Annual report pursuant to section 13 and 15(d)

3. Accrued Liabilities (Tables)

v2.4.0.6
3. Accrued Liabilities (Tables)
 12 Months Ended
Dec. 31, 2012
Accrued Liabilities Tables  
Schedule of Accrued Liabilities
    2012     2011  
Allowance for Sales Returns   $ 53,000     $ 84,000  
Distribution Arrangements Payable     217,858       236,420  
Deferred Revenue     110,177       –  
Royalties Payable     59,033       50,743  
Other Accrued Expenses     56,594       37,521  
Total Accrued Expenses   $ 496,662     $ 408,684  
Schedule of Derivative Instruments
    December 31, 2012     June 27, 2012    

Gain (Loss) on Derivative, 12 Months Ending
December 31, 2012

  
Conversion feature of the June 27, 2012 Securities Purchase Agreement (see note 4)   $ 15,743     $ 269,284     $ (253,541 )
5,000,000 Warrants     49,491       –       49,491  
380,952 Warrants     3,728       –       3,728  
Total   $ 68,962     $ 269,284     $ (200,322 )
Assumptions for Fair market values of derivatives
    Conversion Feature     Warrants  
Risk-free interest rate     0.25%       0.73%  
Expected life in years     1.49       4.5  
Dividend yield     0       0  
Expected volatility     75.84%       70.00%