Quarterly report pursuant to sections 13 or 15(d)

Condensed Balance Sheets (Unaudited)

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Condensed Balance Sheets (Unaudited) (USD $)
Mar. 31, 2014
Dec. 31, 2013
Current Assets:    
Cash and cash equivalents $ 5,801,050 $ 3,516,244
Accounts receivable 452,703 770,352
Inventory 1,662,770 1,477,161
Prepaid expenses and other current assets 72,037 174,870
Total current assets 7,988,560 5,938,627
Property and equipment, net 801,051 903,160
Software license inventory 910,000 927,500
Other assets 347,939 103,783
Total assets 10,047,550 7,873,070
Current liabilities:    
Accounts payable 976,664 1,376,627
Accrued compensation 222,058 210,359
Other accrued liabilities 526,800 310,317
Derivative liabilites 3,264,068 3,747,858
Deferred product and service revenues 125,367 106,859
Related party convertible notes payable   4,338,601
Total current liabilities 5,114,957 10,090,621
Other accrued liabilities 617,879 531,830
Note payable, net of unamortized discount of $400,923 and $437,261 at March 31, 2014 and December 31, 2013, respectively 3,888,522 3,852,183
Total liabilities 13,185,447 14,707,039
Commitments and contingencies (Notes 5, 6, 7 and 8)      
Stockholders' deficit:    
Common stock, $0.01 par value; 100,000,000 shares authorized; 58,919,539 shares issued and outstanding at March 31, 2014; and 58,536,972 issued and outstanding, at December 31, 2013 589,194 585,369
Additional paid-in capital 66,395,109 65,333,264
Accumulated deficit (70,122,200) (72,752,602)
Total stockholders' deficit (3,137,897) (6,833,969)
Total liabilities and stockholders' deficit 10,047,550 7,873,070
2010 Junior Secured Notes Payable [Member]
    
Current liabilities:    
Junior secured notes payable 251,005 232,405
2014 Junior Secured Notes Payable [Member]
    
Current liabilities:    
Junior secured notes payable $ 3,313,084