Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED BALANCE SHEETS

v2.4.0.6
CONSOLIDATED BALANCE SHEETS (USD $)
Dec. 31, 2011
Dec. 31, 2010
ASSETS    
Cash and cash equivalents $ 222,775 $ 552,849
Restricted cash 0 20,014
Accounts receivable, net of allowances of $9,600 at December 31, 2011 and $0 at December 31, 2010 269,237 233,846
Inventories 1,069,013 1,104,056
Prepaid income taxes 4,739 1,442
Prepaid expenses and other current assets 143,591 296,756
Total current assets 1,709,355 2,208,963
PROPERTY AND EQUIPMENT, NET 89,171 192,777
OTHER ASSETS    
Deposits 6,472 6,472
Intangible assets, net 133,762 182,394
TOTAL ASSETS 1,938,760 2,590,606
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)    
Accounts payable 890,676 234,568
Accrued employee compensation 180,437 172,251
Accrued professional fees and other 247,738 337,698
Deferred revenue 36,669 27,153
Promissory note 150,000 0
Convertible debt, net of unamortized discount of $17,088 as of December 31, 2011 394,912 0
Warrant derivative liability 436,553 0
Total current liabilities 2,336,985 771,670
LONG TERM LIABILITIES    
Deferred revenue 10,111 9,427
TOTAL LIABILITIES 2,347,096 781,097
COMMITMENTS AND CONTINGENCIES (Note 7)      
STOCKHOLDERS' EQUITY (DEFICIT)    
Common stock, $.01 par value; 20,000,000 shares authorized; 6,723,993 shares issued and outstanding on December 31, 2011 and 2,711,750 shares issued and outstanding on December 31, 2010 67,240 27,118
Warrants to acquire preferred stock and common stock 2,203,101 1,248,909
Additional paid-in capital 13,823,875 12,095,237
Accumulated deficit (16,503,440) (11,565,263)
Total stockholders' equity (deficit) (408,336) 1,809,509
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) 1,938,760 2,590,606
Series A Convertible Preferred Stock [Member]
    
STOCKHOLDERS' EQUITY (DEFICIT)    
Convertible preferred stock 0 2,621
Series B Convertible Preferred Stock [Member]
    
STOCKHOLDERS' EQUITY (DEFICIT)    
Convertible preferred stock 0 887
Series C Convertible Preferred Stock [Member]
    
STOCKHOLDERS' EQUITY (DEFICIT)    
Convertible preferred stock 881 0
Series D Convertible Preferred Stock [Member]
    
STOCKHOLDERS' EQUITY (DEFICIT)    
Convertible preferred stock $ 7 $ 0