Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED CONDENSED BALANCE SHEETS

v2.4.0.6
CONSOLIDATED CONDENSED BALANCE SHEETS (USD $)
Dec. 31, 2012
Dec. 31, 2011
ASSETS    
Cash and cash equivalents $ 1,461 $ 222,775
Accounts receivable, net of allowances of $0 and $9,600 at December 31, 2012 and December 31, 2011, respectively 216,265 269,237
Inventories, net of reserves of $50,000 and $0 at December 31, 2012 and December 31, 2011, respectively 923,362 1,069,013
Prepaid income taxes 7,381 4,739
Prepaid expenses and other current assets 83,435 143,591
Total current assets 1,231,904 1,709,355
PROPERTY AND EQUIPMENT, NET 30,282 89,171
OTHER ASSETS    
Deposits 6,472 6,472
Intangible assets, net 85,130 133,762
TOTAL ASSETS 1,353,788 1,938,760
LIABILITIES AND STOCKHOLDERS' DEFICIT    
Accounts payable 1,199,846 890,676
Accrued employee compensation 119,338 180,437
Accrued professional fees and other 267,936 247,738
Deferred revenue 46,466 36,669
Promissory note 75,000 150,000
Dividend liability 60,000 0
Related party debt 98,675 0
Convertible debt 863,004 394,912
Warrant derivative liability 160,812 436,553
Total current liabilities 2,891,077 2,336,985
LONG TERM LIABILITIES    
Deferred revenue 2,487 10,111
TOTAL LIABILITIES 2,893,564 2,347,096
STOCKHOLDERS' DEFICIT    
Series C convertible preferred stock, $.01 par value; 88,098 shares authorized; 0 and 88,098 shares issued and outstanding on December 31, 2012 and on December 31, 2011, respectively  (Liquidation value of $0) 0 881
Series D convertible preferred stock, $.01 par value; 850 shares authorized; 300 and 743 shares issued and outstanding on December 31, 2012 and December 31, 2011, respectively  (Liquidation value of $300,000) 3 7
Series E convertible preferred stock $.01 par value; 500 shares authorized; 0 shares issued and outstanding on December 31, 2012, and December 31, 2011 0 0
Series G convertible preferred stock, $.01 par value; 240,000 shares authorized; 145,320 and 0 shares issued and outstanding on December 31, 2012 and December 31, 2011, respectively 1,453 0
Series H convertible preferred stock $.01 par value 10,000 shares authorized; 0 shares issued and outstanding on December 31, 2012 and December 31, 2011 0 0
Common Stock, $.01 par value; 50,000,000 and 20,000,000 shares authorized; 12,149,267 and 6,723,993 shares issued and outstanding on December 31, 2012 and December 31, 2011, respectively 121,493 67,240
Warrants to acquire preferred stock and common stock 3,015,996 2,203,101
Additional paid-in capital 15,940,818 13,823,875
Accumulated deficit (20,619,539) (16,503,440)
Total stockholders' deficit (1,539,776) (408,336)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 1,353,788 $ 1,938,760