CHF Solutions
May 9, 2017

Sunshine Heart Announces First Quarter 2017 Financial Results and Provides Company Update

EDEN PRAIRIE, Minn., May 09, 2017 (GLOBE NEWSWIRE) -- Sunshine Heart, Inc. (NASDAQ:SSH) announced today its financial results for the first quarter ended March 31, 2017. The Company will host a conference call and webcast at 9:00 AM ET today to discuss its financial results and provide an update on the Company's performance.

To access the live webcast, please visit the Investors page of the Sunshine Heart website at ir.sunshineheart.com. Alternatively, you may access the live conference call by dialing (877) 303-9826 (U.S.) or (224) 357-2194 (international) and using conference ID 18075619. An audio archive of the webcast and a transcript of the call will be available following the call at ir.sunshineheart.com.

Business Highlights

"Our focus remains on serving the large number of heart failure patients in the U.S. with fluid overload who could benefit from our Aquadex therapy" said John Erb, Chairman and CEO. "We are very excited about our revitalized and growing business."

 FINANCIALS


sunshine heart, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited and in thousands, except per share amounts)
   
  Three months ended
March 31,
  2017 2016 
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$(1.75)$(7.82)
       
Weighted average shares outstanding - basic and diluted 1,579  612 
       
Other comprehensive income:      
Foreign currency translation adjustments$(1)$(4)
Total comprehensive loss$(941)$(4,790)


sunshine heart, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited and in thousands, except share and per share amounts)
       
  March 31,
2017
  December 31, 2016 
ASSETS (unaudited)     
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 
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
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      
Series A junior participating preferred stock as of March 31, 2017 and December 31, 2016, par value $0.0001 per share; authorized 30,000 shares, none outstanding    
Series B-1 convertible preferred stock as of March 31, 2017 and December 31, 2016, par value $0.0001 per share; authorized 0 and 1,824.4 shares, issued and outstanding 0 and 1,824.4, respectively    
Series C convertible preferred stock as of March 31, 2017 and December 31, 2016, par value $0.0001 per share; authorized 0 and 2,900 shares, respectively, issued and outstanding 0 and 2,900, respectively      
Preferred stock as of March 31, 2017 and December 31, 2016, par value
$0.0001 per share; authorized 39,970,000 and 39,964,375.6 shares, none outstanding
    
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 


SUNSHINE HEART, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
    
  Three months ended
March 31,
 
  2017   2016  
Operating Activities:       
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 borrowings 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 
       
Supplement schedule of non-cash activities      
Warrants issued as inducement to warrant exercise$509 $ 
       
Supplemental cash flow information      
Cash paid for interest$ $136 

About Sunshine Heart

Sunshine Heart, Inc. (Nasdaq:SSH) is an early-stage medical device company focused on commercializing the Aquadex FlexFlow® System. The Company's commercial product, the Aquadex system, 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. Our objective is to improve the quality of life for patients with heart failure and related conditions. Sunshine Heart is a Delaware corporation headquartered in Minneapolis with wholly owned subsidiaries in Australia and Ireland. The Company has been listed on the NASDAQ Capital Market since February 2012.

Forward-Looking Statements

Certain statements in this release are forward-looking statements that are based on management's beliefs, assumptions, expectations, and information currently available to management. All statements that address future operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements, including without limitation, our ability to execute on our recently announced strategic realignment, our post-market clinical data collection activities, benefits of our products to patients, our expectations with respect to product development and commercialization efforts, our ability to increase market and physician acceptance of our products, potentially competitive product offerings, intellectual property protection, our ability to integrate acquired businesses and our expectations regarding anticipated synergies with and benefits from acquired businesses. The risk factors described in our filings with the SEC could cause actual events to adversely differ from the expectations indicated in these forward-looking statements. Management believes that these forward-looking statements are reasonable as and when made. However, you should not place undue reliance on forward-looking statements because they speak only as of the date when made. Sunshine Heart does not assume any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.  Sunshine Heart may not actually achieve the plans, projections or expectations disclosed in forward-looking statements, and actual results, developments or events could differ materially from those disclosed in the forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, including without limitation, the possibility that regulatory authorities do not accept our application or approve the marketing of our therapy, the possibility we may be unable to raise the funds necessary for the development and commercialization of our therapy and other risks and uncertainties described in our filings with the SEC. We do not assume any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.                                  

For further information, please contact:



Claudia Napal Drayton

Chief Financial Officer

Sunshine Heart, Inc.

T: +1-952-345-4205



Investor Relations

Sunshine Heart Inc.

ir@sunshineheart.com

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Source: Sunshine Heart, Inc.

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