Prepaid Expenses And Other Current Assets

9 Months Ended

Sep. 30, 2013

Prepaid Expenses And Other Current Assets [Abstract]

Prepaid Expenses And Other Current Assets

4. Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following:

	September 30, 2013	December 31, 2012
Prepaid expenses	$        252,793	$       330,756
Deferred cost of revenue	147,000	527,725
Derivative asset	—	1,736
Deferred financing costs	694,630	1,590,916
Deposits	823,989	1,040,934
Total prepaid expenses and other current assets	$     1,918,412	$    3,492,067

Deferred cost of revenue represents the cost of systems for which title has transferred from the Company but for which revenue has not been recognized.

The derivative asset represents the fair value of a debt conversion feature that is part of the subordinated convertible debentures agreement.  Refer to Notes 9 and 11 for discussion of the debentures and fair value measurement, respectively.