Quarterly report pursuant to sections 13 or 15(d)

3. Accrued Liabilities (Tables)

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3. Accrued Liabilities (Tables)
 6 Months Ended
Jun. 30, 2013
Payables and Accruals [Abstract]  
Other accrued liabilities

 

    6/30/2013     12/31/2012  
Allowance for Sales Returns   $ 43,000     $ 53,000  
Distribution Arrangements Payable     179,572       217,858  
Deferred Revenue     53,830       110,177  
Royalties Payable     32,943       59,033  
Other Accrued Expenses     22,179       56,594  
Total Accrued Expenses   $ 331,524     $ 496,662  
Derivative liability activity

 

  June 30, 2013     December 31, 2012     (Gain) Loss on Derivative, 6 Months Ending
June 30, 2013		  
Conversion feature of the June 27, 2012 Securities Purchase Agreement (see note 4)   $ 11,630     $ 15,743     $ (4,113 )
5,000,000 Warrants     43,279       49,491       (6,212 )
380,952 Warrants     3,296       3,728       (432 )
Total   $ 58,205     $ 68,962     $ (10,757 )

 
Fair market values of the Company's derivatives

 

Fair market values of the Company's derivatives as of June 30, 2013 were based on the Black Scholes valuation using the following assumptions:                        

 

    Conversion Feature     Warrants  
Risk-free interest rate     0.15%       0.66%  
Expected life in years     .99       3.99  
Dividend yield     0       0  
Expected volatility     72.79%       62.12%