CAMBRIDGE HEART INC

CIK:0000913443|SEC Filings

CONDENSED STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended		9 Months Ended
CONDENSED STATEMENTS OF OPERATIONS (Unaudited) (USD $)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Income Statement [Abstract]
Revenue	$ 419,062	$ 474,911	$ 1,434,698	$ 1,653,678
Cost of goods sold	288,004	342,562	1,215,043	1,201,011
Gross profit	131,058	132,349	219,655	452,667
Costs and expenses:
Research and development	63,565	161,127	273,300	368,116
Selling, general and administrative	821,103	1,263,902	3,816,485	4,103,043
Total operating expenses	884,668	1,425,029	4,089,785	4,471,159
Loss from operations	(753,610)	(1,292,680)	(3,870,130)	(4,018,492)
Interest income	82	9	1,650	503
Interest expense	(335,448)	(2,226)	(1,262,961)	(7,229)
Change in valuation of warrant	0	0	761,819	0
Change in valuation of embedded derivative	9,400	0	137,720	0
Net loss	$ (1,079,576)	$ (1,294,937)	$ (4,231,902)	$ (4,025,218)
Net loss per common share-basic and diluted	$ (0.01)	$ (0.01)	$ (0.04)	$ (0.04)
Weighted average common shares outstanding-basic and diluted	100,112,960	98,614,278	100,112,960	98,076,685

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	9 Months Ended
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	Sep. 30, 2012	Sep. 30, 2011
Cash flows from operating activities:
Net loss	$ (4,231,902)	$ (4,025,218)
Adjustments to reconcile net loss to net cash used for operating activities:
Depreciation and amortization	94,033	50,632
Non-Cash Interest expense incurred from debt issuance	1,075,807	0
Change in fair value of embedded derivative liability	(137,720)	0
Change in fair value of derivative warrant liability	(761,819)	0
Inventory provision	(61,364)	56,085
Stock based compensation expense	348,816	273,226
Provision for allowance for doubtful accounts	(19,230)	5,243
Changes in operating assets and liabilities:
Accounts receivable	76,234	205,025
Inventory	78,474	(14,186)
Prepaid expenses and other current assets	(3,033)	39,429
Restricted cash	100,000	100,000
Accounts payable and accrued expenses	80,221	(225,933)
Net cash used for operating activities	(3,361,483)	(3,535,697)
Cash flows from investing activities:
Purchases of fixed assets	(29,202)	(51,732)
Net cash used in investing activities	(29,202)	(51,732)
Proceeds from convertible promissory notes	3,157,500	0
Principal payments on capital lease obligations	(4,831)	(3,618)
Net cash provided by (used in) financing activities	3,152,669	(3,618)
Net decrease in cash and cash equivalents	(238,016)	(3,591,047)
Cash and cash equivalents, beginning of period	312,610	4,188,215
Cash and cash equivalents, end of period	74,594	597,168
Supplemental Disclosure of Cash Flow Information
Interest expense paid	$ 5,848	$ 7,229

CONDENSED BALANCE SHEETS (Unaudited) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Assets
Cash and cash equivalents	$ 74,594	$ 312,610
Restricted cash, current portion	100,000	100,000
Accounts receivable, net of allowance for doubtful accounts of $85,102 at December 31, 2011 and $65,872 at September 30, 2012, respectively	228,812	285,815
Inventory, net of inventory reserve of $1,057,746 and $996,382 at December 31, 2011 and September 30, 2012, respectively	427,267	444,377
Prepaid expenses and other current assets	131,652	128,619
Total current assets	962,325	1,271,421
Fixed assets, net	154,767	182,111
Restricted cash, net current portion	100,000	200,000
Other assets	40,776	78,264
Total Assets	1,257,868	1,731,796
Liabilities and Stockholders' Deficit
Accounts payable	646,712	465,269
Convertible promissory notes payable, net of discount	499,072	600,000
Accrued expenses	908,472	1,009,694
Current portion of capital lease obligation	8,308	6,689
Total current liabilities	2,062,564	2,081,652
Embedded derivative liability on a convertible note	18,788
Derivative warrant liability	3,415,908	0
Capital lease obligation, net of current portion	15,564	22,014
Total liabilities	5,512,824	2,103,666
Commitments and contingencies (Note 11)
Convertible Preferred Stock, $.001 par value; 2,000,000 shares authorized at December 31, 2011 and September 30, 2012, respectively; 6,670 shares issued and outstanding at December 31, 2011 and September 30, 2012, respectively. Liquidation preference and redemption value of $14,170,000 as of December 31, 2011	12,747,990	12,747,990
Total Preferred Stock	12,747,990	12,747,990
Stockholders' deficit:
Common Stock, $.001 par value; 250,000,000 and 500,000,000 shares authorized at December 31, 2011 and September 30, 2012, respectively; 100,112,960 shares issued and outstanding at December 31, 2011 and September 30, 2012, respectively	100,113	100,113
Additional paid-in capital	93,687,394	93,338,578
Accumulated deficit	(110,790,453)	(106,558,551)
Total stockholders' deficit	(17,002,946)	(13,119,860)
Total Liabilities and Stockholders' Deficit	$ 1,257,868	$ 1,731,796