Exhibit 99.3

Unaudited Pro Forma Condensed Consolidated Balance Sheet
  
at June 30, 2006
  
                   
   
Actual
  
Adjustments
      
Proforma
  
ASSETS
                          
Current Assets:
                         
Cash and cash equivalents
  
$
926,935
  
$
2,500,000
    
(1)
 
$
3,426,935
  
Restricted certificate of deposit
   
9,000,000
   
(9,000,000
)
  
(2)
 
  
-
 
Accounts Receivable, net
    
381,585
   
-
         
381,585
 
Inventory
    
1,102,691
   
-
         
1,102,691
 
Prepaid expenses and deposits
   
548,655
   
-
         
548,655
 
Total current assets
   
11,959,866
   
(6,500,000
)
        
5,459,866
 
Property and Equipment:
                          
Furniture and equipment, at cost
   
1,930,871
   
-
         
1,930,871
 
Less: accumulated depreciation
   
477,557
   
-
         
477,557
 
Total property and equipment, net
    
1,453,314
   
-
         
1,453,314
 
Equipment under Operating Leases:
                          
Capitalized equipment, at cost
   
2,162,812
   
-
         
2,162,812
 
Less: accumulated depreciation
   
263,638
   
-
         
263,638
 
Total equipment under operating leases, net
    
1,899,174
   
-
         
1,899,174
 
Other Assets:
                          
Long-term investments
    
193,044
   
-
         
193,044
 
Intangible assets, net
    
2,318,501
   
-
         
2,318,501
 
Financing costs, net
    
610,438
   
(610,438
)
  
(3)
 
  
-
 
Goodwill
    
1,977,767
   
-
         
1,977,767
 
Deposits and other
    
202,183
   
-
         
202,183
 
Total other assets
    
5,301,933
   
(610,438
)
        
4,691,495
 
Total Assets
  
$
20,614,287
  
$
(7,110,438
)
      
$
13,503,849
  
LIABILITIES AND STOCKHOLDERS’ EQUITY
                          
Current Liabilities:
                          
Accounts payable and accrued liabilities
  
$
2,678,700
  
$
15,000
    
(4)
 
$
2,693,700
  
Senior notes payable
    
-
   
-
         
-
 
Senior convertible notes, net of discounts
   
8,500,000
   
(8,500,000
)
  
(5)
 
  
-
 
Deferred revenue
    
158,931
   
-
         
158,931
 
Note payable under subsidiary acquisition
    
900,000
   
-
         
900,000
 
Customer deposits and other
    
15,685
   
-
         
15,685
 
Total current liabilities
   
12,253,316
   
(8,485,000
)
        
3,768,316
 
Long Term Liabilities:
                          
Senior convertible notes, net of discounts
    
2,229,873
   
(2,229,873
)
  
(5)
 
  
-
 
Deferred Revenue
    
77,939
   
-
         
77,939
 
Deferred lease liability
    
46,385
   
-
         
46,385
 
Total long term liabilities
    
2,354,197
   
(2,229,873
)
        
124,324
 
Commitments and Contingencies
   
-
   
-
         
-
 
Minority Interest
    
-
   
-
         
-
 
Stockholders’ Equity :
                          
Preferred stock, par value $.001 per share; 15,000,000 shares authorized; none issued and outstanding at June 30, 2006
    
-
   
-
         
-
 
Common stock, par value $.001 per share; 100,000,000 shares authorized; 49,390,618 issued and outstanding at June 30, 2006
    
49,391
   
4,201
   
(6)
 
  
53,592
 
Additional paid-in-capital
    
60,774,080
   
13,598,638
   
(6)
 
  
74,372,718
 
Accumulated deficit
    
(54,816,697
)
  
(9,998,404
)
  
(6)
 
  
(64,815,101
)
Stockholders’ equity
   
6,006,774
   
3,604,435
         
9,611,209
 
Total Liabilities And Stockholders’ Equity
  
$
20,614,287
  
$
(7,110,438
)
      
$
13,503,849
  

 
 
 
 
The proforma adjustments to the historical financial statements are:

(1)
Reflects the release of cash from restricted certificate of deposit for working capital purposes.
(2)
Reflects the disposition of the certificate of deposit through a drawdown on a letter of credit previously pledged as collateral for the Company’s obligations under the Senior Convertible Notes.
(3)
Reflects the write-off of financing costs in connection with repayment of the related Senior Convertible Notes.
(4)
Reflects an estimated accrued legal liability in connection with the negotiation and execution of the settlement agreements.
(5)
Reflects the amount paid to the lenders under the Notes, $6,500,000 was paid in cash through a drawdown on a letter of credit previously pledged as collateral for the Company’s obligations under the Notes. The balance of $ 6,428,314 was paid to the lenders in shares of Company’s common stock. Additionally, the Company wrote-off the unamortized debt discount attributed to the beneficial conversion feature and the value of the attached warrants in the amount of $740,542 and $1,457,899, respectively.
(6)
Reflects the impact of Stockholder’s Equity as follows:

 
 
  
Common Stock
  
Additional Paid in Capital
  
Accumulated Deficit
  
Total
  
                     
(a)
  
Issuance of common stock in exchange for convertible debentures
  
$
3,135
  
$
6,425,179
  
$
-
  
$
6,428,314
  
(b)
 
  
Issuance of common stock for certain premiums specified in the Notes and interest expense
   
1,066
   
2,004,963
   
(2,006,029
)
  
-
 
(c)
 
  
Estimated value of additional warrants issued in conjunction with exchange of convertible debentures
    
-
   
5,168,496
   
(5,168,496
)
  
-
 
(d)
 
  
Write-off the unamortized debt discount attributed to the beneficial conversion feature and the value of the attached warrants
    
-
   
-
   
(2,198,441
)
  
(2,198,441
)
(e)
 
  
Write-off of financing costs in connection with repayment of the related Senior Convertible Notes
    
-
   
-
   
(610,438
)
  
(610,438
)
(f)
  
Estimated accrued legal expenses
   
-
   
-
   
(15,000
)
  
(15,000
)
                               
       
$
4,201
  
$
13,598,638
  
$
(9,998,404
)
$
3,604,435
  


The final costs are subject to adjustment based upon an updated warrant valuation (in consideration of the twenty trading days beginning on August 16, 2006) and professional fees.

The Company considered retroactive pro forma income statement presentation for the latest year and interim period. However, the Company deemed incorporating a proforma income statement will be misleading because a retroactive presentation cannot meaningfully or accurately depict what operating results would have been had the settlement agreement occurred as of January 1, 2005 or January 1, 2006.