Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $)

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CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $) (USD $)
Sep. 30, 2013
Dec. 31, 2012
ASSETS    
Cash and cash equivalents $ 799,473 $ 1,163,758
Restricted cash on deposit 382,000 0
Accounts receivable, net 1,768,505 3,026,107
Inventories 861,843 654,912
Prepaid expenses 88,490 189,879
Total current assets 3,900,311 5,034,656
Property and equipment, net 42,213 35,898
Goodwill 8,570,446 8,570,446
Intangible assets, net 1,319,037 1,500,297
Deposits 34,238 34,238
Total other assets 9,923,721 10,104,981
Total Assets 13,866,245 15,175,535
LIABILITIES AND STOCKHOLDERS' EQUITY    
Accounts payable 1,678,567 1,967,030
Notes payable - current 262,532 74,611
Accrued liabilities and expenses 2,182,107 2,342,047
Deferred revenues 207,390 117,556
Customer deposits 466,698 118,763
Total current liabilities 4,797,294 4,620,007
Deferred lease liability 131,991 133,609
Notes payable - long term 462,308 813,928
Deferred income taxes 292,953 0
Total long-term liabilities 887,252 947,537
15,000,000 shares authorized, par value $.001 per share 0 0
Total redeemable preferred stock 1,440,948 3,265,589
Commitments and contingencies      
Stockholders' Equity    
Common stock, par value $.001 per share; 190,000,000 shares authorized; 125,035,612 and 108,103,001 shares issued and outstanding at September 30, 2013 and December 31, 2012, 125,035 108,103
Additional paid-in-capital 126,083,666 124,188,415
Accumulated deficit (119,467,950) (117,954,116)
Total stockholders' equity 6,740,751 6,342,402
Total Liabilities and Stockholders' Equity 13,866,245 15,175,535
Series A Preferred Stock
   
LIABILITIES AND STOCKHOLDERS' EQUITY    
Preferred stock issued value 1,129,457 [1] 1,041,837 [1]
Series B Preferred Stock
   
LIABILITIES AND STOCKHOLDERS' EQUITY    
Preferred stock issued value $ 311,491 [2] $ 2,223,752 [2]
[1] Series A; 215 shares issued, 185 shares outstanding at September 30, 2013 and December 31, 2012, respectively, preference in liquidation of $1,211,172 and $1,176,076 as of September 30, 2013 and December 31, 2012, respectively
[2] Series B; 538 shares issued, 55 and 493 shares outstanding at September 30, 2013 and December 31, 2012, respectively, preference in liquidation of $344,453 and $2,884,833 as of September 30, 2013 and December 31, 2012, respectively