For the Years Ended

December 31,

2014

2013

REVENUES

Equipment sales

$

101,119

$

253,463

Service revenue

92,962

25,000

Other revenue

6,120

34,017

     Total revenues

200,201

312,480

COST OF GOODS SOLD

113,251

188,002

GROSS PROFIT

86,950

124,478

EXPENSES:

Selling, general and administrative

2,844,784

3,072,383

Research and development

189,745

267,062

Loss on extinguishment of debt

822,205

-

Impairment of goodwill

390,659

-

Total expenses

4,247,393

3,339,445

LOSS FROM OPERATIONS

(4,160,443)

(3,214,967)

OTHER INCOME AND EXPENSE:

Interest income

249

2,394

Interest expense

(365,956)

(121,737)

     Total other income and expense

(365,707)

(119,343)

LOSS BEFORE INCOME TAXES

(4,526,150)

(3,334,310)

Income taxes

(100)

(50)

     NET LOSS

$

(4,526,250)

$

(3,334,360)

Preferred stock cumulative dividend and deemed dividend

1,502,891

21,302

Net loss attributable to common stockholders

$

(6,029,141)

$

(3,355,662)

Net loss per common share basic and diluted

$

(0.68)

$

(0.67)

Weighted average shares outstanding used in calculating net loss per common share

8,857,815

5,037,405