Annual report pursuant to section 13 and 15(d)

Statements of Operations

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Statements of Operations (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Revenue:    
Product leases and royalties $ 8,077,763 $ 7,144,744
Product sales and service 140,835 77,806
Total revenue 8,218,598 7,222,550
Costs and expenses:    
Costs of ancillary products and assembled components 106,030 70,205
Selling, general and administrative 4,217,252 4,113,502
Research and development 466,906 332,536
Depreciation 45,562 50,488
Amortization 1,588,905 1,564,969
Impairment of intangible assets 150,000   
Total costs and expenses 6,574,655 6,131,700
Income from operations 1,643,943 1,090,850
Other income (expenses)    
Interest income 23,259 21,600
Interest expense (1,034,118) (882,547)
Gain on settlement    50,000
Total other income (expense) (1,010,859) (810,947)
Income before provision for income taxes 633,084 279,903
Provision for income taxes (69,767) 341,823
Net income $ 563,317 $ 621,726
Basic earnings per share $ 0.01 $ 0.02
Diluted earnings per share $ 0.01 $ 0.02
Weighted average number of shares outstanding, Basic 38,310,591 38,109,966
Weighted average number of shares outstanding, Diluted 38,310,591 38,310,591