Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2012

Accounting Policies [Abstract]

The assumptions used to value options granted

During years ended December 31, 2012, 2011 and 2010, the Company recorded income of $6,995,099, $556,662 and losses of $5,229,089, respectively, to adjust the value of the stock warrant liability to market.

	2012		2011		2010
Stock Price	$0.64		$2.50		$2.27
Exercise Price	$1.52		$1.52		$1.52
Risk free interest rate	0.25	%	0.36	%	2.01	%
Expected term	2.25		3.25		4.25
Dividend yield	—		—		—
Expected volatility	103.1	%	83.24	%	95.89	%

The assumptions used to value options granted are as follows:

	2012		2011		2010
Risk free interest rate	0.82	%	2.11	%	1.38	%
Expected term	4.75 years		4.75 years		4.75 years
Dividend yield	—		—		—
Expected volatility	93.57	%	92.72	%	92.45	%

Schedule of inventory

Inventories consist of the following:

	December 31,
	2012		2011
Raw materials	$	685,578	$	1,243,523
Work in process	1,308,399		825,466
Finished goods	632,629		1,566,741
Total	$	2,626,606	$	3,635,730

Schedule of useful lives or property and equipment

Depreciation is computed on the straight-line basis over the estimated useful lives of the respective assets, as follows:

	Years
Software	3
Machinery and equipment	3.5-10
Furniture and fixtures	5

The calculation of basic and diluted income (loss) per common and common equivalent share

calculation of basic and diluted income (loss) per common and common equivalent share is as follows:

	Years Ended December 31,
	2012			2011			2010
INCOME (LOSS) PER SHARE -Basic
NET INCOME (LOSS)	$	9,917,273		$	20,527,192		$	(21,830,682	)
Less: Preferred stock dividends	(29,334		)	(30,000		)	(30,000		)
NET INCOME (LOSS) APPLICABLE TO
COMMON STOCK	$	9,887,939		$	20,497,192		$	(21,860,682	)
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING: Basic:	87,315,808			86,325,350			73,462,937
NET INCOME (LOSS) PER COMMON SHARE: Basic	$	0.11		$	0.24		$	(0.30	)
INCOME (LOSS) PER SHARE -Diluted
NET INCOME (LOSS) APPLICABLE TO
COMMON STOCK	$	9,887,939		$	20,497,192		$	(21,860,682	)
Add: Preferred stock dividends	29,334			30,000			—
Less: Fair value of stock warrants for dilutive warrants	(6,995,099		)	(556,662		)	—
NET INCOME (LOSS) APPLICABLE TO
DILUTIVE COMMON STOCK	$	2,922,174		$	19,970,530		$	(21,860,682	)
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING: Basic:	87,315,808			86,325,350			73,462,937
Effect of dilutive securities
Dilutive stock awards	48,866			1,357,712			—
Dilutive warrants	—			2,855,848			—
Dilutive preferred share conversions	1,139,600			2,010,243			—
	1,188,466			6,223,803			—
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING - Diluted:	88,504,274			92,549,153			73,462,937
NET INCOME (LOSS) PER COMMON SHARE: Diluted	$	0.03		$	0.22		$	(0.30	)

Schedule of accrued expenses

Accrued expenses consist of the following:

	December 31,
	2012		2011
Sales returns	$	483,865	$	1,429,597
Salaries	328,503		927,621
Severance costs	905,872		—
Professional fees	253,987		474,464
Royalties/Other	244,297		184,914
Total	$	2,216,524	$	3,016,596

The components of accumulated other comprehensive income

The components of accumulated other comprehensive income includes:

	December 31,
	2012		2011
Cumulative translation adjustment	$	186,001	$	182,883
Unrealized gain (loss) on short term investments	97,220		(77,981		)
Accumulated other comprehensive income (loss)	$	283,221	$	104,902

Reve

An analysis of the reserve for sales

An analysis of the reserve for sales returns follows:

	2012			2011			2010
Balance at beginning of year	$	1,429,597		$	2,663,648		$	1,883,623
Provision:
Related to current period sales	—			52,487			934,190
Related to prior period sales	(625,452		)	305,800			847,427
	(625,452		)	358,287			1,781,617
Returns:
Related to current period sales	—			—			(62,061		)
Related to 2006 Crinone® purchase	—			—			—
Related to prior period sales	(320,280		)	(1,592,338		)	(939,531		)
	(320,280		)	(1,592,338		)	(1,001,592		)
Balance at end of period	$	483,865		$	1,429,597		$	2,663,648