Quarterly report pursuant to sections 13 or 15(d)

Condensed Balance Sheets (Unaudited)

v2.3.0.11
Condensed Balance Sheets (Unaudited) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Current Assets:    
Cash and cash equivalents $ 1,222,955 $ 145,478
Accounts receivable 169,848 401,580
Inventory 939,439 968,818
Prepaid expenses and other current assets 76,208 19,773
Total current assets 2,408,450 1,535,649
Property and equipment, net 1,237,177 1,218,830
Software license inventory 1,137,500  
Deferred costs   214,469
Other assets 51,200 61,481
Total assets 4,834,327 3,030,429
Current liabilities:    
Accounts payable 2,844,509 4,037,168
Accrued compensation 348,913 1,011,413
Accrued interest   971,733
Other accrued liabilities 1,709,055 2,015,046
Deposits 989,520  
Derivative liability 26,545  
Related party deferred revenue 2,696,374 2,600,000
Convertible notes payable, net of unamortized discount of $117,405 at December 31, 2011   3,953,595
Total current liabilities 8,614,916 14,588,955
Related party deferred revenue   1,396,374
Related party accrued interest   799,102
Other accrued liabilities 422,224 209,143
Related party convertible notes payable, net of unamortized discount of $0 and $432,706 at June 30, 2012 and December 30, 2011, respectively 4,338,601 4,377,294
Convertible notes payable, net of unamortized discount of $0 and $316,610 at June 30, 2012 and December 31, 2011, respectively 2,000,000 3,308,390
Junior secured notes payable, net of unamortized discount of $2,807,880 and $2,805,686 at June 30, 2012 and December 31, 2011, respectively 192,120 194,314
Total liabilities 15,567,861 24,873,572
Commitments and contingencies (Notes 5. 9 and 10)    
Stockholders' deficit:    
Series A convertible preferred stock; $.01 par value; 8,000,000 shares authorized, 7,965,000 shares issued and outstanding at December 31, 2011   7,965,000
Common stock, $.01 par value; at June 30, 2012, 100,000,000, 42,273,547, and 41,947,717 shares authorized, issued, and outstanding, respectively; at December 31, 2011, 70,000,000 16,410,820, and 16,084,990 shares authorized, issued, and outstanding, respectively 422,735 164,108
Additional paid-in capital 54,385,943 31,495,593
Treasury stock, at cost, 325,830 common shares (1,679,234) (1,679,234)
Accumulated deficit (63,862,978) (59,788,610)
Total stockholders' deficit (10,733,534) (21,843,143)
Total liabilities and stockholders' deficit $ 4,834,327 $ 3,030,429