December
31,
2009

December
31,
2008

ASSETS

Current Assets:

Cash and cash equivalents

$

2,663,000

$

4,328,000

Assets held for sale

—

299,000

Deferred financing costs, net of accumulated amortization of $238,000 and $213,000, respectively

—

25,000

Prepaid expenses and other current assets

1,430,000

958,000

Total Current Assets

4,093,000

5,610,000

Property and equipment, net

324,000

1,447,000

Other assets

36,000

259,000

TOTAL ASSETS

$

4,453,000

$

7,316,000

LIABILITIES AND STOCKHOLDERS’ DEFICIENCY

Current Liabilities:

Secured convertible notes payable, net of unamortized discount of zero and $403,000, respectively

$

—

$

3,597,000

Accounts payable

195,000

654,000

Accrued expenses and other current liabilities

117,000

924,000

Current portion of deferred revenue

4,266,000

266,000

Current portion of capital lease obligations

10,000

122,000

Total Current Liabilities

4,588,000

5,563,000

Non-current portion of deferred revenue

4,202,000

4,468,000

Non-current portion of capital lease obligations

4,000

26,000

Total Liabilities

8,794,000

10,057,000

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS’ DEFICIENCY

Preferred stock, $.001 par value:

Authorized 1,000,000 shares, none issued

—

—

Common stock, $.001 par value:

Authorized 200,000,000 shares, Issued 88,343,457 and 60,692,260 at December 31, 2009 and 2008, respectively

89,000

60,000

Additional paid-in capital

78,342,000

72,034,000

Accumulated deficit

(82,766,000

)

(74,829,000

)

Less: Treasury stock, at cost, 3,012 shares

(6,000

)

(6,000

)

Total Stockholders’ Deficiency

(4,341,000

)

(2,741,000

)

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIENCY

$

4,453,000

$

7,316,000