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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2017	May 10, 2017
Document and Entity Information
Entity Registrant Name	Sunshine Heart, Inc.
Entity Central Index Key	0001506492
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
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		8,885,378
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 1,661	$ 1,323
Accounts receivable	406	282
Inventory	830	677
Other current assets	88	137
Total current assets	2,985	2,419
Property, plant and equipment, net	483	540
Intangible assets, net	4,144	4,302
Goodwill	189	189
Other Assets	21	21
TOTAL ASSETS	7,822	7,471
Current liabilities
Accounts payable and accrued expenses	2,930	2,351
Accrued compensation	868	909
Total current liabilities	3,798	3,260
Common stock warrant liability	46	1,843
Other Liabilities	126	126
Total liabilities	3,970	5,229
Commitments and contingencies
Temporary Stockholders' Equity
Series D convertible preferred stock as of March 31, 2017 and December 31, 2016 par value $0.0001 per share; authorized 0 and 900 shares, respectively, issued and outstanding 0 and 700, respectively		485
Stockholders' equity
Common stock as of March 31, 2017 and December 31, 2016, par value $0.0001 per share; authorized 100,000,000 shares; issued and outstanding 3,118,492 and 777,238 respectively
Additional paid-in capital	172,532	169,496
Accumulated other comprehensive income:
Foreign currency translation adjustment	1,234	1,235
Accumulated deficit	(169,914)	(168,974)
Total stockholders' equity	3,852	1,757
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	7,822	7,471
Series A Junior Participating Preferred Stock
Stockholders' equity
Preferred stock
Series B-1 convertible preferred stock
Stockholders' equity
Preferred stock
Series C convertible preferred stock
Stockholders' equity
Preferred stock
Preferred Stock
Stockholders' equity
Preferred stock

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
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	3,118,492	777,238
Common stock, shares outstanding	3,118,492	777,238
Series A junior participating preferred stock
Preferred Stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred Stock, shares authorized	30,000	30,000
Preferred Stock, shares outstanding	0	0
Series B-1 convertible preferred stock
Preferred Stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred Stock, shares authorized	0	1,824.4
Preferred Stock, shares issued	0	1,824.4
Preferred Stock, shares outstanding	0	1,824.4
Series C convertible preferred stock
Preferred Stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred Stock, shares authorized	0	2,900
Preferred Stock, shares issued	0	2,900
Preferred Stock, shares outstanding	0	2,900
Preferred Stock
Preferred Stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred Stock, shares authorized	39,970,000	39,964,375.6
Preferred Stock, shares outstanding	0	0
Series D convertible preferred stock
Temporary Stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Temporary Stock, shares authorized	0	900
Temporary Stock, shares issued	0	700
Temporary Stock, shares outstanding	0	700
Preferred Stock, shares outstanding	0	700

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Condensed Consolidated Statements of Operations and Comprehensive Loss
Net sales	$ 901
Costs and Expenses:
Cost of goods sold	514
Selling, general and administrative	2,387	$ 1,349
Research and development	308	3,206
Total costs and expenses	3,209	4,555
Loss from operations	(2,308)	(4,555)
Other income (expense):
Interest expense		(229)
Other income, net	6	1
Warrant valuation expense	(67)
Change in fair value of warrant liability	1,429
Total other income (expense)	1,368	(228)
Loss before income taxes	(940)	(4,783)
Income tax expense		(3)
Net loss	$ (940)	$ (4,786)
Basic and diluted loss per share (in dollars per share)	$ (1.75)	$ (7.82)
Weighted average shares outstanding - basic and diluted (in shares)	1,579	612
Other comprehensive income:
Foreign currency translation adjustments	$ (1)	$ (4)
Total comprehensive loss	$ (941)	$ (4,790)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Condensed Consolidated Statements of Cash Flows
Net loss	$ (940)	$ (4,786)
Adjustments to reconcile net loss to cash flows from operating activities:
Depreciation and amortization expense	215	81
Stock-based compensation expense, net	166	231
Amortization of debt discount and financing fees		84
Change in fair value of warrant liability	(1,429)
Warrant valuation expense	67
Changes in operating assets and liabilities:
Accounts receivable	(124)
Inventory	(153)
Other current assets	49	(67)
Other assets and liabilities		2
Accounts payable and accrued expenses	535	(1,241)
Net cash used in operations	(1,614)	(5,696)
Investing Activities:
Purchases of property and equipment		(8)
Net cash used in investing activities		(8)
Financing Activities:
Net proceeds from the sale of preferred stock and warrants	184
Net proceeds from exercise of warrants	1,768
Repayments on borrowing on long-term debt		(940)
Net cash provided by (used in) financing activities	1,952	(940)
Effect of exchange rate changes on cash		1
Net increase (decrease) in cash and cash equivalents	338	(6,643)
Cash and cash equivalents-beginning of period	1,323	23,113
Cash and cash equivalents-end of period	1,661	16,470
Supplemental schedule of non-cash activities
Warrants issued as inducement to warrant exercise	$ 509
Supplemental cash flow information
Cash paid for interest		$ 136

Nature of Business and Basis of Presentation

3 Months Ended

Mar. 31, 2017

Nature of Business and Basis of Presentation

Nature of Business and Basis of Presentation

Note 1 — Nature of Business and Basis of Presentation

Nature of Business: Sunshine Heart, Inc. (the “Company”) is an early-stage medical device company focused on commercializing the Aquadex FlexFlow® System. The Company’s commercial product, the Aquadex FlexFlow System (Aquadex) is indicated for temporary (up to eight hours) ultrafiltration treatment of patients with fluid overload who have failed diuretic therapy, and extended (longer than 8 hours) ultrafiltration treatment of patients with fluid overload who have failed diuretic therapy and require hospitalization. Sunshine Heart is a Delaware corporation headquartered in Minneapolis with wholly owned subsidiaries in Australia, Ireland and Delaware. The Company has been listed on the NASDAQ Capital Market since February 2012.

Prior to July 2016, the Company was focused on developing the C-Pulse® Heart Assist System for treatment of Class III and ambulatory Class IV heart failure. The C-Pulse System utilized the known concept of counterpulsation applied to the aorta. In March 2016, the Company announced that it was no longer enrolling patients into its two clinical studies for the C-Pulse System and that it planned to pursue a new strategic direction. In July 2016, the Company announced that it was moving forward with a therapeutic strategy utilizing neuromodulation rather than counterpulsation. In August 2016, the Company acquired the Aquadex business from a subsidiary of Baxter International, Inc. (“Baxter”), a global leader in the hospital products and dialysis markets. On September 29, 2016, the Company announced a strategic refocus of its near-term strategy that included halting clinical evaluations of its neuromodulation technology to fully focus its resources on its recently acquired Aquadex business, taking actions to reduce its cash burn, and reviewing potential strategic alliances and financing alternatives.

The Company’s board of directors and stockholders approved a 1-for-30 reverse split of the Company’s outstanding common stock that became effective after trading on January 12, 2017. The reverse stock split did not change the par value of the Company’s stock or the number of common or preferred shares authorized by the Company’s Fourth Amended and Restated Certificate of Incorporation, as amended. All share and per share amounts have been retroactively adjusted to reflect the split for all periods presented.

Principles of Consolidation: The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S.) (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information necessary for a fair presentation of results of operations, comprehensive income, financial condition, and cash flows in conformity with U.S. GAAP. In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the results of the Company for the periods presented. Operating results for interim periods are not necessarily indicative of results that may be expected for the year as a whole. The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the financial statements and during the reporting period. Actual results could materially differ from these estimates.

For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

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, 2016 and 2015 and through March 31, 2017, 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 March 31, 2017, the Company had an accumulated deficit of $169.9 million and it expects to incur losses for the immediate future. To date, the Company has been funded by debt and equity financings, and although the Company believes that it will be able to successfully fund its operations, there can be no assurance that it will be able to do so or that it will ever operate profitably.

The Company became a revenue generating company after acquiring the Aquadex Business in August 2016. The Company expects to incur additional losses in the near-term as it grows the Aquadex Business, including investments in expanding its sales and marketing capabilities, purchasing inventory, manufacturing components, and complying with the requirements related to being a U.S. public company. To become and remain profitable, the Company must succeed in expanding the adoption and market acceptance of the Aquadex FlexFlow. This will require the Company to succeed in training personnel at hospitals and effectively and efficiently manufacturing, marketing and distributing the Aquadex FlexFlow and related components. There can be no assurance that the Company will succeed in these activities, and it may never generate revenues sufficient to achieve profitability.

The Company may require additional funding in the future, which may not be available on terms favorable to the Company, or at all. The Company’s ability to continue as a going concern may be dependent on the Company’s ability to raise additional capital based on the achievement of commercial milestones. Should future capital raising be unsuccessful, the Company may not be able to continue as a going concern. On April 24, 2017, the Company closed on an underwritten public equity offering for net proceeds of approximately $8.1 million after deducting the underwriting discount and commissions and other costs associated with the offering (see Note 9-Subsequent Events). No adjustments have been made relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company not continue as a going concern.

Revenue Recognition: The Company recognizes revenues from product sales when earned. Specifically, revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed or determinable, and collectability is reasonably assured. Revenue is not recognized until title and risk of loss have transferred to the customer. The shipping terms for the Company’s revenue arrangements are FOB shipping point.

Accounts Receivable: Accounts receivable are unsecured, are recorded at net realizable value, and do not bear interest. The Company makes judgments as to its ability to collect outstanding receivables based upon significant patterns of uncollectability, historical experience, and managements’ evaluation of specific accounts and will provide an allowance for credit losses when collection becomes doubtful. The Company performs credit evaluations of its customers’ financial condition on an as-needed basis. Payment is generally due 30 days from the invoice date and accounts past 30 days are individually analyzed for collectability. When all collection efforts have been exhausted, the account is written off against the related allowance. The Company’s accounts receivable have terms that require payment in 30 days. To date the Company has not experienced any write-offs or significant deterioration of the aging of its accounts receivable, and therefore, no allowance for doubtful accounts was considered necessary as of March 31, 2017 or December 31, 2016.

Inventories: Inventories represent finished goods purchased from the Company’s supplier and are recorded as the lower of cost or market using the first-in-first out method.

Intangible assets: The Company’s intangible assets consist of customer relationships, developed technology, and trademarks and tradenames. All intangible assets recognized by the Company result from the acquisition of the Aquadex business. All intangible assets are estimated to have a useful life of 5-7 years. The Company reviews its definite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable through the estimated undiscounted future cash flows derived from such assets. In cases where the carrying value exceeds the undiscounted cash flows, the carrying value is written down to its fair value, using a discounted cash flow analysis. No impairments have been identified or recorded in the periods presented.

Goodwill: Goodwill is the cost of an acquisition in excess of the fair value of acquired assets and liabilities and is recorded as an asset on the balance sheet. Goodwill is not subject to amortization but must be tested for impairment at least annually. This test requires the Company to determine if the implied fair value of the goodwill is less than its carrying amount.

The Company evaluates goodwill for impairment annually on November 1st of each calendar year, or to the extent events or conditions indicate a risk of possible impairment during the interim periods prior to its annual impairment test. Generally, the evaluation of goodwill for impairment involves a two-step test, although under certain circumstance an initial qualitative evaluation may be sufficient to conclude that goodwill is not impaired without conducting the quantitative test.

Step 1 involves comparing the estimated fair value of each respective reporting unit to its carrying value, including goodwill. If the estimated fair value exceeds the carrying value, the reporting unit’s goodwill is not considered impaired. If the carrying value exceeds the estimated fair value, step 2 must be performed to determine whether goodwill is impaired and, if so, the amount of the impairment. Step 2 involves calculating an implied fair value of goodwill by performing a hypothetical allocation of the estimated fair value of the reporting unit determined in step 1 to the respective tangible and intangible net assets of the reporting unit. The remaining implied goodwill is then compared to the actual carrying amount of the goodwill for the reporting unit. To the extent the carrying amount of goodwill exceeds the implied goodwill, the difference is the amount of the goodwill impairment. No impairments have been identified or recorded in the periods presented.

Contingent consideration: In connection with the Company’s purchase of Aquadex, the Company has an obligation to pay additional consideration that is contingent upon the occurrence of certain future events. Contingent consideration was recognized at the acquisition date at the estimated fair value of the contingent milestone payments. The fair value of the contingent consideration is remeasured to its estimated fair value at the end of each reporting period, with changes recorded to earnings.

Common stock warrant liability: The Company records its common stock warrant liability at fair value at the date of issuance using primarily a Monte Carlo valuation model. The fair value is remeasured to its estimated fair value at the end of each reporting period with changes recorded to earnings.

Earnings per share: Basic earnings per share is computed based on the net loss allocable to common stockholders for each period divided by the weighted average number of common shares outstanding. The net loss allocable to common stockholders for the three months ended March 31, 2017, reflects a $1.8 million increase for the net deemed dividend to preferred shareholders provided in connection with the shareholder approval of the Series C and D Convertible Preferred Stock offering in January of 2017 (see Note 4), representing the intrinsic value of the shares at the time of issuance. Diluted earnings per share is computed based on the net loss allocable to common stockholders for each period divided by the weighted average number of common shares outstanding, increased by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued, and reduced by the number of shares the Company could have repurchased from the proceeds from issuance of the potentially dilutive shares. Potentially dilutive shares of common stock include warrants, stock options and other stock-based awards granted under stock-based compensation plans. These potentially dilutive shares 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.

The following table sets forth the potential shares of common stock that are not included in the calculation of diluted net loss per share because to do so would be anti-dilutive as of the end of each period presented:

	March 31
	2017	2016
Stock options	57,102	96,127
Restricted stock units	10,890	17,984
Warrants to purchase common stock	926,723	7,359

Total	994,715	121,470

New Accounting Pronouncements: In May 2014, August 2015, March 2016, April 2016 and May 2016, the FASB issued amended revenue recognition guidance to clarify the principles for recognizing revenue from contracts with customers. The guidance requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The guidance also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The standard allows the Company to transition to the new model using either a full or modified retrospective approach. This guidance will be effective for the Company’s interim and annual periods beginning January 1, 2018. The Company is currently evaluating the impact that this standard will have on its business practices, financial condition, results of operations and disclosures.

In November 2015, the FASB issued amended guidance concerning the classification of deferred taxes on the balance sheet to require that deferred tax assets and deferred tax liabilities be presented as noncurrent in a classified balance sheet. The amendment is effective for our annual and interim reporting periods beginning January 1, 2017, with early adoption permitted. We adopted this standard in the first quarter of 2017 with no impact on the Company’s consolidated financial statements as all deferred tax assets are fully reserved.

In February 2016, the FASB issued updated guidance to improve financial reporting about leasing transactions. This guidance will require organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. This guidance is effective for the Company’s annual and quarterly reporting periods beginning January 1, 2019. The Company is evaluating the impact that the adoption of this standard will have, if any, on its financial statements and disclosures.

Aquadex Acquisition

3 Months Ended

Mar. 31, 2017

Aquadex Acquisition

Aquadex Acquisition

Note 2 — Aquadex Acquisition

On August 5, 2016, the Company completed the acquisition of certain assets used in the production and sale of the Aquadex product line from Baxter. The acquisition of these assets meets the criteria for the purchase of a business, and has been accounted for in accordance with Accounting Standards Codification (ASC) 805, Business Combinations, with identifiable assets acquired and liabilities assumed recorded at their estimated fair values on the acquisition date. A valuation of the assets and liabilities from the business acquisition was performed utilizing cost, income and market approaches resulting in $5.1 million allocated to identifiable net assets.

In connection with the acquisition of the Aquadex Business, the Company entered into a manufacturing and supply agreement with Baxter whereby Baxter will manufacture and supply all of the Company’s finished goods for a period of up to 18 months from the close of the transaction. The Company completed the acquisition in order to strengthen its presence in the heart failure market.

Purchase Consideration: Total purchase consideration for the Aquadex business was as follows:

(in thousands)
Cash consideration	$	4,000
Common stock consideration	950
Fair value of contingent consideration	126

Total purchase consideration	$	5,076

Common Stock Consideration: The common stock consideration consisted of 33,334 shares of the Company’s common stock, worth $0.95 million based on the closing market value of $28.5 per share on August 5, 2016.

Contingent Consideration: In connection with the acquisition of the Aquadex product line, the Company agreed to pay Baxter 40% of any proceeds in excess of $4.0 million related to the sale or disposal of the Aquadex assets within three years of the close of the transaction. The fair value of this contingent consideration was calculated based on the estimated likelihood of occurrence of this event in the timeframe provided by the agreement.

Purchase price consideration does not include expenses of $0.9 million for accounting, audit, legal, and valuation services that were incurred as part of the transaction and were expensed as incurred.

The acquisition was recorded by recognizing the assets acquired at their estimated fair value at the acquisition date. The excess of the cost of the acquisition over the fair value of the assets acquired was recorded as goodwill. The fair values were based on management’s analysis, including work performed by third-party valuation specialists. The following presents the amounts recognized for the assets acquired on August 5, 2016 (in thousands):

Capital lease asset	$	307
Intangible assets	4,580

Total identifiable assets acquired	4,887
Goodwill	189
Total purchase consideration	$	5,076

The goodwill is primarily attributable to new and/or future customer relationships that were not acquired in the transaction. The fair value of the capital lease asset utilized a combination of the cost and market approaches, depending on the characteristics of the asset classification. Of the $4.6 million of acquired intangible assets, $3.1 million was assigned to customer relationships, $1.1 million was assigned to developed technology, and $0.4 million was assigned to trademarks and tradename. All intangible assets are estimated to have a useful life of 5-7 years.

Pro Forma Condensed Combined Financial Information (Unaudited)

The following unaudited pro forma combined financial information summarizes the results of operations for three months ended March 31, 2016 as if the acquisition of Aquadex had been completed on of January 1, 2016. Pro forma information reflects adjustments that are expected to have a continuing impact on our results of operations and are directly attributable to the acquisition. The unaudited pro forma results include adjustments to reflect, among other things, direct transaction costs relating to the acquisition, the difference in intangible asset amortization to be incurred based on the preliminary values of each identifiable intangible asset, and the difference in depreciation expense to be incurred based on preliminary value of the capital lease asset. The pro forma amounts do not purport to be indicative of the results that would have actually been obtained if the acquisition had occurred as of January 1, 2016 or that may be obtained in the future, and do not reflect future synergies, integration costs, or other such costs or savings.

	Three Months Ended
	March 31,
	2017			2016
Pro forma net sales	$	901		$	891
Pro forma net loss from operations	(2,308		)	(4,555		)
Pro forma basic and diluted net loss per share	$	(0.87	)	$	(7.85	)

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

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+ Details

Equity	3 Months Ended
Equity	Mar. 31, 2017
Equity
Equity	Note 4 - Equity Series B/B-1 Convertible Preferred Stock: On July 20, 2016, the Company entered into a securities purchase agreement with an institutional investor for an offering of shares of convertible preferred stock and warrants with gross proceeds of approximately $3.5 million in a registered direct offering. The transaction closed on July 26, 2016, and the Company issued 3,468 shares of Series B Convertible Preferred Stock. The Series B Convertible Preferred Stock is non-voting and was convertible into a total of 122,979 shares of common stock at the holder’s election at any time at a conversion price of $28.2 per share. Approximately $1.6 million of the proceeds were allocated to the preferred stock, representing the residual proceeds after the warrants (described below) were recorded at fair value. On October 30, 2016, the Company entered into an exchange agreement with the holders of its Series B Convertible Preferred Stock and agreed to issue such holders 2,227.2 shares of the Company’s Series B-1 Convertible Preferred Stock in exchange for the cancellation of all shares of Series B Convertible Preferred Stock held by such holders. The Series B-1 Convertible Preferred Stock had similar terms as the Series B Convertible Preferred Stock, except that the initial conversion price of the Series B-1 Convertible Preferred Stock was $5.10 per share. As of December 31, 2016, 402.8 shares of the Series B-1 Convertible Preferred Stock had been converted into 78,973 shares of common stock, and 1,824.4 shares of Series B-1 Convertible Preferred Stock remained outstanding. As of March 31, 2017, all remaining Series B Convertible Preferred Stock had been converted into an additional 357,732 shares of common stock and none remained outstanding. Series C and D Convertible Preferred Stock: Also, on October 30, 2016, the Company entered into a securities purchase agreement with an institutional investor for shares of convertible preferred stock and warrants with an aggregate purchase price of $3.8 million in a registered direct offering and simultaneous private placement. The first closing of the transaction occurred on November 3, 2016, whereby the Company received $3.6 million in gross proceeds and issued and sold 2,900 shares of Series C Convertible Preferred Stock, and 700 shares of Series D Convertible Preferred Stock, both with conversion prices of $5.10 per share. At the second closing, on January 10, 2017, the Company issued and sold 200 shares of Series D Convertible Preferred Stock with a conversion price of $5.10 per share for gross proceeds of $0.2 million. The Series C and D Convertible Preferred Stock included a contingent beneficial conversion amount of $1.3 million and $0.5 million, respectively, representing the intrinsic value of the shares at the time of issuance. This amount is reflected as an increase to the loss per share allocable to common shareholders in the first quarter of 2017 when the contingency for the conversion was resolved with the shareholder approval allowing for the conversion of the preferred stock into common stock. As of December 31, 2016, 2,900 shares of Series C Convertible Preferred Stock and 700 shares of Series D Convertible Preferred Stock were outstanding and none had been converted. As of March 31, 2017, all shares of the Series C and D Convertible Preferred Stock had been converted into an aggregate of 1,114,250 shares of common stock and none remained outstanding. The Series D Convertible Preferred Stock with a carrying value of $0.5 million was classified as temporary equity in the consolidated balance sheet as of December 31, 2016 because the Company could not control the settlement of its redemption in common stock. The temporary equity was not remeasured to fair value each period through earnings because the events that could trigger its redemption were not probable of occurrence. There were no shares of the Series D Convertible Preferred Stock outstanding as of March 31, 2017. In connection with these transactions, the Company paid the placement agent an aggregate cash placement fee equal to 6% of the aggregate gross proceeds raised in the offering and issued warrants as described below. Investor Warrants: In connection with the issuance of the Series B Convertible Preferred Stock in July 2016, the Company issued the investor at no additional cost warrants to purchase 122,979 shares of common stock at an exercise price of $28.2 per share. The warrants were exercisable for 36 months commencing six months from the closing date and were subject to a reduction of the exercise price if the Company subsequently issued common stock or equivalents at an effective price less than the current exercise price of such warrants. Concurrently with the closing of the Series C and D Convertible Preferred Stock and warrant financing on November 3, 2016, the exercise price for these warrants was adjusted to $5.10 per share. In connection with the issuance of the Series C and D Convertible Preferred Stock in November 2016, the Company issued the investor at no additional cost warrants to purchase 705,884 shares of common stock at an exercise price of $5.40 per share. In connection with the issuance of the Series D Convertible Preferred Stock at the second closing in January 2017, the Company issued the investor at no additional cost warrants to purchase 39,216 shares of common stock at an exercise price of $5.40 per share. The warrants were exercisable for 60 months commencing on the earlier of the day of the receipt of approval of the Company’s stockholders of a proposal to approve the issuance of the shares of common stock underlying the warrants, or the six-month anniversary of the date of issuance. These warrants were subject to a reduction of the exercise price if the Company subsequently issued common stock or equivalents at an effective price less than the current exercise price of such warrants. Warrant Exercise Agreement: On February 15, 2017, the Company entered into a letter agreement with the institutional investors that held the majority of its outstanding warrants (the ‘‘Original Warrants’’), to incent the cash exercise of these warrants on or before March 31, 2017. In exchange for any such exercise, the Company agreed to provide the investors a replacement warrant (the ‘‘Replacement Warrants’’) to purchase the same number of shares of common stock as were issued upon exercise of the Original Warrants, with an exercise price equal to the consolidated closing bid price of its common stock on the date of issuance. The Replacement Warrants were issued in the same form as the Original Warrants except the exercise prices are not subject to reduction for subsequent equity issuances and the Replacement Warrants do not allow the investor to demand that the Company purchase the Replacement Warrants in the event of a fundamental transaction involving the Company. In connection with this agreement, between February and March 2017, the investors exercised all of the Original Warrants for gross cash proceeds to the Company of $2.0 million, and the Company issued 867,917 Replacement Warrants with exercise prices ranging from $1.73 per share to $4.99 per share. The Company entered into the letter agreement with the investors to incent the exercise of the Original Warrants in order to receive the cash proceeds from the exercise of the Original Warrants and because the exercise of the Original Warrants would allow the Company to remove the warrant liability from its balance sheet and avoid future fair value adjustments and associated volatility in its financial statements, as the Replacement Warrants are not accounted for as liabilities based on their terms. As of March 31, 2017, there were no Original Warrants outstanding and all Replacement Warrants under the letter agreement had been issued. Placement Agent Warrant: In connection with the issuance of the Series B, C and D Convertible Preferred Stock, the Company issued warrants to the placement agent to purchase an aggregate of 52,085 shares of common at exercise prices ranging from $6.38 per share to $40.50 per share. These warrants were issued at no additional cost, were exercisable immediately and expire five years from the closing of the offerings. These warrants do not contain repricing provisions. Warrant Valuation: Both the investor and placement agent warrants are accounted for as liabilities and were recorded at fair value on the date of issuance. These warrants must be measured and recorded at fair value for each subsequent reporting period that the warrants remain outstanding, and any changes in fair value must be recognized in the statement of operations. In connection with the warrant exchange agreement described above, the Company remeasured each Original Warrant as of the date of exercise and recorded $1.4 million in connection with the change in fair value of these warrants, as an unrealized gain in the accompanying statement of operations for the period ended March 31, 2017. The Replacement Warrants were valued at $0.5 million using the Black Scholes valuation model with the following assumptions: an expected dividend yield of 0%, expected stock price volatility of 49.65%-50.38%, risk-free interest rates of 1.95%-1.97% and an expected life of 5 years. The warrants have a five-year life and were fully vested at the date of grant. The terms of these warrants do not require them to be accounted for as liabilities and are therefore recorded in equity. As in incentive to early exercise the Original Warrants, the fair value provided to investors through the Replacement Warrants exceeded the fair value of the Original Warrants that was relinquished by the warrant holders by approximately $0.1 million, which has been reflected as an expense in the statement of operations for the period ending March 31, 2017. Transaction Costs: The Company incurred approximately $0.9 million of cash and non-cash transaction costs which were allocated to the preferred stock and investor warrants on a relative fair value basis. The $0.6 million allocated to the preferred stock was recorded as a reduction of additional paid-in-capital, while the $0.3 million allocated to the investor warrants was expensed as incurred.

Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2017

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Note 6 - Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, warrants, contingent consideration and debt.

Pursuant to the requirements of ASC Topic 820 “Fair Value Measurement,” the Company’s financial assets and liabilities measured at fair value on a recurring basis are classified and disclosed in one of the following three categories:

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

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

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

The fair value of the Company’s common stock warrant liability related to the investor warrants is calculated using a Monte Carlo valuation model and was classified as Level 3 in the fair value hierarchy. The common stock warrants issued July 26, 2016 had a fair value of $226,000 on December 31, 2016 and $46,000 as of their dates of exercise. The common stock warrants issued November 3, 2016 had a fair value of $1.5 million on December 31, 2016 and $0.4 million as of their exercise dates. The common stock warrants issued January 12, 2017 had a fair value $72,000 on the date of issuance and $18,000 as of the date of exercise. All investor warrants classified as warrant liability were exercised during the three months ended March 31, 2017.

The fair value of the Company’s common stock warrant liability related to the placement agent warrants is calculated using a Black Scholes valuation model and is classified as Level 3 in the fair value hierarchy.

Fair values were calculated using the following assumptions:

	As of Dec. 31, 2016	As of Date of Exercise
Risk-free interest rates, adjusted for continuous compounding	1.47/1.96%	1.45-1.99%
Term (years)	3.1/5.3	2.84-5.50
Expected volatility	55.3/49.8%	49.9-58.5%
Dates and probability of future equity raises	various	various

The fair value of the Company’s contingent consideration, as described in Note 2, was initially measured based on the consideration expected to be transferred (probability-weighted), discounted back to present value, and it is considered a Level 3 instrument. The discount rate used was determined at the time of measurement in accordance with accepted valuation methods. The Company measures the liability on a recurring basis using Level 3 inputs including probabilities of payment and projected payment dates. Changes to any of the inputs may result in significantly higher or lower fair value measurements. There were no changes in the fair value of the contingent consideration subsequent to the initial measurement.

All cash equivalents are considered Level 1 measurements for all periods presented. The Company does not have any financial instruments classified as Level 2 or any other classified as Level 3 and there were no movements between these categories during the periods ended March 31, 2017 and December 31, 2016. The Company believes that the carrying amounts of all remaining financial instruments approximate their fair value due to their relatively short maturities.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Nature of Business and Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2017

Nature of Business and Basis of Presentation

Nature of Business

Principles of Consolidation

For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

Going Concern

The Company may require additional funding in the future, which may not be available on terms favorable to the Company, or at all. The Company’s ability to continue as a going concern may be dependent on the Company’s ability to raise additional capital based on the achievement of commercial milestones. Should future capital raising be unsuccessful, the Company may not be able to continue as a going concern. On April 24, 2017, the Company closed on an underwritten public equity offering for net proceeds of approximately $8.1 million after deducting the underwriting discounts and commissions and other costs associated with the offering (see Note 9-Subsequent Events). No adjustments have been made relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company not continue as a going concern.

Revenue Recognition

Accounts Receivable

Inventories

Inventories: Inventories represent finished goods purchased from the Company’s supplier and are recorded as the lower of cost or market using the first-in-first out method.

Intangible assets

Goodwill

Contingent consideration

Common stock warrant liability

Earnings per share

	March 31
	2017	2016
Stock options	57,102	96,127
Restricted stock units	10,890	17,984
Warrants to purchase common stock	926,723	7,359

Total	994,715	121,470

New Accounting Pronouncements

Aquadex Acquisition (Tables)

3 Months Ended

Mar. 31, 2017

Aquadex Acquisition

Schedule of total purchase consideration for the Aquadex business

(in thousands)
Cash consideration	$	4,000
Common stock consideration	950
Fair value of contingent consideration	126

Total purchase consideration	$	5,076

Schedule of provisional amounts recognized for the assets acquired

The following presents the amounts recognized for the assets acquired on August 5, 2016 (in thousands):

Capital lease asset	$	307
Intangible assets	4,580

Total identifiable assets acquired	4,887
Goodwill	189
Total purchase consideration	$	5,076

Schedule of pro forma amounts

	Three Months Ended
	March 31,
	2017			2016
Pro forma net sales	$	901		$	891
Pro forma net loss from operations	(2,308		)	(4,555		)
Pro forma basic and diluted net loss per share	$	(0.87	)	$	(7.85	)

Nature of Business and Basis of Presentation - (Details)			1 Months Ended	3 Months Ended
	Apr. 24, 2017 USD ($)	Jan. 12, 2017	Mar. 31, 2016 item	Mar. 31, 2017 USD ($) shares	Mar. 31, 2016 shares	Dec. 31, 2016 USD ($)
Nature of Business
Number of clinical studies for C-Pulse System \| item			2
Reverse stock split ratio		0.0333
Going Concern
Retained Earnings (Accumulated Deficit)				$ (169,914,000)		$ (168,974,000)
Accounts Receivable
Accounts receivables maximum credit period from invoice date				30 days
Allowance for doubtful accounts				$ 0		$ 0
Intangible Assets
Goodwill and Intangible assets impairments identified or recorded				$ 0
Earnings per share
Potential shares of common stock that are not included in the calculation of diluted net loss per share \| shares				994,715	121,470
Subsequent event
Going Concern
Net proceeds from issuance of convertible preferred stock	$ 8,100,000
Stock Options
Earnings per share
Potential shares of common stock that are not included in the calculation of diluted net loss per share \| shares				57,102	96,127
Restricted stock units
Earnings per share
Potential shares of common stock that are not included in the calculation of diluted net loss per share \| shares				10,890	17,984
Warrants
Earnings per share
Potential shares of common stock that are not included in the calculation of diluted net loss per share \| shares				926,723	7,359
Series C and D convertible preferred stock
Earnings per share
Net deemed dividend to preferred shareholders				$ 1,800,000
Minimum
Intangible Assets
Useful life (in years)				5 years
Maximum
Intangible Assets
Useful life (in years)				7 years

Aquadex Acquisition - (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Aug. 05, 2016	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Purchase price consideration to assets acquired
Goodwill		$ 189		$ 189
Aquadex product line
Business Acquisition
Allocation to identifiable net assets	$ 5,100
Agreement Term	18 months
Cash consideration	$ 4,000
Common stock consideration	950
Fair value of contingent consideration	126
Total purchase consideration	$ 5,076
Consideration
Common stock issued in acquisition (in shares)	33,334
Closing Market Value (price per share)	$ 28.5
Additional payments on disposes of business assets (as a percent)	40.00%
Limit on disposes of business assets	$ 4,000
Maximum period on disposes of business assets (in years)	3 years
Accounting, audit, legal and valuation services	$ 900
Purchase price consideration to assets acquired
Capital lease asset	307
Intangible assets	4,580
Total identifiable assets acquired	4,887
Goodwill	189
Total purchase consideration	5,076
Pro Forma Condensed Combined Financial Information
Pro forma net sales		901	$ 891
Pro forma net loss from operations		$ (2,308)	$ (4,555)
Pro forma basic and diluted net loss per share		$ (0.87)	$ (7.85)
Aquadex product line \| Trade Names and Trademarks
Purchase price consideration to assets acquired
Intangible assets	400
Aquadex product line \| Customer Relationships
Purchase price consideration to assets acquired
Intangible assets	3,100
Aquadex product line \| Developed Technology
Purchase price consideration to assets acquired
Intangible assets	$ 1,100
Aquadex product line \| Minimum
Purchase price consideration to assets acquired
Useful life (in years)	5 years
Aquadex product line \| Maximum
Purchase price consideration to assets acquired
Useful life (in years)	7 years

Equity - Convertible Preferred Stock (Details) $ / shares in Units, $ in Thousands							3 Months Ended	12 Months Ended
	Jan. 10, 2017 USD ($) $ / shares shares	Nov. 03, 2016 USD ($) $ / shares shares	Oct. 30, 2016 USD ($) $ / shares shares	Jul. 26, 2016 USD ($) $ / shares shares	Jun. 26, 2015 $ / shares shares	Feb. 18, 2015 $ / shares shares	Mar. 31, 2017 shares	Dec. 31, 2016 USD ($) shares
Equity
Proceeds from issuance of convertible preferred stock \| $			$ 3,800	$ 3,500
Temporary Equity \| $								$ 485
Percentage of placement fee offered in cash				0.06
Warrants
Equity
Warrants to purchase shares of common stock (in shares)					1,087	2,300
Exercise price of warrants (in dollars per share) \| $ / shares					$ 115.8	$ 156.6
Series B convertible preferred stock
Equity
Convertible preferred stock issued (in shares)				3,468
Number of common shares by conversion				122,979
Conversion price (in dollars per share) \| $ / shares				$ 28.2
Residual proceeds \| $				$ 1,600
Series B-1 convertible preferred stock
Equity
Convertible preferred stock issued (in shares)			2,227.2
Number of common shares by conversion							357,732	78,973
Conversion price (in dollars per share) \| $ / shares			$ 5.10
Number of Convertible Preferred Shares converted ( in shares)								402.8
Preferred Stock, shares outstanding							0	1,824.4
Series C convertible preferred stock
Equity
Convertible preferred stock issued (in shares)		2,900
Preferred Stock, shares outstanding							0	2,900
Beneficial conversion amount \| $	$ 1,300
Series D convertible preferred stock
Equity
Proceeds from issuance of convertible preferred stock \| $	$ 200
Convertible preferred stock issued (in shares)	200	700
Conversion price (in dollars per share) \| $ / shares	$ 5.10
Preferred Stock, shares outstanding							0	700
Beneficial conversion amount \| $	$ 500
Series C and D convertible preferred stock
Equity
Proceeds from issuance of convertible preferred stock \| $		$ 3,600
Number of common shares by conversion							1,114,250
Conversion price (in dollars per share) \| $ / shares		$ 5.10
Number of Convertible Preferred Shares converted ( in shares)								0
Preferred Stock, shares outstanding							0

Equity - Warrants (Details) - USD ($)						2 Months Ended	3 Months Ended
Equity - Warrants (Details) - USD ($)	Jan. 10, 2017	Nov. 03, 2016	Jul. 20, 2016	Jun. 26, 2015	Feb. 18, 2015	Mar. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Class of Stock [Line Items]
Net proceeds from exercise of warrants							$ 1,768,000
Warrants outstanding						$ 46,000	46,000	$ 1,843,000
Change in fair value of warrant liability							1,429,000
Warrant valuation expense							(67,000)
Transaction costs						0.9	0.9
Warrants
Class of Stock [Line Items]
Warrants to purchase shares of common stock (in shares)				1,087	2,300
Exercise price of warrants (in dollars per share)				$ 115.8	$ 156.6
Expected dividend yield				0.00%	0.00%
Expected stock price volatility				87.04%	88.07%
Risk-free interest rate (as a percent)				2.20%	1.86%
Expected warrant option life				6 years 3 months	6 years 3 months
Term of warrants				10 years	10 years
Replacement Warrants
Class of Stock [Line Items]
Value							$ 500,000
Expected dividend yield							0.00%
Expected warrant option life							5 years
Term of warrants							5 years
Replacement Warrants \| Minimum
Class of Stock [Line Items]
Expected stock price volatility							49.65%
Risk-free interest rate (as a percent)							1.95%
Replacement Warrants \| Maximum
Class of Stock [Line Items]
Expected stock price volatility							50.38%
Risk-free interest rate (as a percent)							1.97%
Additional Paid in Capital
Class of Stock [Line Items]
Transaction costs						0.6	$ 0.6
Warrant Exercise Agreement \| Original Warrants
Class of Stock [Line Items]
Net proceeds from exercise of warrants						2,000,000
Warrants outstanding						$ 0	$ 0
Warrant Exercise Agreement \| Replacement Warrants
Class of Stock [Line Items]
Warrants to purchase shares of common stock (in shares)						867,917
Warrant Exercise Agreement \| Replacement Warrants \| Minimum
Class of Stock [Line Items]
Exercise price of warrants (in dollars per share)						$ 1.73	$ 1.73
Warrant Exercise Agreement \| Replacement Warrants \| Maximum
Class of Stock [Line Items]
Exercise price of warrants (in dollars per share)						$ 4.99	$ 4.99
Investor Warrants
Class of Stock [Line Items]
Transaction costs						$ 0.3	$ 0.3
Investor Warrants \| Warrants
Class of Stock [Line Items]
Warrants to purchase shares of common stock (in shares)	39,216	705,884	122,979
Exercise price of warrants (in dollars per share)	$ 5.40	$ 5.40	$ 28.2
Exercise price of warrants, adjusted (in dollars per share)		$ 5.10
Additional cost	$ 0	$ 0	$ 0
Period range, exercisable		60 months	36 months
Warrants become exercisable period		6 months	6 months
Placement Agent Warrant \| Warrants
Class of Stock [Line Items]
Warrants to purchase shares of common stock (in shares)							52,085
Additional cost							$ 0
Period range, exercisable							5 years
Placement Agent Warrant \| Warrants \| Minimum
Class of Stock [Line Items]
Exercise price of warrants (in dollars per share)						$ 6.38	$ 6.38
Placement Agent Warrant \| Warrants \| Maximum
Class of Stock [Line Items]
Exercise price of warrants (in dollars per share)						$ 40.50	$ 40.50

Fair Value of Financial Instruments (Details) - USD ($)		3 Months Ended	7 Months Ended	12 Months Ended
Fair Value of Financial Instruments (Details) - USD ($)	Jan. 12, 2017	Mar. 31, 2017	Feb. 15, 2017	Dec. 31, 2016
Fair value
Common stock warrants fair value		$ 509,000
Risk-free interest rates, adjusted for continuous compounding, minimum			1.45%	1.47%
Risk-free interest rates, adjusted for continuous compounding, maximum			1.99%	1.96%
Change in fair value of warrant liability		1,429,000
Fair Value Transfers between levels
Level 1 to Level 2 Asset Transfers		0		$ 0
Level 2 to Level 1 Asset Transfers		0		0
Level 1 to Level 2 Liability Transfers		0		0
Level 2 to Level 1 Liability Transfers		0		$ 0
Minimum
Fair value
Expected life			2 years 10 months 2 days	3 years 1 month 6 days
Expected volatility (as a percent)			49.90%	49.80%
Maximum
Fair value
Expected life			5 years 6 months	5 years 3 months 18 days
Expected volatility (as a percent)			58.50%	55.30%
Level 3 \| Warrants issued July 26 2016
Fair value
Common stock warrants fair value		46,000		$ 226,000
Level 3 \| Warrants issued November 3 2016
Fair value
Common stock warrants fair value		400,000		$ 1,500,000
Level 3 \| Warrants issued January 12 2017
Fair value
Common stock warrants fair value	$ 72,000	$ 18,000

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions	May 10, 2017	Apr. 24, 2017	Oct. 30, 2016	Jul. 26, 2016	Jun. 26, 2015	Feb. 18, 2015	Mar. 31, 2017	Dec. 31, 2016
Subsequent Event
Proceeds from issuance of convertible preferred stock			$ 3.8	$ 3.5
Common stock, shares issued							3,118,492	777,238
Warrants
Subsequent Event
Term of warrants					10 years	10 years
Warrants to purchase shares of common stock (in shares)					1,087	2,300
Exercise price of warrants (in dollars per share)					$ 115.8	$ 156.6
Subsequent event
Subsequent Event
Proceeds from issuance of convertible preferred stock		$ 9.2
Net proceeds from issuance of convertible preferred stock		$ 8.1
Number of common shares by conversion	2,965,000	6,400,000
Common stock, shares issued		2,800,000
Subsequent event \| Warrants
Subsequent Event
Warrants to purchase shares of common stock (in shares)		9,200,000
Subsequent event \| Class A Units
Subsequent Event
Public offering price (per unit)		$ 1.00
Number of common stock, per unit		1
Subsequent event \| Class A Units \| Warrants
Subsequent Event
Term of warrants		5 years
Number of warrants, per unit		1
Number of common shares by conversion		1
Exercise price of warrants (in dollars per share)		$ 1.10
Subsequent event \| Class B Units
Subsequent Event
Public offering price (per unit)		$ 1,000
Number of preferred stock per unit		1
Number of common shares by conversion		1,000
Subsequent event \| Class B Units \| Warrants
Subsequent Event
Warrants to purchase shares of common stock (in shares)		1,000
Exercise price of warrants (in dollars per share)		$ 1.10
Subsequent event \| Series E convertible preferred stock
Subsequent Event
Beneficial ownership (as a Percentage)		4.99%
Preferred Stock, shares issued	2,965	6,400

Debt	3 Months Ended
Debt	Mar. 31, 2017
Debt
Debt	Note 3 - Debt Prior Loan Agreement: On February 18, 2015, the Company entered into a loan and security agreement with Silicon Valley Bank (the Bank) for proceeds of up to $10.0 million at an annual interest rate of 7.0%. Under this agreement, a $6.0 million term loan was funded at closing and an additional term loan in the amount of $2.0 million was funded on June 26, 2015. The proceeds from the term loans were used for general corporate and working capital purposes. Commencing on January 1, 2016, the Company began repaying the advances made in twenty-four consecutive equal monthly installments. On August 4, 2016, the Company repaid all remaining amounts outstanding under the agreement and wrote-off all unamortized warrants and debt issuance costs. There were no borrowings outstanding under this facility as of March 31, 2017 or December 31, 2016. Warrants: In connection with the funding of these term loans, the Company issued 2,300 warrants at an exercise price of $156.6 per share and 1,087 warrants at an exercise price of $115.8 per share to the Bank and one of its affiliates. The Company valued these warrants at $115.8 per share and $81.3 per share, respectively, utilizing the Black Scholes valuation model and the following assumptions: an expected dividend yield of 0%, an expected stock price volatility of 88.07% and 87.04%, a risk-free interest rate of 1.86% and 2.20%, and an expected life of 6.25 years. The warrants have a life of ten years and were fully vested at the date of grant. New Loan Agreement: On August 5, 2016, the Company entered into a new loan and security agreement with the Bank (the “New Loan Agreement”). Under the New Loan Agreement, the Bank agreed to provide the Company with up to $5.0 million in debt financing, consisting of a term loan in an aggregate original principal amount not to exceed $4.0 million (the “Term Loan”) and a revolving line of credit in an aggregate principal amount not to exceed $1.0 million outstanding at any time (the “Revolving Line”). Proceeds from the loans were to be used for general corporate and working capital purposes. Advances under the Term Loan were available to the Company until November 30, 2016 and were subject to the Company’s compliance with liquidity covenants. The Term Loan expired unused on November 30, 2016 and the Term Loan is no longer available to be drawn. Advances under the Revolving Line are available to the Company until March 31, 2020 and accrue interest at a floating annual rate equal to 1.75% or 1.0% above the prime rate, depending on liquidity factors. Outstanding borrowings, if any, are collateralized by all of the Company’s assets, excluding intellectual property which is subject to a negative pledge. There were no borrowings outstanding under this facility as of March 31, 2017 or December 31, 2016.

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2017
Income Taxes
Income Taxes	Note 7 — Income Taxes The Company provides for a valuation allowance when it is more likely than not that it will not realize a portion of the deferred tax assets. The Company has established a full valuation allowance for U.S. and foreign deferred tax assets due to the uncertainty that enough taxable income will be generated in those taxing jurisdictions to utilize the assets. Therefore, the Company has not reflected any benefit of such deferred tax assets in the accompanying financial statements. As of March 31, 2017, there were no material changes to what the Company disclosed regarding tax uncertainties or penalties in its Annual Report on Form 10-K for the year ended December 31, 2016.

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2017
Commitments and Contingencies
Commitments and Contingencies	Note 8—Commitments and Contingencies Leases: The Company leases office space under a non-cancelable operating lease that expires in March 2019. The lease contains provisions for future annual inflationary adjustments. Rent expense is recognized using the straight-line method over the term of the lease. Employee Retirement Plan: The Company has a 401(k) profit sharing plan that provides retirement benefit to substantially all full-time U.S. employees. Eligible employees may contribute a percentage of their annual compensation, subject to IRS limitations, with the Company matching a portion of the employee’s contributions at the discretion of the Company. Inventory Purchase Commitments: In connection with the acquisition of the Aquadex product line, the Company entered into a manufacturing and supply agreement with Baxter that will expire within a period not to exceed 18 months from the close of the transaction. Upon termination of this agreement, the Company has an obligation to purchase the remaining Aquadex inventory. We estimate that this amount will not exceed $2.5 million. Contingent Consideration: As described on Note 2, the Company agreed that if it disposes of any of the Aquadex assets for a price that exceeds $4.0 million within three years of the closing, it will pay Baxter 40% of the amount of such excess. In addition, it also agreed that if shares of its common stock cease to be publicly traded on the Nasdaq Capital Market, Baxter has the option to require the Company to repurchase, in cash, all or any part of the common shares held by Baxter at a price equal to their fair market value, as determined by a third-party appraiser.

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2017
Subsequent Events
Subsequent Events	Note 9 — Subsequent Events On April 24, 2017, the Company closed on an underwritten public offering of common stock, Series E Convertible Preferred Stock and warrants to purchase shares of common stock for gross proceeds of $9.2 million, which includes the full exercise of the underwriter’s over-allotment option to purchase additional shares and warrants. Net proceeds totaled approximately $8.1 million after deducting the underwriting discounts and commissions and other costs associated with the offering. The offering comprised of Class A Units, priced at a public offering price of $1.00 per unit, with each unit consisting of one share of common stock and one five-year warrant to purchase one share of common stock with an exercise price of $1.10 per share, and Class B Units, priced at a public offering price of $1,000 per unit, with each unit comprised of one share of preferred stock, which is convertible into 1,000 shares of common stock, and warrants to purchase 1,000 shares of common stock, also with an exercise price of $1.10 per share. The conversion price of the Series E Convertible Preferred Stock as well as the exercise price of the warrants are fixed and do not contain any variable pricing features nor any price based anti-dilutive features apart from customary adjustments for splits and reverse splits of common stock. The Series E Convertible Preferred Stock included a beneficial ownership limitation of 4.99%, but had no dividend preference (except to extent dividends are also paid on the common stock), liquidation preference or other preferences over common stock. The securities comprising the units were immediately separable and were issued separately. A total of 2.8 million shares of common stock, 6,400 shares of Series E Convertible Preferred Stock convertible into 6.4 million shares of common stock, and warrants to purchase 9.2 million shares of common stock were issued in the offering including the full exercise of the underwriter’s over-allotment option to purchase additional shares and warrants. Through May 10, 2017, 2,965 shares of Series E Convertible Preferred Stock issued in the offering were converted by their holders into 2,965,000 shares of common stock.

Debt - Prior Loan Agreement (Details) - Prior Loan Agreement $ in Thousands	Jan. 01, 2016 installment	Jun. 26, 2015 USD ($)	Feb. 18, 2015 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Debt Disclosure
Maximum borrowing capacity			$ 10,000
Fixed interest rate			7.00%
Proceeds from loan		$ 2,000	$ 6,000
Consecutive equal monthly installments \| installment	24
Total borrowings outstanding				$ 0	$ 0

Debt - Warrants (Details) - Warrants	Jun. 26, 2015 $ / shares shares	Feb. 18, 2015 item $ / shares shares
Debt Instrument [Line Items]
Warrants issued \| shares	1,087	2,300
Exercise price of warrants (in dollars per share)	$ 115.8	$ 156.6
Number of affiliates \| item		1
Value of warrants (in dollars per share)	$ 81.3	$ 115.8
Expected dividend yield	0.00%	0.00%
Expected stock price volatility	87.04%	88.07%
Risk-free interest rate (as a percent)	2.20%	1.86%
Expected warrant option life	6 years 3 months	6 years 3 months
Term of warrants	10 years	10 years

Debt - New Loan Agreement (Details) - New Loan Agreement - USD ($)	Aug. 05, 2016	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 5,000,000
Total borrowings outstanding		$ 0	$ 0
Revolving Line \| Prime rate
Debt Instrument [Line Items]
Interest rate (as a percent)	1.00%
Revolving Line \| Floating annual rate
Debt Instrument [Line Items]
Interest rate (as a percent)	1.75%
Maximum \| Revolving Line
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 1,000,000
Maximum \| Term Loan
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 4,000,000

Stock-Based Compensation - (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Stock-based compensation
Compensation expense	$ 168	$ 247
Selling, general and administrative expense
Stock-based compensation
Compensation expense	141	135
Research and development expense
Stock-based compensation
Compensation expense	$ 27	$ 112

Commitments and Contingencies (Details) - Aquadex product line - USD ($) $ in Millions	Aug. 05, 2016	Mar. 31, 2017
Agreement Term	18 months
Remaining inventory obligation		$ 2.5
Limit on disposes of business assets	$ 4.0
Maximum period on disposes of business assets (in years)	3 years
Additional payments on disposes of business assets (as a percent)	40.00%