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CONDENSED STATEMENTS OF CASH FLOWS (USD $)
6 Months Ended
Jun. 30, 2011
Jun. 30, 2010
Operating activities    
Net loss $ (1,320,437) $ (1,614,563)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Stock-based compensation 360,161 320,143
Depreciation and amortization 207,607 270,804
Amortization of debt discount to interest expense 468,956  
Non cash interest expense on convertible note 4,244  
Deferred income tax expense 15,970  
Changes in operating assets and liabilities:    
Accounts receivable (711,501) (206,701)
Inventories 501,523 447,554
Prepaid expenses and other current assets (65,651) (53,494)
Other assets 48,055 14,334
Accounts payable 309,930 909,048
Accrued payroll and related expenses 13,135 (122,218)
Deferred income on shipments to distributors 118,555 46,762
Deferred service revenue (68,174) 13,918
Change in deferred rent (5,964) (14,049)
Net cash provided by (used in) operating activities (123,591) 11,538
Investing activities    
Purchases of equipment (40,488) (106,683)
Net cash used in investing activities (40,488) (106,683)
Financing activities    
Payments on capital leases (6,439) (6,064)
Reduction in restricted cash requirement 710,797  
Proceeds from borrowings under bank line of credit agreement   3,606,823
Repayments of borrowings under bank line of credit agreement   (3,463,858)
Stock options exercised 14,118 10,020
Net cash provided by financing activities 718,476 146,921
Net increase in cash and cash equivalents 554,397 51,776
Cash and cash equivalents at beginning of period 460,833 1,940,295
Cash and cash equivalents at end of period 1,015,230 1,992,071
Supplemental cash flow information    
Cash paid for interest 32,572 101,903
Issuance of common stock in exchange for forgiveness of accounts payable due 499,998  
Beneficial conversion feature associated with senior convertible note payable 273,904  
Conversion of senior convertible note payable and accrued interest to Common Stock $ 229,244