Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Balance Sheets (Unaudited)

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Condensed Consolidated Balance Sheets (Unaudited) (USD $)
Sep. 30, 2013
Dec. 31, 2012
Current assets    
Cash and cash equivalents $ 899,000 $ 396,000
Receivables 56,000 840,000
Inventory 0 194,000
Prepaid expenses and other current assets 89,000 251,000
Total current assets 1,044,000 1,681,000
Property and equipment, net 6,000 7,000
Other assets 42,000 42,000
Total assets 1,092,000 1,730,000
Current liabilities    
Accounts payable 706,000 2,039,000
Accrued expenses 857,000 857,000
Dividends payable 5,870,000 3,486,000
Current portion of deferred revenue 577,000 247,000
Total current liabilities 8,010,000 6,629,000
Derivative liability - warrants 131,000 271,000
Derivative liability - preferred stock 729,000 9,200,000
Long-term deferred revenue 5,386,000 2,706,000
Total liabilities 14,256,000 18,806,000
Commitments and contingencies      
Stockholders' deficit    
Common stock - $.01 par value; authorized 200,000,000 shares; issued, 25,510,443 at September 30, 2013 and 24,732,312 at December 31, 2012 255,000 247,000
Additional paid-in capital 251,235,000 250,653,000
Treasury stock, at cost - 163 shares (4,000) (4,000)
Accumulated deficit (264,650,000) (267,972,000)
Total stockholders' deficit (13,164,000) (17,076,000)
Total liabilities and stockholders' deficit 1,047,000 1,730,000
Series A Convertible Preferred Stock [Member]
   
Stockholders' deficit    
Convertible preferred stock 0 0
Series B Convertible Preferred Stock [Member]
   
Stockholders' deficit    
Convertible preferred stock $ 0 $ 0