shares) at Dec. 31, 2010		5,064,000
Comprehensive loss:
Net loss	(16,196)				(16,196)	$ (16,196)
Foreign currency translation adjustment	137			137		137
Total comprehensive loss	(16,059)					(16,059)
Stock based compensation	939		939
Issuance of common stock, net	7,627		7,627
Issuance of common stock, net (in shares)		955,000
Balance at Dec. 31, 2011	$ 4,596	$ 1	68,652	1,132	(65,189)
Balance (in shares) at Dec. 31, 2011	6,019,663	6,019,000
Comprehensive loss:
Net loss	$ (14,065)				(14,065)	(14,065)
Foreign currency translation adjustment	53			53		53
Total comprehensive loss	(14,012)					$ (14,012)
Stock based compensation	1,248		1,248
Issuance of common stock, net	20,837		20,837
Issuance of common stock, net (in shares)		3,264,000
Issuance of warrants for service agreement	280		280
Balance at Dec. 31, 2012	$ 12,949	$ 1	$ 91,017	$ 1,185	$ (79,254)
Balance (in shares) at Dec. 31, 2012	9,282,724	9,283,000

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Consolidated Statements of Cash Flows
Net loss	$ (14,065)	$ (16,196)
Adjustments to reconcile net loss to cash flows from operating activities:
Depreciation and amortization	138	50
Stock based compensation expense	1,248	939
Abandonment of fixed assets	63
Amortization of warrants for service agreements	280
Changes in assets and liabilities:
Accounts receivable		258
Other current assets	13	(166)
Accounts payable and accrued expenses	(760)	2,026
Net cash used in operations	(13,083)	(13,089)
Cash flows used in investing activities:
Purchase of property and equipment	(158)	(451)
Net cash used in investing activities	(158)	(451)
Cash flows provided by financing activities:
Net proceeds from the sale of common stock	20,837	7,627
Net cash provided by financing activities	20,837	7,627
Effect of exchange rate changes on cash	65	126
Net increase (decrease) in cash and cash equivalents	7,661	(5,787)
Cash and cash equivalents-beginning of period	6,563	12,350
Cash and cash equivalents-end of period	$ 14,224	$ 6,563

Nature of Business and Significant Accounting Policies

12 Months Ended

Dec. 31, 2012

Nature of Business and Significant Accounting Policies

Nature of Business and Significant Accounting Policies

Note 1—Nature of Business and Significant Accounting Policies

Nature of Business

Sunshine Heart, Inc. was founded in November 1999 and incorporated in Delaware in August 2002. We are headquartered in Eden Prairie, Minnesota and have a wholly owned subsidiary, Sunshine Heart Company Pty Ltd., located in St Leonards, New South Wales, Australia. We are a medical device company developing innovative technologies for cardiac and coronary disease. The Company’s primary product, the C-Pulse® Heart Assist System, 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. C-Pulse is designed to relieve the symptoms of heart failure through the use of counter-pulsation technology by enabling an increase in cardiac output, an increase in coronary blood flow, and a reduction in the heart’s pumping load. The Company has received approval from the United States Food and Drug Administration to conduct a U.S. feasibility clinical trial with the C-Pulse System. Our shares of common stock in the form of CHESS Depositary Interests have been publicly traded in Australia on the Australian Securities Exchange since September 2004.

Going Concern

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

During the years ended December 31, 2012 and 2011, the Company incurred losses from operations and net cash outflows from operating activities as disclosed in the consolidated statements of operations and cash flows, respectively. At December 31, 2012, the Company had an accumulated deficit of $79.3 million and expects to incur losses for the foreseeable future. To date, the Company has been funded by private and public equity financings. Although the Company believes that it will be able to successfully fund its operations, there can be no assurance the Company we will be able to do so or that the Company will ever operate profitably.

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

Basis of Presentation

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

Use of Estimates

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

Fair Value of Financial Instruments

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

Pursuant to the requirements of the Fair Value Measurements and Disclosures Topic of the FASB Codification, the Company’s financial assets and liabilities measured at fair value on a recurring basis are classified and disclosed in one of the following three categories:

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

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

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

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

Cash and Cash Equivalents

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

Other Current Assets

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

Property, Plant and Equipment

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

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

Depreciation expense was $138 and $50 for the years ended December 31, 2012 and 2011, respectively.

Impairment of Long-lived Assets

Long-lived assets, such as property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the impairment tests indicate that the carrying value of the asset is greater than the expected undiscounted cash flows to be generated by such asset, an impairment loss would be recognized. The impairment loss is determined as the amount by which the carrying value of such asset exceeds its fair value. We generally measure fair value by considering sale prices for similar assets or by discounting estimated future cash flows from such assets using an appropriate discount rate. Assets to be disposed of are carried at the lower of their carrying value or fair value less costs to sell. Considerable management judgment is necessary to estimate the fair value of assets, and accordingly, actual results could vary significantly from such estimates. There have been no impairment losses for long-lived assets, for the years ended December 31, 2012 and 2011.

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. Our revenue consists solely of sales of the C-Pulse System to hospitals and clinics under contract in conjunction with our clinical trials. For clinical trial implant revenue, the product title generally transfers on the date the product is implanted. We do not charge hospitals and clinics for shipping. We expense shipping costs at the time we report the related revenue and record them in cost of sales.

Foreign Currency Translation and Transactions

Foreign denominated monetary assets and liabilities are translated at the rate of exchange prevailing at the balance sheet date. Results of operations are translated using the average rates prevailing during the reporting period. The translation adjustment has not been included in determining the Company’s net loss, but has been reported separately and is accumulated in a separate component of equity. Effective January 1, 2011, we concluded that the functional currency of our U.S.-based parent company is the U.S. Dollar. Prior to that date the functional currency of both the U.S.-based parent company and the Company’s Australian subsidiary was the Australian dollar. For financial reporting purposes, the reporting currency of the Company is the U.S. Dollar. When a transaction is denominated in a currency other than the entity’s functional currency, the Company recognizes a transaction gain or loss in net earnings.

Stock-Based Compensation

The Company recognizes all share-based payments, including grants of stock options, in the income statement as an operating expense, based on their fair value over the requisite service period.

The Company computes the estimated fair values of stock options using the Black-Scholes option pricing model. No tax benefit has been recorded due to the full valuation allowance on deferred tax assets that the Company has recorded.

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

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

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

Income Taxes

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

Net Loss per Share

Basic net loss attributable to common stockholders, on a per share basis, is computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) during the period. Shares issued during the period and shares reacquired during the period are weighted for the portion of the period that they were outstanding. The computation of diluted earnings per share (“EPS”) is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued and computed in accordance with the treasury stock method. In addition, in computing the dilutive effect of convertible securities, the numerator is adjusted to add back the after-tax amount of interest recognized in the period associated with any convertible debt. Shares reserved for outstanding stock warrants and options totaling 2,746,497 and 2,216,615 for the years ended December 31, 2012 and 2011, respectively, were excluded from the computation of loss per share as their effect was antidilutive due to the Company’s net loss in each of those years.

Research and Development

Research and development expenses consist primarily of development personnel and non-employee contractor costs related to the development of new products and services, enhancement of existing products and services, quality assurance and testing. The Company incurred research and development expenses of $8,003 and $11,199 for the years ended December 31, 2012 and 2011, respectively.

Reverse Stock Split

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

Subsequent Events

The Company evaluates events through the date the financial statements are filed for events requiring adjustment to or disclosure in the financial statements. See Note 7, “Subsequent Events”, for additional information.

- Definition

The entire disclosure for the organization, consolidation and basis of presentation of financial statements disclosure, and significant accounting policies of the reporting entity. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements.

+ References + Details

Balance Sheet Information

12 Months Ended

Dec. 31, 2012

Balance Sheet Information

Balance Sheet Information

Note 2—Balance Sheet Information

Property, Plant and Equipment

Property, plant and equipment were as follows:

	December 31, 2012			December 31, 2011
Office Furniture & Fixtures	$	102		$	178
Leasehold Improvements	145			251
Software	12			37
Production Equipment	425			293
Computer Equipment	118			134
Total	802			893
Accumulated Depreciation	(323		)	(371		)
	$	479		$	522

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Equity

12 Months Ended

Dec. 31, 2012

Equity

Equity

Note 3—Equity

Private Placement

In January 2011, the Company placed 17,858 shares of common stock (in the form of CDIs) for proceeds, net of transaction costs, of $99.

In July 2011, the Company placed 572,222 shares of common stock (in the form of CDIs) for proceeds, net of transaction costs, of $4,597.

In September 2011, the Company placed 349,444 shares of common stock (in the form of CDIs) for proceeds, net of transaction costs, of $2,838.

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

Public Offering

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

Stock Options

The Company recognized share-based compensation expense related to stock options and grants of common stock to employees, directors and consultants of $1,248 and $939 during the years ended December 31, 2012 and 2011, respectively. The following table summarizes the stock-based compensation expense which was recognized in the Consolidated Statements of Operations for the years ended December 31, 2012 and 2011:

	December 31, 2012		December 31, 2011
Selling, general and administrative	$	806	$	621
Research and development	442		318
Total	$	1,248	$	939

As of December 31, 2012 and December 31, 2011, the total compensation cost related to all non-vested awards not yet recognized was $4,099 and $4,582, respectively. This amount is expected to be recognized over the remaining weighted-average period of 8.61 years as of December 31, 2012 and 9.21 years as of December 31, 2011.

The Company has granted stock options to certain employees and directors under the Amended and Restated 2002 Stock Plan and the 2011 Equity Incentive Plan (collectively, the “Plans”). The Plans are designed to assist in the motivation and retention of employees and to recognize the importance of employees to the long-term performance and success of the Company. The Company has also granted stock options to certain consultants outside of the Plans. The majority of the options to purchase common stock vest on the anniversary of the date of grant, which ranges from one to four years. Additionally, certain stock options vest upon the closing price of the Company’s common stock reaching certain minimum levels, as defined in the agreements. Finally, certain other stock options vest upon the meeting of certain Company milestones, such as the signing of specific agreements and the completion of the Company’s anticipated listing on a U.S. stock exchange. As of December 31, 2012, the Company expects that all such market and performance conditions will be met. Share-based compensation expense related to these awards is recognized on a straight-line basis over the related vesting term. It is the Company’s policy to issue new shares upon the exercise of options.

The following is a summary of the Plan and non-Plan stock option activity during the year ended December 31, 2012 and 2011.

	Options Outstanding	Weighted Average Exercise Price		Remaining Average Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding, December 31, 2010	126,698	$	28.00	7.26	$	819
2011 Grants	794,926	7.64
2011 Exercises	1,560	6.58
2011 Forfeitures/expirations	33,231	13.02
Outstanding, December 31, 2011	886,833	10.05		9.21	62,674
Exercisable at December 31, 2011	184,296	18.74		7.64	24,013
2012 Grants	284,875	6.63
2012 Exercises	3,990	3.10
2012 Forfeitures/expirations	54,473	7.65
Outstanding, December 31, 2012	1,113,244	9.47		8.61	1,163
Exercisable at December 31, 2012	418,439	$	13.08	7.76	$	1,163

The aggregate intrinsic value is defined as the difference between the market value of the Company’s common stock (based on the trading price of the Company’s CDIs on ASX) as of the end of the period and the exercise price of the in-the-money stock options. The total intrinsic value of stock options exercised during the years ended December 31, 2012 and 2011 was $14 and $3, respectively. Of the 694,805 non-vested options at December 31, 2012, none were held by consultants. Total cash proceeds from exercised options were $12 and $10 for the years ended December 31, 2012 and 2011, respectively.

The weighted-average fair value of stock options granted during the years ended December 31, 2012 and 2011 was $4.97 and $6.62, respectively.

The fair value of each stock option is estimated at the grant date using the Black-Scholes option pricing model. The Company has not historically paid dividends to its stockholders, and currently does not anticipate paying any cash dividends in the foreseeable future. As a result the Company has assumed a dividend yield of 0%. The 2011 risk free interest rate is based upon the rates of U.S Treasury bins with a term equal to the expected term of the option. The expected term of the stock options to purchase common stock is based upon the outstanding contractual expected life of the stock option on the date of grant. The Company used the following weighted-average assumptions in calculating the fair value of options granted during the years ended December 31, 2012 and 2011.

	Year ended December 31
	2012		2011
Expected dividend yield	0	%	0	%
Risk-free interest rate	1.52	%	1.43	%
Expected volatility	101	%	100	%
Expected life (in years)	5.0		6.5

Warrants

Warrants to purchase 1,663,253 and 1,496,032 shares of common stock were outstanding at December 31, 2012 and 2011, respectively.

As part of the private placement completed during 2011, the Company issued (i) 10,623 warrants to purchase common stock at an exercise price of AU$8.00 per share, with a stated life of five years, and (ii) 276,501 warrants to purchase common stock at an exercise price of AU$11.20 per share, with a stated life of four years.

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

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

During the years ended December 31, 2012 and 2011, 32,396 and 14,879 warrants were exercised at a price of AU$6.40 and AU$6.40 for total proceeds of $212 and $99, respectively.

Income Taxes

12 Months Ended

Dec. 31, 2012

Income Taxes

Income Taxes

Note 4—Income Taxes

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

	December 31, 2012			December 31, 2011
Domestic	$	(13,373	)	$	(11,252	)
Foreign	(692		)	(4,944		)
Total	$	(14,065	)	$	(16,196	)

The components of income tax expense for the years ended December 31, 2012 and 2011 consist of the following:

	December 31, 2012			December 31, 2011
Income tax provision:
Current:
United States and state	$	(41	)	$	(115	)
Foreign	(730		)	—
Deferred:
United States and state	—			—
Foreign	—			—
Total income tax (benefit) expense	$	(771	)	$	(115	)

Actual income tax expense differs from statutory federal income tax benefit for the years ended December 31, 2012 and 2011 as follows:

	December 31, 2012			December 31, 2011
Statutory federal income tax benefit	$	(5,043	)	$	(5,555	)
State tax benefit, net of federal taxes	(866		)	(727		)
Foreign tax	57			199
R&D tax credit rebate	(771		)	(265		)
Valuation allowance increase	5,932			6,121
Other	(80		)	112
Total income tax (benefit) expense	$	(771	)	$	(115	)

Deferred taxes as of December 31, 2012 and 2011 consist of the following:

	December 31, 2012			December 31, 2011
Deferred tax assets (liabilities):
Accrued expenses	$	56		$	115
Stock based compensation	1,256			658
Capitalized patent costs	117			126
Deferred rent	81			78
Fixed assets	(50		)	(76		)
R&D credits	139			150
Other	7			7
Net operating losses	28,066			22,357
	29,672			23,415
Less: valuation allowance	(29,672		)	(23,415		)
	$	—		$	—

As of December 31, 2012, we had U.S. net operating loss carryforwards of approximately $26.6 million for U.S. federal income tax purposes, which expire in years 2022 through 2032, and NOLs in the Commonwealth of Australia of approximately $55.5 million which we can carry forward indefinitely. U.S. NOL carryforwards cannot be used to offset taxable income in foreign jurisdictions. In addition, future utilization of NOL carryforwards in the United States may be subject to certain limitations under Section 382 of the Internal Revenue Code. This section generally relates to a 50% change in ownership of a company over a three-year period. No formal study has been prepared as of the balance sheet date to determine any applicable limitations on the utilization of the U.S. NOLs.

We received a $730 fully refundable research and development tax credit in 2012, determined as a combined average of 44% of qualified research and development expenditures of our Australian subsidiary for its tax period ended June 30, 2011. The Australian research and development tax credit is paid as a refundable credit for total research and development expenses of our Australian subsidiary. We have not completed the Australian tax return for the period ended June 30, 2012, and we cannot be reasonably assured of the amount or eligibility of the refundable research and development credit resulting from our research and development expenses. Therefore, we have reflected $0 net benefit related to the research and development credit for twelve months ended June 30, 2012. During 2012, we also received refundable research and development tax credits totaling $156 for the state of Minnesota for the fiscal year ended June 30, 2011 and the six months ended December 31, 2011. This credit is computed as a percentage of qualified research expenditures that were incurred in the state of Minnesota during the fiscal year. We have not yet completed a study to determine whether a similar credit will be generated for the year ended December 31, 2012; therefore, we have reflected $0 net benefit related to the Minnesota research and development credit for 2012.

We provide for a valuation allowance when it is more likely than not that we will not realize a portion of the deferred tax assets. We have established a valuation allowance for U.S. and foreign deferred tax assets due to the uncertainty that enough taxable income will be generated in those taxing jurisdictions to utilize the assets. Therefore, we have not reflected any benefit of such deferred tax assets in the accompanying financial statements. For the years ended December 31, 2012 and 2011, the valuation allowance increased by $6.3 million and $6.6 million, respectively. Changes in the valuation allowance do not equal the amounts reflected in the statutory rate reconciliation due to fluctuating currency exchange rates.

The Company has adopted accounting guidance related to uncertain tax positions. This accounting guidance prescribes a recognition threshold and measurement attribute for recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The adoption of uncertain tax position guidance did not have a material impact on the Company’s consolidated financial statements. Additionally, the adoption of the guidance had no impact on retained earnings. The Company had no material uncertain tax positions as of December 31, 2012 or December 31, 2011.

We recognize interest and penalties on unrecognized tax benefits as well as interest received from favorable tax settlements within income tax expense. Upon adoption of this guidance, we recognized no interest or penalties related to uncertain tax positions. During the years ended December 31, 2012 and 2011 we recorded no accrued interest or penalties related to uncertain tax positions.

The fiscal tax years ended June 30, 2008 through December 31, 2012 remain open to examination by the Internal Revenue Service. For the states of California and Minnesota, all years subsequent to the fiscal tax year ended June 30, 2006 are also open to examination. Additionally, the returns of the Company’s Australian subsidiary are subject to examination by Australian tax authorities for the fiscal tax years ended June 30, 2007 through June 30, 2012.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2012
Commitments and Contingencies
Commitments and Contingencies	Note 5—Commitments and Contingencies *Leases* We lease office space under non-cancelable operating leases that expire at various times through March 2016. Rent expense related to operating leases was approximately $256 and $274 for the years ended December 31, 2012 and 2011, respectively. Future minimum lease payments under non-cancelable operating leases as of December 31, 2012 were approximately $194, $262, $267, $67 and $0 for each the years ended December 31, 2013, through 2017, respectively. *Employee Benefits* All U.S. employees and all Australian employees are entitled to varying levels of benefits on retirement, disability or death. The superannuation plans provide accumulated benefits. Employees contribute to the plans at various percentages of their wages and salaries. Contributions by the Company of up to 9% of employees’ wages and salaries are legally enforceable in Australia. For the years ended December 31, 2012 and 2011, the Company incurred expenses of $30 and $82, respectively. In 2012, the Company converted its health insurance plan to a high deductible plan with a Health Savings Account. The Company incurred an expense of $18 in 2012.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-SubTopic 20
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-Paragraph 1
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-Subparagraph (SX 210.5-02.25)
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-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Related Party Transaction	12 Months Ended
Related Party Transaction	Dec. 31, 2012
Related Party Transaction
Related Party Transaction	Note 6—Related Party Transaction During the year ended December 31, 2012 and 2011, we paid $0 and $9 to SCP Technology and Growth Pty Limited, a company controlled by a former director of our Australian subsidiary, for the provision of intellectual property and patent services. There were no amounts outstanding to this entity at December 31, 2012 or December 31, 2011. In September 2011, we sold 14,375 shares of our common stock to Jeffrey Mathiesen, our Chief Financial Officer, at the price of AU$8.00 per share as part of a private placement.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 3
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-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph b
-Article 3A

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph k
-Article 4

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 57
-Paragraph 1-4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2012
Subsequent Events
Subsequent Events	Note 7—Subsequent Events *Common Stock Purchase Agreement* On January 15, 2013, we entered into a Common Stock Purchase Agreement with Aspire Capital, which provides that, upon the terms and subject to the conditions and limitations set forth therein, Aspire Capital is committed to purchase up to an aggregate of $25.0 million in shares of our common stock (the *“Purchase Shares”) over a two-year period at purchase prices determined in accordance with the Purchase Agreement. Pursuant to the terms of the Purchase Agreement, we have filed and maintain a registration statement on Form S-1 with the SEC under which we have registered 3,000,000 shares of our common stock for resale by Aspire. 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 1,298,653 shares of our common stock, including the Commitment Shares (13.99% of the Company’s outstanding shares as of January 15, 2013, the date of the Purchase Agreement), without stockholder approval as required by the applicable listing rules of the ASX. In the event our securities cease to be listed on the ASX, the maximum shares of our common stock without shareholder approval increase to 1,856,616 shares, or 19.99% of the Company’s outstanding shares as of January 15, 2013. As of March 1, 2013, we have sold 146,886 shares of common stock to Aspire Capital pursuant to the Purchase Agreement and, 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 fundings, rights of first refusal, participation rights, penalties or liquidated damages in the Purchase Agreement. ASX Delisting* On February 5, 2013, we received conditional approval from the ASX to delist from the official list of the ASX. The delisting will be effective upon the close of trading on May 6, 2013.

Segment and Geographic Information	12 Months Ended
Segment and Geographic Information	Dec. 31, 2012
Segment and Geographic Information
Segment and Geographic Information	Note 8—Segment and Geographic Information The Company has one reportable segment, cardiac and coronary disease products. The Company’s geographic regions include the United States and Australia. Beginning in 2012, interest income has been primarily earned in the United States. Previously, interest income was primarily earned in Australia. At December 31, 2012, long-lived assets are located primarily in the United States.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Nature of Business and Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2012

Nature of Business and Significant Accounting Policies

Nature of Business

Nature of Business

Basis of Presentation

Basis of Presentation

Use of Estimates

Use of Estimates

Fair Value of Financial Instruments

Fair Value of Financial Instruments

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

Cash and Cash Equivalents

Cash and Cash Equivalents

Other Current Assets

Other Current Assets

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

Property, Plant and Equipment

Property, Plant and Equipment

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

Depreciation expense was $138 and $50 for the years ended December 31, 2012 and 2011, respectively.

Impairment of Long-lived Assets

Impairment of Long-lived Assets

Revenue Recognition

Revenue Recognition

Foreign Currency Translation and Transactions

Foreign Currency Translation and Transactions

Stock-Based Compensation

Stock-Based Compensation

The Company recognizes all share-based payments, including grants of stock options, in the income statement as an operating expense, based on their fair value over the requisite service period.

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

Income Taxes

Income Taxes

Net Loss per Share

Net Loss per Share

Research and Development

Research and Development

Reverse Stock Split

Reverse Stock Split

Subsequent Events

Subsequent Events

Nature of Business and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2012

Nature of Business and Significant Accounting Policies

Schedule of estimated useful lives

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

Balance Sheet Information (Tables)

12 Months Ended

Dec. 31, 2012

Balance Sheet Information

Schedule of property, plant and equipment

	December 31, 2012			December 31, 2011
Office Furniture & Fixtures	$	102		$	178
Leasehold Improvements	145			251
Software	12			37
Production Equipment	425			293
Computer Equipment	118			134
Total	802			893
Accumulated Depreciation	(323		)	(371		)
	$	479		$	522

Equity (Tables)

12 Months Ended

Dec. 31, 2012

Equity

Summary of stock-based compensation expense

	December 31, 2012		December 31, 2011
Selling, general and administrative	$	806	$	621
Research and development	442		318
Total	$	1,248	$	939

Summary of the Plan and non-Plan stock option activity

	Options Outstanding	Weighted Average Exercise Price		Remaining Average Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding, December 31, 2010	126,698	$	28.00	7.26	$	819
2011 Grants	794,926	7.64
2011 Exercises	1,560	6.58
2011 Forfeitures/expirations	33,231	13.02
Outstanding, December 31, 2011	886,833	10.05		9.21	62,674
Exercisable at December 31, 2011	184,296	18.74		7.64	24,013
2012 Grants	284,875	6.63
2012 Exercises	3,990	3.10
2012 Forfeitures/expirations	54,473	7.65
Outstanding, December 31, 2012	1,113,244	9.47		8.61	1,163
Exercisable at December 31, 2012	418,439	$	13.08	7.76	$	1,163

Schedule of weighted-average assumptions used in calculating the fair value of options granted

	Year ended December 31
	2012		2011
Expected dividend yield	0	%	0	%
Risk-free interest rate	1.52	%	1.43	%
Expected volatility	101	%	100	%
Expected life (in years)	5.0		6.5

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

+ References + Details

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes

Schedule of domestic and foreign loss before provision for income taxes

	December 31, 2012			December 31, 2011
Domestic	$	(13,373	)	$	(11,252	)
Foreign	(692		)	(4,944		)
Total	$	(14,065	)	$	(16,196	)

Schedule of components of income tax expense

	December 31, 2012			December 31, 2011
Income tax provision:
Current:
United States and state	$	(41	)	$	(115	)
Foreign	(730		)	—
Deferred:
United States and state	—			—
Foreign	—			—
Total income tax (benefit) expense	$	(771	)	$	(115	)

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

	December 31, 2012			December 31, 2011
Statutory federal income tax benefit	$	(5,043	)	$	(5,555	)
State tax benefit, net of federal taxes	(866		)	(727		)
Foreign tax	57			199
R&D tax credit rebate	(771		)	(265		)
Valuation allowance increase	5,932			6,121
Other	(80		)	112
Total income tax (benefit) expense	$	(771	)	$	(115	)

Schedule of components of deferred taxes

	December 31, 2012			December 31, 2011
Deferred tax assets (liabilities):
Accrued expenses	$	56		$	115
Stock based compensation	1,256			658
Capitalized patent costs	117			126
Deferred rent	81			78
Fixed assets	(50		)	(76		)
R&D credits	139			150
Other	7			7
Net operating losses	28,066			22,357
	29,672			23,415
Less: valuation allowance	(29,672		)	(23,415		)
	$	—		$	—

Nature of Business and Significant Accounting Policies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Going Concern
Accumulated deficit	$ 79,254	$ 65,189
Property, Plant and Equipment
Depreciation expense	138	50
Impairment losses for long-lived assets	0	$ 0
Share based compensation disclosures
Share based compensation tax benefit	$ 0
Office furniture and equipment \| Minimum
Property, Plant and Equipment
Estimated useful lives	5 years
Office furniture and equipment \| Maximum
Property, Plant and Equipment
Estimated useful lives	15 years
Computer software and equipment \| Minimum
Property, Plant and Equipment
Estimated useful lives	3 years
Computer software and equipment \| Maximum
Property, Plant and Equipment
Estimated useful lives	4 years
Laboratory and research equipment \| Minimum
Property, Plant and Equipment
Estimated useful lives	3 years
Laboratory and research equipment \| Maximum
Property, Plant and Equipment
Estimated useful lives	15 years
Production equipment
Property, Plant and Equipment
Estimated useful lives	7 years

Nature of Business and Significant Accounting Policies (Details 2) $ in Thousands		12 Months Ended
	Jan. 30, 2012	Dec. 31, 2012 USD ($) shares	Dec. 31, 2011 USD ($) shares
Antidilutive securities
Shares reserved for outstanding stock warrants and options excluded from the computation of loss per share due to their antidilutive effect \| shares		2,746,497	2,216,615
Research and Development
Research and Development Expense \| $		$ 8,003	$ 11,199
Reverse Stock Split
Reverse stock transmutation ratio	0.005

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

The aggregate costs incurred (1) in a planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service, a new process or technique, or in bringing about a significant improvement to an existing product or process; or (2) to translate research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or the entity's use, during the reporting period charged to research and development projects, including the costs of developing computer software up to the point in time of achieving technological feasibility, and costs allocated in accounting for a business combination to in-process projects deemed to have no alternative future use.

+ References + Details

Balance Sheet Information (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Property, Plant and Equipment
Total	$ 802	$ 893
Accumulated Depreciation	(323)	(371)
Property, plant and equipment, net	479	522
Office Furniture & Fixtures
Property, Plant and Equipment
Total	102	178
Leasehold Improvements
Property, Plant and Equipment
Total	145	251
Software
Property, Plant and Equipment
Total	12	37
Production Equipment
Property, Plant and Equipment
Total	425	293
Computer Equipment
Property, Plant and Equipment
Total	$ 118	$ 134

- Definition

The cumulative amount of depreciation, depletion and amortization (related to property, plant and equipment, but not including land) that has been recognized in the income statement.

+ References + Details

Equity (Details) - USD ($) $ / shares in Units, $ in Thousands			1 Months Ended					12 Months Ended
	Aug. 20, 2012	Aug. 15, 2012	Aug. 31, 2012	Feb. 29, 2012	Sep. 30, 2011	Jul. 31, 2011	Jan. 31, 2011	Dec. 31, 2012	Dec. 31, 2011
Proceeds, net of transaction costs								$ 20,837	$ 7,627
Private placement
Common stock sold (in shares)				256,875	349,444	572,222	17,858
Proceeds, net of transaction costs				$ 2,061	$ 2,838	$ 4,597	$ 99
Public offering
Common stock sold (in shares)		2,875,000
Common stock offering price (in dollars per share)	$ 7.00	$ 7.00
Shares issued upon exercise of over-allotment options by underwriters	94,800
Proceeds, net of transaction costs			$ 18,552

Equity (Details 2) - USD ($) $ in Thousands	12 Months Ended
Equity (Details 2) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Stock-Based Compensation
Compensation expense	$ 1,248	$ 939
Selling, general and administrative expense
Stock-Based Compensation
Compensation expense	806	621
Research and development expense
Stock-Based Compensation
Compensation expense	$ 442	$ 318

- Definition

Represents the expense recognized during the period arising from equity-based compensation arrangements (for example, shares of stock, unit, stock options or other equity instruments) with employees, directors and certain consultants qualifying for treatment as employees.

+ References + Details

Equity (Details 3) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Stock-Based Compensation
Unrecognized compensation costs related to non-vested stock option awards	$ 4,099	$ 4,582
Unrecognized compensation costs related to non-vested stock option awards, recognition period	8 years 7 months 10 days	9 years 2 months 16 days
Options Outstanding
Outstanding at the beginning of the period (in shares)	886,833	126,698
Grants (in shares)	284,875	794,926
Exercises (in shares)	3,990	1,560
Forfeitures/expiration (in shares)	54,473	33,231
Outstanding at the end of the period (in shares)	1,113,244	886,833	126,698
Exercisable at the end of the period (in shares)	418,439	184,296
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 10.05	$ 28.00
Grants (in dollars per share)	6.63	7.64
Exercises (in dollars per share)	3.10	6.58
Forfeitures/expiration (in dollars per share)	7.65	13.02
Outstanding at the end of the period (in dollars per share)	9.47	10.05	$ 28.00
Exercisable at the end of the period (in dollars per share)	$ 13.08	$ 18.74
Remaining Average Contractual Term
Outstanding at the end of the period	8 years 7 months 10 days	9 years 2 months 16 days	7 years 3 months 4 days
Exercisable at the end of the period	7 years 9 months 3 days	7 years 7 months 20 days
Aggregate Intrinsic Value
Outstanding at the end of the period (in dollars)	$ 1,163	$ 62,674	$ 819
Exercisable at the end of the period (in dollars)	1,163	24,013
Total intrinsic value	$ 14	3
Additional disclosures
Nonvested options (in shares)	694,805
Cash proceeds from exercised options	$ 12	$ 10
Weighted-average fair value of options granted (in dollars per share)	$ 4.97	$ 6.62
Weighted-average assumptions used in calculating the fair value of options granted
Expected dividend yield (as a percent)	0.00%	0.00%
Risk-free interest rate (as a percent)	1.52%	1.43%
Expected stock price volatility (as a percent)	101.00%	100.00%
Expected life	5 years	6 years 6 months
Minimum
Stock-Based Compensation
Vesting period of options	1 year
Maximum
Stock-Based Compensation
Vesting period of options	4 years

Equity (Details 4) $ in Thousands		12 Months Ended
Equity (Details 4) $ in Thousands	Sep. 07, 2012 USD ($) $ / shares shares	Dec. 31, 2012 USD ($) $ / shares shares	Dec. 31, 2011 USD ($) $ / shares shares
Warrants
Warrants outstanding (in shares)		1,663,253	1,496,032
Expense for warrants issued in conjunction with service agreement \| $		$ 280
Exercise price of AU$6.40
Warrants
Exercise price of warrants (in dollars per share) \| $ / shares		6.40	6.40
Warrants exercised (in shares)		32,396	14,879
Total proceeds on exercise of warrants \| $		$ 212	$ 99
Exercise price of AU$11.20
Warrants
Warrants issued (in shares)		77,063	276,501
Exercise price of warrants (in dollars per share) \| $ / shares		11.20	11.20
Term of warrants		4 years	4 years
Exercise price of AU$8.00
Warrants
Warrants issued (in shares)		8,553	10,623
Exercise price of warrants (in dollars per share) \| $ / shares		8.00	8.00
Term of warrants		5 years	5 years
Warrant with five year term
Warrants
Warrants issued (in shares)	100,000
Exercise price of warrants (in dollars per share) \| $ / shares	7.00
Term of warrants	5 years
Total fair value of warrants issued \| $	$ 519

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Income Taxes
Domestic	$ (13,373)	$ (11,252)
Foreign	(692)	(4,944)
Net loss	(14,065)	(16,196)
Current:
United States and state	(41)	(115)
Foreign	(730)
Deferred:
Total income tax (benefit) expense	(771)	(115)
Income tax reconciliation
Statutory federal income tax benefit	(5,043)	(5,555)
State tax benefit, net of federal taxes	(866)	(727)
Foreign tax	57	199
R&D tax credit rebate	(771)	(265)
Valuation allowance increase	5,932	6,121
Other	(80)	112
Total income tax (benefit) expense	(771)	(115)
Deferred tax assets (liabilities):
Accrued expenses	56	115
Stock based compensation	1,256	658
Capitalized patent costs	117	126
Deferred rent	81	78
Fixed assets	(50)	(76)
R&D credits	139	150
Other	7	7
Net operating losses	28,066	22,357
Deferred tax assets (liabilities) before valuation allowances	29,672	23,415
Less: valuation allowance	$ (29,672)	$ (23,415)

Income Taxes (Details 2) - 12 months ended Dec. 31, 2012 $ in Millions, $ in Millions	USD ($)	AUD ($)
United States
Operating loss carryforwards
Net operating loss (NOL) carryforwards	$ 26.6
Percentage of cumulative change in ownership which may substantially limit the annual utilization of the entity's net operating loss carryforwards	50.00%
Period over which cumulative change in percentage of ownership is considered for determining the limitation on the annual utilization of the entity's net operating loss and tax credit carryforwards	3 years
Commonwealth of Australia
Operating loss carryforwards
Net operating loss (NOL) carryforwards		$ 55.5

Income Taxes (Details 3) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
Income Taxes (Details 3) - USD ($) $ in Thousands	Jun. 30, 2011	Dec. 31, 2012	Dec. 31, 2011
Income Taxes
Uncertain tax positions		$ 0	$ 0
Interest and penalties related to uncertain tax positions accrued during the period		0	0
Tax credit carryforward
Increase in valuation allowance		6,300	$ 6,600
Research and development tax credit \| State of Minnesota
Tax credit carryforward
Research and development credit received		156
Research and development tax credit \| Australian subsidiary \| Australian
Tax credit carryforward
Research and development credit received		$ 730
Percentage of qualified research and development expenditures	44.00%

Commitments and Contingencies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Commitments and Contingencies
Rent expense related to operating leases	$ 256	$ 274
Future minimum lease payments
2013	194
2014	262
2015	267
2016	67
2017	$ 0
Superannuation plan
Employee Benefits
Contribution by the company as a percentage of employees' wages and salaries	9.00%
Expense incurred	$ 30	$ 82
Health insurance plan
Employee Benefits
Expense incurred	$ 18

Related Party Transaction (Details) $ in Thousands	12 Months Ended
Related Party Transaction (Details) $ in Thousands	Dec. 31, 2012 USD ($) shares	Dec. 31, 2011 USD ($) shares	Sep. 30, 2011 $ / shares shares
Related party transaction
Common stock sold (in shares) \| shares	9,282,724	6,019,663
SCP Technology and Growth Pty Limited
Related party transaction
Amount paid to related party for the provision of intellectual property and patent services \| $	$ 0	$ 9
Related party accounts receivable \| $	$ 0	$ 0
Jeffrey Mathiesen
Related party transaction
Common stock sold (in shares) \| shares			14,375
Common stock offering price (in dollars per share) \| $ / shares			$ 8.00

- Definition

For an unclassified balance sheet, amount of receivables arising from transactions with related parties.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(k)(1))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39622-107864

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03.(a),3)
-URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39603-107864

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 3
-Subparagraph a
-Article 5

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph k
-Subparagraph 1
-Article 4

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 57
-Paragraph 2
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 3
-Article 7

+ Details

Subsequent Events (Details) - Subsequent events - Common stock purchase agreement - Aspire Capital - USD ($) $ in Millions		2 Months Ended
	Jan. 15, 2013	Mar. 01, 2013
Subsequent Events
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
Common stock sold including commitment shares (in shares)		227,143
Maximum
Subsequent Events
Value of common stock purchase commitment	$ 25
Maximum \| Common stock listed on the ASX
Subsequent Events
Number of shares authorized for sale and issuance (in shares)	1,298,653
Shares authorized for sale and issuance (as a percentage)	13.99%
Maximum \| Common stock not listed on ASX
Subsequent Events
Number of shares authorized for sale and issuance (in shares)	1,856,616
Shares authorized for sale and issuance (as a percentage)	19.99%

Segment and Geographic Information (Details)	12 Months Ended
Segment and Geographic Information (Details)	Dec. 31, 2012 item
Segment and Geographic Information
Number of reportable segments	1