----

----

| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|

| Delaware                        | 36-3680347          |
|---------------------------------|---------------------|
| (State or other jurisdiction of | (I.R.S. Employer    |
| incorporation or organization)  | Identification No.) |

----

----

----

|       |                                                                                        | Page   |
|------------|---------------------------------------------------------------------------------------------|--------|
|       |                                                                                        |   |
| PART I     | Financial Information                                                                       | 2      |
|       |                                                                                        |   |
| ITEM 1.    | Financial Statements                                                                        | 2      |
| ITEM 2.    | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 26     |
| ITEM 3.    | Quantitative and Qualitative Disclosures About Market Risk                                  | 31     |
| ITEM 4.    | Controls and Procedures                                                                     | 31     |
|       |                                                                                        |   |
| PART II    | Other Information                                                                           | 33     |
|       |                                                                                        |   |
| ITEM 1.    | Legal Proceedings                                                                           | 33     |
| ITEM 1A.   | Risk Factors                                                                                | 33     |
| ITEM 2.    | Unregistered Sales of Equity Securities and Use of Proceeds                                 | 33     |
| ITEM 3.    | Defaults Upon Senior Securities                                                             | 34     |
| ITEM 4.    | (Removed and Reserved)                                                                      | 34     |
| ITEM 5.    | Other Information                                                                           | 34     |
| ITEM 6.    | Exhibits                                                                                    | 35     |
|       |                                                                                        |   |
| Signatures | 45                                                                                          |

----

|                                                                                     |   | March 31, |     |   | December 31, |   |
|------------------------------------------------------------------------------------------|--------|----------------|----------|--------|-------------------|--------|
|                                                                                     |   | 2011           |     |   | 2010              |   |
|                                                                                     |   | (unaudited)    |     |   |              |   |
| ASSETS                                                                                   |   |           |     |   |              |   |
| Current assets:                                                                          |   |           |     |   |              |   |
| Cash and cash equivalents                                                                |   | $              | 49       |   |              | $      | 80 |   |
| Trade accounts receivable, net of allowance of $5 and $0                                 |   |           | 299      |   |              |   | 345 |   |
| Inventories, net of allowance of $121 and $114                                           |   |           | 118      |   |              |   | 112 |   |
| Prepaid expenses and other current assets                                                |   |           | 134      |   |              |   | 151 |   |
| Total current assets                                                                     |   |           | 600      |   |              |   | 688 |   |
|                                                                                     |   |           |     |   |              |   |   |   |
| Property and equipment, net                                                              |   |           | 90       |   |              |   | 96 |   |
| Goodwill                                                                                 |   |           | 3,418    |   |              |   | 3,418 |   |
| Proprietary software, net                                                                |   |           | 1,250    |   |              |   | 1,414 |   |
| Patents and other intangible assets, net                                                 |   |           | 1,976    |   |              |   | 2,048 |   |
| Cash surrender value of life insurance policies                                          |   |           | 759      |   |              |   | 738 |   |
| Other long-term assets                                                                   |   |           | 171      |   |              |   | 171 |   |
| Total assets                                                                             |   | $              | 8,264    |   |              | $      | 8,573 |   |
|                                                                                     |   |           |     |   |              |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ DEFICIT                                              |   |           |     |   |              |   |   |   |
| Current liabilities:                                                                     |   |           |     |   |              |   |   |   |
| Accounts payable                                                                         |   | $              | 365      |   |              | $      | 435 |   |
| Taxes payable                                                                            |   |           | 48       |   |              |   | 126 |   |
| Accrued expenses                                                                         |   |           | 9,654    |   |              |   | 9,413 |   |
| Deferred revenues and customer prepayments                                               |   |           | 2,198    |   |              |   | 1,417 |   |
| Note payable                                                                             |   |           | 29       |   |              |   | 69 |   |
| Accrued purchase price guarantee                                                         |   |           | 4,535    |   |              |   | 4,535 |   |
| Deferred tax liability                                                                   |   |           | 706      |   |              |   | 706 |   |
| Derivative financial instruments - warrants                                              |   |           | 673      |   |              |   | 2,213 |   |
| Derivative financial instruments - Series C and D preferred stock and debentures payable |   |           | 22,482   |   |              |   | 28,092 |   |
| Debentures payable - carried at amortized cost                                           |   |           | 14,724   |   |              |   | 14,560 |   |
| Debentures payable - carried at fair value                                               |   |           | 24,013   |   |              |   | 27,484 |   |
| Total current liabilities                                                                |   |           | 79,427   |   |              |   | 89,050 |   |
|                                                                                     |   |           |     |   |              |   |   |   |
| Commitments and contingencies (Note 6)                                                   |   |           |     |   |              |   |   |   |
|                                                                                     |   |           |     |   |              |   |   |   |
| Series C convertible preferred stock, $0.01 par value, 27,000                            |   |           |     |   |              |   |   |   |
| shares authorized, 7,521 and 8,336 shares issued and outstanding,                   |   |           |     |   |              |   |   |   |
| liquidation value of $7,521 and $8,336                                                   |   |           | 7,521    |   |              |   | 8,336 |   |
| Series D convertible preferred stock, $0.01 par value, 25,000                            |   |           |     |   |              |   |   |   |
| shares authorized, 25,000 and 25,000 shares issued and outstanding,                      |   |           |     |   |              |   |   |   |
| liquidation value of $2,500 and $2,500                                                   |   |           | 2,500    |   |              |   | 2,500 |   |
|                                                                                     |   |           |     |   |              |   |   |   |
| Shareholders’ deficit:                                                             |   |           |     |   |              |   |   |   |
| Common stock, $0.001 par value, 5,000,000,000 shares authorized, 58,435,344 and          |   |           |     |   |              |   |   |   |
| 25,695,392 shares issued and 58,418,930 and 25,678,978 shares                            |   |           |     |   |              |   |   |   |
| outstanding, respectively                                                                |   |           | 58       |   |              |   | 26 |   |
| Additional paid-in capital                                                               |   |           | 155,289  |   |              |   | 153,974 |   |
| Accumulated deficit                                                                      |   |           | (235,604 | )      |              |   | (244,395 | ) |
| Accumulated other comprehensive loss                                                     |   |           | (148     | )      |              |   | (139 | ) |
| Treasury stock, at cost, 2,012 shares of common stock                                    |   |           | (779     | )      |              |   | (779 | ) |
| Total shareholders’ deficit                                                        |   |           | (81,184  | )      |              |   | (91,313 | ) |
| Total liabilities and shareholders’ deficit                                        |   | $              | 8,264    |   |              | $      | 8,573 |   |

----

|                                                              |   | Three Months Ended |          |
|-------------------------------------------------------------------|--------|------------------------------|---------------|
|                                                              |   | March 31,               |          |   | March 31, |   |
|                                                              |   | 2011                         |          |   | 2010 |   |
|                                                              |   |                         |          |   |   |   |
| Revenues                                                          |   | $                            | 369           |   |   | $ | 355 |   |
| Cost of revenues                                                  |   |                         | 238           |   |   |   | 339 |   |
| Gross profit                                                      |   |                         | 131           |   |   |   | 16 |   |
|                                                              |   |                         |          |   |   |   |   |   |
| Sales and marketing expenses                                      |   |                         | 316           |   |   |   | 319 |   |
| General and administrative expenses                               |   |                         | 794           |   |   |   | 1,095 |   |
| Research and development costs                                    |   |                         | 401           |   |   |   | 283 |   |
|                                                              |   |                         |          |   |   |   |   |   |
| Operating loss                                                    |   |                         | (1,380        | ) |   |   | (1,681 | ) |
|                                                              |   |                         |          |   |   |   |   |   |
| Loss on extinguishment of debt                                    |   |                         | -             |   |   |   | (5,643 | ) |
| Gain from change in fair value of hybrid financial instruments    |   |                         | 2,471         |   |   |   | 18,372 |   |
| Gain from change in fair value of derivative liability - warrants |   |                         | 1,782         |   |   |   | 6,551 |   |
| Gain from change in fair value of derivative liability -          |   |                         |          |   |   |   |   |   |
| Series C and D preferred stock and debentures                     |   |                         | 6,671         |   |   |   | 40,179 |   |
| Interest expense related to convertible debt                      |   |                         | (753          | ) |   |   | (446 | ) |
|                                                              |   |                         |          |   |   |   |   |   |
| Net income                                                        |   |                         | 8,791         |   |   |   | 57,332 |   |
|                                                              |   |                         |          |   |   |   |   |   |
| Dividends on convertible preferred stock                          |   |                         | -             |   |   |   | (2,500 | ) |
|                                                              |   |                         |          |   |   |   |   |   |
| Net income attributable to common shareholders                    |   |                         | 8,791         |   |   |   | 54,832 |   |
|                                                              |   |                         |          |   |   |   |   |   |
| Comprehensive income (loss):                                      |   |                         |          |   |   |   |   |   |
| Net income                                                        |   |                         | 8,791         |   |   |   | 57,332 |   |
| Other comprehensive loss -                                        |   |                         |          |   |   |   |   |   |
| foreign currency translation adjustment                           |   |                         | (9            | ) |   |   | (24 | ) |
|                                                              |   |                         |          |   |   |   |   |   |
| Comprehensive income                                              |   | $                            | 8,782         |   |   | $ | 57,308 |   |
|                                                              |   |                         |          |   |   |   |   |   |
| Net income (loss) per share, basic and diluted:                   |   |                         |          |   |   |   |   |   |
| Basic                                                             |   | $                            | 0.20          |   |   | $ | 2.42 |   |
| Fully diluted                                                     |   | $                            | -             |   |   | $ | (0.04 | ) |
|                                                              |   |                         |          |   |   |   |   |   |
| Weighted average number of common shares:                         |   |                         |          |   |   |   |   |   |
| Basic                                                             |   |                         | 44,655,496    |   |   |   | 22,675,678 |   |
| Fully diluted                                                     |   |                         | 2,290,074,838 |   |   |   | 112,316,492 |   |

----

|                                                      |   |              |       |   |                                                                               |   |   | Accumulated Other    |   |   |        |   |   |                |   |   |   |   |
|----------------------------------------------------------------|--------|-------------------|------------|--------|------------------------------------------------------------------------------------|--------|--------|---------------------------|--------|--------|-------------|--------|--------|---------------------|--------|--------|--------|--------|
|                                                           |   | Common Stock |       |   |       Additional       |   |   | Comprehensive Income |   |   | Accumulated |   |   | Treasury Stock |   |   | Total  |   |
|                                                           |   | Shares            |       |   | Amount                                                                             |   |   | Paid-in Capital      |   |   | (Loss)      |   |   | Deficit             |   |   | Shares |   |   | Amount |   |   | Shareholders' Deficit |   |
| Balance, December 31, 2010                                     |   |              | 25,678,978 |   |                                                                               | $      | 26     |                      |   | $      | 153,974     |   |   | $                   | (139   | )      |   | $      | (244,395 | ) |   |   | 2,012 |   |   | $ | (779 | ) |   | $ | (91,313 | ) |
|                                                           |   |              |       |   |                                                                               |   |   |                      |   |   |        |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for acquisition of patent rights                 |   |              | 5,000,000  |   |                                                                               |   | 5      |                      |   |   | 345         |   |   |                | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 350 |   |
|                                                           |   |              |       |   |                                                                               |   |   |                      |   |   |        |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued upon conversions of Series C preferred stock     |   |              | 27,739,952 |   |                                                                               |   | 27     |                      |   |   | 943         |   |   |                | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 970 |   |
|                                                           |   |              |       |   |                                                                               |   |   |                      |   |   |        |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock-based compensation expense                               |   |              | -          |   |                                                                               |   | -      |                      |   |   | 27          |   |   |                | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 27 |   |
|                                                           |   |              |       |   |                                                                               |   |   |                      |   |   |        |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income - foreign currency translation adjustment |   |              | -          |   |                                                                               |   | -      |                      |   |   | -           |   |   |                | (9     | )      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (9 | ) |
|                                                           |   |              |       |   |                                                                               |   |   |                      |   |   |        |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                     |   |              | -          |   |                                                                               |   | -      |                      |   |   | -           |   |   |                | -      |   |   |   | 8,791 |   |   |   | - |   |   |   | - |   |   |   | 8,791 |   |
| Balance, March 31, 2011                                        |   |              | 58,418,930 |   |                                                                               | $      | 58     |                      |   | $      | 155,289     |   |   | $                   | (148   | )      |   | $      | (235,604 | ) |   |   | 2,012 |   |   | $ | (779 | ) |   | $ | (81,184 | ) |

----

|                                                                                 |   | Three Months Ended |   |
|--------------------------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                                 |   | March 31,               |   |
|                                                                                 |   | 2011                         |   |   | 2010 |   |
| Cash Flows from Operating Activities:                                                |   |                         |   |   |   |   |
| Net income                                                                           |   | $                            | 8,791  |   |   | $ | 57,332 |   |
| Adjustments to reconcile net income (loss) to net cash used in operating activities: |   |                         |   |   |   |   |   |   |
| Depreciation and amortization                                                        |   |                         | 246    |   |   |   | 268 |   |
| Loss on extinguishment of debt                                                       |   |                         | -      |   |   |   | 5,643 |   |
| (Gain) loss from change in fair value of hybrid financial instruments                |   |                         | (2,471 | ) |   |   | (18,372 | ) |
| (Gain) loss from change in fair value of derivative liability - warrants             |   |                         | (1,782 | ) |   |   | (6,551 | ) |
| (Gain) loss from change in fair value of derivative liability -                      |   |                         |   |   |   |   |   |   |
| Series C and D preferred stock and debentures                                        |   |                         | (6,671 | ) |   |   | (40,179 | ) |
| Interest expense related to convertible debt                                         |   |                         | 753    |   |   |   | 446 |   |
| Interest paid on convertible debt                                                    |   |                         | (1,000 | ) |   |   | - |   |
| Stock-based compensation expense                                                     |   |                         | 27     |   |   |   | 58 |   |
| Increase in value of life insurance policies                                         |   |                         | (21    | ) |   |   | - |   |
|                                                                                 |   |                         |   |   |   |   |   |   |
| Changes in operating assets and liabilities                                          |   |                         |   |   |   |   |   |   |
| Trade and other accounts receivable                                                  |   |                         | 46     |   |   |   | 105 |   |
| Inventories                                                                          |   |                         | (6     | ) |   |   | 21 |   |
| Prepaid expenses and other assets                                                    |   |                         | 17     |   |   |   | 200 |   |
| Accounts payable and accrued liabilities                                             |   |                         | (200   | ) |   |   | (609 | ) |
| Deferred revenue and other current liabilities                                       |   |                         | 781    |   |   |   | (160 | ) |
| Net cash used in operating activities                                                |   |                         | (1,490 | ) |   |   | (1,798 | ) |
|                                                                                 |   |                         |   |   |   |   |   |   |
|  Cash Flows from Investing Activities:                                          |   |                         |   |   |   |   |   |   |
|                                                                                 |   |                         |   |   |   |   |   |   |
| Acquisition of property and equipment                                                |   |                         | (4     | ) |   |   | (5 | ) |
| Net cash used in investing activities                                                |   |                         | (4     | ) |   |   | (5 | ) |
|                                                                                 |   |                         |   |   |   |   |   |   |
|  Cash Flows from Financing Activities:                                          |   |                         |   |   |   |   |   |   |
| Proceeds from issuance of Series D preferred stock                                   |   |                         | -      |   |   |   | 2,500 |   |
| Costs attributed to issuance of Series D convertible preferred stock                 |   |                         | -      |   |   |   | (100 | ) |
| Borrowing (repayment) of note payable - YA Global                                    |   |                         | -      |   |   |   | (500 | ) |
| Borrowings under convertible debt instruments, net                                   |   |                         | 1,460  |   |   |   | - |   |
| Net cash provided by financing activities                                            |   |                         | 1,460  |   |   |   | 1,900 |   |
|                                                                                 |   |                         |   |   |   |   |   |   |
| Effect of exchange rate changes on cash                                              |   |                         | 3      |   |   |   | (5 | ) |
|                                                                                 |   |                         |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                 |   |                         | (31    | ) |   |   | 92 |   |
|                                                                                 |   |                         |   |   |   |   |   |   |
| Cash and cash equivalents, beginning of period                                       |   |                         | 80     |   |   |   | 198 |   |
| Cash and cash equivalents, end of period                                             |   | $                            | 49     |   |   | $ | 290 |   |
|                                                                                 |   |                         |   |   |   |   |   |   |
| Supplemental cash flow information:                                                  |   |                         |   |   |   |   |   |   |
| Interest paid during the period                                                      |   | $                            | 1,001  |   |   | $ | 1 |   |
| Series C preferred stock converted to common stock                                   |   | $                            | 970    |   |   | $ | - |   |
| Deemed dividend on Series D preferred stock issued                                   |   | $                            | -      |   |   | $ | 2,500 |   |
| Shares issued for acquisition of pattent rights                                      |   | $                            | 350    |   |   | $ | - |   |

----

----

----

|                                                                   |   | Three Months Ended March 31,                            |          |
|------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|---------------|
|                                                                   |   | 2011                                                                        |          |   | 2010 |   |
|                                                                   |   | (in thousands except share and per sharedata) |          |
| Numerator:                                                             |   |                                                                        |          |   |   |   |
| Net income (loss)                                                      |   | $                                                                           | 8,791         |   |   | $ | 57,332 |   |
| Adjustments to reconcile net income to income (loss)                   |   |                                                                        |          |   |   |   |   |   |
| applicable to common stockholders:                                     |   |                                                                        |          |   |   |   |   |   |
| Accretion of preferred stock dividends                                 |   |                                                                        | -             |   |   |   | (2,500 | ) |
| Numerator for basic earnings per share - income available              |   |                                                                        |          |   |   |   |   |   |
| to common stockholders                                                 |   | $                                                                           | 8,791         |   |   | $ | 54,832 |   |
|                                                                   |   |                                                                        |          |   |   |   |   |   |
| Effect of dilutive securities:                                         |   |                                                                        |          |   |   |   |   |   |
| Adjustment for change in fair value of derivative liability-Series C   |   |                                                                        | (6,671        | ) |   |   | (40,179 | ) |
| and D preferred stock and debentures                                   |   |                                                                        |          |   |   |   |   |   |
| Adjustment for change in fair value of derivative liability- warrants  |   |                                                                        | (1,782        | ) |   |   | (6,551 | ) |
| Adjustment for loss on extinguishment of debt (excluding               |   |                                                                        |          |   |   |   |   |   |
| non-dilutive instrument)                                               |   |                                                                        | -             |   |   |   | 5,643 |   |
| Adjustment for change in fair value of hybrid financial instruments    |   |                                                                        | (2,471        | ) |   |   | (18,372 | ) |
| Adjustment for interest expense related to convertible debt (excluding |   |                                                                        |          |   |   |   | - |   |
| non-dilutive instrument)                                               |   |                                                                        | 751           |   |   |   | 446 |   |
|                                                                   |   |                                                                        | (10,173       | ) |   |   | (59,013 | ) |
| Numerator for diluted earnings per share-                              |   |                                                                        |          |   |   |   |   |   |
| income available for  common stockholders                    |   |                                                                        |          |   |   |   |   |   |
| after assumed conversions of debentures and                            |   |                                                                        |          |   |   |   |   |   |
| exercise of warrants                                                   |   | $                                                                           | (1,382        | ) |   | $ | (4,181 | ) |
|                                                                   |   |                                                                        |          |   |   |   |   |   |
| Denominator:                                                           |   |                                                                        |          |   |   |   |   |   |
| Weighted average shares used to compute basic EPS                      |   |                                                                        | 44,655,496    |   |   |   | 22,675,678 |   |
| Effect of dilutive securities:                                         |   |                                                                        |          |   |   |   |   |   |
| Employee stock options                                                 |   |                                                                        | 15,291        |   |   |   | - |   |
| Convertible debentures                                                 |   |                                                                        | 1,728,874,928 |   |   |   | 65,227,939 |   |
| Convertible preferred stock                                            |   |                                                                        | 516,529,123   |   |   |   | 24,412,875 |   |
| Dilutive potential common shares                                       |   |                                                                        | 2,245,419,342 |   |   |   | 89,640,814 |   |
|                                                                   |   |                                                                        |          |   |   |   |   |   |
| Denominator for diluted earnings per share-                            |   |                                                                        |          |   |   |   |   |   |
| adjusted weighted average shares and assumed                           |   |                                                                        |          |   |   |   |   |   |
| conversions                                                            |   |                                                                        | 2,290,074,838 |   |   |   | 112,316,492 |   |
|                                                                   |   |                                                                        |          |   |   |   |   |   |
| Basic net income (loss) per share                                      |   | $                                                                           | 0.20          |   |   | $ | 2.42 |   |
| Fully diluted loss per share                                           |   | $                                                                           | -             |   |   | $ | (0.04 | ) |

----

|          |   | As of March 31, |       |
|---------------|--------|--------------------------------|------------|
|          |   | 2011                           |       |   | 2010 |   |
| Stock options |   |                           | 901,878    |   |   |   | 927,909 |   |
| Warrants      |   |                           | 23,595,000 |   |   |   | 12,291,958 |   |
|          |   |                           | 24,496,878 |   |   |   | 13,219,867 |   |

| Pronouncement   |   | Issued            |   | Title                                                                                                                           |
|-----------------|--------|-------------------|--------|---------------------------------------------------------------------------------------------------------------------------------|
|            |   |              |   |                                                                                                                            |
| ASU No. 2011-01 |   | January 2011 |   | Receivables (Topic 310): Deferral of the Effective Date of Disclosures about Troubled Debt Restructurings in Update No. 2010-20 |
|            |   |              |   |                                                                                                                            |
| ASU No. 2011-02 |   | April 2011   |   | Receivables (Topic 310): A Creditor’s Determination of Whether a Restructuring Is a Troubled Debt Restructuring           |
|            |   |              |   |                                                                                                                            |
| ASU No. 2011-03 |   | April 2011   |   | Update No. 2011-03—Transfers and Servicing (Topic 860): Reconsideration of Effective Control for Repurchase Agreements    |

----

|                              |   | January 10, 2011debenture |   |   | February 8, 2011debenture |   |   | March 11, 2011debenture |   |
|-----------------------------------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|--------|-----------------------------------|--------|
|                              |   | (in thousands)                      |   |   |                                |   |
|                              |   |                                |   |   |                                |   |   |                              |   |
| Gross proceeds                    |   | $                                   | 450    |   |                                | $      | 650    |                              |   | $ | 450 |   |
| Structuring and due diligence fee |   |                                | (25    | )      |                                |   | (40    | )                                 |   |   | (25 | ) |
|                              |   | $                                   | 425    |   |                                | $      | 610    |                              |   | $ | 425 |   |
|                              |   |                                |   |   |                                |   |   |                              |   |   |   |   |
| Derivative liabilities:           |   |                                |   |   |                                |   |   |                              |   |   |   |   |
| Investor warrants                 |   | $                                   | (144   | )      |                                | $      | (59    | )                                 |   | $ | (39 | ) |
| Compound derivative               |   |                                | (573   | )      |                                |   | (744   | )                                 |   |   | (677 | ) |
| Total derivative liabilities      |   |                                | (717   | )      |                                |   | (803   | )                                 |   |   | (716 | ) |
|                              |   |                                |   |   |                                |   |   |                              |   |   |   |   |
| Day-one derivative loss           |   |                                | 292    |   |                                |   | 193    |                              |   |   | 291 |   |
|                              |   | $                                   | (425   | )      |                                | $      | (610   | )                                 |   | $ | (425 | ) |

----

|                     |   | January 10, 2011Financing |   |   | February 8, 2011Financing |   |   | March 11, 2011Financing |   |
|--------------------------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|--------|-----------------------------------|--------|
|                     |   |                                |   |   |                                |   |   |                              |   |
| Conversion price         |   | $                                   | 0.0665 |   |                                | $      | 0.0285 |                              |   | $ | 0.0190 |   |
| Equivalent volatility    |   |                                | 172    | %      |                                |   | 151    | %                                 |   |   | 167 | % |
| Equivalent interest risk |   |                                | 14.00  | %      |                                |   | 14.00  | %                                 |   |   | 14.00 | % |
| Equivalent credit risk   |   |                                | 7.78   | %      |                                |   | 7.50   | %                                 |   |   | 7.51 | % |

|                     |   | January 10, 2011 |    |   | February 8, 2011 |   |    | March 11, 2011 |   |
|--------------------------|--------|----------------------------|---------|--------|----------------------------|--------|---------|--------------------------|--------|
|                     |   |                       |    |   |                       |   |    |                     |   |
| Exercise price           |   | $                          | 0.10    |   |                       | $      | 0.10    |                     |   | $ | 0.10 |   |
| Expected life            |   | 5 years                    |    |   | 5 years                    |   |    | 5 years                  |   |
| Estimated volatility     |   |                       | 172     | %      |                       |   | 169     | %                        |   |   | 185 | % |
| Risk free rate of return |   |                       | 0.79    | %      |                       |   | 1.09    | %                        |   |   | 0.89 | % |
| Dividend yield           |   |                       | — |   |                       |   | — |                     |   |   | — |   |

----

|                      |   |   |      |     |      |     |   |     |   | Conversion Price – Lower of Fixed Price or Percentage of                                                                                                                                                                                                                                                                  |
|--------------------------------|--------|--------|-----------|----------|-----------|----------|--------|----------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                           |   |   |      |     |      |     |   | Default  |   |                            VWAP for Preceding Period                            |
|                           |   | Face   |      |     |      | Interest |   | Interest |   | Fixed                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   | Default |   | Preceding |
| Debenture Issue Date |   | Amount |      | Maturity |      | Rate     |   | Rate     |   | Price                                                                                                                                                                                                                                                                                                                                                                        |   |   | % |   | % |   | Period |
|                           |   |   |      |     |      |     |   |     |   |                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |
| August 24, 2006                |   | $      | 5,000,000 |     | 7/29/2012 |     | 10%    |     | n/a    |                                                                                                                                                                                                                                                                                                                                                                         | $ | 2.00 |   |   | 90% |   | n/a |   | 125 Days |
| December 29, 2006              |   | $      | 2,500,000 |     | 7/29/2012 |     | 10%    |     | n/a    |                                                                                                                                                                                                                                                                                                                                                                         | $ | 2.00 |   |   | 90% |   | n/a |   | 125 Days |
| March 27, 2007                 |   | $      | 7,458,651 |     | 7/29/2012 |     | 13%    |     | n/a    |                                                                                                                                                                                                                                                                                                                                                                         | $ | 2.00 |   |   | 90% |   | n/a |   | 125 Days |
| August 24, 2007                |   | $      | 1,775,000 |     | 7/29/2012 |     | 14%    |     | n/a    |                                                                                                                                                                                                                                                                                                                                                                         | $ | 2.00 |   |   | 80% |   | n/a |   | 125 Days |
| April 11, 2008                 |   | $      | 390,000   |     | 7/29/2012 |     | 15%    |     | 24%    |                                                                                                                                                                                                                                                                                                                                                                         | $ | 1.50 |   |   | 80% |   | 75% |   | 125 Days |
| May 16, 2008                   |   | $      | 500,000   |     | 7/29/2012 |     | 15%    |     | 24%    |                                                                                                                                                                                                                                                                                                                                                                         | $ | 1.50 |   |   | 80% |   | 50% |   | 125 Days |
| May 29, 2008                   |   | $      | 790,000   |     | 7/29/2012 |     | 15%    |     | 24%    |                                                                                                                                                                                                                                                                                                                                                                         | $ | 1.00 |   |   | 80% |   | 50% |   | 125 Days |
| July 10, 2008                  |   | $      | 137,750   |     | 7/29/2012 |     | 15%    |     | 24%    |                                                                                                                                                                                                                                                                                                                                                                         | $ | 1.00 |   |   | 80% |   | 50% |   | 125 Days |
| July 29, 2008                  |   | $      | 2,325,000 |     | 7/29/2012 |     | 14%    |     | 24%    |                                                                                                                                                                                                                                                                                                                                                                         | $ | 2.00 |   |   | 95% |   | 50% |   | 125 Days |
| October 28, 2008               |   | $      | 2,325,000 |     | 7/29/2012 |     | 14%    |     | 20%    |                                                                                                                                                                                                                                                                                                                                                                         | $ | 2.00 |   |   | 95% |   | 50% |   | 125 Days |
| May 1, 2009                    |   | $      | 258,037   |     | 7/29/2012 |     | 14%    |     | 20%    |                                                                                                                                                                                                                                                                                                                                                                         | $ | 2.00 |   |   | 95% |   | 50% |   | 125 Days |
| June 5, 2009                   |   | $      | 715,000   |     | 7/29/2012 |     | 14%    |     | 20%    |                                                                                                                                                                                                                                                                                                                                                                         | $ | 2.00 |   |   | 95% |   | 50% |   | 125 Days |
| July 15, 2009                  |   | $      | 535,000   |     | 7/29/2012 |     | 14%    |     | 20%    |                                                                                                                                                                                                                                                                                                                                                                         | $ | 2.00 |   |   | 95% |   | 50% |   | 125 Days |
| August 14, 2009                |   | $      | 475,000   |     | 7/29/2012 |     | 14%    |     | 20%    |                                                                                                                                                                                                                                                                                                                                                                         | $ | 2.00 |   |   | 95% |   | 50% |   | 125 Days |
| May 27, 2010                   |   | $      | 2,006,137 |     | 7/29/2012 |     | 14%    |     | 20%    |                                                                                                                                                                                                                                                                                                                                                                         | $ | 0.30 |   |   | 95% |   | 50% |   | 60 Days |
| August 13, 2010                |   | $      | 550,000   |     | 7/29/2012 |     | 14%    |     | 20%    |                                                                                                                                                                                                                                                                                                                                                                         | $ | 0.20 |   |   | 95% |   | 50% |   | 60 Days |
| September 29, 2010             |   | $      | 475,000   |     | 7/29/2012 |     | 14%    |     | 20%    |                                                                                                                                                                                                                                                                                                                                                                         | $ | 0.20 |   |   | 95% |   | 50% |   | 60 Days |
| October 28, 2010               |   | $      | 400,000   |     | 7/29/2012 |     | 14%    |     | 20%    |                                                                                                                                                                                                                                                                                                                                                                         | $ | 0.20 |   |   | 95% |   | 50% |   | 60 Days |
| December 15, 2010              |   | $      | 450,000   |     | 7/29/2012 |     | 14%    |     | 20%    |                                                                                                                                                                                                                                                                                                                                                                         | $ | 0.10 |   |   | 95% |   | 50% |   | 60 Days |
| January 10, 2011               |   | $      | 450,000   |     | 7/29/2012 |     | 14%    |     | 20%    |                                                                                                                                                                                                                                                                                                                                                                         | $ | 0.10 |   |   | 95% |   | 50% |   | 60 Days |
| February 8, 2011               |   | $      | 650,000   |     | 7/29/2012 |     | 14%    |     | 20%    |                                                                                                                                                                                                                                                                                                                                                                         | $ | 0.10 |   |   | 95% |   | 50% |   | 60 Days |
| March 11, 2011                 |   | $      | 450,000   |     | 7/29/2012 |     | 14%    |     | 20%    |                                                                                                                                                                                                                                                                                                                                                                         | $ | 0.10 |   |   | 95% |   | 50% |   | 60 Days |

----

|                     |   |       |   |   | Remaining |   |   |       |   | Equivalent         |   |   | Equivalent         |   |
|--------------------------|--------|------------|--------|--------|-----------|--------|--------|------------|--------|--------------------|--------|--------|--------------------|--------|
|                     |   | Conversion |   |   | Term      |   |   | Equivalent |   | Interest-Risk      |   |   | Credit-Risk        |   |
|                     |   | Prices     |   |   | (years)   |   |   | Volatility |   | Adjusted Rate |   |   | Adjusted Rate |   |
|                     |   |       |   |   |      |   |   |       |   |               |   |   |               |   |
| Series C preferred stock |   | $          | 0.02   |   |      |   | 1.35   |       |   | 169%               |   | 8.00%  |               |   | 7.51% |   |
| Series D preferred stock |   | $          | 0.02   |   |      |   | 1.35   |       |   | 169%               |   | 8.00%  |               |   | 7.51% |   |
|                     |   |       |   |   |      |   |   |       |   |               |   |   |               |   |   |   |
| August 24, 2006          |   | $          | 0.02   |   |      |   | 1.35   |       |   | 169%               |   | 10.00% |               |   | 7.51% |   |
| December 29, 2006        |   | $          | 0.02   |   |      |   | 1.35   |       |   | 169%               |   | 10.00% |               |   | 7.51% |   |
| July 10, 2008            |   | $          | 0.02   |   |      |   | 1.35   |       |   | 169%               |   | 15.00% |               |   | 7.51% |   |
| July 29, 2008            |   | $          | 0.02   |   |      |   | 1.35   |       |   | 169%               |   | 14.00% |               |   | 7.51% |   |
| October 28, 2008         |   | $          | 0.02   |   |      |   | 1.35   |       |   | 169%               |   | 14.00% |               |   | 7.51% |   |
| May 1, 2009              |   | $          | 0.02   |   |      |   | 1.35   |       |   | 169%               |   | 14.00% |               |   | 7.51% |   |
| June 5, 2009             |   | $          | 0.02   |   |      |   | 1.35   |       |   | 169%               |   | 14.00% |               |   | 7.51% |   |
| July 15, 2009            |   | $          | 0.02   |   |      |   | 1.35   |       |   | 169%               |   | 14.00% |               |   | 7.51% |   |
| August 14, 2009          |   | $          | 0.02   |   |      |   | 1.35   |       |   | 169%               |   | 14.00% |               |   | 7.51% |   |
| May 27, 2010             |   | $          | 0.02   |   |      |   | 1.35   |       |   | 169%               |   | 14.00% |               |   | 7.51% |   |
| August 13, 2010          |   | $          | 0.02   |   |      |   | 1.35   |       |   | 169%               |   | 14.00% |               |   | 7.51% |   |
| September 29, 2010       |   | $          | 0.02   |   |      |   | 1.35   |       |   | 169%               |   | 14.00% |               |   | 7.51% |   |
| October 28, 2010         |   | $          | 0.02   |   |      |   | 1.35   |       |   | 169%               |   | 14.00% |               |   | 7.51% |   |
| December 15, 2010        |   | $          | 0.02   |   |      |   | 1.35   |       |   | 169%               |   | 14.00% |               |   | 7.51% |   |
| January 10, 2011         |   | $          | 0.02   |   |      |   | 1.35   |       |   | 169%               |   | 14.00% |               |   | 7.51% |   |
| February 8, 2011         |   | $          | 0.02   |   |      |   | 1.35   |       |   | 169%               |   | 14.00% |               |   | 7.51% |   |
| March 11, 2011           |   | $          | 0.02   |   |      |   | 1.35   |       |   | 169%               |   | 14.00% |               |   | 7.51% |   |

----

----

|                                    |   |           |   |   |     |   |   |     |   |   | Embedded   |   |   |            |   |   | Common |   |
|-----------------------------------------|--------|----------------|--------|--------|----------|--------|--------|----------|--------|--------|------------|--------|--------|-----------------|--------|--------|--------|--------|
| March 31, 2011                |   | Face           |   |   | Carrying |   |   | Accrued  |   |   | Conversion |   |   |            |   |   | Stock  |   |
|                                    |   | Value          |   |   | Value    |   |   | Interest |   |   | Feature    |   |   | Fair Value |   |   | Shares |   |
|                                    |   | (in thousands) |   |
|                                    |   |           |   |   |     |   |   |     |   |   |       |   |   |            |   |   |   |   |
| Series C preferred stock |   | $              | 7,521  |   |     | $      | 7,521  |     |   | $      | -          |   |   | $               | 4,109  |   |   | $      | - |   |   |   | 387,663 |   |
| Series D preferred stock                |   | $              | 2,500  |   |     | $      | 2,500  |     |   | $      | -          |   |   |            | 1,366  |   |   |   | - |   |   |   | 128,866 |   |
|                                    |   |           |   |   |     |   |   |     |   |   |       |   |   |            |   |   |   |   |   |   |   |   |   |   |
| August 24, 2006               |   | $              | 5,000  |   |     | $      | 5,000  |     |   | $      | 2,000      |   |   |            | 3,748  |   |   |   | - |   |   |   | 388,887 |   |
| December 29, 2006                  |   |           | 2,500  |   |     |   | 2,500  |     |   |   | 1,001      |   |   |            | 1,873  |   |   |   | - |   |   |   | 194,511 |   |
| March 27, 2007                          |   |           | 7,459  |   |     |   | -      |     |   |   |       |   |   |            | -      |   |   |   | 15,329 |   |   |   | 414,370 |   |
| August 24, 2007                         |   |           | 1,775  |   |     |   | -      |     |   |   |       |   |   |            | -      |   |   |   | 4,444 |   |   |   | 110,938 |   |
| April 11, 2008                          |   |           | 390    |   |     |   | -      |     |   |   |       |   |   |            | -      |   |   |   | 990 |   |   |   | 24,375 |   |
| May 16 ,2008                            |   |           | 500    |   |     |   | -      |     |   |   |       |   |   |            | -      |   |   |   | 1,261 |   |   |   | 31,250 |   |
| May 29, 2008                            |   |           | 790    |   |     |   | -      |     |   |   |       |   |   |            | -      |   |   |   | 1,989 |   |   |   | 49,375 |   |
| July 10, 2008                           |   |           | 138    |   |     |   | 138    |     |   |   | 57         |   |   |            | 147    |   |   |   | - |   |   |   | 12,179 |   |
| July 29, 2008                           |   |           | 2,325  |   |     |   | 2,325  |     |   |   | 872        |   |   |            | 1,723  |   |   |   | - |   |   |   | 168,279 |   |
| October 23, 2008                        |   |           | 2,325  |   |     |   | 2,325  |     |   |   | 790        |   |   |            | 1,732  |   |   |   | - |   |   |   | 163,949 |   |
| May 1, 2009                             |   |           | 258    |   |     |   | 258    |     |   |   | 101        |   |   |            | 169    |   |   |   | - |   |   |   | 13,139 |   |
| June 5, 2009                            |   |           | 715    |   |     |   | 675    |     |   |   | 184        |   |   |            | 577    |   |   |   | - |   |   |   | 20,807 |   |
| July 15, 2009                           |   |           | 535    |   |     |   | 535    |     |   |   | 130        |   |   |            | 402    |   |   |   | - |   |   |   | 35,002 |   |
| August 14, 2009                         |   |           | 475    |   |     |   | 475    |     |   |   | 110        |   |   |            | 357    |   |   |   | - |   |   |   | 30,784 |   |
| May 27, 2010                            |   |           | 2,006  |   |     |   | 407    |     |   |   | 237        |   |   |            | 2,455  |   |   |   | - |   |   |   | 118,060 |   |
| August 13, 2010                         |   |           | 550    |   |     |   | 24     |     |   |   | 49         |   |   |            | 639    |   |   |   | - |   |   |   | 31,501 |   |
| September 29, 2010                      |   |           | 475    |   |     |   | 17     |     |   |   | 33         |   |   |            | 543    |   |   |   | - |   |   |   | 26,755 |   |
| October 28, 2010                        |   |           | 400    |   |     |   | 12     |     |   |   | 24         |   |   |            | 453    |   |   |   |   |   |   |   | 22,304 |   |
| December 15, 2010                       |   |           | 450    |   |     |   | 12     |     |   |   | 18         |   |   |            | 500    |   |   |   |   |   |   |   | 24,656 |   |
| January 10, 2011                        |   |           | 450    |   |     |   | 7      |     |   |   | 14         |   |   |            | 496    |   |   |   |   |   |   |   | 24,420 |   |
| February 8, 2011                        |   |           | 650    |   |     |   | 9      |     |   |   | 13         |   |   |            | 708    |   |   |   |   |   |   |   | 34,893 |   |
| March 11, 2011                          |   |           | 450    |   |     |   | 5      |     |   |   | 4          |   |   |            | 485    |   |   |   |   |   |   |   | 23,875 |   |
| Total                                   |   | $              | 30,616 |   |     | $      | 14,724 |     |   | $      | 5,637      |   |   | $               | 22,482 |   |   | $      | 24,013 |   |   |   | 2,480,838 |   |

----

|                                                     |   |           |   |   |     |   |   |     |   |   | Embedded   |   |   |            |   |   | Common |   |
|----------------------------------------------------------|--------|----------------|--------|--------|----------|--------|--------|----------|--------|--------|------------|--------|--------|-----------------|--------|--------|--------|--------|
| December 31, 2010                              |   | Face           |   |   | Carrying |   |   | Accrued  |   |   | Conversion |   |   |            |   |   | Stock  |   |
|                                                     |   | Value          |   |   | Value    |   |   | Interest |   |   | Feature    |   |   | Fair Value |   |   | Shares |   |
|                                                     |   | (in thousands) |   |
|                                                     |   |           |   |   |     |   |   |     |   |   |       |   |   |            |   |   |   |   |
| Series C Convertible Preferred Stock |   | $              | 8,336  |   |     | $      | 8,336  |     |   | $      | -          |   |   | $               | 6,706  |   |   | $      | - |   |   |   | 125,348 |   |
| Series D Convertible Preferred Stock                     |   | $              | 2,500  |   |     | $      | 2,500  |     |   | $      | -          |   |   |            | 1,918  |   |   |   | - |   |   |   | 36,819 |   |
|                                                     |   |           |   |   |     |   |   |     |   |   |       |   |   |            |   |   |   |   |   |   |   |   |   |   |
| August 24, 2006                                |   | $              | 5,000  |   |     | $      | 5,000  |     |   | $      | 1,876      |   |   |            | 5,007  |   |   |   | - |   |   |   | 109,154 |   |
| December 29, 2006                                   |   |           | 2,500  |   |     |   | 2,500  |     |   |   | 940        |   |   |            | 2,502  |   |   |   | - |   |   |   | 54,596 |   |
| March 27, 2007                                           |   |           | 7,459  |   |     |   | -      |     |   |   |       |   |   |            | -      |   |   |   | 17,905 |   |   |   | 118,391 |   |
| August 24, 2007                                          |   |           | 1,775  |   |     |   | -      |     |   |   |       |   |   |            | -      |   |   |   | 4,888 |   |   |   | 31,696 |   |
| April 11, 2008                                           |   |           | 390    |   |     |   | -      |     |   |   |       |   |   |            | -      |   |   |   | 1,106 |   |   |   | 6,964 |   |
| May 16 ,2008                                             |   |           | 500    |   |     |   | -      |     |   |   |       |   |   |            | -      |   |   |   | 1,392 |   |   |   | 8,929 |   |
| May 29, 2008                                             |   |           | 790    |   |     |   | -      |     |   |   |       |   |   |            | -      |   |   |   | 2,193 |   |   |   | 14,107 |   |
| July 10, 2008                                            |   |           | 138    |   |     |   | 138    |     |   |   | 51         |   |   |            | 180    |   |   |   | - |   |   |   | 3,387 |   |
| July 29, 2008                                            |   |           | 2,325  |   |     |   | 2,325  |     |   |   | 792        |   |   |            | 2,381  |   |   |   | - |   |   |   | 46,873 |   |
| October 23, 2008                                         |   |           | 2,325  |   |     |   | 2,325  |     |   |   | 709        |   |   |            | 2,279  |   |   |   | - |   |   |   | 46,873 |   |
| May 1, 2009                                              |   |           | 258    |   |     |   | 258    |     |   |   | 92         |   |   |            | 237    |   |   |   | - |   |   |   | 5,249 |   |
| June 5, 2009                                             |   |           | 715    |   |     |   | 668    |     |   |   | 158        |   |   |            | 771    |   |   |   | - |   |   |   | 13,139 |   |
| July 15, 2009                                            |   |           | 535    |   |     |   | 535    |     |   |   | 111        |   |   |            | 404    |   |   |   | - |   |   |   | 9,719 |   |
| August 14, 2009                                          |   |           | 475    |   |     |   | 475    |     |   |   | 93         |   |   |            | 482    |   |   |   | - |   |   |   | 8,546 |   |
| May 27, 2010                                             |   |           | 2,006  |   |     |   | 302    |     |   |   | 168        |   |   |            | 2,785  |   |   |   | - |   |   |   | 32,690 |   |
| August 13, 2010                                          |   |           | 550    |   |     |   | 13     |     |   |   | 29         |   |   |            | 732    |   |   |   | - |   |   |   | 8,715 |   |
| September 29, 2010                                       |   |           | 475    |   |     |   | 9      |     |   |   | 17         |   |   |            | 620    |   |   |   | - |   |   |   | 7,398 |   |
| October 28, 2010                                         |   |           | 400    |   |     |   | 6      |     |   |   | 10         |   |   |            | 517    |   |   |   |   |   |   |   | 6,163 |   |
| December 15, 2010                                        |   |           | 450    |   |     |   | 6      |     |   |   | 3          |   |   |            | 571    |   |   |   |   |   |   |   | 6,811 |   |
| Total                                                    |   | $              | 29,066 |   |     | $      | 14,560 |     |   | $      | 5,049      |   |   | $               | 28,092 |   |   | $      | 27,484 |   |   |   | 701,567 |   |

----

|                                                         |   | Three months ended March 31, |   |
|--------------------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                         |   | 2011                                             |   |   | 2010 |   |
|                                                         |   | (in thousands)                                   |   |
|                                                         |   |                                             |   |   |   |   |
| March 27, 2007                                               |   | $                                                | 1,576  |   |   | $ | 12,088 |   |
| August 24, 2007                                              |   |                                             | 444    |   |   |   | 3,212 |   |
| April 11, 2008                                               |   |                                             | 116    |   |   |   | 713 |   |
| May 16, 2008                                                 |   |                                             | 131    |   |   |   | 915 |   |
| May 29, 2008                                                 |   |                                             | 204    |   |   |   | 1,444 |   |
| Gain (loss) from changes in fair value of hybrid instruments |   | $                                                | 2,471  |   |   | $ | 18,372 |   |

----

|                                                             |   | Three Months Ended March 31, |   |
|------------------------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                             |   | 2011                                             |   |   | 2010 |   |
|                                                             |   | (in thousands)                                   |   |
| Series C preferred stock                                         |   | $                                                | 2,440  |   |   | $ | 14,628 |   |
| Series D preferred stock                                         |   |                                             | 552    |   |   |   | 4,041 |   |
|                                                             |   |                                             |   |   |   |   |   |   |
| August 24, 2006                                                  |   |                                             | 1,259  |   |   |   | 10,962 |   |
| December 29, 2006                                                |   |                                             | 629    |   |   |   | 5,342 |   |
| July 10, 2008                                                    |   |                                             | 33     |   |   |   | 267 |   |
| July 29, 2008                                                    |   |                                             | 658    |   |   |   | 3,497 |   |
| October 28, 2008                                                 |   |                                             | 547    |   |   |   | 3,300 |   |
| May 1, 2009                                                      |   |                                             | 68     |   |   |   | 470 |   |
| June 5, 2009                                                     |   |                                             | 194    |   |   |   | 996 |   |
| July 15, 2009                                                    |   |                                             | 2      |   |   |   | 505 |   |
| August 14, 2009                                                  |   |                                             | 125    |   |   |   | 753 |   |
| May 27, 2010                                                     |   |                                             | 330    |   |   |   | - |   |
| August 13, 2010                                                  |   |                                             | 93     |   |   |   | - |   |
| September 29, 2010                                               |   |                                             | 77     |   |   |   | - |   |
| October 28, 2010                                                 |   |                                             | 64     |   |   |   | - |   |
| December 15, 2010                                                |   |                                             | 71     |   |   |   | - |   |
| January 10, 2011                                                 |   |                                             | 77     |   |   |   |   |   |
| February 8, 2011                                                 |   |                                             | 36     |   |   |   |   |   |
| March 11, 2011                                                   |   |                                             | 192    |   |   |   |   |   |
|                                                             |   |                                             | 7,447  |   |   |   | 44,761 |   |
| Less: Day-one loss from Series D Convertible Preferred financing |   |                                             | -      |   |   |   | (4,582 | ) |
| Less: Day-one loss from January 10, 2011 financing               |   |                                             | (292   | ) |   |   | - |   |
| Less: Day-one loss from February 8, 2011 financing               |   |                                             | (193   | ) |   |   | - |   |
| Less: Day-one loss from March 11, 2011 financing                 |   |                                             | (291   | ) |   |   | - |   |
| Gain (loss) from change in fair value of derivative liability    |   | $                                                | 6,671  |   |   | $ | 40,179 |   |

----

|                                    |   | March 31, |   |   | December 31, |   |       |   | March 31, |   |   | December 31, |   |
|-----------------------------------------|--------|----------------|--------|--------|-------------------|--------|------------|--------|----------------|--------|--------|-------------------|--------|
|                                    |   | 2011           |   |   | 2010              |   |       |   | 2011           |   |   | 2010              |   |
|                                    |   | Exercise       |   |   | Exercise          |   | Expiration |   |           |   |   | Fair              |   |   |   |   |   | Fair |   |
|                                    |   | Price          |   |   | Price             |   | Date       |   | Warrants       |   |   | Value             |   |   | Warrants |   |   | Value |   |
|                                    |   |           |   |   |              |   |       |   | (in thousands) |   |   | (in thousands)    |   |
| Series C preferred stock |   |           | n/a    |   |              | $      | 0.06       |   | 2/17/2011      |   |   | -                 |   |   | $ | - |   |   |   | 750 |   |   | $ | 53 |   |
| Series D preferred stock                |   |           | 0.02   |   |              |   | 0.10       |   | 1/5/2017       |   |   | 2,250             |   |   |   | 66 |   |   |   | 2,250 |   |   |   | 255 |   |
|                                    |   |           |   |   |              |   |       |   |           |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| August 24, 2006                         |   |           | 0.02   |   |              |   | 0.06       |   | 8/24/2011      |   |   | 1,750             |   |   |   | 35 |   |   |   | 1,750 |   |   |   | 148 |   |
| December 29, 2006                       |   |           | 0.02   |   |              |   | 0.06       |   | 12/29/2011     |   |   | 420               |   |   |   | 10 |   |   |   | 420 |   |   |   | 37 |   |
| March 27, 2007                          |   |           | 0.02   |   |              |   | 0.06       |   | 3/27/2012      |   |   | 1,250             |   |   |   | 31 |   |   |   | 1,250 |   |   |   | 122 |   |
| August 24, 2007                         |   |           | 0.02   |   |              |   | 0.06       |   | 8/24/2012      |   |   | 750               |   |   |   | 20 |   |   |   | 750 |   |   |   | 72 |   |
| May 16, 2008                            |   |           | 0.02   |   |              |   | 0.06       |   | 5/16/2015      |   |   | 75                |   |   |   | 2 |   |   |   | 75 |   |   |   | 8 |   |
| May 29, 2008                            |   |           | 0.02   |   |              |   | 0.06       |   | 5/29/2015      |   |   | 500               |   |   |   | 15 |   |   |   | 500 |   |   |   | 56 |   |
| July 29, 2008                           |   |           | 0.02   |   |              |   | 0.07       |   | 7/29/2015      |   |   | 1,000             |   |   |   | 30 |   |   |   | 1,000 |   |   |   | 112 |   |
| July 29, 2008                           |   |           | 0.02   |   |              |   | 0.10       |   | 7/29/2015      |   |   | 3,500             |   |   |   | 104 |   |   |   | 3,500 |   |   |   | 383 |   |
| May 27, 2010                            |   |           | 0.02   |   |              |   | 0.10       |   | 5/27/2015      |   |   | 5,000             |   |   |   | 148 |   |   |   | 5,000 |   |   |   | 563 |   |
| August 13, 2010                         |   |           | 0.02   |   |              |   | 0.10       |   | 8/13/2015      |   |   | 1,000             |   |   |   | 30 |   |   |   | 1,000 |   |   |   | 113 |   |
| September 29, 2010                      |   |           | 0.02   |   |              |   | 0.10       |   | 9/29/2015      |   |   | 750               |   |   |   | 23 |   |   |   | 750 |   |   |   | 84 |   |
| October 15, 2010                        |   |           | 0.02   |   |              |   | 0.10       |   | 10/15/2015     |   |   | 600               |   |   |   | 18 |   |   |   | 600 |   |   |   | 67 |   |
| December 15, 2010                       |   |           | 0.02   |   |              |   | 0.10       |   | 12/15/2015     |   |   | 1,250             |   |   |   | 37 |   |   |   | 1,250 |   |   |   | 140 |   |
| January 10, 2011                        |   |           | 0.02   |   |              |   | n/a        |   | 1/10/2016      |   |   | 1,250             |   |   |   | 37 |   |   |   |   |   |   |   |   |   |
| February 8, 2011                        |   |           | 0.02   |   |              |   | n/a        |   | 2/8/2016       |   |   | 1,250             |   |   |   | 37 |   |   |   |   |   |   |   |   |   |
| March 11, 2011                          |   |           | 0.02   |   |              |   | n/a        |   | 3/11/2016      |   |   | 1,000             |   |   |   | 30 |   |   |   |   |   |   |   |   |   |
| Other warrants                          |   |           | n/a    |   |              |   | 1.10       |   | 1/16/2011      |   |   | -                 |   |   |   | - |   |   |   | 1 |   |   |   | - |   |
|                                    |   |           |   |   |              |   |       |   | Total          |   |   | 23,595            |   |   | $ | 673 |   |   |   | 20,846 |   |   | $ | 2,213 |   |

----

|                     |   | Three Months Ended March 31, |   |
|--------------------------|--------|--------------------------------------------------|--------|
|                     |   | 2011                                             |   |   | 2010 |   |
|                     |   | (in thousands)                                   |   |
| Series C preferred stock |   | $                                                | 53     |   |   | $ | 474 |   |
| Series D preferred stock |   |                                             | 189    |   |   |   | 1,283 |   |
|                     |   |                                             |   |   |   |   |   |   |
| August 24, 2006          |   |                                             | 113    |   |   |   | 928 |   |
| December 29, 2006        |   |                                             | 27     |   |   |   | 218 |   |
| March 27, 2007           |   |                                             | 91     |   |   |   | 650 |   |
| August 24, 2007          |   |                                             | 52     |   |   |   | 398 |   |
| May 16, 2008             |   |                                             | 6      |   |   |   | 40 |   |
| May 28, 2008             |   |                                             | 41     |   |   |   | 265 |   |
| July 29, 2008            |   |                                             | 361    |   |   |   | 2,285 |   |
| May 27, 2010             |   |                                             | 415    |   |   |   | - |   |
| August 13, 2010          |   |                                             | 83     |   |   |   | - |   |
| September 29, 2010       |   |                                             | 61     |   |   |   | - |   |
| October 28, 2010         |   |                                             | 49     |   |   |   | - |   |
| December 15, 2010        |   |                                             | 103    |   |   |   | - |   |
| January 10, 2011         |   |                                             | 107    |   |   |   |   |   |
| February 8, 2011         |   |                                             | 22     |   |   |   |   |   |
| March 11, 2011           |   |                                             | 9      |   |   |   |   |   |
| Other warrants           |   |                                             | -      |   |   |   | 10 |   |
| Total                    |   | $                                                | 1,782  |   |   | $ | 6,551 |   |

----

|                                  |   | Compound    |   |   |        |   |   |   |   |
|---------------------------------------|--------|-------------|--------|--------|-------------|--------|--------|--------|--------|
|                                  |   | Embedded    |   |   | Warrant     |   |   |   |   |
|                                  |   | Derivatives |   |   | Derivatives |   |   | Total  |   |
|                                  |   |        |   |   |        |   |   |   |   |
| Beginning balance, December 31, 2010: |   | $           | 28,092 |   |        | $      | 2,213  |   |   | $ | 30,305 |   |
|                                  |   |        |   |   |        |   |   |   |   |   |   |   |
| Issuances:                            |   |        |   |   |        |   |   |   |   |   |   |   |
| January 10, 2011                      |   |        | 573    |   |        |   | 144    |   |   |   | 717 |   |
| February 8, 2011                      |   |        | 744    |   |        |   | 59     |   |   |   | 803 |   |
| March 11, 2011                        |   |        | 677    |   |        |   | 39     |   |   |   | 716 |   |
|                                  |   |        |   |   |        |   |   |   |   |   |   |   |
| Fair value adjustments:               |   |        |   |   |        |   |   |   |   |   |   |   |
| Compound embedded derivatives         |   |        | (7,447 | )      |        |   | -      |   |   |   | (7,447 | ) |
| Warrant derivatives                   |   |        | -      |   |        |   | (1,782 | )      |   |   | (1,782 | ) |
|                                  |   |        |   |   |        |   |   |   |   |   |   |   |
| Conversions:                          |   |        |   |   |        |   |   |   |   |   |   |   |
| Series C Convertible Preferred Stock  |   |        | (157   | )      |        |   | -      |   |   |   | (157 | ) |
|                                  |   |        |   |   |        |   |   |   |   |   |   |   |
| Ending balance, March 31, 2011        |   | $           | 22,482 |   |        | $      | 673    |   |   | $ | 23,155 |   |

|                     |   | Three Months Ended March 31, |      |
|--------------------------|--------|--------------------------------------------------|-----------|
|                     |   | 2011                                             |      |   | 2010 |   |
| Volatility               |   |                                             | 156-169   | % |   |   | - |   |
| Expected dividends       |   |                                             | -         |   |   |   | - |   |
| Expected term (in years) |   |                                             | 5.79      |   |   |   | - |   |
| Risk-free rate           |   |                                             | 2.70-2.89 | % |   |   | - |   |

----

|                             |   |                |   |   |      |   |   |                |   |   | Weighted-     |   |
|----------------------------------|--------|---------------------|--------|--------|-----------|--------|--------|---------------------|--------|--------|---------------|--------|
|                             |   |                |   |   |      |   |   |                |   |   | Average       |   |
|                             |   |                |   |   | Weighted- |   |   |                |   |   | Contractual   |   |
|                             |   |                |   |   | Average   |   |   | Aggregate           |   |   | Life          |   |
|                             |   |                |   |   | Exercise  |   |   | Intrinsic           |   |   | Remaining     |   |
|                             |   | Shares              |   |   | Price     |   |   | Value               |   |   | in Years |   |
|                             |   | (in thousands) |   |   |      |   |   | (in thousands) |   |   |          |   |
| Outstanding at December 31, 2010 |   |                | 702    |   |      | $      | 1.55   |                |   |   |          |   |   |   |   |   |
| Granted                          |   |                | 200    |   |      | $      | 0.09   |                |   |   |          |   |   |   |   |   |
| Exercised                        |   |                | -      |   |      | $      | -      |                |   |   |          |   |   |   |   |   |
| Forfeited                        |   |                | -      |   |      | $      | -      |                |   |   |          |   |   |   |   |   |
| Outstanding at March 31, 2011    |   |                | 902    |   |      | $      | 1.23   |                |   | $      | -             |   |   |   | 8.0 |   |
| Exercisable at March 31, 2011    |   |                | 594    |   |      | $      | 1.69   |                |   | $      | -             |   |   |   | 7.3 |   |

|                                 |   |                |   |   | Weighted   |   |
|--------------------------------------|--------|---------------------|--------|--------|------------|--------|
|                                 |   |                |   |   | Average    |   |
|                                 |   |                |   |   | Grant Date |   |
| Nonvested Shares                     |   | Shares              |   |   | Fair Value |   |
|                                 |   | (in thousands) |   |   |       |   |
|  Nonvested at December 31, 2010 |   |                | 120    |   |       | $      | 0.71 |   |
|  Granted                        |   |                | 200    |   |       | $      | 0.13 |   |
|  Vested                         |   |                | (12    | )      |       | $      | 0.93 |   |
|  Forfeited                      |   |                | -      |   |       | $      | - |   |
|  Nonvested at March 31, 2011    |   |                | 308    |   |       | $      | 0.32 |   |

| Options Outstanding |   |                       | Options Exercisable |   |
|--------------------------|--------|----------------------------|--------------------------|--------|
| Exercise Prices     |   | Number of Shares |                     |   | Weighted-AverageRemainingLife |   |   | Weighted-Average ExercisePrice |   |   | Number of Shares |   |   | Weighted-AverageExercise Price |   |
|                     |   | (in thousands)        |                     |   | (in years) |   |   |   |   |   | (in thousands) |   |   |   |   |
|                     |   |                       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
|  $0.047 to $4.70    |   |                       | 876                      |   |   |   | 8.1 |   |   | $ | 0.96 |   |   |   | 568 |   |   | $ | 1.31 |   |
|  $5.00 to $10.00    |   |                       | 18                       |   |   |   | 4.7 |   |   | $ | 7.69 |   |   |   | 18 |   |   | $ | 7.69 |   |
|  $12.50             |   |                       | 5                        |   |   |   | 4.6 |   |   | $ | 12.50 |   |   |   | 5 |   |   | $ | 12.50 |   |
|  $17.50             |   |                       | 3                        |   |   |   | 4.9 |   |   | $ | 17.50 |   |   |   | 3 |   |   | $ | 17.50 |   |
|                     |   |                       | 902                      |   |   |   | 8.0 |   |   | $ | 1.22 |   |   |   | 594 |   |   | $ | 1.68 |   |

----

|                             |   | March 31, 2011 |   |   | December 31, 2010 |   |
|----------------------------------|--------|--------------------------|--------|--------|-----------------------------|--------|
|                             |   | (in thousands)           |   |
|                             |   |                     |   |   |                        |   |
| Accruals for disputed services   |   | $                        | 2,318  |   |                        | $      | 2,318 |   |
| Accrued operating expenses       |   |                     | 1,643  |   |                        |   | 2,042 |   |
| Accrued payroll related expenses |   |                     | 53     |   |                        |   | - |   |
| Accrued interest                 |   |                     | 5,640  |   |                        |   | 5,053 |   |
| Total                            |   | $                        | 9,654  |   |                        | $      | 9,413 |   |

----

|            |   | Three Months Ended March 31, |   |
|----------------------|--------|--------------------------------------------------|--------|
|                 |   | 2011                                             |   |   | 2010 |   |
|                 |   | (in thousands)                                   |   |
| Revenue:             |   |                                             |   |   |   |   |
| United States        |   | $                                                | 319    |   |   | $ | 167 |   |
| Germany              |   |                                             | 50     |   |   |   | 188 |   |
| Total                |   | $                                                | 369    |   |   | $ | 355 |   |
|                 |   |                                             |   |   |   |   |   |   |
| Net income (loss):   |   |                                             |   |   |   |   |   |   |
| United States        |   | $                                                | 9,243  |   |   | $ | 57,669 |   |
| Germany              |   |                                             | (452   | ) |   |   | (337 | ) |
| Total                |   | $                                                | 8,791  |   |   | $ | 57,332 |   |
|                 |   |                                             |   |   |   |   |   |   |
|                 |   | March 31,                                        |   |   | December 31, |   |
|                 |   | 2011                                             |   |   | 2010 |   |
| Identifiable assets: |   |                                             |   |   |   |   |   |   |
| United States        |   | $                                                | 7,990  |   |   | $ | 8,179 |   |
| Germany              |   |                                             | 274    |   |   |   | 394 |   |
| Total                |   | $                                                | 8,264  |   |   | $ | 8,573 |   |

----

----

|   | · | Mobile Tag:  On July 28, 2009, we entered into a three year non-exclusive patent licensing agreement with Mobile Tag, Inc. (“Mobile Tag”). Under the terms of that agreement, we will receive annual minimum royalties and then a percentage of revenue generated by Mobile Tag through the use of our barcode ecosystem patent portfolio within a defined field of use in the United States. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Neustar: On October 2, 2009, we entered into a four year agreement with Neustar, Inc. (“Neustar”) in which we granted to Neustar a right to sub-license our barcode ecosystem patent portfolio to their customers primarily for the purpose of establishing and providing registry and clearinghouse services within a defined field of use in the territory of the United States and Mexico. Neustar’s sub-license rights were originally exclusive within their territory. However, on December 14, 2010, this right was changed to a non-exclusive right. Since February 12, 2010 we have participated in and have helped to facilitate the Neustar Mobile Codes Pilot Program. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Scanbuy: On October 16, 2009, we entered into a ten year settlement and license agreement with Scanbuy, Inc. (“Scanbuy”), in which we and Scanbuy settled all of our pending litigation against each other and we granted non-exclusive licenses and a sublicense to each other. Under the terms of that agreement, we will receive annual minimum royalties and then a percentage of revenue generated by Scanbuy through the use of our barcode ecosystem patent portfolio within a defined field of use in the United States. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | eBay: On December 21, 2010, we entered into a license, covenant not to sue and release agreement to grant a five year, non-exclusive, non-sublicensing license to eBay Inc. (“eBay”). The license grants freedom to operate to eBay, its affiliates and certain third parties, by providing a worldwide right to use our barcode technology patents. We received a license fee from eBay for the initial term. The Agreement also provided mutual covenants not to sue and mutual releases to the parties. The Agreement also granted to eBay a 60 day option for a similar license to our search technology patents, which they exercised on February 15, 2011, and for which we received an additional license fee for the initial term. The initial term of the licenses expires on December 31, 2015 and the licenses may be extended for successive 3 year terms, for additional license fees, from eBay. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Sony Ericsson: On November 27, 2009, we entered into an agreement with Sony Ericsson Mobile Communications, AB, through which they have selected NeoMedia as their strategic 2D barcode partner and NeoReader will be pre-installed across all Sony Ericsson platforms. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Samsung Electronics Italy: On September 13, 2010, we entered into an agreement with Samsung Electronics Italy, Italian subsidiary of Samsung Electronics, to pre-load NeoReader onto Samsung’s Omnia II devices. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                    |   | Three Months Ended March 31, |   |
|-----------------------------------------|--------|--------------------------------------------------|--------|
|                                    |   | 2011                                             |   |   | 2010 |   |
|                                    |   | (in thousands)                                   |   |
| Revenues:                               |   |                                             |   |   |   |   |
| Barcode Reader                          |   |                                             | 53     |   |   | $ | 46 |   |
| Barcode Management & Infrastructure |   |                                             | 34     |   |   |   | 6 |   |
| IP Licensing                            |   |                                             | 242    |   |   |   | 165 |   |
| Hardware                                |   |                                             | 9      |   |   |   | 134 |   |
| Other                                   |   |                                             | 31     |   |   |   | 4 |   |
|     Total revenues  |   | $                                                | 369    |   |   | $ | 355 |   |

----

----

|   | · | Gross proceeds of $450,000 in connection with a Secured Debenture entered into with YA Global on January 10, 2011, accruing interest at 14% per annum and payable on the maturity date of July 29, 2012, less structuring and due diligence fees of $25,000, resulting in net proceeds of $425,000; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Gross proceeds of $650,000 in connection with a Secured Debenture entered into with YA Global on February 8, 2011, accruing interest at 14% per annum and payable on the maturity date of July 29, 2012, less structuring and due diligence fee of $40,000, resulting in net proceeds of $610,000; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Gross proceeds of $450,000 in connection with a Secured Debenture entered into with YA Global on March 11, 2011, accruing interest at 14% per annum and payable on the maturity date of July 29, 2012, less structuring and due diligence fee of $25,000, resulting in net proceeds of $425,000. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | Our senior management did not establish and maintain a proper tone as to internal control over financial reporting as of December 31, 2010. Specifically, our senior management was unable, due to time constraints, to promptly address all of the control weaknesses brought to their attention throughout this and the previous year’s audit; and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | We, through our senior management, failed to maintain formalized accounting policies and procedures as of December 31, 2010. Once implemented, the polices and procedures should provide guidance to accounting personnel in the proper treatment and recording of financial transactions, as well as proper internal controls over financial reporting. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| ExhibitNumber |   | Description                                                                                                                                                         |   | FiledHerewith |   | Form   |   | Exhibit |   | Filing Date |
|---------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|--------|---------|--------|------------------|
|          |   |                                                                                                                                                                |   |          |   |   |   |    |   |             |
| 3.1           |   | Articles of Incorporation of Dev-Tech Associates, Inc. and amendment thereto                                                                                        |   |          |   | SB-2   |   | 3.1     |   | 11/25/1996       |
| 3.2           |   | By-laws of NeoMedia Technologies, Inc.                                                                                                                              |   |          |   | 8-K    |   | 3.2     |   | 12/21/2010       |
| 3.3           |   | Restated Certificate of Incorporation of DevSys, Inc.                                                                                                               |   |          |   | SB-2   |   | 3.3     |   | 11/25/1996       |
| 3.4           |   | Articles of Merger and Agreement and Plan of Merger of DevSys, Inc and Dev-Tech Associates, Inc.                                                                    |   |          |   | SB-2   |   | 3.5     |   | 11/25/1996       |
| 3.5           |   | Certificate of Merger of Dev-Tech Associates, Inc. into DevSys, Inc.                                                                                                |   |          |   | SB-2   |   | 3.6     |   | 11/25/1996       |
| 3.6           |   | Articles of Incorporation of Dev-Tech Migration, Inc. and amendment thereto                                                                                         |   |          |   | SB-2   |   | 3.7     |   | 11/25/1996       |
| 3.7           |   | Restated Certificate of Incorporation of DevSys Migration, Inc.                                                                                                     |   |          |   | SB-2   |   | 3.9     |   | 11/25/1996       |
| 3.8           |   | Form of Agreement and Plan of Merger of Dev-Tech Migration, Inc. into DevSys Migration, Inc.                                                                        |   |          |   | SB-2   |   | 3.11    |   | 11/25/1996       |
| 3.9           |   | Form of Certificate of Merger of Dev-Tech Migration, Inc. into DevSys Migration, Inc.                                                                               |   |          |   | SB-2   |   | 3.12    |   | 11/25/1996       |
| 3.10          |   | Certificate of Amendment to Certificate of Incorporation of DevSys, Inc. changing our name to NeoMedia Technologies, Inc.                                           |   |          |   | SB-2   |   | 3.13    |   | 11/25/1996       |
| 3.11          |   | Form of Certificate of Amendment to Certificate of Incorporation of NeoMedia Technologies, Inc. authorizing a reverse stock split                                   |   |          |   | SB-2   |   | 3.14    |   | 11/25/1996       |
| 3.12          |   | Form of Certificate of Amendment to Restated Certificate of Incorporation of NeoMedia Technologies, Inc. increasing authorized capital and creating preferred stock |   |          |   | SB-2   |   | 3.15    |   | 11/25/1996       |
| 3.13          |   | Certificate of Amendment to the Certificate of Designation of the Series "C" Convertible Preferred Stock date January 5, 2010.                                      |   |          |   | 8-K    |   | 3.1     |   | 1/11/2010        |
| 3.14          |   | Certificate of Designation of the Series "D" Convertible Preferred Stock date January 5, 2010.                                                                      |   |          |   | 8-K    |   | 3.2     |   | 1/11/2010        |
| 3.15          |   | Certificate of Amendment to the Certificate of Designation of the Series "D" Convertible Preferred Stock dated January 7, 2010                                      |   |          |   | 8-K    |   | 3.3     |   | 1/11/2010        |
| 3.16          |   | Certificate of amendment to the certificate of designation of the series D convertible preferred stock issued by the Company to YA Global dated January 5, 2010.    |   |          |   | 8-K    |   | 3.1     |   | 3/11/2010        |
| 10.1          |   | Warrant dated March 30, 2005, granted by NeoMedia to Thornhill Capital LLC                                                                                          |   |          |   | S-3/A  |   | 10.12   |   | 7/18/2005        |
| 10.2          |   | Warrant dated March 30, 2005, granted by NeoMedia to Cornell Capital Partners LP                                                                                    |   |          |   | S-3/A  |   | 10.13   |   | 7/18/2005        |
| 10.3          |   | Definitive Sale and Purchase Agreement between NeoMedia and Gavitec                                                                                                 |   |          |   | 8-K    |   | 16.1    |   | 2/21/2006        |
| 10.4          |   | Definitive Sale and Purchase Agreement between NeoMedia and Sponge                                                                                                  |   |          |   | 8-K    |   | 16.1    |   | 2/22/2006        |
| 10.5          |   | Investment Agreement, dated February 17, 2006 between NeoMedia and Cornell Capital Partners                                                                         |   |          |   | 8-K    |   | 10.1    |   | 2/21/2006        |
| 10.6          |   | Investor Registration Rights Agreement, dated February 17, 2006 between NeoMedia and Cornell Capital Partners                                                       |   |          |   | 8-K    |   | 10.2    |   | 2/21/2006        |
| 10.7          |   | Irrevocable Transfer Agent Instruction, dated February 17, 2006, by and among NeoMedia, Cornell Capital Partners and American Stock Transfer & Trust Co.   |   |          |   | 8-K    |   | 10.3    |   | 2/21/2006        |

----

| ExhibitNumber |   | Description                                                                                                                                                          |   | FiledHerewith |   | Form   |   | Exhibit |   | Filing Date |
|---------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|--------|---------|--------|------------------|
|          |   |                                                                                                                                                                 |   |          |   |   |   |    |   |             |
| 10.8          |   | Warrant, dated February 17, 2006                                                                                                                                     |   |          |   | 8-K    |   | 10.4    |   | 2/21/2006        |
| 10.9          |   | Warrant, dated February 17, 2006                                                                                                                                     |   |          |   | 8-K    |   | 10.5    |   | 2/21/2006        |
| 10.10         |   | Warrant, dated February 17, 2006                                                                                                                                     |   |          |   | 8-K    |   | 10.6    |   | 2/21/2006        |
| 10.11         |   | Assignment Agreement, dated February 17, 2006 by NeoMedia and Cornell Capital Partners                                                                               |   |          |   | 8-K    |   | 10.7    |   | 2/21/2006        |
| 10.12         |   | Assignment of Common Stock, dated February 17, 2006 between NeoMedia and Cornell Capital Partners                                                                    |   |          |   | 8-K    |   | 10.8    |   | 2/21/2006        |
| 10.13         |   | Securities Purchase Agreement, dated August 24, 2006, between the Company and Cornell Capital Partners, LP                                                           |   |          |   | 8-K    |   | 10.1    |   | 8/30/2006        |
| 10.14         |   | Investor Registration Rights Agreement, dated August 24, 2006, between the Company and Cornell Capital Partners, LP                                                  |   |          |   | 8-K    |   | 10.2    |   | 8/30/2006        |
| 10.15         |   | Pledge and Security Agreement, dated August 24, 2006, between the Company and Cornell Capital Partners, LP                                                           |   |          |   | 8-K    |   | 10.3    |   | 8/30/2006        |
| 10.16         |   | Secured Convertible Debenture, dated August 24, 2006, issued by the Company to Cornell Capital Partners, LP                                                          |   |          |   | 8-K    |   | 10.4    |   | 8/30/2006        |
| 10.17         |   | Irrevocable Transfer Agent Instructions, dated August 24, 2006, by and among the Company, Cornell Capital Partners, LP and American Stock Transfer & Trust Co.   |   |          |   | 8-K    |   | 10.5    |   | 8/30/2006        |
| 10.18         |   | A Warrant, dated August 24, 2006                                                                                                                                     |   |          |   | 8-K    |   | 10.6    |   | 8/30/2006        |
| 10.19         |   | B Warrant, dated August 24, 2006                                                                                                                                     |   |          |   | 8-K    |   | 10.7    |   | 8/30/2006        |
| 10.20         |   | C Warrant, dated August 24, 2006                                                                                                                                     |   |          |   | 8-K    |   | 10.8    |   | 8/30/2006        |
| 10.21         |   | D Warrant, dated August 24, 2006                                                                                                                                     |   |          |   | 8-K    |   | 10.9    |   | 8/30/2006        |
| 10.22         |   | Amendment to Warrant No. CCP-002, dated August 24, 2006,  between the Company and Cornell Capital Partners, LP                                             |   |          |   | 8-K    |   | 10.1    |   | 8/30/2006        |
| 10.23         |   | Amendment to “A” Warrant No. CCP-001,  dated August 24, 2006, between the Company and Cornell Capital Partners, LP                             |   |          |   | 8-K    |   | 10.11   |   | 8/30/2006        |
| 10.24         |   | Amendment to “B” Warrant No. CCP-002, dated August 24, 2006, between the Company and Cornell Capital Partners, LP                                        |   |          |   | 8-K    |   | 10.12   |   | 8/30/2006        |
| 10.25         |   | Amendment to “C” Warrant No. CCP-003,  dated August 24, 2006, between the Company and Cornell Capital Partners, LP                             |   |          |   | 8-K    |   | 10.13   |   | 8/30/2006        |
| 10.26         |   | Definitive share purchase and settlement agreement between NeoMedia and Sponge, dated November 14, 2006                                                              |   |          |   | 8-K    |   | 16.1    |   | 11/20/2006       |
| 10.27         |   | Securities Purchase Agreement, dated December 29, 2006, between the Company and Cornell Capital Partners, LP                                                         |   |          |   | 8-K    |   | 10.1    |   | 1/8/2007         |
| 10.28         |   | Investor Registration Rights Agreement, dated December 29, 2006, between the Company and Cornell Capital Partners, LP                                                |   |          |   | 8-K    |   | 10.2    |   | 1/8/2007         |
| 10.29         |   | Secured Convertible Debenture, dated December 29, 2006, issued by the Company to Cornell Capital Partners, LP                                                        |   |          |   | 8-K    |   | 10.3    |   | 1/8/2007         |
| 10.30         |   | Irrevocable Transfer Agent Instructions, dated December 29, 2006, by and among the Company, Cornell Capital Partners, LP and American Stock Transfer & Trust Co. |   |          |   | 8-K    |   | 10.4    |   | 1/8/2007         |
| 10.31         |   | A Warrant, dated December 29, 2006                                                                                                                                   |   |          |   | 8-K    |   | 10.5    |   | 1/8/2007         |
| 10.32         |   | Amendment to Warrant No. CCP-002, dated December 29, 2006,  between the Company and Cornell Capital Partners, LP                                           |   |          |   | 8-K    |   | 10.6    |   | 1/8/2007         |
| 10.33         |   | Amendment to “A” Warrant No. CCP-001,  dated December 29, 2006, between the Company and Cornell Capital Partners, LP                           |   |          |   | 8-K    |   | 10.7    |   | 1/8/2007         |
| 10.34         |   | Amendment to “B” Warrant No. CCP-002, dated December 29, 2006, between the Company and Cornell Capital Partners, LP                                      |   |          |   | 8-K    |   | 10.8    |   | 1/8/2007         |
| 10.35         |   | Amendment to “C” Warrant No. CCP-003,  dated December 29, 2006, between the Company and Cornell Capital Partners, LP                           |   |          |   | 8-K    |   | 10.9    |   | 1/8/2007         |
| 10.36         |   | Amendment to “A” Warrant No. CCP-001,  dated December 29, 2006, between the Company and Cornell Capital Partners, LP                           |   |          |   | 8-K    |   | 10.1    |   | 1/8/2007         |
| 10.37         |   | Amendment to “B” Warrant No. CCP-001,  dated December 29, 2006, between the Company and Cornell Capital Partners, LP                           |   |          |   | 8-K    |   | 10.11   |   | 1/8/2007         |
| 10.38         |   | Amendment to “C” Warrant No. CCP-001,  dated December 29, 2006, between the Company and Cornell Capital Partners, LP                           |   |          |   | 8-K    |   | 10.12   |   | 1/8/2007         |

----

| ExhibitNumber |   | Description                                                                                                                                          |   | FiledHerewith |   | Form   |   | Exhibit |   | Filing Date |
|---------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|--------|---------|--------|------------------|
|          |   |                                                                                                                                                 |   |          |   |   |   |    |   |             |
| 10.39         |   | Securities Purchase Agreement, dated December 29, 2006, between the Company and Cornell Capital Partners, LP                                         |   |          |   | 8-K    |   | 10.13   |   | 1/8/2007         |
| 10.40         |   | Amendment Agreement I to the Sale and Purchase Agreement between NeoMedia and certain former shareholders of Gavitec AG, dated January 23, 2007      |   |          |   | 8-K    |   | 10.1    |   | 1/29/2007        |
| 10.41         |   | Consulting Agreement between the Company and SKS Consulting of South Florida Corp.                                                                   |   |          |   | 8-K    |   | 10.1    |   | 2/6/2007         |
| 10.42         |   | Securities Purchase Agreement between NeoMedia and Cornell Capital Partners LP, dated March 27, 2007                                                 |   |          |   | 8-K    |   | 10.1    |   | 3/27/2007        |
| 10.43         |   | Investor Registration Rights Agreement between NeoMedia and Cornell Capital Partners LP, dated March 27, 2007                                        |   |          |   | 8-K    |   | 10.2    |   | 3/27/2007        |
| 10.44         |   | Secured Convertible Debenture, issued by NeoMedia to Cornell Capital Partners, LP, dated March 27, 2007                                              |   |          |   | 8-K    |   | 10.3    |   | 3/27/2007        |
| 10.45         |   | Irrevocable Transfer Agent Instructions, by and among NeoMedia, Cornell Capital Partners, LP and Worldwide Stock Transfer, dated March 27, 2007      |   |          |   | 8-K    |   | 10.4    |   | 3/27/2007        |
| 10.46         |   | Warrant, issued by NeoMedia to Cornell Capital Partners, LP, dated March 27, 2007                                                                    |   |          |   | 8-K    |   | 10.5    |   | 3/27/2007        |
| 10.47         |   | Master Amendment Agreement, by and between NeoMedia and Cornell Capital Partners, LP, dated March 27, 2007                                           |   |          |   | 8-K    |   | 10.6    |   | 3/27/2007        |
| 10.48         |   | Security Agreement, by and between NeoMedia and Cornell Capital Partners, LP, dated on or about August 24, 2006                                      |   |          |   | 8-K    |   | 10.7    |   | 3/27/2007        |
| 10.49         |   | Security Agreement, by and between NeoMedia and Cornell Capital Partners, LP, dated March 27,2007                                                    |   |          |   | 8-K    |   | 10.8    |   | 3/27/2007        |
| 10.50         |   | Security Agreement (Patent), by and between NeoMedia and Cornell Capital Partners, LP, dated March 27, 2007                                          |   |          |   | 8-K    |   | 10.9    |   | 3/27/2007        |
| 10.51         |   | Pledge Shares Escrow Agreement, by and between NeoMedia and Cornell Capital Partners, dated March 27, 2007                                           |   |          |   | 8-K    |   | 10.1    |   | 3/27/2007        |
| 10.52         |   | Completion of Acquisition of Disposition of Assets of BSD Software Inc.                                                                              |   |          |   | 8-K/A  |   | 10.1    |   | 6/8/2007         |
| 10.53         |   | Registration Rights Agreement, by and between NeoMedia and YA Global Investments, L.P., dated August 24, 2007                                        |   |          |   | 8-K    |   | 10.1    |   | 8/30/2007        |
| 10.54         |   | Secured Convertible Debenture, issued by NeoMedia to YA Global Investments, dated August 24, 2007                                                    |   |          |   | 8-K    |   | 10.2    |   | 8/30/2007        |
| 10.55         |   | Irrevocable Transfer Agent Instructions, by and among NeoMedia, YA Global Investments, L.P. and Worldwide Stock Transfer, LLC, dated August 24, 2007 |   |          |   | 8-K    |   | 10.3    |   | 8/30/2007        |
| 10.56         |   | Warrant issued by NeoMedia to YA Global Investments, L.P., dated August 24, 2007                                                                     |   |          |   | 8-K    |   | 10.4    |   | 8/30/2007        |
| 10.57         |   | Repricing Agreement, by and between NeoMedia and YA Global Investments, L.P., dated August 24, 2007                                                  |   |          |   | 8-K    |   | 10.5    |   | 8/30/2007        |
| 10.58         |   | Security Agreement, by and between NeoMedia and YA Global Investments, L.P., dated August 24, 2007                                                   |   |          |   | 8-K    |   | 10.6    |   | 8/30/2007        |
| 10.59         |   | Security Agreement (Patent), by and between NeoMedia and YA Global Investments, L.P., dated August 24, 2007                                |   |          |   | 8-K    |   | 10.7    |   | 8/30/2007        |
| 10.60         |   | Secured Convertible Debenture, dated April 11, 2008, issued by the Company to YA Global Investments, L.P.                                            |   |          |   | 8-K    |   | 10.1    |   | 4/17/2008        |
| 10.61         |   | Secured Convertible Debenture, dated May 16, 2008, issued by the Company to YA Global Investments, L.P.                                              |   |          |   | 8-K    |   | 10.1    |   | 5/22/2008        |
| 10.62         |   | Warrant, dated May 16, 2008, issued by the Company to YA Global Investments, L.P.                                                                    |   |          |   | 8-K    |   | 10.2    |   | 5/22/2008        |

----

| ExhibitNumber |   | Description                                                                                                                                                             |   | FiledHerewith |   | Form   |   | Exhibit |   | Filing Date |
|---------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|--------|---------|--------|------------------|
|          |   |                                                                                                                                                                    |   |          |   |   |   |    |   |             |
| 10.63         |   | Secured Convertible Debenture, dated May 30, 2008, issued by the Company to YA Global Investments, L.P.                                                                 |   |          |   | 8-K    |   | 10.1    |   | 6/5/2008         |
| 10.64         |   | Warrant, dated May 30, 2008, issued by the Company to YA Global Investments, L.P.                                                                                       |   |          |   | 8-K    |   | 10.2    |   | 6/5/2008         |
| 10.65         |   | Settlement Agreement and Release, dated June 3, 2008, by and between the Company and William Hoffman                                                                    |   |          |   | 8-K    |   | 10.5    |   | 6/5/2008         |
| 10.66         |   | Employment Agreement, dated June 10, 2008, by and between NeoMedia Technologies, Inc. and Iain McCready                                                                 |   |          |   | 8-K    |   | 10.1    |   | 6/16/2008        |
| 10.67         |   | Secured Convertible Debenture, dated July 10, 2008, issued by the Company to YA Global Investments, L.P.                                                                |   |          |   | 8-K    |   | 10.1    |   | 7/16/2008        |
| 10.68         |   | Securities Purchase Agreement, dated July 29, 2008, by and between the Company and YA Global Investments, L.P.                                                          |   |          |   | 8-K    |   | 10.1    |   | 8/4/2008         |
| 10.69         |   | Secured Convertible Debenture, dated July 29, 2008, issued by the Company to YA Global Investments, L.P.                                                                |   |          |   | 8-K    |   | 10.2    |   | 8/4/2008         |
| 10.70         |   | Security Agreement, dated July 29, 2008, by and among the Company, each of the Company’s subsidiaries made a party thereto and YA Global Investments, L.P.        |   |          |   | 8-K    |   | 10.3    |   | 8/4/2008         |
| 10.71         |   | Patent Security Agreement, dated July 29, 2008, by and among the Company, each of the Company’s subsidiaries made a party thereto and YA Global Investments, L.P. |   |          |   | 8-K    |   | 10.4    |   | 8/4/2008         |
| 10.72         |   | Warrant 9-1A, dated July 29, 2008, issued by the Company to YA Global Investments, L.P.                                                                                 |   |          |   | 8-K    |   | 10.5    |   | 8/4/2008         |
| 10.73         |   | Warrant 9-1B, dated July 29, 2008, issued by the Company to YA Global Investments, L.P.                                                                                 |   |          |   | 8-K    |   | 10.6    |   | 8/4/2008         |
| 10.74         |   | Warrant 9-1C, dated July 29, 2008, issued by the Company to YA Global Investments, L.P.                                                                                 |   |          |   | 8-K    |   | 10.7    |   | 8/4/2008         |
| 10.75         |   | Warrant 9-1D, dated July 29, 2008, issued by the Company to YA Global Investments, L.P.                                                                                 |   |          |   | 8-K    |   | 10.8    |   | 8/4/2008         |
| 10.76         |   | Escrow Agreement, dated July 29, 2008, by and among the Company, YA Global Investments, L.P., Yorkville Advisors, LLC and David Gonzalez, Esq.                          |   |          |   | 8-K    |   | 10.9    |   | 8/4/2008         |
| 10.77         |   | Irrevocable Transfer Agent Instructions, dated July 29, 2008, by and among the Company, the Investor, David Gonzalez, Esq. and WorldWide Stock Transfer, LLC            |   |          |   | 8-K    |   | 10.1    |   | 8/4/2008         |
| 10.78         |   | Letter Agreement, dated September 24, 2008, by and among NeoMedia Technologies, Inc. and YA Global Investments, L.P.                                                    |   |          |   | 8-K    |   | 10.1    |   | 10/1/2008        |
| 10.79         |   | Second Secured Convertible Debenture, dated October 28, 2008, issued by the Company to YA Global Investments, L.P.                                                      |   |          |   | 8-K    |   | 10.3    |   | 11/3/2008        |
| 10.80         |   | Revised Exhibit A to Escrow Agreement, dated October 28, 2008                                                                                                           |   |          |   | 8-K    |   | 10.12   |   | 11/3/2008        |
| 10.81         |   | Letter Agreement, dated March 27, 2009, by and between the Company and YA Global Investments, L.P.                                                                      |   |          |   | 8-K    |   | 10.13   |   | 4/13/2009        |
| 10.82         |   | Amendment Agreement, dated April 6, 2009, by and between the Company and YA Global Investments, L.P.                                                                    |   |          |   | 8-K    |   | 10.14   |   | 4/13/2009        |
| 10.83         |   | Third Secured Convertible Debenture (first closing), dated April 6, 2009, issued by the Company to YA Global Investments, L.P.                                          |   |          |   | 8-K    |   | 10.15   |   | 4/13/2009        |
| 10.84         |   | Waiver, effective as of December 31, 2008, by and between the Company and YA Global Investments, L.P.                                                                   |   |          |   | 8-K    |   | 10.16   |   | 4/13/2009        |
| 10.85         |   | Fourth Secured Convertible Debenture (second amended third closing), dated May 1, 2009, issued by the Company to YA Global Investments, L.P.                            |   |          |   | 8-K    |   | 10.15   |   | 5/7/2009         |

----

| ExhibitNumber |   | Description                                                                                                                                                                                      |   | FiledHerewith |   | Form   |   | Exhibit |   | Filing Date |
|---------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|--------|---------|--------|------------------|
|          |   |                                                                                                                                                                                             |   |          |   |   |   |    |   |             |
| 10.86         |   | Agreement, dated June 5, 2009 (Additional Agreement), by and between the Company and YA Global Investments, L.P.                                                                                 |   |          |   | 8-K    |   | 10.16   |   | 6/5/2009         |
| 10.87         |   | Fifth Convertible Debenture (Additional Agreement closing), dated June 5, 2009, issued by the Company to YA Global Investments, L.P.                                                             |   |          |   | 8-K    |   | 10.17   |   | 6/5/2009         |
| 10.88         |   | Agreement, dated July 15, 2009 (Second Additional Agreement), by and between the Company and YA Global Investments, L.P.                                                                         |   |          |   | 8-K    |   | 10.18   |   | 7/21/2009        |
| 10.89         |   | Sixth Convertible Debenture dated July 15, 2009, (Second Additional Debenture), issued by the Company to YA Global Investments, L.P.                                                             |   |          |   | 8-K    |   | 10.19   |   | 7/21/2009        |
| 10.90         |   | Agreement, dated July 17, 2009, by and between the Company and Silver Bay Software, LLC.                                                                                                         |   |          |   | 8-K    |   | 10.20   |   | 7/21/2009        |
| 10.91         |   | Agreement, dated July 17, 2009, by and between the Company and Mr. Greg Lindholm.                                                                                                                |   |          |   | 8-K    |   | 10.21   |   | 7/21/2009        |
| 10.92         |   | Non-Exclusive License Agreement between the Company and Mobile Tag, Inc. dated July 28, 2009                                                                                                     |   |          |   | 8-K    |   | 10.1    |   | 7/30/2009        |
| 10.93         |   | Agreement dated August 14, 2009 (Third Additional Agreement) by and between the Company and Y.A. Global Investments, L.P.                                                                        |   |          |   | 10-Q   |   | 10.124  |   | 8/14/2009        |
| 10.94         |   | Seventh Convertible Debenture dated August 14, 2009 (Fifth Additional Debenture) issued by the Company to Y.A. Global Investments, L.P.                                                          |   |          |   | 10-Q   |   | 10.125  |   | 8/14/2009        |
| 10.95         |   | Non-exclusive License Agreement with exclusive right to sub-license provision between Company and Neustar, Inc. dated October 2, 2009.                                                           |   |          |   | 8-K    |   | 10.1    |   | 10/6/2009        |
| 10.96         |   | Non-Exclusive License Agreement to use the Licenced Platform between the Company and Brand Extension Mobile Solutions, S.A., a Madrid (Spain) corporation (“BEMS"), dated October 7, 2009. |   |          |   | 8-K    |   | 10.1    |   | 10/13/2009       |
| 10.97         |   | Settlement Agreement and non-exclusive license and a sublicense between the Company and Scanbuy, Inc., dated October 16, 2009.                                                                   |   |          |   | 8-K    |   | 10.1    |   | 10/20/2009       |
| 10.98         |   | Investment Agreement between Company and YA Global dated January 5, 2010.                                                                                                                        |   |          |   | 8-K    |   | 10.1    |   | 1/11/2010        |
| 10.99         |   | Irrevocable Transfer Agent Instructions letter issued by Company to WorldWide Stock Transfer, LLC dated January 5, 2010.                                                                         |   |          |   | 8-K    |   | 10.2    |   | 1/11/2010        |
| 10.100        |   | Monitoring Fee Escrow Agreement between Company and YA Global dated January 5, 2010.                                                                                                             |   |          |   | 8-K    |   | 10.3    |   | 1/11/2010        |
| 10.101        |   | Investor Registration Rights Agreement between Company and YA Global dated January 5, 2010.                                                                                                      |   |          |   | 8-K    |   | 10.4    |   | 1/11/2010        |
| 10.102        |   | Issuance of Warrants by Company to YA Global dated January 5, 2010.                                                                                                                              |   |          |   | 8-K    |   | 10.5    |   | 1/11/2010        |
| 10.103        |   | Amendment to the August 24, 2006 Secured Convertible Debenture No. CCP-1 between the Company and YA Global dated January 5, 2010.                                                                |   |          |   | 8-K    |   | 10.6    |   | 1/11/2010        |
| 10.104        |   | Amendment to the December 29, 2006 Secured Convertible Debenture No. CCP-2 between the Company and YA Global dated January 5, 2010.                                                              |   |          |   | 8-K    |   | 10.7    |   | 1/11/2010        |
| 10.105        |   | Amendment to the March 27, 2007 Secured Convertible Debenture No. NEOM-4-1 between the Company and YA Global dated January 5, 2010.                                                              |   |          |   | 8-K    |   | 10.8    |   | 1/11/2010        |

----

| ExhibitNumber |   | Description                                                                                                                           |   | FiledHerewith |   | Form   |   | Exhibit |   | Filing Date |
|---------------|--------|---------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|--------|---------|--------|------------------|
|          |   |                                                                                                                                  |   |          |   |   |   |    |   |             |
| 10.106        |   | Amendment to the August 24, 2007 Secured Convertible Debenture No. NEOM-1-1 between the Company and YA Global dated January 5, 2010.  |   |          |   | 8-K    |   | 10.9    |   | 1/11/2010        |
| 10.107        |   | Amendment to the April 11, 2008 Secured Convertible Debenture No. NEO-2008-1 between the Company and YA Global dated January 5, 2010. |   |          |   | 8-K    |   | 10.10   |   | 1/11/2010        |
| 10.108        |   | Amendment to the May 16, 2008 Secured Convertible Debenture No. NEO-2008-2 between the Company and YA Global dated January 5, 2010.   |   |          |   | 8-K    |   | 10.11   |   | 1/11/2010        |
| 10.109        |   | Amendment to the May 29, 2008 Secured Convertible Debenture No. NEO-2008-3 between the Company and YA Global dated January 5, 2010.   |   |          |   | 8-K    |   | 10.12   |   | 1/11/2010        |
| 10.110        |   | Amendment to the July 10, 2008 Secured Convertible Debenture No. NEO-2008-4 between the Company and YA Global dated January 5, 2010.  |   |          |   | 8-K    |   | 10.13   |   | 1/11/2010        |
| 10.111        |   | Amendment to the July 29, 2008 Secured Convertible Debenture No. NEOM-9-1 between the Company and YA Global dated January 5, 2010.    |   |          |   | 8-K    |   | 10.14   |   | 1/11/2010        |
| 10.112        |   | Amendment to the October 28, 2008 Secured Convertible Debenture No. NEOM-9-2 between the Company and YA Global dated January 5, 2010. |   |          |   | 8-K    |   | 10.15   |   | 1/11/2010        |
| 10.113        |   | Amendment to the May 1, 2009 Secured Convertible Debenture No. NEOM-9-4 between the Company and YA Global dated January 5, 2010.      |   |          |   | 8-K    |   | 10.16   |   | 1/11/2010        |
| 10.114        |   | Amendment to the June 5, 2009 Secured Convertible Debenture No. NEOM-9-5 between the Company and YA Global dated January 5, 2010.     |   |          |   | 8-K    |   | 10.17   |   | 1/11/2010        |
| 10.115        |   | Amendment to the July 15, 2009 Secured Convertible Debenture No. NEOM-9-6 between the Company and YA Global dated January 5, 2010.    |   |          |   | 8-K    |   | 10.18   |   | 1/11/2010        |
| 10.116        |   | Amendment to the August 14, 2009 Secured Convertible Debenture No. NEOM-9-7 between the Company and YA Global dated January 5, 2010.  |   |          |   | 8-K    |   | 10.19   |   | 1/11/2010        |
| 10.117        |   | Amendment to the July 29, 2008 Secured Convertible Debenture No. NEOM-9-1B between the Company and YA Global dated January 5, 2010.   |   |          |   | 8-K    |   | 10.20   |   | 1/11/2010        |
| 10.118        |   | Amendment to the July 29, 2008 Secured Convertible Debenture No. NEOM-9-1C between the Company and YA Global dated January 5, 2010.   |   |          |   | 8-K    |   | 10.21   |   | 1/11/2010        |
| 10.119        |   | Amendment to the July 29, 2008 Secured Convertible Debenture No. NEOM-9-1D between the Company and YA Global dated January 5, 2010.   |   |          |   | 8-K    |   | 10.22   |   | 1/11/2010        |
| 10.120        |   | Amendment of employment agreement entered into on June 10, 2008 between the company and Iain A. McCready.                             |   |          |   | 8-K    |   | 10.2    |   | 1/20/2010        |
| 10.121        |   | Amended and restated licensing agreement dated October 2, 2009 with NeuStar, Inc.                                                     |   |          |   | 8-K    |   | 10.1    |   | 1/28/2010        |
| 10.122        |   | Agreement with Neu Star, Inc., dated February 12, 2010 (the Neu Star Mobile Codes Pilot Program Agreement).                           |   |          |   | 8-K    |   | 10.1    |   | 2/16/2010        |
| 10.123        |   | First amendment to the investment agreement between Company and  YA Global dated January 5, 2010.                           |   |          |   | 8-K    |   | 10.1    |   | 3/11/2010        |
| 10.124        |   | Special meeting of shareholders held March 30, 2010.                                                                                  |   |          |   | 8-K    |   | 10.1    |   | 4/2/2010         |
| 10.125        |   | Notification of new trading symbol "NEOMD" beginning May 10, 2010.                                                                    |   |          |   | 8-K    |   |    |   | 5/11/2010        |

----

| ExhibitNumber |   | Description                                                                                                                                                                                                  |   | FiledHerewith |   | Form   |   | Exhibit |   | Filing Date |
|---------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|--------|---------|--------|------------------|
|          |   |                                                                                                                                                                                                         |   |          |   |   |   |    |   |             |
| 10.126        |   | Securities Purchase Agreement, dated May 27, 2010, by and between the Company and YA Global Investments, L.P.                                                                                                |   |          |   | 8-K    |   | 10.1    |   | 6/3/2010         |
| 10.127        |   | Secured Convertible Debenture, dated May 27, 2010,  issued by the Company to YA Global Investments, L.P.                                                                                           |   |          |   | 8-K    |   | 10.2    |   | 6/3/2010         |
| 10.128        |   | Warrant No. 0510, dated May 27, 2010, issued by the Company to YA Global Investments, L.P.                                                                                                                   |   |          |   | 8-K    |   | 10.3    |   | 6/3/2010         |
| 10.129        |   | Global Warrant Amendment, dated May 27, 2010, issued by the Company to YA Global Investments, L.P.                                                                                                           |   |          |   | 8-K    |   | 10.4    |   | 6/3/2010         |
| 10.130        |   | Ratification Agreement, dated May 27, 2010, by and among the Company, each of the Company’s subsidiaries made a party thereto and YA Global Investments, L.P.                                          |   |          |   | 8-K    |   | 10.7    |   | 6/3/2010         |
| 10.131        |   | Irrevocable Transfer Agent Instructions, dated May 27, 2010, by and among the Company, the Investor, David Gonzalez, Esq. and WorldWide Stock Transfer, LLC                                                  |   |          |   | 8-K    |   | 10.1    |   | 6/3/2010         |
| 10.132        |   | Agreement, dated August 13, 2010, by and between the Company and YA Global Investments, L.P.                                                                                                                 |   |          |   | 8-K    |   | 10.1    |   | 8/19/2010        |
| 10.133        |   | Secured Convertible Debenture, No. NEOM-10-2, dated August 13, 2010,  issued by the Company to YA Global Investments, L.P.                                                                         |   |          |   | 8-K    |   | 10.2    |   | 8/19/2010        |
| 10.134        |   | Warrant, No. NEOM-0810, dated August 13, 2010, issued by the Company to YA Global Investments, L.P.                                                                                                          |   |          |   | 8-K    |   | 10.3    |   | 8/19/2010        |
| 10.135        |   | Agreement on the Pledge of Intellectual Property Rights as Collateral, dated August 13, 2010, by and between the Company’s wholly-owned subsidiary NeoMedia Europe AG, and YA Global Investments, L.P. |   |          |   | 8-K    |   | 10.6    |   | 8/19/2010        |
| 10.136        |   | Second Ratification Agreement, dated August 13, 2010, by and among the Company, each of the Company’s subsidiaries made a party thereto, and YA Global Investments, L.P.                               |   |          |   | 8-K    |   | 10.7    |   | 8/19/2010        |
| 10.137        |   | Irrevocable Transfer Agent Instructions, dated August 13, 2010, by and among the Company, the Buyer, David Gonzalez, Esq. and WorldWide Stock Transfer, LLC                                                  |   |          |   | 8-K    |   | 10.8    |   | 8/19/2010        |
| 10.138        |   | Security Transfer of Moveable Assets, dated August 13, 2010, by and between the Company’s wholly-owned subsidiary NeoMedia Europe AG, and YA Global Investments, L.P.                                  |   |          |   | 8-K    |   | 10.9    |   | 8/19/2010        |
| 10.139        |   | Agreement, dated September 29, 2010, by and between the Company and YA Global Investments, L.P.                                                                                                              |   |          |   | 8-K    |   | 10.1    |   | 10/1/2010        |
| 10.140        |   | Secured Convertible Debenture, No. NEOM-10-3, dated September 29, 2010,  issued by the Company to YA Global Investments, L.P.                                                                      |   |          |   | 8-K    |   | 10.2    |   | 10/1/2010        |
| 10.141        |   | Warrant, No. NEOM-0910, dated September 29, 2010, issued by the Company to YA Global Investments, L.P.                                                                                                       |   |          |   | 8-K    |   | 10.3    |   | 10/1/2010        |
| 10.142        |   | Third Ratification Agreement, dated September 29, 2010, by and among the Company, each of the Company’s subsidiaries made a party thereto, and YA Global Investments, L.P.                             |   |          |   | 8-K    |   | 10.6    |   | 10/1/2010        |
| 10.143        |   | Irrevocable Transfer Agent Instructions, dated September 29, 2010, by and among the Company, the Buyer, David Gonzalez, Esq. and WorldWide Stock Transfer, LLC                                               |   |          |   | 8-K    |   | 10.7    |   | 10/1/2010        |

----

| ExhibitNumber |   | Description                                                                                                                                                                     |   | FiledHerewith |   | Form   |   | Exhibit |   | Filing Date |
|---------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|--------|---------|--------|------------------|
|          |   |                                                                                                                                                                            |   |          |   |   |   |    |   |             |
| 10.144        |   | Compromise Agreement dated October 19, 2010, executed by Iain A. McCready                                                                                                       |   |          |   | 8-K    |   | 10.1    |   | 10/20/2010       |
| 10.145        |   | Resignation Letter dated October 19, 2010, executed by Iain A. McCready                                                                                                         |   |          |   | 8-K    |   | 10.2    |   | 10/20/2010       |
| 10.146        |   | Agreement, dated October 28, 2010, by and between the Company and YA Global Investments, L.P.                                                                                   |   |          |   | 8-K    |   | 10.1    |   | 11/3/2010        |
| 10.147        |   | Secured Convertible Debenture, No. NEOM-10-4, dated October 28, 2010,  issued by the Company to YA Global Investments, L.P.                                           |   |          |   | 8-K    |   | 10.2    |   | 11/3/2010        |
| 10.148        |   | Warrant, No. NEOM-1010, dated October 28, 2010, issued by the Company to YA Global Investments, L.P.                                                                            |   |          |   | 8-K    |   | 10.3    |   | 11/3/2010        |
| 10.149        |   | Fourth Ratification Agreement, dated October 28, 2010, by and among the Company, each of the Company’s subsidiaries made a party thereto, and YA Global Investments, L.P. |   |          |   | 8-K    |   | 10.6    |   | 11/3/2010        |
| 10.150        |   | Irrevocable Transfer Agent Instructions, dated October 28, 2010, by and among the Company, the Buyer, David Gonzalez, Esq. and WorldWide Stock Transfer, LLC                    |   |          |   | 8-K    |   | 10.7    |   | 11/3/2010        |
| 10.151        |   | Agreement, dated December 14, 2010, by and between the Company and Rothschild Trust Holdings, LLC; BP BL Section 3.4, LLC; and Leigh M. Rothschild                              |   |          |   | 8-K    |   | 10.1    |   | 12/15/2010       |
| 10.152        |   | Bylaws of Neomedia Technologies, Inc. adopted December 16, 2010                                                                                                                 |   |          |   | 8-K    |   | 3.2     |   | 12/21/2010       |
| 10.153        |   | Agreement, dated December 15, 2010, by and between the Company and YA Global Investments, L.P.                                                                                  |   |          |   | 8-K    |   | 10.1    |   | 12/21/2010       |
| 10.154        |   | Secured Convertible Debenture, No. NEOM-10-5, dated December 15, 2010,  issued by the Company to YA Global Investments, L.P.                                          |   |          |   | 8-K    |   | 10.2    |   | 12/21/2010       |
| 10.155        |   | Warrant, No. NEOM-1210, dated December 15, 2010, issued by the Company to YA Global Investments, L.P.                                                                           |   |          |   | 8-K    |   | 10.3    |   | 12/21/2010       |
| 10.156        |   | Fifth Ratification Agreement, dated December 15, 2010, by and among the Company, each of the Company’s subsidiaries made a party thereto, and YA Global Investments, L.P. |   |          |   | 8-K    |   | 10.6    |   | 12/21/2010       |
| 10.157        |   | Irrevocable Transfer Agent Instructions, dated December 15, 2010, by and among the Company, the Buyer, David Gonzalez, Esq. and WorldWide Stock Transfer, LLC                   |   |          |   | 8-K    |   | 10.7    |   | 12/21/2010       |
| 10.158        |   | Agreement, dated December 21, 2010, by and between the Company and eBay Inc.                                                                                                    |   |          |   | 8-K    |   | 10.1    |   | 12/22/2010       |
| 10.159        |   | Agreement, dated January 10, 2011, by and between the Company and YA Global Investments, L.P.                                                                                   |   |          |   | 8-K    |   | 10.1    |   | 1/14/2011        |
| 10.160        |   | Secured Convertible Debenture, No. NEOM-11-1, dated January 10, 2011,  issued by the Company to YA Global Investments, L.P.                                           |   |          |   | 8-K    |   | 10.2    |   | 1/14/2011        |
| 10.161        |   | Warrant, No. NEOM-0111, dated January 10, 2011, issued by the Company to YA Global Investments, L.P.                                                                            |   |          |   | 8-K    |   | 10.3    |   | 1/14/2011        |
| 10.162        |   | Sixth Ratification Agreement, dated January 10, 2011, by and among the Company, each of the Company’s subsidiaries made a party thereto, and YA Global Investments, L.P.  |   |          |   | 8-K    |   | 10.6    |   | 1/14/2011        |

----

| ExhibitNumber |   | Description                                                                                                                                                                             |   | FiledHerewith |   | Form   |   | Exhibit |   | Filing Date |
|---------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|--------|---------|--------|------------------|
|          |   |                                                                                                                                                                                    |   |          |   |   |   |    |   |             |
| 10.163        |   | Irrevocable Transfer Agent Instructions, dated January 10, 2011, by and among the Company, the Buyer, David Gonzalez, Esq. and WorldWide Stock Transfer, LLC                            |   |          |   | 8-K    |   | 10.7    |   | 1/14/2011        |
| 10.164        |   | Agreement, dated February 8, 2011, by and between the Company and YA Global Investments, L.P.                                                                                           |   |          |   | 8-K    |   | 10.1    |   | 2/11/2011        |
| 10.165        |   | Secured Convertible Debenture, No. NEOM-11-2, dated February 8, 2011,  issued by the Company to YA Global Investments, L.P.                                                   |   |          |   | 8-K    |   | 10.2    |   | 2/11/2011        |
| 10.166        |   | Warrant, No. NEOM-0211, dated February 8, 2011, issued by the Company to YA Global Investments, L.P.                                                                                    |   |          |   | 8-K    |   | 10.3    |   | 2/11/2011        |
| 10.167        |   | Seventh Ratification Agreement, dated February 8, 2011, by and among the Company, each of the Company’s subsidiaries made a party thereto, and YA Global Investments, L.P.        |   |          |   | 8-K    |   | 10.6    |   | 2/11/2011        |
| 10.168        |   | Irrevocable Transfer Agent Instructions, dated February 8, 2011, by and among the Company, the Buyer, David Gonzalez, Esq. and WorldWide Stock Transfer, LLC                            |   |          |   | 8-K    |   | 10.7    |   | 2/11/2011        |
| 10.169        |   | Confidential License Agreement, dated December 21, 2010, by and between the Company and eBay Inc.                                                                                       |   |          |   | 8-K    |   | 10.1    |   | 2/22/2011        |
| 10.170        |   | Appointment of Ms. Sarah Fay to serve as a member of the Board of Directors.  Accepted notification of the retirement of James J. Keil as a member of the Board of Directors. |   |          |   | 8-K    |   | 99.1    |   | 3/2/2011         |
| 10.171        |   | Agreement, dated March 11, 2011, by and between the Company and YA Global Investments, L.P.                                                                                             |   |          |   | 8-K    |   | 10.1    |   | 3/17/2011        |
| 10.172        |   | Secured Convertible Debenture, No. NEOM-11-3, dated March 11, 2011,  issued by the Company to YA Global Investments, L.P.                                                     |   |          |   | 8-K    |   | 10.2    |   | 3/17/2011        |
| 10.173        |   | Warrant, No. NEOM-0311, dated March 11, 2011, issued by the Company to YA Global Investments, L.P.                                                                                      |   |          |   | 8-K    |   | 10.3    |   | 3/17/2011        |
| 10.174        |   | Ratification Agreement, dated March 11, 2011, by and among the Company, each of the Company’s subsidiaries made a party thereto, and YA Global Investments, L.P.                  |   |          |   | 8-K    |   | 10.6    |   | 3/17/2011        |
| 10.175        |   | Irrevocable Transfer Agent Instructions, dated March 11, 2011, by and among the Company, the Buyer, David Gonzalez, Esq. and WorldWide Stock Transfer, LLC                              |   |          |   | 8-K    |   | 10.7    |   | 3/17/2011        |
| 10.176        |   | Agreement, dated April 13, 2011, by and between the Company and YA Global Investments, L.P.                                                                                             |   |          |   | 8-K    |   | 10.1    |   | 4/13/2011        |
| 10.177        |   | Secured Convertible Debenture, No. NEOM-11-4, dated April 13, 2011,  issued by the Company to YA Global Investments, L.P.                                                     |   |          |   | 8-K    |   | 10.2    |   | 4/13/2011        |
| 10.178        |   | Warrant, No. NEOM-0411, dated April 13, 2011, issued by the Company to YA Global Investments, L.P.                                                                                      |   |          |   | 8-K    |   | 10.3    |   | 4/13/2011        |

----

| ExhibitNumber |   | Description                                                                                                                                                            |   | FiledHerewith |   | Form   |   | Exhibit |   | Filing Date |
|---------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|--------|---------|--------|------------------|
|          |   |                                                                                                                                                                   |   |          |   |   |   |    |   |             |
| 10.179        |   | Ratification Agreement, dated April 13, 2011, by and among the Company, each of the Company’s subsidiaries made a party thereto, and YA Global Investments, L.P. |   |          |   | 8-K    |   | 10.6    |   | 4/13/2011        |
| 10.180        |   | Irrevocable Transfer Agent Instructions, dated April 13, 2011, by and among the Company, the Buyer, David Gonzalez, Esq. and WorldWide Stock Transfer, LLC             |   |          |   | 8-K    |   | 10.7    |   | 4/13/2011        |
| 10.181        |   | 2011 Stock Incentive Plan                                                                                                                                              |   |          |   | S-8    |   | 4.1     |   | 4/22/2011        |
|          |   |                                                                                                                                                                   |   |          |   |   |   |    |   |             |
| 14            |   | Code of Professional Ethics                                                                                                                                            |   |          |   | 10-K   |   | 14.1    |   | 4/3/2007         |
| 31.1          |   | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                |   | X             |   |   |   |    |   |             |
| 31.2          |   | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                |   | X             |   |   |   |    |   |             |
| 32.1          |   | Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                           |   | X             |   |   |   |    |   |             |
| 32.2          |   | Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                |   | X             |   |   |   |    |   |             |

----

|                                                                                       | NEOMEDIA TECHNOLOGIES, INC.                                                              |
|--------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|
|                                                                                       | (Registrant)                                                                             |
|                                                                                       |                                                                                     |
|                                                                                       |                                                                                     |
| Dated:            May 13, 2011 | /s/ Michael W.  Zima                                                           |
|                                                                                       | Michael W. Zima                                                                          |
|                                                                                       | Chief Financial Officer & Principal Finance Officer and Principal Accounting Officer |
|                                                                                       |                                                                                     |

----