Quarterly report pursuant to Section 13 or 15(d)

Condensed Balance Sheets (Unaudited)

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Condensed Balance Sheets (Unaudited) (USD $)
Jun. 30, 2014
Dec. 31, 2013
Current Assets:    
Cash and cash equivalents $ 4,076,079 $ 3,516,244
Accounts receivable 599,052 770,352
Inventory 1,944,183 1,477,161
Prepaid expenses and other current assets 50,245 174,870
Total current assets 6,669,559 5,938,627
Property and equipment, net 604,251 903,160
Software license inventory 875,000 927,500
Other assets 327,808 103,783
Total assets 8,476,618 7,873,070
Current liabilities:    
Accounts payable 1,144,610 1,376,627
Accrued compensation 277,977 210,359
Other accrued liabilities 909,591 310,317
Derivative liabilites 2,388,522 3,747,858
Deferred product and service revenues 34,040 106,859
Related party convertible notes payable   4,338,601
Total current liabilities 4,754,740 10,090,621
Other accrued liabilities 703,928 531,830
Note payable, net of unamortized discount of $400,923 and $437,261 at June 30, 2014 and December 31, 2013, respectively 3,931,727 3,852,183
Total liabilities 12,985,375 14,707,039
Commitments and contingencies (Notes 5, 6, 7, 8 and 9)      
Stockholders' deficit:    
Common stock, $0.01 par value; 100,000,000 shares authorized; 58,956,869 shares issued and outstanding at June 30, 2014; and 58,536,972 issued and outstanding, at December 31, 2013 589,568 585,369
Additional paid-in capital 66,616,975 65,333,264
Accumulated deficit (71,715,300) (72,752,602)
Total stockholders' deficit (4,508,757) (6,833,969)
Total liabilities and stockholders' deficit 8,476,618 7,873,070
2010 Junior Secured Notes Payable [Member]
    
Current liabilities:    
Junior secured notes payable 269,604 232,405
2014 Junior Secured Notes Payable [Member]
    
Current liabilities:    
Junior secured notes payable $ 3,325,376