Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
3 Months Ended 9 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
Mar. 31, 2012
Net revenue (1) $ 108,000 [1] $ 594,000 [1] $ 700,000 [1] $ 3,009,000 [1]
Cost of sales 128,000 437,000 631,000 2,431,000
Gross profit (loss) (20,000) 157,000 69,000 578,000
Operating expenses:        
Selling and administrative expenses 574,000 405,000 1,975,000 1,279,000
Amortization of prepaid advisory fees 445,000 0 1,275,000 0
Research and development 280,000 244,000 806,000 392,000
Total operating expenses 1,299,000 649,000 4,056,000 1,671,000
Operating loss (1,319,000) (492,000) (3,987,000) (1,093,000)
Other income (expense):        
Change in fair value of warrant derivative liability 254,000 0 3,826,000 0
Interest expense, net (33,000) (4,000) (70,000) (46,000)
Net loss $ (1,098,000) $ (496,000) $ (231,000) $ (1,139,000)
Net loss per share - basic and diluted $ (0.02) $ (0.01) $ (0.01) $ (0.03)
Weighted average number of common shares outstanding - basic and diluted 47,003,583 37,714,514 46,345,053 37,714,514
[1] Includes sales to related parties of approximately $31,000 and $281,000 for the three months ended March 31, 2013 and 2012, respectively, and approximately $62,000 and $335,000 for the nine months ended March 31, 2013 and 2012, respectively.