x
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QUARTERLY
REPORT PURSUANT TO SECTION 13 or 15(d) OF
THE SECURITIES EXCHANGE ACT OF
1934
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o
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TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE EXCHANGE ACT
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Florida
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59-2971472
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(State
or other jurisdiction of
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I.R.S.
Employer ID No.
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incorporation
or organization)
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Large
accelerated filer o
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Accelerated
filer x
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Non-accelerated
filer o
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March
31,
2007
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December
31, 2006
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||||||
CURRENT
ASSETS:
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|||||||
Cash
and cash equivalents
|
$
|
19,016,213
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$
|
13,225,528
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|||
Prepaid
expenses
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870,492
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1,025,132
|
|||||
Other
current assets
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141,218
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121,903
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|||||
Total
current assets
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20,027,923
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14,372,563
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|||||
PROPERTY
AND EQUIPMENT, net
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1,969,327
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2,094,300
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|||||
OTHER
ASSETS, net
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10,188,747
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10,208,484
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|||||
Total
assets
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$
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32,185,997
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$
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26,675,347
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|||
CURRENT
LIABILITIES:
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|||||||
Accounts
payable
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$
|
338,732
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$
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382,489
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|||
Accrued
expenses:
|
|
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|||||
Salaries
and wages
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450,826
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328,817
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|||||
Professional
fees
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268,251
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231,372
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|||||
Other
accrued expenses
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329,747
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116,713
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|||||
Total
current liabilities
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1,387,556
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1,059,391
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|||||
DEFERRED
RENT
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412,757
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433,340
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|||||
Total
liabilities
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1,800,313
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1,492,731
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|||||
COMMITMENTS
AND CONTINGENCIES
(Notes
7, 8, 9 and 10)
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|||||||
SHAREHOLDERS'
EQUITY:
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|||||||
Common
stock, $.01 par value, 100,000,000 shares
authorized,
24,473,826 and 23,387,566 shares issued
and
outstanding at March 31, 2007 and December 31,
2006,
respectively
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244,738
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233,876
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|||||
Warrants
outstanding
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20,074,228
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20,290,878
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|||||
Additional
paid-in capital
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163,933,626
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154,056,663
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|||||
Accumulated
deficit
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(153,866,908
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)
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(149,398,801
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)
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|||
Total
shareholders' equity
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30,385,684
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25,182,616
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|||||
Total
liabilities and shareholders' equity
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$
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32,185,997
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$
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26,675,347
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Three
months ended March 31,
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|||||||
2007
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2006
|
||||||
Product
revenue
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$
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-
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$
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-
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|||
Cost
of goods sold
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-
|
-
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|||||
Gross
margin
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-
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-
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|||||
Research
and development expenses
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2,732,451
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2,557,768
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|||||
Marketing
and selling expenses
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666,823
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554,392
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|||||
General
and administrative expenses
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1,273,653
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1,389,240
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|||||
Total
operating expenses
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4,672,927
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4,501,400
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|||||
Interest
and other income
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204,820
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157,826
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|||||
Net
loss
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(4,468,107
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)
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(4,343,574
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)
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|||
Unrealized
gain on securities
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-
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1,006
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|||||
Comprehensive
loss
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$
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(4,468,107
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)
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$
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(4,342,568
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)
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|
Basic
and diluted net loss per common share
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$
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(0.19
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)
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$
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(0.19
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)
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Three
Months Ended
March
31,
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|||||||
2007
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2006
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||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
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|||||||
Net
loss
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$
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(4,468,107
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)
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$
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(4,343,574
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)
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Adjustments
to reconcile net loss to net cash
used
in operating activities:
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|||||||
Depreciation
and amortization
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408,512
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478,728
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|||||
Stock-based
compensation
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495,425
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655,384
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|||||
Loss
on disposal of equipment
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769
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-
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|||||
Changes
in operating assets and liabilities
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|||||||
Accounts
receivable, net
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-
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14,184
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|||||
Prepaid
expenses and other assets
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96,122
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29,137
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|||||
Accounts
payable and accrued expenses
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326,121
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255,404
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|||||
Deferred
rent
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(18,539
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)
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-
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||||
Total
adjustments
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1,308,410
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1,432,837
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|||||
Net
cash used in operating activities
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(3,159,697
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)
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(2,910,737
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)
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|||
CASH
FLOWS FROM INVESTING ACTIVITIES:
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|||||||
Proceeds
from maturity/sale of investments
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-
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295,000
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|||||
Payments
for patent costs and other intangible assets
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(179,486
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)
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(332,318
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)
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|||
Purchases
of property and equipment
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(61,485
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)
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(5,104
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)
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|||
Net
cash used in investing activities
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(240,971
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)
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(42,422
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)
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|||
CASH
FLOWS FROM FINANCING ACTIVITIES:
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|||||||
Net
proceeds from issuance of common stock
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9,191,353
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16,297,430
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|||||
Net
cash provided by financing activities
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9,191,353
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16,297,430
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|||||
NET
INCREASE IN CASH AND CASH EQUIVALENTS
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5,790,685
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13,344,271
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|||||
CASH
AND CASH EQUIVALENTS, beginning of period
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13,225,528
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10,273,635
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|||||
CASH
AND CASH EQUIVALENTS, end of period
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$
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19,016,213
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$
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23,617,906
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March
31, 2007
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||||||||||
Gross
Carrying Amount
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Accumulated
Amortization
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Net
Value
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||||||
Patents
and copyrights
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$
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13,605,640
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$
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3,881,550
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$
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9,724,090
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||||
Prepaid
licensing fees
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705,000
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654,000
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51,000
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|||||||
Deposits
and other
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413,657
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-
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413,657
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|||||||
$
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14,724,297
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$
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4,535,550
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$
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10,188,747
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December
31, 2006
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||||||||||
Gross
Carrying Amount
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|
Accumulated
Amortization
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|
Net
Value
|
||||||
Patents
and copyrights
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$
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13,426,154
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$
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3,706,477
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$
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9,719,677
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||||
Prepaid
licensing fees
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705,000
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606,250
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98,750
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|||||||
Deposits
and other
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390,057
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0
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390,057
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|||||||
$
|
14,521,211
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$
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4,312,727
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$
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10,208,484
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Three
months ended
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|||||||
March
31, 2007
|
March
31, 2006
|
||||||
Research
and development expense
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$
|
162,758
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$
|
259,197
|
|||
Sales
and marketing expense
|
102,469
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118,092
|
|||||
General
and administrative expense
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230,198
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278,095
|
|||||
Total
share-based expense
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$
|
495,425
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$
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655,384
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Three
months ended March 31, 2007
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Expected
volatility
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68.68%
- 72.87%
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Risk
free interest rate
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4.68%
- 4.71%
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Expected
life
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4
-
7 years
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Dividend
yield
|
-
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|
Shares
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Weighted-Average
Exercise
Price
|
Weighted-Average
Remaining Contractual Term
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Aggregate
Intrinsic Value ($)
|
|||||||||
Outstanding
at January 1, 2007
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5,109,590
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$
|
20.38
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||||||||||
Granted
|
66,517
|
9.89
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|||||||||||
Exercised
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(46,100
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)
|
7.91
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$
|
196,533
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||||||||
Expired
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(203,700
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)
|
14.18
|
||||||||||
Outstanding
at March 31, 2007
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4,926,307
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$
|
20.62
|
4.24
years
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$
|
11,852,899
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|||||||
Exercisable
at March 31, 2007
|
3,959,319
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$
|
23.73
|
3.76
years
|
$
|
6,685,257
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Shares
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Weighted-Average
Grant-Date
Fair
Value
|
||||||
Nonvested
at January 1, 2007
|
928,053
|
$
|
4.82
|
||||
Granted
|
66,517
|
6.65
|
|||||
Vested
|
(27,582
|
)
|
5.04
|
||||
Nonvested
at March 31, 2007
|
966,988
|
$
|
4.94
|
|
Shares
|
Weighted-Average
Exercise
Price
|
Weighted-Average
Remaining Contractual Term
|
Aggregate
Intrinsic Value ($)
|
|||||||||
Outstanding
at January 1, 2007
|
2,570,736
|
$
|
25.26
|
||||||||||
Exercised
|
(50,000
|
)
|
9.00
|
$
|
210,500
|
||||||||
Outstanding
at March 31, 2007
|
2,520,736
|
$
|
25.59
|
3.97
|
$
|
5,615,308
|
|||||||
Exercisable
at March 31, 2007
|
2,520,736
|
$
|
25.59
|
3.97
|
$
|
5,615,308
|
Date
of sale
|
|
Title
of security
|
|
Number
sold
|
|
Consideration
received and description of underwriting or other discounts to market
price afforded to purchasers
|
|
Exemption
from registration claimed
|
|
If
option, warrant or convertible security, terms of exercise or
conversion
|
2/15/07
|
Options
to purchase common stock granted to employees pursuant to the 2000
Plan
|
65,250
|
Option
granted - no consideration received by Company until exercised
|
4(2)
|
Options
vest over three years and remain exercisable for seven years from
the
grant date at an exercise price of $9.89 per share.
|
|||||
2/15/07
|
Options
to purchase common stock granted to employee pursuant to the 2000
Plan
|
1,267
|
Option
granted - no consideration received by Company until exercised
|
4(2)
|
Options
vest immediately and remain exercisable for seven years from the
grant
date at an exercise price of $9.89 per share.
|
|||||
2/23/07
|
Common
Stock
|
992,441
|
Received
net proceeds of $8.4 million
|
4(2)
|
n/a
|
|||||
3/30/07
|
Common
Stock
|
47,719
|
Received
proceeds of $419,625
|
4(2)
|
Exercise
of warrants issued in connection with private placement transaction
in
March 2005.
|
1.
|
Form
8-K, dated May 2, 2007. Item 1.01 - Entry into a Material Definitive
Agreement. Intellectual property licensing and engineering services
agreement with ITT Corporation.
|
ParkerVision,
Inc.
Registrant
|
||
|
|
|
May 9, 2007 | By: | /s/ Jeffrey L. Parker |
Jeffrey
L. Parker
Chairman
and Chief Executive Officer
|
|
|
|
May 9, 2007 | By: | /s/ Cynthia L. Poehlman |
Cynthia
L. Poehlman
Chief
Financial Officer
|