v2.4.0.6

Condensed Consolidated Statements of Cash Flows (USD $)	3 Months Ended
Condensed Consolidated Statements of Cash Flows (USD $)	Mar. 31, 2012	Mar. 31, 2011
Operating activities:
Net income (loss) for the period	$ (3,272,333)	$ 4,061,606
Adjustments to reconcile net loss to net cash used in operations:
Amortization and depreciation	52,024	54,505
Non-cash stock compensation expense	103,276	326,676
Imputed interest on debt	23,165	20,624
Non-cash loss (gain) on change in fair value of warrant liability	415,079	(8,298,751)
Amortization of premium on marketable investment securities	24,410	87,350
Change in operating components of working capital:
Other receivables	122,895	(57,254)
Inventory	0	(835,098)
Prepaid expenses and other current assets	25,838	146,360
Accounts payable, accrued liabilities and accrued royalties	225,787	87,128
Accrued compensation	(2,563)	(77,145)
Accrued restructuring charges	292,046	0
Cash used in operating activities	(1,990,376)	(4,483,999)
Investing activities:
Purchase of marketable investment securities	0	(4,528,784)
Sales of marketable investment securities	2,160,000	1,290,000
Purchase of property and equipment	0	(167,733)
Cash provided by (used in) investing activities	2,160,000	(3,406,517)
Financing activities:
Private placement fees	0	(3,698)
Capital lease repayments	(1,854)	(14,804)
Cash used in financing activities	(1,854)	(18,502)
Increase (decrease) in cash and cash equivalents for the period	167,770	(7,909,018)
Cash and cash equivalents, beginning of the period	5,413,782	9,500,921
Cash and cash equivalents, end of the period	5,581,552	1,591,903
Supplementary cash flow information:
Interest paid on financing	163	1,805
Non-cash financing activities:
Change in unrealized gain on marketable securities	$ 6,113	$ 11,257

The sum of the periodic adjustments of the differences between securities' face values and purchase prices that are charged against earnings. This is called accretion if the security was purchased at a discount and amortization if it was purchased at premium. As a noncash item, this element is an adjustment to net income when calculating cash provided by or used in operations using the indirect method.

WORLD HEART CORP 10-Q