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World Heart Corp. (WHRT) filed Quarterly Report for the period ended 2011-09-30.
World Heart Corp. has a market cap of $7.7 million; its shares were traded at around $0.2893 with and P/S ratio of 3.6.
This is the annual revenues and earnings per share of WHRT over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of WHRT.
Highlight of Business Operations:
Trade receivables are recorded for product sales and do not bear interest. The Company regularly evaluates the collectability of its trade receivables. An allowance for doubtful accounts is maintained for estimated credit losses. When estimating credit losses, the Company considers a number of factors including the aging of a customer’s account, credit worthiness of specific customers, historical trends and other information. The Company reviews its allowance for doubtful accounts monthly. The Company did not incur any losses related to customer bad debts during the past three years. At September 30, 2011 and December 31, 2010, the allowance for doubtful accounts was zero for both periods.During the three and nine months ended September 30, 2011, the Company agreed to allow customers to return one and four units, respectively, which had been previously sold and paid for. This decision was made as a result of the pause in enrollment of the Company’s BTT clinical study in February 2011, expiring shelf lives of kits, as well as the July 2011 decision by the Company to terminate its efforts to commercialize the Levacor VAD. The impact of this was a reduction of revenues, net, through sales returns and allowances by approximately $92,000 and $332,000 for the three and nine months ended September 30, 2011, respectively. Three units remain on consignment as of September 30, 2011.
During the three months ended September 30, 2011, the Company entered into an agreement to sell its remaining Segmented Polyurethane Solution (SPUS) inventory and specialized SPUS reactor and equipment. The agreement requires for payments to the Company totaling $800,000. During the three months ended September 30, 2011 the Company collected $250,000 of this amount and recognized SPUS revenue of $71,000 and gain on sale of the SPUS equipment of approximately $167,000. Prior to the sale of the SPUS inventory and equipment, the net carrying value of these items was $0. The Company expects to recognize additional gain on sale and collect the remaining $550,000 upon the buyer’s acceptance of the equipment’s functionality. This is expected to occur in the fourth quarter of 2011. Subsequent to September 30, 2011, the buyer funded $250,000 of the remaining amount into an escrow account.
We recognized negative net revenue of $21,000, during the three months ended September 30, 2011, compared to net revenue of $724,000 during the three months ended September 30, 2010. Negative net revenue for the three months ended September 30, 2011 is the result of our decision to allow the return of one Levacor VAD implant kit as part of our decision to terminate all further commercialization efforts on the Levacor VAD which had previously been sold to a clinical center, offset by $71,000 in SPUS revenue. We do not expect to sell any SPUS. We also do not expect the return of Levacor VAD
We recognized negative net revenue of $143,000 during the nine months ended September 30, 2011, compared to net revenue of $1.7 million during the nine months ended September 30, 2010. Negative net revenue during the nine months ended September 30, 2011 is primarily the result of our decision to allow the return of four implant kits as part of our decision in July 2011 to terminate all further commercialization efforts on the Levacor VAD which had previously been sold to two clinical centers, offset by $71,000 in SPUS revenue. We do not expect to sell any SPUS in the future. We also do not expect the return of Levacor VAD implant kits in the future as all kits currently in centers are provided via consignment. Net revenue for the nine months ended September 30, 2010 relates primarily to the sale of eighteen Levacor VAD implant kits and related peripherals.
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