statement of operations
| Consolidated Statement of Operations Data | |||||||||||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001 | 2000 | 1999 | 1998 | 1997 | ||
| Net revenues: | |||||||||||||||
| Licensing | $24,736,029 | $18,013,043 | $8,691,576 | $6,223,487 | $2,672,161 | $974,058 | $183,318 | $120,670 | $14,041 | $68,895 | $328,122 | $20,281 | |||
| Services | 1,314,763 | 875,836 | 118,239 | 83,473 | 444,220 | 44,406 | 18,833 | 65,343 | 310,573 | 430,724 | |||||
| Product | 7,160 | 3,350 | 121,974 | 192,506 | 4,400 | 167,234 | |||||||||
| Total net revenues | 26,050,792 | 18,888,879 | 8,809,815 | 6,306,960 | 3,116,381 | 1,018,464 | 209,311 | 189,363 | 446,588 | 692,125 | 332,522 | 187,515 | 47,681 | 23,659 | |
| Cost of sales: | |||||||||||||||
| Licensing | 1,177,114 | 876,723 | 736,429 | 781,675 | 700,766 | 682,179 | 133,468 | 39,361 | 4,857 | 7,701 | 55,344 | 15,538 | |||
| Services | 599,704 | 521,168 | 87,752 | 30,295 | 282,905 | 44,674 | 13,589 | 12,948 | 132,582 | 227,124 | |||||
| Hardware Products | 4,647 | 2,870 | 64,769 | 135,134 | 3,520 | 77,632 | |||||||||
| Total cost of sales | 1,776,818 | 1,397,891 | 824,181 | 811,970 | 983,671 | 726,853 | 151,704 | 55,179 | 202,208 | 369,959 | 58,864 | 93,170 | 37,488 | 12,947 | |
| Gross profit | 24,273,974 | 17,490,988 | 7,985,634 | 5,494,990 | 2,132,710 | 291,611 | 57,607 | 134,184 | 244,380 | 322,166 | 273,658 | 94,345 | 10,193 | 10,712 | |
| Operating expenses: | |||||||||||||||
| Selling, general and administrative | 18,092,489 | 12,992,715 | 16,375,372 | 15,222,896 | 12,598,389 | 11,560,039 | 12,255,427 | 12,698,682 | 19,188,046 | 24,184,317 | 26,553,634 | 16,749,276 | 11,945,273 | 9,557,198 | |
| Research and development | 10,288,460 | 7,825,058 | 11,701,776 | 10,557,937 | 8,486,368 | 6,937,618 | 6,852,754 | 7,384,708 | 12,009,713 | 17,691,051 | 20,866,055 | 10,697,971 | 6,247,105 | 4,715,334 | |
| Inventory provision | 1,114,442 | ||||||||||||||
| Amortization of Goodwill - [Indigo] | 1,720,632 | 573,544 | |||||||||||||
| Write-off of intangible and other impaired assets | 447,128 | 301,366 | 1,571,031 | 1,761,917 | |||||||||||
| Restructuring and other special charges | 726,280 | ||||||||||||||
| Write-off of goodwill - [2001: Indigo writeoff] | 2,284,570 | 769,886 | |||||||||||||
| In-process research & development - [Indigo] | 2,176,000 | ||||||||||||||
| Acquisition costs | 1,494,000 | ||||||||||||||
| Aladdin Technology license expense | 3,889,000 | ||||||||||||||
| Total Operating expenses | 28,380,949 | 20,817,773 | 28,525,276 | 25,780,833 | 21,084,7578 | 18,497,657 | 19,409,547 | 21,197,832 | 33,495,070 | 47,642,487 | 50,169,233 | 28,941,247 | 18,192,378 | 18,931,418 | |
| Operating loss | (4,106,975) | (3,326,785) | (20,539,642) | (20,285,843) | (18,952,047) | (18,206,406) | (19,351,940) | (21,063,648) | (33,250,690) | (47,320,321) | (49,895,575) | (28,846,902) | (18,182,185) | (18,920,706) | |
| Other income (expense): | |||||||||||||||
| Net interest and other income (expense) | (15,842) | (19,466) | (9,572) | 334,292 | 163,980 | 70,779 | 24,931 | 74,822 | 477,902 | 2,688,105 | 5,103,716 | (215,670) | (53,842) | (91,929) | |
| Equity in net losses of GlobalWave | (2,332,159) | (3,406,491) | |||||||||||||
| Loss on other than temporary decline in equity securities - [SSP investment writeoff] | (11,513,099) | (1,736,682) | |||||||||||||
| Gain on sale of marketable securities | 80,971 | 4,330,248 | 234,759 | 542,457 | |||||||||||
| Gain on termination of development contract - [shares of SSP accepted as payment] | 1,818,000 | ||||||||||||||
| Liquidated damages | (155,716) | ||||||||||||||
| Unrealized gain on decrease in value of warrant liability | 2,794 | 490,334 | 498,723 | 263,097 | |||||||||||
| Recovery of (Provision for loss on) officer note receivable | 999,518 | (999,518) | |||||||||||||
| ITG Technology License Fee | 1,250,000 | 2,750,000 | 1,000,000 | ||||||||||||
| License ITG Warrant Cost | (1,100,000) | ||||||||||||||
| Other income | 1,500 | 52,370 | (240,000) | ||||||||||||
| Total Other Income / (expense) | (15,842) | (19,466) | (9,572) | 334,292 | 166,774 | 643,584 | 4,853,902 | 1,468,850 | (10,216,715) | (1,380,736) | 2,239,682 | 794,330 | 1,596,158 | 908,071 | |
| Net loss | (4,122,817) | (3,346,251) | (20,549,214) | (19,951,551) | (18,785,273) | (17,562,462) | (14,498,038) | (19,594,798) | (43,467,405) | (48,701,057) | (47,655,893) | (28,052,572) | (16,586,027) | (18,012,635) | |
| Accretion of non-cash beneficial conversion feature on convertible preferred stock | (657,000) | ||||||||||||||
| Accrued dividends on preferred stock (including $5,485,000 of accretion of discount in 2003) | 5,697,518 | 13,239 | 108,863 | 809,982 | |||||||||||
| Assured incremental yield | 750,000 | 1,673,000 | |||||||||||||
| Net loss to common stockholders | ($4,122,817) | ($3,346,251) | ($21,206,214) | ($19,951,551) | ($18,785,273) | ($17,562,462) | ($14,498,038) | ($25,292,316) | ($43,467,405) | ($48,701,057) | ($47,655,893) | ($28,065,811) | ($17,444,890) | ($20,495,617) | |
| Loss per common share-basic and diluted | ($0.05) | ($0.05) | ($0.38) | ($0.43) | ($0.51) | ($0.63) | ($0.63) | ($1.36) | ($2.55) | ($2.92) | ($3.10) | ($2.19) | ($1.66) | ($2.65) | |
| Weighted average number of common shares outstanding during the period | 79,924,475 | 68,526,572 | 53,379,118 | 46,660,794 | 36,735,059 | 27,726,221 | 23,013,554 | 18,629,128 | 17,045,183 | 16,649,958 | 15,383,196 | 12,788,524 | 10,526,888 | 7,741,523 |