Date:11/24/2009

$ 46,470 $ 5,029 Accounts receivable, less allowance for doubtful accounts of $10,000 at September 30, 2009 and $5,000 at December 31, 2008 850,081 958,239 Inventories, net 504,801 633,212 Prepaid expenses and other current assets 40,852 45,161 Note receivable, officer 23,599 22,963 ------------------------------------------------------------------------- Total current assets 1,465,803 1,664,604 Property and equipment, net 114,322 131,920 Other assets 509,945 116,881 ------------------------------------------------------------------------- Total assets $ 2,090,070 $ 1,913,405 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities, Redeemable Convertible Preferred Stock and Stockholders' Deficit Current liabilities: Notes payable, banks $ - $ 4,970,000 Notes payable, shareholder 25,000 25,000 Notes payable, officers 55,964 56,069 Notes payable, other 8,028 - Accounts payable, trade 1,274,979 743,203 Accrued expenses and other current liabilities 385,618 350,348 Current portion of obligations under capital lease 5,888 5,888 Deferred revenue 30,027 22,382 ------------------------------------------------------------------------- Total current liabilities
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