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|  (Mark One)                                                                                            |                                                                               |   |
|------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|--------|
|                                                                                                             |                                                                               |   |
| x                                                                                                                | ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934     |   |
|                                                                                                             |                                                                               |   |
| For the fiscal year ended December 31, 2010or                                                                    |
|                                                                                                             |                                                                               |   |
|  ̈                                                                                                           | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |   |
|                                                                                                             |                                                                               |   |
| For the transition period from _______________ to _________________ Commission file number: 000–20985 |

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| DELAWARE                                                      |   | 06-1226727                             |
|---------------------------------------------------------------|--------|----------------------------------------|
| (State or other jurisdiction ofincorporation or organization) |   | (I.R.S. EmployerIdentification Number) |
|                                                          |   |
| 15875 SW 72nd Ave,  Portland, OR                    |   | 97224                                  |
| (Address of principal executive offices)                      |   | (Zip Code)                             |

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|         |                                                                                           |    | Page No. |
|--------------|------------------------------------------------------------------------------------------------|--------------|----------|
| PART I. |                                                                                           |    |     |
| Item 1.      | Business                                                                                       |    | 1        |
| Item 1A.     | Risk Factors                                                                                   |         | 12       |
| Item 2.      | Properties                                                                                     |    | 25       |
| Item 3.      | Legal Proceedings                                                                              |    | 26       |
| Item 4.      | Submission of Matters to a Vote of Security Holders                                            |    | 26       |
|         |                                                                                           |         |     |
| PART II.     |                                                                                           |    |     |
| Item 5.      | Market for the Registrant’s Common Equity and Related Stockholder Matters                |    | 28       |
| Item 7.      | Management’s Discussion and Analysis of Financial Condition and Results of Operations    |    | 28       |
| Item 8.      | Financial Statements and Supplementary Data                                                    |    | 40       |
| Item 9.      | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure           |    | 40       |
| Item 9A      | Controls and Procedures                                                                        |         | 40       |
|         |                                                                                           |         |     |
| PART III.    |                                                                                           |    |     |
| Item 10.     | Directors, Executive Officers and Corporate Governance                                         |    | 43       |
| Item 11.     | Executive Compensation                                                                         |    | 45       |
| Item 12.     | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |    | 48       |
| Item 13.     | Certain Relationships and Related Transactions, and Director Independence                      |    | 50       |
| Item 14.     | Principal Accountant Fees and Services                                                         |    | 51       |
|         |                                                                                           |         |     |
| PART IV.     |                                                                                           |         |     |
| Item 15.     | Exhibits, Financial Statement Schedules                                                        |         | 52       |
|         |                                                                                           |         |     |
|         | Signatures                                                                                     |    | S-1      |
|         | Certifications                                                                                 |         | IV-1     |

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|   | 1. | We have successfully concluded the restructuring of our debt. |
|--------|----|---------------------------------------------------------------|

|   | 2. | Our small-scale research and development operations have continued to successfully sustain the manufacturing and support of our existing products. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | We have frozen the prototype design of our Aware II product for US and western markets |
|--------|----|----------------------------------------------------------------------------------------|

|   | 4. | We conducted our internal trials of Aware II in South Africa and the US. In combined results, Calypte’s new Aware II HIV-1/2 oral fluid rapid test showed an accuracy of 100%. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ● | It has a true IgG control line that indicates not only that the device is functional but that a human sample has been added (some assays feature a control line that appears even if the correct sample is not added)                               |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ● | Kit packaging is designed to permit multiple users to use the kit simultaneously                                                                                                                                                                    |
| ● | Unlike its primary competitor, the AwareTM OMT sample preparation step produces surplus sample, which can be used to repeat the test, or to perform a confirmatory assay such as an oral fluid Western Blot test or a second rapid oral fluid test. |
| ● | AwareTM OMT testing is painless, safe, and non-invasive                                                                                                                                                                                             |

| ● | Although more expensive than blood tests, the all-in costs (including costs of handling and disposal of blood) are comparable or less.  Further, we expect the AwareTM OMT to have a cost advantage over its primary current oral fluid competitor.  Additionally, it has a significantly longer shelf life than that of its primary competitor. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

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|   | ● | Non-invasive and painless sampling.  Studies show greater acceptance of HIV testing without the pain and risks of drawing blood, which translates into higher testing rates |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Safer than blood tests.  Eliminates the risk of infection through accidental needle or lancet stick injuries for both patients and health care workers |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Easier to use.  Enables self sampling and self testing--no technicians, no needles, no lancets |
|--------|---------|----------------------------------------------------------------------------------------------------------|

|   | ● | Sample can be collected anywhere, anytime, including open public settings |
|--------|---------|---------------------------------------------------------------------------|

|   | ● | More cost effective than blood diagnostic tests (considering the all-in costs of drawing, handling and disposing of venous blood) |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Risk of exposure to infectious agents during handling is minimal to non-existent |
|--------|---------|----------------------------------------------------------------------------------|

|   | ● | The over-the-counter version may foster increased use as a result of increased privacy |
|--------|---------|----------------------------------------------------------------------------------------|

|   | ● | Unlike other oral fluid tests, the AwareTM sampling system allows for a sample to be tested multiple times with different test devices and stored for future use |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

| 1. | Those requiring no local approval;                                                                                           |
|----|------------------------------------------------------------------------------------------------------------------------------|
| 2. | Those requiring local approvals, and possibly clinical trials; or those requiring approval in the country of manufacture; or |

| 3. | Those that may or may not require local approvals, but that rely on “approval” from organizations such as the United States Agency for International Development (USAID) “approval” as a proxy for their own and for access to U.S. President's Emergency Plan for AIDS Relief (PEPFAR) funding. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | ● | the development of a market for our products; |
|--------|---------|-----------------------------------------------|

|   | ● | changes in market valuations of similar companies; |
|--------|---------|----------------------------------------------------|

|   | ● | announcement by us or our competitors of significant contracts, acquisitions, strategic partnerships, joint ventures or capital commitments; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Additions or departures of key personnel; and |
|--------|---------|-----------------------------------------------|

|   | ● | fluctuations in stock market price and volume. |
|--------|---------|------------------------------------------------|

----

|   | ● | the issuance of new equity securities; |
|--------|---------|----------------------------------------|

|   | ● | changes in interest rates; |
|--------|---------|----------------------------|

|   | ● | competitive developments, including announcements by competitors of new products or services or significant contracts, acquisitions, strategic partnerships, joint ventures or capital commitments; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | variations in quarterly operating results; |
|--------|---------|--------------------------------------------|

|   | ● | change in financial estimates by securities analysts; |
|--------|---------|-------------------------------------------------------|

|   | ● | the depth and liquidity of the market for our common stock; |
|--------|---------|-------------------------------------------------------------|

|   | ● | investor perceptions of our company and the technologies industries generally; and |
|--------|---------|------------------------------------------------------------------------------------|

|   | ● | general economic and other national conditions. |
|--------|---------|-------------------------------------------------|

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|   | • | our international distributors and joint ventures will successfully market our products;                                                                                                                                                                                                                                                                            |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | • | our future selling efforts will be effective, as we have not yet introduced in significant volume either an HIV-1/2 product or other point of care test;                                                                                                                                                                                                            |
|   | • | we will obtain market acceptance in the medical or public health community, including government and humanitarian funding sources critical in many international markets, which are essential for acceptance of our products; or that the relationships we develop with humanitarian agencies or their intermediaries will prove to be reliable and sustainable; or |
|   | • | if our relationships with distributors or marketing partners terminate, we will be able to establish relationships with other distributors or marketing partners on satisfactory terms, if at all.                                                                                                                                                                  |

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----

----

|   | • | transferring the technology from the laboratory or pilot operation to the contract manufacturer on a commercial scale;                                                                              |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | • | lack of technical knowledge regarding regulated procedures and the ability of the contract manufacturer to obtain and maintain the necessary GMP or other regulatory certifications;                |
|   | • | uncertain or unreliable production yields;                                                                                                                                                          |
|   | • | maintaining quality control and assurance;                                                                                                                                                          |
|   | • | regulatory compliance, since most rapid test manufacturers do not produce products that are as stringently controlled as HIV diagnostics;                                                           |
|   | • | misappropriation of intellectual property, particularly in foreign countries where patent protection is less stringent, and depending on the extent of manufacturing processes that are outsourced; |
|   | • | developing market acceptance for new product;                                                                                                                                                       |
|   | • | production yields;                                                                                                                                                                                  |
|   |    |                                                                                                                                                                                                |
|   | • | raw material supply;                                                                                                                                                                                |
|   | • | shortages of qualified personnel; and                                                                                                                                                               |
|   | • | maintaining appropriate financial controls and procedures.                                                                                                                                          |

----

|   | • | actions taken by the FDA or foreign regulatory bodies relating to products we are commercializing or seeking to develop;                     |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------|
|   | • | the extent to which our current or proposed new products gain market acceptance;                                                             |
|   | • | the timing and size of purchases by our customers, distributors or joint venture partners;                                                   |
|   | • | introductions of alternative means for testing for HIV by competitors;                                                                       |
|   | • | changes in the way regulatory authorities evaluate HIV testing, including supplemental testing of the results of a rapid HIV screening test; |
|   | • | the failure to raise funds to continue our operations; and                                                                                   |
|   | • | customer concerns about the stability of our business which could cause them to seek alternatives to our product.                            |

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|   | • | the imposition of government controls (regulatory approval);                                                                                                                                                                                                |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | • | export license requirements;                                                                                                                                                                                                                                |
|   | • | political and economic instability;                                                                                                                                                                                                                         |
|   | • | trade restrictions;                                                                                                                                                                                                                                         |
|   | • | changes in tariffs;                                                                                                                                                                                                                                         |
|   | • | difficulties in managing international operations (difficulty in establishing a relationship with a foreign distributor, joint venture partner, or contract manufacturer with the financial and logistical ability to maintain quality control of product); |

|   | • | the ability to secure licenses for intellectual property or technology that are necessary to manufacture or sell our products in the selected countries;                                                                    |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | • | fluctuations in foreign currency exchanges rates;                                                                                                                                                                           |
|   | • | the financial stability of our distributors and/or their expertise in obtaining local country regulatory approvals;                                                                                                         |
|   | • | the financial capabilities of potential customers in lesser-developed countries or, alternatively, our inability to obtain approvals which would enable such countries access to outside financing, such as the World Bank; |
|   | • | the ability of our distributors to successfully sell into their contractual market territory or to successfully cover their entire territory;                                                                               |
|   | • | the possibility that a distributor may be unable to meet minimum contractual commitments;                                                                                                                                   |
|   | • | establishing market awareness; and                                                                                                                                                                                          |
|   | • | external conditions such as regional conflicts, health crises or natural disasters.                                                                                                                                         |

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| Fiscal Year |   | Quarter |   | High   |   |   | Low    |   |
|-------------|--------|---------|--------|--------|--------|--------|--------|--------|
| 2010        |   | 4th     |   | $      | 0.009  |   |   | $      | 0.005 |   |
| 2010        |   | 3rd     |   |   | 0.009  |   |   |   | 0.005 |   |
| 2010        |   | 2nd     |   |   | 0.010  |   |   |   | 0.005 |   |
| 2010        |   | 1st     |   |   | 0.012  |   |   |   | 0.006 |   |
|        |   |    |   |   |   |   |   |   |   |   |
| 2009        |   | 4th     |   | $      | 0.018  |   |   | $      | 0.005 |   |
| 2009        |   | 3rd     |   |   | 0.012  |   |   |   | 0.004 |   |
| 2009        |   | 2nd     |   |   | 0.015  |   |   |   | 0.002 |   |
| 2009        |   | 1st     |   |   | 0.013  |   |   |   | 0.005 |   |

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|                                                                          |   | Years Ended December 31, |   |
|-------------------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                          |   | 2010                     |   |   | 2009 |   |
|                                                                          |   |                     |   |   |   |   |
| Total revenues                                                                |   | $                        | 444    |   |   | $ | 726 |   |
| Cost of product sales                                                         |   |                     | 260    |   |   |   | 390 |   |
|                                                                          |   |                     |   |   |   |   |   |   |
| Gross Margin                                                                  |   |                     | 184    |   |   |   | 336 |   |
|                                                                          |   |                     |   |   |   |   |   |   |
| Operating expenses:                                                           |   |                     |   |   |   |   |   |   |
| Research and development                                                      |   |                     | 282    |   |   |   | 193 |   |
| Selling, general and administrative                                           |   |                     | 999    |   |   |   | 1,397 |   |
|                                                                          |   |                     |   |   |   |   |   |   |
| Total operating expenses                                                      |   |                     | 1,281  |   |   |   | 1,590 |   |
|                                                                          |   |                     |   |   |   |   |   |   |
| Loss from operations                                                          |   |                     | (1,097 | ) |   |   | (1,254 | ) |
|                                                                          |   |                     |   |   |   |   |   |   |
| Interest expense, net                                                         |   |                     | (545   | ) |   |   | (1,592 | ) |
| Other income (expense), net                                                   |   |                     | 10,931 |   |   |   | (106 | ) |
| Provision for income taxes                                                    |   |                     | (181   | ) |   |   | (2 | ) |
| Deemed dividend attributable to modification of warrants                      |   |                     | -      |   |   |   | (1 | ) |
|                                                                          |   |                     |   |   |   |   |   |   |
| Net income (loss) from continuing operations                                  |   | $                        | 9,108  |   |   | $ | (2,955 | ) |
|                                                                          |   |                     |   |   |   |   |   |   |
| Net loss from discontinued operations                                         |   |                     | (136   | ) |   |   | (333 | ) |
|                                                                          |   |                     |   |   |   |   |   |   |
| Net loss attributable to noncontrolling interest from discontinued operations |   |                     | (131   | ) |   |   | (320 | ) |
|                                                                          |   |                     |   |   |   |   |   |   |
| Net income (loss)                                                             |   | $                        | 8,841  |   |   | $ | (3,608 | ) |

----

| ● | $208,000 in non-recurring legal fees incurred in 2009 in connection with litigation that was settled in March 2010 |
|---------|--------------------------------------------------------------------------------------------------------------------|

| ● | A $120,000  decrease in salary and benefit expense attributable to stock option forfeiture |
|---------|------------------------------------------------------------------------------------------------------|

| ● | A $40,000 decrease in overhead due to reduced rent costs as a result of  lease renegotiation and move to a new location |
|---------|-----------------------------------------------------------------------------------------------------------------------------------|

| ● | A $30,000  decrease in tax and audit fees |
|---------|-----------------------------------------------------|

|                                                               |   | Years ended December 31, |   |
|--------------------------------------------------------------------|--------|--------------------------|--------|
|                                                               |   | 2010                     |   |   | 2009 |   |
|                                                               |   |                     |   |   |   |   |
| Interest expense on debt instruments paid or payable in cash       |   | $                        | (190   | ) |   | $ | (365 | ) |
| Non-cash expense composed of:                                      |   |                     |   |   |   |   |   |   |
| Accrued interest on 8% Convertible Notes                           |   |                     | (231   | ) |   |   | (482 | ) |
| Accrued interest on 4% Note Payable                                |   |                     | (4     | ) |   |   | - |   |
| Amortization of discounts associated with March 2007 extension     |   |                     |   |   |   |   |   |   |
| and December 2007 restructuring of 8% convertible notes and        |   |                     |   |   |   |   |   |   |
| Marr Credit Facility notes                                         |   |                     | -      |   |   |   | (626 | ) |
| Expense attributable to dividends on mandatorily redeemable Series |   |                     |   |   |   |   |   |   |
| A preferred stock                                                  |   |                     | (120   | ) |   |   | (120 | ) |
|                                                               |   |                     |   |   |   |   |   |   |
| Total non-cash items                                               |   |                     | (355   | ) |   |   | (1,228 | ) |
|                                                               |   |                     |   |   |   |   |   |   |
| Total interest expense                                             |   |                     | (545   | ) |   |   | (1,593 | ) |
|                                                               |   |                     |   |   |   |   |   |   |
| Interest income                                                    |   |                     | -      |   |   |   | 1 |   |
|                                                               |   |                     |   |   |   |   |   |   |
| Net interest expense                                               |   | $                        | (545   | ) |   | $ | (1,592 | ) |

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|   | ● | Revenue Recognition.  We recognize revenue from product sales upon shipment to customers and when all requirements related to the shipments have occurred.  Should changes in terms cause us to determine these criteria are not met for certain future transactions, revenue recognized for any reporting period could be adversely affected. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | ● | Inventory Valuation.  We adjust the value of our inventory for estimated obsolescence or unmarketable inventory equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions and development of new products by our competitors.  Further, we also review our inventories for lower of cost or market valuation. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Deferred Tax Asset Realization.  We record a full valuation allowance to reduce our deferred tax assets to the amount that is more likely than not to be realized.  While we have considered future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for the valuation allowance, in the event we were to determine that we would be able to realize our deferred tax assets in the future in excess of its net recorded amount, an adjustment to the deferred tax asset would increase income in the period such determination was made. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Classification of Financial Instruments with Characteristics of both Liability and Equity.  We account for financial instruments that we have issued and that have characteristics of both liability and equity in accordance with SFAS No. 150, Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity, as codified by FASB ASC topic 480, Distinguishing Liabilities from Equity (“ASC 480”).  SFAS No. 150 specifies that mandatorily redeemable financial instruments are to be recorded as liabilities unless the redemption is required to occur upon the liquidation or termination of the issuer.  SFAS No. 150 also specifies that a financial instrument that embodies a conditional obligation that an issuer may settle by issuing a variable number of its equity shares is to be classified as a liability if, at inception, the value of the obligation is based solely or predominantly on variations inversely related to changes in the fair value of the issuer’s equity shares.  Should a financial instrument not be classified as a liability under the provisions of SFAS No. 150, we further apply the criteria in Emerging Issues Task Force (EITF) Issue No. 00-19, Accountingfor Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock, as codified by FASB ASC topic 815, Derivatives and Hedging (“ASC 815”), which enumerates additional criteria to determine the appropriate classification as liability or equity.  We also evaluate the anti-dilution and/or beneficial conversion features that may be included in our financial instruments in accordance with the provisions of SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities, as codified by ASC 815, which may classify the feature as an embedded derivative and require that the financial instrument be bifurcated and the feature accounted for separately.  We evaluate each financial instrument on its own merits at inception or other prescribed measurement or valuation dates and may engage the services of valuation experts and other professionals to assist us in our determination of the appropriate classification.. .  .  .  .  . |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Stock based compensation    We adopted Statement of Financial Accounting Standards No. 123 (revised 2004), Share-Based Payment (“SFAS 123R”) as codified in FASB ASC topic 718, Compensation — Stock Compensation (“ASC 718”), effective January 1, 2006.  We adopted SFAS 123R using the modified prospective method, which requires that we apply the provisions of SFAS 123R to all awards granted or modified after the date of adoption.  We recognized the unrecognized expense attributable to awards not fully vested at our January 1, 2006 date of adoption in our net loss during 2006 and 2007 using the same valuation method (i.e. Black-Scholes) and assumptions determined under the original provisions of SFAS 123, “Accounting for Stock-Based Compensation,” as disclosed on a pro-forma basis in our previous financial statements.  Under the fair value recognition provisions of SFAS 123R, we recognize stock-based compensation, net of an estimated forfeiture rate which results in recognizing compensation expense for only those awards expected to vest, over the service period of the award.  Since our adoption of SFAS 123R, we have estimated the fair value of options granted to employees and directors, and we expect to estimate the fair value of future grants, using the Black-Scholes option pricing model.  This model requires the input of highly subjective assumptions, including the expected term of the stock-based awards, stock price volatility, and pre-vesting option forfeitures.  To date, we have generally estimated the expected life of options granted based on the simplified method provided in Staff Accounting Bulletin No. 107 for “plain vanilla” options.  Where appropriate, we will consider separately for valuation purposes groups of employees or directors that have similar historical exercise behavior.  We estimate the volatility of our common stock at the date of grant based on its historical volatility over a period generally equivalent to the expected term of the grant.  We estimate the expected pre-vesting forfeiture rate and recognize expense for only those shares expected to vest.  We have estimated our forfeiture rate based on our historical experience with stock-based awards that are granted and forfeited prior to vesting.  If the actual forfeiture rate is materially different from the estimate, the stock-based compensation expense could also differ from what we have recorded in the current period.  As required under ASC 718, we will review our valuation assumptions at each grant date and, as a result, may periodically change the valuation assumptions used to value employee stock-based awards granted in future periods. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Name                | Age | Position                                                                            | Director Since |
|---------------------|-----|-------------------------------------------------------------------------------------|----------------|
| Adel Karas          | 66  | President, Chief Executive Officer, Chief Financial Officer, Secretary and Director | 2007           |
| Tareq Al Yousefi    | 48  | Director                                                                            | 2009           |
| Kartlos Edilashvili | 37  | Director                                                                            | 2010           |

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| OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END                                                                                                                                                                              |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                      |
| Name                                                                                                                                                                                                                      |   | Number of Securities Underlying Unexercised Options (#)Exercisable |   |   | Number of Securities Underlying Unexercised Options (#)Unexercisable |   |   | Option Exercise Price ($) |   | Option Expiration Date |
|                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |
| Adel Karas                                                                                                                                                                                                                |   |   | 3,000,000 | (1) |   |   | - |   |   | $ | 0.11 |   | 11/28/17 |
|                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1) The option vested and became exercisable with respect to (i) 1,500,000 shares on November 28, 2007 (the date of grant); (ii) 750,000 shares on November 28, 2008; and (iii) 750,000 shares on November 28, 2009. |

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| Beneficial Owner (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Shares Beneficially Owned | Percent of Total (2) |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|----------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                      |                 |
| Marr Technologies BV (3)        Strawinskylaan 1431        1077XX, Amsterdam        The Netherlands                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 74,110,776                | 13.5%                |
| David Khidasheli (4)        Sheikh Zayed Road        Fairmont Building, # 3104        Dubai, United Arab Emirates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 50,666,666                | 9.2%                 |
| SF Capital Partners Ltd. (5)        3600 South Lake Drive        St. Francis, WI 53235                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 47,815,698                | 8.7%                 |
| Ahmed Abdalla Deemas Alsuwaidi (6)        P.O. Box 681        Sharjah, United Arab Emirates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 33,920,000                | 6.2%                 |
| Mohamed Ahmed (7)        P.O. Box 33280        Dubai, United Arab Emirates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 32,375,000                | 5.9%                 |
| Mohamed Yousif Ahmed Saleh Sulaiman (8)        P.O. Box 19533        Sharjah, United Arab Emirates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 28,000,000                | 5.1%                 |
| Adel Karas (9)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 3,050,000                 | *                    |
| Tareq Al Yousefi                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | --                        | *                    |
| Kartlos Edilashvili                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | --                        | *                    |
| All current directors and executive officers as a group (4 persons) (9)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 3,050,000                 | *                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                      |                 |   |
| *           Represents beneficial ownership of less than 1%.(1)   To our knowledge, except as set forth in the footnotes to this table and subject to applicable community property laws, each person named in this table has sole voting and investment power with respect to the shares set forth  opposite such person’s name.  Except as otherwise indicated, the address of each of the persons in this table is as follows: c/o Calypte Biomedical Corporation, 15875 SW 72nd Avenue, Portland, Oregon 97224.(2)   Based on 700,168,161 shares outstanding as of April 14, 2011.(3)   Based on holdings reported in Amendment No. 6 to Schedule 13D dated December 6, 2007 filed with the Commission on March 20, 2008.  Includes shares beneficially owned by Marat Safin. Mr. Safin has voting and investment control over shares held by Marr Technologies BV.(4)   Based on holdings reported in Amendment No. 1 to Schedule 13D filed with the Commission on August 7, 2009 plus shares we subsequently issued directly to Mr. Khidasheli in a private placement.(5)   Based on holdings reported in Amendment No. 9 to Schedule 13G filed with the Commission on February 14, 2011.  Michael A. Roth and Brian J. Stark possess voting and dispositive power over all of the shares owned by SF Capital Partners Ltd.(6)   Based on holdings reported in Schedule 13G dated March 28, 2007 filed with the Commission on October 29, 2007.(7)   Based on holdings reported in Schedule 13G dated March 28, 2007 filed with the Commission on October 30, 2007.(8)   Based on holdings reported in Schedule 13G dated March 28, 2007 filed with the Commission on November 2, 2007.(9)   Includes 3,000,000 shares issuable upon exercise of options that will be exercisable within 60 days after April 14, 2011. |

----

|               |   | 2010   |   |   | 2009   |   |
|--------------------|--------|--------|--------|--------|--------|--------|
| Audit Fees         |   | $      | 97,670 |   |   | $      | 158,500 |   |
| Audit-Related Fees |   |   | --     |   |   |   | -- |   |
| Tax Fees           |   |   | --     |   |   | $      | 7,000 |   |
| All Other Fees     |   |   | --     |   |   |   | -- |   |

|   | (a) | Certain Documents Filed as Part of the Form 10-K |
|--------|-----|--------------------------------------------------|

|   | 1. | Our Consolidated Financial Statements are included on pages F-1 through F-48 of this Annual Report on Form 10-K. |
|--------|----|------------------------------------------------------------------------------------------------------------------|

|   | 2. | Exhibits |
|--------|----|----------|

----

| 3.1      | Bylaws of the Registrant, as amended on March 7, 2005 (1)                                                                                                                                                              |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.2      | Restated Certificate of Incorporation of Calypte Biomedical Corporation, a Delaware corporation, filed July 31, 1996 (2)                                                                                               |
| 3.3      | Certificate of Amendment of the Amended and Restated Certificate of Incorporation of Calypte Biomedical Corporation effective as of February 14, 2003 (3)                                                              |
| 3.4      | Certificate of Amendment of the Amended and Restated Certificate of Incorporation of Calypte Biomedical Corporation, effective as of May 27, 2003, as corrected by Certificate of Correction filed on May 28, 2003 (4) |
| 10.1     | Form of Indemnification Agreement between the Registrant and each of its directors and officers, as amended January 19, 2004 (5)                                                                                       |
| 10.16    | First Amendment to License Agreement between the Registrant and New York University, dated as of January 11, 1995 (6)                                                                                                  |
| 10.17    | Second Amendment to License Agreement between the Registrant and New York University, dated as of October 15, 1995 (6)                                                                                                 |
| 10.18*   | Third Amendment to License Agreement between the Registrant and New York University, dated as of January 31, 1996 (6)                                                                                                  |
| 10.21*   | Sublicense Agreement between the Registrant and Cambridge Biotech Corporation, dated as of March 31, 1992 (6)                                                                                                          |
| 10.22*   | Master Agreement between the Registrant and Cambridge Biotech Corporation, dated as of April 12, 1996 (6)                                                                                                              |
| 10.23*   | Sub–License Agreement between the Registrant and Cambridge Biotech Corporation, dated as of April 12, 1996 (6)                                                                                                   |
| 10.24*   | Agreement between the Registrant and Repligen Corporation, dated as of March 8, 1993 (6)                                                                                                                               |
| 10.25*   | Non–Exclusive License Agreement between the Registrant and The Texas A&M University System, dated as of September 12, 1993 (6)                                                                               |
| 10.51    | Non–Exclusive Patent and License Agreement between the Registrant and Public Health Service, dated June 30, 1999 (7)                                                                                             |
| 10.73*   | Fourth Amendment to the License Agreement between the Registrant and New York University, dated as of June 1, 2000 (8)                                                                                                 |
| 10.114   | Amendment to Non-Exclusive Patent and License Agreement between Registrant and Public Health Service, dated April 5, 2002 (9)                                                                                          |
| 10.121   | Distribution Agreement between the Registrant and Zhong Yang Pute Co. dated as of October 10, 2002 (10)                                                                                                                |
| 10.132   | Subscription Agreement between Registrant and Marr Technologies B.V. dated as of August 1, 2003 (11)                                                                                                                   |
| 10.133   | Subscription Agreement between the Registrant and Marr Technologies B.V. for 20,000,000 shares of Registrant’s Common Stock dated August 28, 2003 (12)                                                           |
| 10.134   | Agreement for Commitment to Purchase Aggregate of $10,000,000 of 5% Promissory Notes between the Registrant and Marr Technologies B.V. dated November 13, 2003 (13)                                                    |
| 10.137   | Lease Agreement between the Registrant and ARE-1500 East Gude LLC dated as of March 1, 2004 (5)                                                                                                                        |
| 10.142   | Form of Registration Rights Agreement between the Registrant and the investors in the May 2004 PIPE financing (14)                                                                                                     |
| 10.143   | Form of Warrant between the Registrant and the investors in the May 2004 PIPE financing (18)                                                                                                                           |
| 10.146** | 2004 Incentive Plan, as amended October 11, 2011 (previously filed)                                                                                                                                                    |
| 10.148   | Form of Registration Rights Agreement between the Registrant and the investors in the July 2004 PIPE financing (15)                                                                                                    |
| 10.149   | Form of Warrant between the Registrant and the investors in the July 2004 PIPE financing (15)                                                                                                                          |
| 10.150   | Sublicense Agreement between the Registrant and Abbott Laboratories dated June 28, 2004 (16)                                                                                                                           |
| 10.151   | License Agreement and Technology Transfer Agreement between the Registrant and Ani Biotech Oy dated as of September 30, 2004 (16)                                                                                      |
| 10.152   | License Agreement between the Registrant and Bio-Rad Laboratories, Inc. and Bio-Rad Pasteur dated September 28, 2004 (16)                                                                                              |

----

| 10.155 | Form of $2,000,000 7% Promissory Note issued by the Registrant to Marr Technologies BV dated January 14, 2005 and form of Amendment thereto (17)                                                                                                                                      |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.157 | Form of Secured 8% Convertible Promissory Note between the Registrant and the investors in the April 2005 financing dated April 4, 2005 (18)                                                                                                                                          |
| 10.158 | Form of Registration Rights Agreement between the Registrant and the investors in the April 2005 financing dated April 4, 2005 (18)                                                                                                                                                   |
| 10.159 | Form of Series A Warrant between the Registrant and the investors in the April 2005 financing dated April 4, 2005 (18)                                                                                                                                                                |
| 10.160 | Form of Series B Warrant between the Registrant and the investors in the April 2005 financing dated April 4, 2005 (18)                                                                                                                                                                |
| 10.161 | Form of Security Agreement between the Registrant and the investors in the April 2005 financing dated April 4, 2005 (18)                                                                                                                                                              |
| 10.163 | 2005 Credit Facility Agreement between the Registrant and Marr Technologies BV dated April 4, 2005 (18)                                                                                                                                                                               |
| 10.164 | Agreement effective September 1, 2005 between the Registrant and Marr Technologies Asia Limited describing the rights, duties and obligations of the shareholders of Beijing Calypte Biomedical Technology Ltd., a corporation organized in the Peoples’ Republic of China (19) |
| 10.165 | Asset Purchase and License Agreement dated November 15, 2005 by and between the Registrant and Maxim Biomedical, Inc. (20)                                                                                                                                                            |
| 10.166 | Amendment to 2005 Credit Facility between the Registrant and Marr Technologies BV effective November 30, 2005 (21)                                                                                                                                                                    |
| 10.168 | Equity Transfer Agreement between the Registrant and Marr Technologies Asia Limited dated December 21, 2005 (22)                                                                                                                                                                      |
| 10.169 | Agreement dated December 21, 2005 between the Registrant and Marr Technologies Asia Limited describing the rights, duties and obligations of the shareholders of Beijing Marr Bio-Pharmaceutical Technology Ltd. (22)                                                                 |
| 10.173 | Form of Warrant between the Registrant and the investors in the February 2007 PIPE financings, effective February 23, 2007 through March 27, 2007 (23).                                                                                                                               |
| 10.174 | Form of Subscription Agreement between the Registrant and the investors in the March 2007 PIPE financing, dated March 28, 2007 (23)                                                                                                                                                   |
| 10.175 | Form of Registration Rights Agreement between the Registrant and the investors in the March 2007 PIPE financing, dated March 28, 2007 (28)                                                                                                                                            |
| 10.176 | Form of Series A Warrant between the Registrant and the investors in the March 2007 PIPE financing, dated March 28, 2007 (23)                                                                                                                                                         |
| 10.177 | Form of Series B Warrant between the Registrant and the investors in the March 2007 PIPE financing, dated March 28, 2007 (23)                                                                                                                                                         |
| 10.178 | Form of Amendment to 8% Secured Convertible Promissory Notes between the Registrant and SF Capital Partners Ltd. dated March 21, 2007, effective March 28, 2007 (23)                                                                                                                  |
| 10.179 | Form of Sixth Amendment to 2005 Credit Facility between the Registrant and Marr Technologies BV dated March 21, 2007, effective March 28, 2007 (23)                                                                                                                                   |
| 10.180 | Form of Amendment to 8% Secured Convertible Promissory Notes between the Registrant and Marr Technologies BV dated March 21, 2007, effective March 28, 2007 (23)                                                                                                                      |
| 10.181 | Form of Amendment to 8% Secured Convertible Promissory Notes between the Registrant and Morningtown Limited dated March 21, 2007, effective March 28, 2007 (23)                                                                                                                       |
| 10.182 | Form of Amendment to Registration Right Agreement between the Registrant and the investors in the March 2007 private placement, effective July 7, 2007 (24)                                                                                                                           |
| 10.183 | Seventh Amendment to 2005 Credit Facility between the Registrant and Marr Technologies BV dated December 4, 2007 (25)                                                                                                                                                                 |

----

| 10.184   | Amendment No. 3 to Secured 8% Convertible Promissory Notes between the Registrant and Marr Technologies BV dated December 4, 2007 (25)                                                                              |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.186   | Registration Rights Agreement, dated as of January 16, 2008, by and between the Registrant and Fusion Capital Fund II, LLC. (26)                                                                                    |
| 10.188   | Subscription Agreement, dated August 15, 2008, between the Registrant and Tinja Limited (27)                                                                                                                        |
| 10.189   | Form of Warrant issued to Tinja Limited (27)                                                                                                                                                                        |
| 10.190   | Form of Subscription Agreement between the Registrant and Almyn Limited, effective September 19, 2008 (28)                                                                                                          |
| 10.191   | Form of Warrant issued to Almyn Limited (28)                                                                                                                                                                        |
| 10.193   | Resignation and Mutual Release , dated September 10, 2009, between the Registrant and  Julius R. Krevans, M.D., Paul E. Freiman and John J. DiPietro (28)                                                 |
| 10.194   | Subscription Agreement dated as of September 14, 2009, between the Registrant and Carolina Lupascu (29)                                                                                                             |
| 10.195   | Lease dated October 13, 2009 by and between Pacific Realty Associates, L.P. and the Registrant (30)                                                                                                                 |
| 10.196   | Subscription Agreement between the Company and Carolina Lupascu, dated as of March 3, 2010, between the Company and Carolina Lupascu (31)                                                                      |
| 10.197   | Debt Agreement dated July 2, 2010 among the Registrant, Marr Technologies B.V. (“Marr”), Marr Technologies Limited (“MTL”) and Marr Technologies Asia Limited (“MTL”) (32) |
| 10.198*  | Equity Transfer Agreement dated July 2, 2010 among the Registrant, Kangplus (China) Holdings Ltd., Marr, MTL and MTAL (33)                                                                                          |
| 10.199   | Debt Conversion Agreement dated July 9, 2010 between the Registrant and SF Capital Partners Limited (34)                                                                                                            |
| 10.200** | 2005 Director Incentive Plan, as amended October 11, 2010 (previously filed)                                                                                                                                        |
| 21.1     | Subsidiaries of the Registrant (42)                                                                                                                                                                                 |
| 23.1     | Consent of Odenberg Ullakko Muranishi & Co. LLP, Independent Registered Public Accounting Firm.                                                                                                                 |
| 31.1     | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                      |
| 32.1     | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                              |

----

| *  | Confidential treatment has been granted as to certain portions of this exhibit. |
|---------|---------------------------------------------------------------------------------|

| ** | Represents a management contract or compensatory plan or arrangement. |
|----|-----------------------------------------------------------------------|

| (1) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Annual Report on Form 10-KSB filed on March 31, 2005. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Report on Form 10-K dated March 28, 1997. |
|-----|-------------------------------------------------------------------------------------------------------------------------------|

| (3) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Annual Report on Form 10-K dated March 26, 2003. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Registration Statement on Form S-2 (File No. 333-106862) filed on July 7, 2003. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (5) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Annual Report on Form 10-KSB filed on March 30, 2004. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Registration Statement on Form S-1 (File No. 333-04105) filed on May 20, 1996, as amended to June 25, 1996, July 15, 1996 and July 26, 1996. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Quarterly Report on Form 10-Q dated November 15, 1999. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Quarterly Report on Form 10-Q dated August 10, 2000. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Quarterly Report on Form 10-Q dated August 14, 2002. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Quarterly Report on Form 10-Q/A (No.3) dated February 4, 2003. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Quarterly Report on Form 10-QSB dated August 14, 2003. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------|

| (12) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Current Report on Form 8-K dated September 12, 2003. |
|------|------------------------------------------------------------------------------------------------------------------------------------------|

| (13) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Quarterly Report on Form 10-QSB dated November 14, 2003. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------|

| (14) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Current Report on Form 8-K on June 1, 2004. |
|------|---------------------------------------------------------------------------------------------------------------------------------|

| (15) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Current Report on Form 8-K filed on July 13, 2004. |
|------|----------------------------------------------------------------------------------------------------------------------------------------|

| (16) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Quarterly Report on Form 10-QSB/A (Amendment No. 1) dated December 20, 2004. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (17) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Annual Report on Form 10-KSB filed on March 31, 2005. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------|

| (18) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Current Report on Form 8-K filed on April 5, 2005. |
|------|----------------------------------------------------------------------------------------------------------------------------------------|

| (19) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Quarterly Report on Form 10-QSB dated November 14, 2005. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------|

| (20) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Current Report on Form 8-K on November 21, 2005. |
|------|--------------------------------------------------------------------------------------------------------------------------------------|

| (21) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Current Report on Form 8-K on December 6, 2005. |
|------|-------------------------------------------------------------------------------------------------------------------------------------|

| (22) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Current Report on Form 8-K on March 30, 2006. |
|------|-----------------------------------------------------------------------------------------------------------------------------------|

| (23) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Annual Report on Form 10-KSB filed on March 30, 2007. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------|

| (24) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Registration Statement on Form SB-2 on July 23, 2007 (File No. 333-144778). |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (25) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Current Report on Form 8-K on December 10, 2007. |
|------|--------------------------------------------------------------------------------------------------------------------------------------|

| (26) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Current Report on Form 8-K on January 23, 2008. |
|------|-------------------------------------------------------------------------------------------------------------------------------------|

----

| (27) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Current Report on Form 8-K on August 21, 2008. |
|------|------------------------------------------------------------------------------------------------------------------------------------|

| (28) | Incorporated by reference to identically-numbered exhibit to the Registrant’s. Current Report on Form 8-K on September 23, 2008. |
|------|----------------------------------------------------------------------------------------------------------------------------------------|

| (28) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Current Reort on Form 8-K dated September 16, 2009. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------|

| (29) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Quarterly Report on Form 10-Q dated October 8, 2009. |
|------|------------------------------------------------------------------------------------------------------------------------------------------|

| (30) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Quarterly Report on Form 10-Q filed on December 4, 2009. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------|

| (31) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Quarterly Report on Form 10-Q filed on June 24, 2010. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------|

| (32) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Quarterly Report on Form 10-Q filed on October 29, 2010. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------|

| (33) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Amendment to Quarterly Report on Form 10-Q/A filed on November 22, 2010. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (34) | Incorporated by reference to identically-numbered exhibit to the Registrant’s Annual Report on Form 10-K filed on March 31, 2010. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------|

|                                                    |   |   |   |
|---------------------------------------------------------|--------|--------|--------|
| Report of Independent Registered Public Accounting Firm |   | F-2    |
|                                                    |   |   |
| Consolidated Balance Sheets                             |   | F-3    |
|                                                    |   |   |
| Consolidated Statements of Operations                   |   | F-4    |
|                                                    |   |   |
| Consolidated Statements of Stockholders’ Deficit  |   | F-5    |
|                                                    |   |   |
| Consolidated Statements of Cash Flows                   |   | F-7    |
|                                                    |   |   |
| Notes to Consolidated Financial Statements              |   | F-9    |
|                                                    |   |   |

----

----

|                                                                                                                                                                                                                                                                                 |   | December 31, |     |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|----------|
|                                                                                                                                                                                                                                                                                 |   | 2010         |     |   | 2009 |   |
| ASSETS                                                                                                                                                                                                                                                                               |   |         |     |   |   |   |
| Current assets:                                                                                                                                                                                                                                                                      |   |         |     |   |   |   |
| Cash and cash equivalents                                                                                                                                                                                                                                                            |   | $            | 79       |   |   | $ | 160 |   |
| Accounts receivable, net of allowance of $0 and $34 at December 31, 2010 and 2009, respectively                                                                                                                                                                                      |   |         | 21       |   |   |   | 40 |   |
| Inventory                                                                                                                                                                                                                                                                            |   |         | 264      |   |   |   | 219 |   |
| Prepaid expenses                                                                                                                                                                                                                                                                     |   |         | 39       |   |   |   | 5 |   |
| Current assets of discontinued operations                                                                                                                                                                                                                                            |   |         | -        |   |   |   | 122 |   |
|                                                                                                                                                                                                                                                                                 |   |         |     |   |   |   |   |   |
| Total current assets                                                                                                                                                                                                                                                                 |   |         | 403      |   |   |   | 546 |   |
|                                                                                                                                                                                                                                                                                 |   |         |     |   |   |   |   |   |
| Property and equipment, net of accumulated depreciation of $345 and $388 at December 31, 2010 and 2009, respectively                                                                                                                                                            |   |         | 68       |   |   |   | 93 |   |
| Intangible assets, net of accumulated amortization of $940 and $872 at December 31, 2010 and 2009, respectively                                                                                                                                                                 |   |         | 1,843    |   |   |   | 2,061 |   |
| Other assets                                                                                                                                                                                                                                                                         |   |         | 17       |   |   |   | 19 |   |
| Non-current assets of discontinued operations                                                                                                                                                                                                                                        |   |         | -        |   |   |   | 2,702 |   |
|                                                                                                                                                                                                                                                                                 |   |         |     |   |   |   |   |   |
| Total assets                                                                                                                                                                                                                                                                         |   | $            | 2,331    |   |   | $ | 5,421 |   |
|                                                                                                                                                                                                                                                                                 |   |         |     |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                                                                                                                                                                          |   |         |     |   |   |   |   |   |
| Current liabilities:                                                                                                                                                                                                                                                                 |   |         |     |   |   |   |   |   |
| Accounts payable and accrued expenses                                                                                                                                                                                                                                                |   | $            | 1,971    |   |   | $ | 2,342 |   |
| Advances from shareholder                                                                                                                                                                                                                                                            |   |         | 680      |   |   |   | 388 |   |
| Liability with Related Party                                                                                                                                                                                                                                                         |   |         | 914      |   |   |   | - |   |
| Income Tax Liability                                                                                                                                                                                                                                                                 |   |         | 180      |   |   |   | - |   |
| 8% Convertible notes payable, including accrued interest of $365, at December 31, 2009                                                                                                                                                                                               |   |         | -        |   |   |   | 6,333 |   |
| 7% Notes payable to a related party, including accrued interest of $1,102, at December 31, 2009                                                                                                                                                                                      |   |         | -        |   |   |   | 5,302 |   |
| 4% Note payable, including accrued interest of $4 at December 31, 2010                                                                                                                                                                                                               |   |         | 61       |   |   |   | - |   |
| 12% Convertible debentures payable                                                                                                                                                                                                                                                   |   |         | 60       |   |   |   | 60 |   |
| Deferred revenue                                                                                                                                                                                                                                                                     |   |         | 23       |   |   |   | - |   |
| Current liabilities of discontinued operations                                                                                                                                                                                                                                       |   |         | -        |   |   |   | 2,724 |   |
|                                                                                                                                                                                                                                                                                 |   |         |     |   |   |   |   |   |
| Total current liabilities                                                                                                                                                                                                                                                            |   |         | 3,889    |   |   |   | 17,149 |   |
|                                                                                                                                                                                                                                                                                 |   |         |     |   |   |   |   |   |
| Mandatorily redeemable Series A preferred stock, $0.001 par value; no shares authorized at December 31, 2010 and 2009; 100,000 shares issued and outstanding at December 31, 2010 and 2009; aggregate redemption and liquidation value of $1,000 plus cumulative dividends |   |         | 3,536    |   |   |   | 3,416 |   |
|                                                                                                                                                                                                                                                                                 |   |         |     |   |   |   |   |   |
| Total liabilities                                                                                                                                                                                                                                                                    |   |         | 7,425    |   |   |   | 20,565 |   |
|                                                                                                                                                                                                                                                                                 |   |         |     |   |   |   |   |   |
| Commitments and contingencies                                                                                                                                                                                                                                                        |   |         |     |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                 |   |         |     |   |   |   |   |   |
| Stockholders’ deficit:                                                                                                                                                                                                                                                         |   |         |     |   |   |   |   |   |
| Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued or outstanding                                                                                                                                                                                      |   |         | -        |   |   |   | - |   |
| Common stock, $0.03 par value; 800,000,000 shares authorized at December 31, 2010 and 2009; 525,159,750 and 461,355,457 shares issued and outstanding as of December 31, 2010 and 2009, respectively                                                                            |   |         | 14,569   |   |   |   | 13,841 |   |
| Additional paid–in capital                                                                                                                                                                                                                                                     |   |         | 159,749  |   |   |   | 159,738 |   |
| Other comprehensive income (loss)                                                                                                                                                                                                                                                    |   |         | (1       | ) |   |   | 125 |   |
| Accumulated deficit                                                                                                                                                                                                                                                                  |   |         | (179,411 | ) |   |   | (188,378 | ) |
|                                                                                                                                                                                                                                                                                 |   |         |     |   |   |   |   |   |
| Total Calypte Biomedical Corporation stockholders’ deficit                                                                                                                                                                                                                     |   |         | (5,094   | ) |   |   | (14,674 | ) |
|                                                                                                                                                                                                                                                                                 |   |         |     |   |   |   |   |   |
| Noncontrolling interests in discontinued operations                                                                                                                                                                                                                                  |   |         | -        |   |   |   | (470 | ) |
|                                                                                                                                                                                                                                                                                 |   |         |     |   |   |   |   |   |
| Total stockholders’ deficit                                                                                                                                                                                                                                                    |   |         | (5,094   | ) |   |   | (15,144 | ) |
|                                                                                                                                                                                                                                                                                 |   |         |     |   |   |   |   |   |
| Total liabilities and stockholders’ deficit                                                                                                                                                                                                                                    |   | $            | 2,331    |   |   | $ | 5,421 |   |

----

|                                                                                                    |   | Years Ended December 31, |    |
|---------------------------------------------------------------------------------------------------------|--------|--------------------------|---------|
|                                                                                                    |   | 2010                     |    |   | 2009 |   |
|                                                                                                    |   |                     |    |   |   |   |
| Revenues:                                                                                               |   |                     |    |   |   |   |
| Product sales                                                                                           |   | $                        | 444     |   |   | $ | 726 |   |
|                                                                                                    |   |                     |    |   |   |   |   |   |
| Operating costs and expenses:                                                                           |   |                     |    |   |   |   |   |   |
| Cost of product sales                                                                                   |   |                     | 260     |   |   |   | 390 |   |
| Research and development expenses (non-cash of ($19) and ($3)in 2010 and 2009, respectively)            |   |                     | 282     |   |   |   | 193 |   |
| Selling, general and administrative expenses (non-cash of ($12) and $86 in 2010 and 2009, respectively) |   |                     | 999     |   |   |   | 1,397 |   |
|                                                                                                    |   |                     |    |   |   |   |   |   |
| Total operating expenses                                                                                |   |                     | 1,541   |   |   |   | 1,980 |   |
|                                                                                                    |   |                     |    |   |   |   |   |   |
| Loss from operations                                                                                    |   |                     | (1,097  | ) |   |   | (1,254 | ) |
|                                                                                                    |   |                     |    |   |   |   |   |   |
| Interest expense, net (non-cash expense of ($355) and ($1,230) in 2010 and 2009, respectively)          |   |                     | (545    | ) |   |   | (1,592 | ) |
|                                                                                                    |   |                     |    |   |   |   |   |   |
| Gain on transfer of assets                                                                              |   |                     | 2,289   |   |   |   | - |   |
| Gain on restructuring of notes                                                                          |   |                     | 8,500   |   |   |   | - |   |
| Other income (loss), net                                                                                |   |                     | 142     |   |   |   | (106 | ) |
|                                                                                                    |   |                     |    |   |   |   |   |   |
| Net income (loss) before income taxes and deemed dividend                                               |   |                     | 9,289   |   |   |   | (2,952 | ) |
|                                                                                                    |   |                     |    |   |   |   |   |   |
| Provision for income taxes                                                                              |   |                     | (181    | ) |   |   | (2 | ) |
| Deemed dividend attributable to modification of warrants                                                |   |                     | -       |   |   |   | (1 | ) |
|                                                                                                    |   |                     |    |   |   |   |   |   |
| Net income (loss) from continuing operations                                                            |   |                     | 9,108   |   |   |   | (2,955 | ) |
|                                                                                                    |   |                     |    |   |   |   |   |   |
| Net loss attributable to Calypte from discontinued operations                                           |   |                     | (136    | ) |   |   | (333 | ) |
|                                                                                                    |   |                     |    |   |   |   |   |   |
| Net loss attributable to noncontrolling interest from discontinued operations                           |   |                     | (131    | ) |   |   | (320 | ) |
|                                                                                                    |   |                     |    |   |   |   |   |   |
| Net income (loss)                                                                                       |   | $                        | 8,841   |   |   | $ | (3,608 | ) |
|                                                                                                    |   |                     |    |   |   |   |   |   |
| Gain on foreign currency translation                                                                    |   |                     | -       |   |   |   | - |   |
|                                                                                                    |   |                     |    |   |   |   |   |   |
| Comprehensive income (loss)                                                                             |   |                     | 8,841   |   |   |   | (3,608 | ) |
|                                                                                                    |   |                     |    |   |   |   |   |   |
| Net income (loss) per share from continuing operations                                                  |   | $                        | 0.019   |   |   | $ | (0.007 | ) |
|                                                                                                    |   |                     |    |   |   |   |   |   |
| Net income (loss) per share attributable to Calypte from discontinued operations                        |   |                     | (0.001  | ) |   |   | (0.001 | ) |
|                                                                                                    |   |                     |    |   |   |   |   |   |
| Net income (loss) per share  (basic and diluted)                                              |   | $                        | 0.018   |   |   | $ | (0.008 | ) |
|                                                                                                    |   |                     |    |   |   |   |   |   |
| Weighted average shares used to compute net income (loss) per share (basic and diluted)                 |   |                     | 487,616 |   |   |   | 450,240 |   |

----

|                                                                                          |   | Number of Common Shares |        |   | Common Stock |   |   | Additional Paid-in Capital |   |   | Accumulated Other Comprehensive Income |   |   | Accumulated Deficit |   |   | Total Stockholders' Deficit |   |
|-----------------------------------------------------------------------------------------------|--------|-------------------------|-------------|--------|--------------|--------|--------|----------------------------|--------|--------|----------------------------------------|--------|--------|---------------------|--------|--------|-----------------------------|--------|
|                                                                                          |   |                    |        |   |         |   |   |                       |   |   |                                   |   |   |                |   |   |                        |   |
| Balances at December 31, 2008                                                                 |   |                    | 439,354,624 |   |         |   | 13,181 |                       |   |   | 159,654                                |   |   |                | 119    |   |                        |   | (185,090 | ) |   |   | (12,136 | ) |
| Shares issued upon exercise of employee options                                               |   |                    | -           |   |         |   | -      |                       |   |   | -                                      |   |   |                | -      |   |                        |   | - |   |   |   | - |   |
| Shares issued for fees and expenses in connection with Purchase Agreement with Fusion Capital |   |                    |        |   |         |   | -      |                       |   |   | -                                      |   |   |                | -      |   |                        |   | - |   |   |   | - |   |
| Shares sold to Fusion Capital under Purchase Agreement                                        |   |                    | -           |   |         |   | -      |                       |   |   | -                                      |   |   |                | -      |   |                        |   | - |   |   |   | - |   |
| Shares issued upon exercise of warrants                                                       |   |                    | 22,000,833  |   |         |   | 660    |                       |   |   | -                                      |   |   |                | -      |   |                        |   | - |   |   |   | 660 |   |
| Shares issued as compensation to employees, consultants and service providers                 |   |                    | -           |   |         |   | -      |                       |   |   | -                                      |   |   |                | -      |   |                        |   | - |   |   |   | - |   |
| Shares sold in August 2008 Private Placement                                                  |   |                    | -           |   |         |   | -      |                       |   |   | -                                      |   |   |                | -      |   |                        |   | - |   |   |   | - |   |
| Shares sold in September 2008 Private Placement                                               |   |                    | -           |   |         |   | -      |                       |   |   | -                                      |   |   |                | -      |   |                        |   | - |   |   |   | - |   |
| Expenses related to sales of common stock                                                     |   |                    | -           |   |         |   | -      |                       |   |   | -                                      |   |   |                | -      |   |                        |   | - |   |   |   | - |   |
| Stock-based employee and director compensation                                                |   |                    | -           |   |         |   | -      |                       |   |   | 83                                     |   |   |                | -      |   |                        |   | - |   |   |   | 83 |   |
| Fair value of warrant modifications related to severance agreement                            |   |                    | -           |   |         |   | -      |                       |   |   | -                                      |   |   |                | -      |   |                        |   | - |   |   |   | - |   |
| Fair value of options issued as compensation to consultants and mark to market adjustments    |   |                    | -           |   |         |   | -      |                       |   |   | 1                                      |   |   |                | -      |   |                        |   | - |   |   |   | 1 |   |
|                                                                                          |   |                    |        |   |         |   |   |                       |   |   |                                   |   |   |                |   |   |                        |   |   |   |   |   |   |   |
| Foreign currency translation                                                                  |   |                    | -           |   |         |   | -      |                       |   |   | -                                      |   |   |                | 6      |   |                        |   | - |   |   |   | 6 |   |
| Net loss                                                                                      |   |                    | -           |   |         |   | -      |                       |   |   | -                                      |   |   |                | -      |   |                        |   | (3,288 | ) |   |   | (3,288 | ) |
|                                                                                          |   |                    |        |   |         |   |   |                       |   |   |                                   |   |   |                |   |   |                        |   |   |   |   |   |   |   |
| Balances at December 31, 2009                                                                 |   |                    | 461,355,457 |   |         | $      | 13,841 |                       |   | $      | 159,738                                |   |   | $                   | 125    |   |                        | $      | (188,378 | ) |   | $ | (14,674 | ) |
|                                                                                          |   |                    |        |   |         |   |   |                       |   |   |                                   |   |   |                |   |   |                        |   |   |   |   |   |   |   |
| Shares sold in March 2010 Private Placement                                                   |   |                    | 12,933,333  |   |         |   | 388    |                       |   |   | -                                      |   |   |                | -      |   |                        |   | - |   |   |   | 388 |   |
| Shares issued in March 2010 Morningtown debt conversion                                       |   |                    | 3,055,262   |   |         |   | 91     |                       |   |   | 37                                     |   |   |                | -      |   |                        |   | - |   |   |   | 128 |   |
| Stock-based employee and director compensation                                                |   |                    | -           |   |         |   | -      |                       |   |   | (33                                    | )      |   |                | -      |   |                        |   | - |   |   |   | (33 | ) |
| Shares issued in September 2010 SF Capital debt conversion                                    |   |                    | 47,815,698  |   |         |   | 249    |                       |   |   | -                                      |   |   |                | -      |   |                        |   | - |   |   |   | 249 |   |
|                                                                                          |   |                    |        |   |         |   |   |                       |   |   |                                   |   |   |                |   |   |                        |   |   |   |   |   |   |   |
| Foreign currency translation                                                                  |   |                    | -           |   |         |   | -      |                       |   |   | 7                                      |   |   |                | 1      |   |                        |   | (1 | ) |   |   | 7 |   |
| Transfer of 51% interest in BJ-Marr                                                           |   |                    | -           |   |         |   | -      |                       |   |   | -                                      |   |   |                | (127   | )      |                        |   | 127 |   |   |   | - |   |
| Net gain / (loss)                                                                             |   |                    | -           |   |         |   | -      |                       |   |   | -                                      |   |   |                | -      |   |                        |   | 8,841 |   |   |   | 8,841 |   |
|                                                                                          |   |                    |        |   |         |   |   |                       |   |   |                                   |   |   |                |   |   |                        |   |   |   |   |   |   |   |
| Balances at December 31, 2010                                                                 |   |                    | 525,159,750 |   |         | $      | 14,569 |                       |   | $      | 159,749                                |   |   | $                   | (1     | )      |                        | $      | (179,411 | ) |   | $ | (5,094 | ) |

----

|                                                                                                                          |   | Years ended December 31, |    |
|-------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|---------|
|                                                                                                                          |   | 2010                     |    |   | 2009 |   |
|                                                                                                                          |   |                     |    |   |   |   |
| Cash flows from operating activities:                                                                                         |   |                     |    |   |   |   |
| Net income (loss)                                                                                                             |   | $                        | 9,108   |   |   | $ | (2,955 | ) |
| Adjustments to reconcile net loss to operating activities:                                                               |   |                     |    |   |   |   |   |   |
| Depreciation and amortization                                                                                                 |   |                     | 255     |   |   |   | 274 |   |
| Non-cash interest expense attributable to:                                                                                    |   |                     |    |   |   |   |   |   |
| Amortization and proportional write-off upon conversion of note discounts and deferred debt issuance and other offering costs |   |                     | -       |   |   |   | 626 |   |
| Dividends on mandatorily redeemable Series A preferred stock                                                                  |   |                     | 120     |   |   |   | 120 |   |
| Gains from note restructuring and asset transfer                                                                              |   |                     | (10,789 | ) |   |   | - |   |
| Stock-based employee compensation expense                                                                                     |   |                     | (32     | ) |   |   | 83 |   |
| Fair market value of common stock, warrants, and options granted for services                                                 |   |                     | -       |   |   |   | 1 |   |
| Loss on disposition of equipment                                                                                              |   |                     | 24      |   |   |   | 22 |   |
| Loss attributed to noncontrolling interest in discontinued operations                                                         |   |                     | (131    | ) |   |   | (333 | ) |
| Changes in operating assets and liabilities:                                                                                  |   |                     |    |   |   |   |   |   |
| Accounts receivable                                                                                                           |   |                     | 19      |   |   |   | 2 |   |
| Inventory                                                                                                                     |   |                     | (45     | ) |   |   | 66 |   |
| Prepaid expenses and other current assets                                                                                     |   |                     | 34      |   |   |   | 313 |   |
| Accounts payable, accrued expenses and other current liabilities                                                              |   |                     | 575     |   |   |   | 731 |   |
| State tax liability                                                                                                           |   |                     | 180     |   |   |   | - |   |
|                                                                                                                          |   |                     |    |   |   |   |   |   |
| Net cash used in operating activities                                                                                         |   |                     | (682    | ) |   |   | (1,050 | ) |
|                                                                                                                          |   |                     |    |   |   |   |   |   |
| Cash flows from investing activities:                                                                                         |   |                     |    |   |   |   |   |   |
| Purchases of equipment                                                                                                        |   |                     | (36     | ) |   |   | (2 | ) |
|                                                                                                                          |   |                     |    |   |   |   |   |   |
| Net cash used in investing activities                                                                                         |   |                     | (36     | ) |   |   | (2 | ) |
|                                                                                                                          |   |                     |    |   |   |   |   |   |
| Cash flows from financing activities:                                                                                         |   |                     |    |   |   |   |   |   |
| Proceeds from sale of stock, net of expenses                                                                                  |   |                     | -       |   |   |   | 660 |   |
| Principal payments on notes payable                                                                                           |   |                     | (43     | ) |   |   | - |   |
| Proceeds from shareholder advances                                                                                            |   |                     | 680     |   |   |   | 388 |   |
|                                                                                                                          |   |                     |    |   |   |   |   |   |
| Net cash provided by financing activities                                                                                     |   |                     | 637     |   |   |   | 1,048 |   |
|                                                                                                                          |   |                     |    |   |   |   |   |   |
| Net decrease in cash and cash equivalents                                                                                     |   |                     | (81     | ) |   |   | (4 | ) |
|                                                                                                                          |   |                     |    |   |   |   |   |   |
| Effect of foreign currency exchange rates on cash                                                                             |   |                     | -       |   |   |   | - |   |
|                                                                                                                          |   |                     |    |   |   |   |   |   |
| Cash and cash equivalents at beginning of period                                                                              |   |                     | 160     |   |   |   | 164 |   |
|                                                                                                                          |   |                     |    |   |   |   |   |   |
| Cash and cash equivalents at end of period                                                                                    |   | $                        | 79      |   |   | $ | 160 |   |
|                                                                                                                          |   |                     |    |   |   |   |   |   |
| Supplemental disclosure of cash flow activities:                                                                              |   |                     |    |   |   |   |   |   |
| Cash paid for interest                                                                                                        |   | $                        | 190     |   |   | $ | 229 |   |
|                                                                                                                          |   |                     |    |   |   |   |   |   |
| Supplemental disclosure of noncash activities:                                                                                |   |                     |    |   |   |   |   |   |
| Conversion of accrued interest into notes payable                                                                             |   | $                        | -       |   |   | $ | 234 |   |
| Conversion of notes payable into common stock                                                                                 |   | $                        | 377     |   |   |   |   |   |
| Conversion of shareholder advances into common stock                                                                          |   | $                        | 388     |   |   |   |   |   |

----

----

----

| Computer equipment      | 3 years        |
|-------------------------|----------------|
| Machinery and equipment | 5 years        |
| Furniture and fixtures  | 5 years        |
| Leasehold improvements  | 3-7 years |

----

|   | • | We have received a binding purchase order or similar commitment from the customer or distributor authorized by a representative empowered to commit the purchaser (evidence of a sale).                                                                                                                                                                                                                                                                                         |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | • | The purchase price has been fixed, based on the terms of the purchase order.                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | • | We have delivered the product from our contract manufacturing plant to a common carrier acceptable to the purchaser.  Our customary shipping terms are FOB shipping point. Because of the need for controlled conditions during shipment, we suggest, but leave to the purchaser’s discretion, acquiring insurance for the value of the shipment.  If the purchaser elects to insure the shipment, the insurance is at the purchaser’s expense. |
|   | • | We deem the collection of the amount invoiced probable.  To eliminate the credit risk associated with international distributors with whom we have had little or no experience, we require prepayment of the order or a letter of credit before shipment.                                                                                                                                                                                                             |

----

----

----

|                               |   | 2010   |   |   | 2009   |   |
|------------------------------------|--------|--------|--------|--------|--------|--------|
|                               |   |   |   |   |   |   |
| AwareTM BEDTM HIV-1 Incidence Test |   | $      | 257    |   |   | $      | 571 |   |
| AwareTM Rapid HIV diagnostic tests |   |   | 134    |   |   |   | 160 |   |
| All other                          |   |   | 53     |   |   |   | 2 |   |
|                               |   |   |   |   |   |   |   |   |
| Revenue from product sales         |   | $      | 444    |   |   | $      | 733 |   |

----

----

| (3) | Discontinued Operations |
|-----|-------------------------|

|                                                   |   | December 31, |   |
|--------------------------------------------------------|--------|--------------|--------|
|                                                   |   | 2010         |   |   | 2009 |   |
|                                                   |   |         |   |   |   |   |
| Cash and cash equivalents                              |   | $            | -      |   |   | $ | 16 |   |
| Accounts receivable                                    |   |         | -      |   |   |   | 2 |   |
| Inventory                                              |   |         | -      |   |   |   | 91 |   |
| Prepaid expenses                                       |   |         | -      |   |   |   | 3 |   |
| Other current assets                                   |   |         | -      |   |   |   | 10 |   |
| Current assets - of discontinued operations            |   | $            | -      |   |   | $ | 122 |   |
|                                                   |   |         |   |   |   |   |   |   |
| Property and equipment                                 |   | $            | -      |   |   | $ | 3,349 |   |
|      Accumulated depreciation |   |         | -      |   |   |   | (655 | ) |
| Other assets                                           |   |         | -      |   |   |   | 8 |   |
| Non-current assets - of discontinued operations        |   | $            | -      |   |   | $ | 2,702 |   |
|                                                   |   |         |   |   |   |   |   |   |
| Accounts payable and accrued expenses                  |   | $            | -      |   |   | $ | 2,724 |   |
| Current liabilities - of discontinued operations       |   | $            | -      |   |   | $ | 2,724 |   |

|                                                          |   | 2010   |   |   | 2009   |   |
|---------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                          |   |   |   |   |   |   |
| Revenues:                                                     |   |   |   |   |   |   |
| Product sales                                                 |   | $      | 15     |   |   | $      | 146 |   |
|                                                          |   |   |   |   |   |   |   |   |
| Operating costs and expenses:                                 |   |   |   |   |   |   |   |   |
| Cost of product sales                                         |   |   | 3      |   |   |   | 6 |   |
| Selling, general and administrative expenses                  |   |   | 148    |   |   |   | 365 |   |
|                                                          |   |   |   |   |   |   |   |   |
| Total operating expenses                                      |   |   | 151    |   |   |   | 371 |   |
|                                                          |   |   |   |   |   |   |   |   |
| Loss from operations                                          |   |   | (136   | )      |   |   | (225 | ) |
|                                                          |   |   |   |   |   |   |   |   |
| Interest expense, net                                         |   |   | -      |   |   |   | - |   |
| Other income, net                                             |   |   | -      |   |   |   | (108 | ) |
|                                                          |   |   |   |   |   |   |   |   |
| Net loss attributible to Calypte from discontinued operations |   | $      | (136   | )      |   | $      | (333 | ) |

----

|            |   | December 31, |   |
|-----------------|--------|--------------|--------|
|            |   | 2010         |   |   | 2009 |   |
|            |   |         |   |   |   |   |
| Raw materials   |   | $            | 188    |   |   | $ | 157 |   |
| Work-in-process |   |         | 16     |   |   |   | 19 |   |
| Finished goods  |   |         | 60     |   |   |   | 43 |   |
|            |   |         |   |   |   |   |   |   |
| Total inventory |   | $            | 264    |   |   | $ | 219 |   |

|                     |   | December 31, |   |
|--------------------------|--------|--------------|--------|
|                     |   | 2010         |   |   | 2009 |   |
|                     |   |         |   |   |   |   |
| Computer equipment       |   | $            | 143    |   |   | $ | 187 |   |
| Machinery and equipment  |   |         | 209    |   |   |   | 234 |   |
| Furniture and fixtures   |   |         | 48     |   |   |   | 52 |   |
| Leasehold improvements   |   |         | 13     |   |   |   | 8 |   |
|                     |   |         |   |   |   |   |   |   |
|                     |   |         | 413    |   |   |   | 481 |   |
|                     |   |         |   |   |   |   |   |   |
| Accumulated depreciation |   |         | (345   | ) |   |   | (388 | ) |
|                     |   |         |   |   |   |   |   |   |
|                     |   | $            | 68     |   |   | $ | 93 |   |

----

|                                                               |   | December 31, |   |
|--------------------------------------------------------------------|--------|--------------|--------|
|                                                               |   | 2010         |   |   | 2009 |   |
|                                                               |   |         |   |   |   |   |
| Trade accounts payable                                             |   | $            | 1,305  |   |   | $ | 1,437 |   |
| Accrued royalties                                                  |   |         | 202    |   |   |   | 135 |   |
| Accrued salary and vacation pay                                    |   |         | 42     |   |   |   | 37 |   |
| Accrued interest                                                   |   |         | 16     |   |   |   | 382 |   |
| Accrued audit, legal and consulting expenses                       |   |         | 160    |   |   |   | 90 |   |
| Accrued liabilities under intellectual property license agreements |   |         | -      |   |   |   | 40 |   |
| Accrued liabilities of legacy business                             |   |         | 190    |   |   |   | 190 |   |
| Other                                                              |   |         | 56     |   |   |   | 31 |   |
|                                                               |   |         |   |   |   |   |   |   |
| Total accounts payable and accrued expenses                        |   | $            | 1,971  |   |   | $ | 2,342 |   |

----

|                                             |   |     |   |   |      |   |   |       |   |   |       |   |   |     |   |   |        |   |   | Net        |   |
|--------------------------------------------------|--------|----------|--------|--------|-----------|--------|--------|------------|--------|--------|------------|--------|--------|----------|--------|--------|-------------|--------|--------|------------|--------|
|                                             |   | Balance  |   |   |      |   |   | Conversion |   |   |       |   |   | Balance  |   |   | Discount at |   |   | Balance at |   |
|                                             |   | 12/31/08 |   |   | Additions |   |   | to Equity  |   |   | Repayments |   |   | 12/31/09 |   |   | 12/31/09    |   |   | 12/31/09   |   |
|                                             |   |     |   |   |      |   |   |       |   |   |       |   |   |     |   |   |        |   |   |       |   |
| Current Notes and Debentures                     |   |     |   |   |      |   |   |       |   |   |       |   |   |     |   |   |        |   |   |       |   |
|                                             |   |     |   |   |      |   |   |       |   |   |       |   |   |     |   |   |        |   |   |       |   |
| 8% Secured Convertible Notes –             |   |     |   |   |      |   |   |       |   |   |       |   |   |     |   |   |        |   |   |       |   |
|    April 4, 2005                  |   | $        | 4,399  |   |      | $      | -      |       |   | $      | -          |   |   | $        | -      |   |        | $      | 4,399  |       |   |   |   |   |   |   |
|    July 4, 2005 Interest          |   |     | 66     |   |      |   | -      |       |   |   | -          |   |   |     | -      |   |        |   | 66     |       |   |   |   |   |   |   |
|    October 4, 2005 Interest       |   |     | 68     |   |      |   | -      |       |   |   | -          |   |   |     | -      |   |        |   | 68     |       |   |   |   |   |   |   |
|    January 4, 2006 Interest       |   |     | 69     |   |      |   | -      |       |   |   | -          |   |   |     | -      |   |        |   | 69     |       |   |   |   |   |   |   |
|    April 4, 2006 Interest         |   |     | 68     |   |      |   | -      |       |   |   | -          |   |   |     | -      |   |        |   | 68     |       |   |   |   |   |   |   |
|    July 4 and 21, 2006 Interest   |   |     | 122    |   |      |   | -      |       |   |   | -          |   |   |     | -      |   |        |   | 122    |       |   |   |   |   |   |   |
|    October 4, 2006 Interest       |   |     | 91     |   |      |   | -      |       |   |   | -          |   |   |     | -      |   |        |   | 91     |       |   |   |   |   |   |   |
|    January 4, 2007 Interest       |   |     | 100    |   |      |   | -      |       |   |   | -          |   |   |     | -      |   |        |   | 100    |       |   |   |   |   |   |   |
|    April 3, 2007 Interest         |   |     | 99     |   |      |   | -      |       |   |   | -          |   |   |     | -      |   |        |   | 99     |       |   |   |   |   |   |   |
|    July 3, 2007 Interest          |   |     | 102    |   |      |   | -      |       |   |   | -          |   |   |     | -      |   |        |   | 102    |       |   |   |   |   |   |   |
|    October 3, 2007 Interest       |   |     | 106    |   |      |   | -      |       |   |   | -          |   |   |     | -      |   |        |   | 106    |       |   |   |   |   |   |   |
|    January 3, 2008 Interest       |   |     | 108    |   |      |   | -      |       |   |   | -          |   |   |     | -      |   |        |   | 108    |       |   |   |   |   |   |   |
|    April 3, 2008 Interest         |   |     | 110    |   |      |   | -      |       |   |   | -          |   |   |     | -      |   |        |   | 110    |       |   |   |   |   |   |   |
|    July 3, 2008 Interest          |   |     | 111    |   |      |   | -      |       |   |   |       |   |   |     |   |   |        |   | 111    |       |   |   |   |   |   |   |
|   October 3, 2008 Interest             |   |     | 115    |   |      |   | -      |       |   |   | -          |   |   |     | -      |   |        |   | 115    |       |   |   |   |   |   |   |
|   January 3, 2009 Interest             |   |     | -      |   |      |   | 117    |       |   |   | -          |   |   |     | -      |   |        |   | 117    |       |   |   |   |   |   |   |
|   April 3, 2009 Interest               |   |     | -      |   |      |   | 117    |       |   |   | -          |   |   |     | -      |   |        |   | 117    |       |   |   |   |   |   |   |
|                                             |   |     |   |   |      |   |   |       |   |   |       |   |   |     |   |   |        |   |   |       |   |   |   |   |   |   |
| Total 8% Secured Convertible Notes               |   | $        | 5,734  |   |      | $      | 234    |       |   | $      | -          |   |   | $        | -      |   |        | $      | 5,968  |       |   | $ | - |   |   | $ | 5,968 |   |
|                                             |   |     |   |   |      |   |   |       |   |   |       |   |   |     |   |   |        |   |   |       |   |   |   |   |   |   |   |   |
| 7% Promissory Notes to related                   |   |     |   |   |      |   |   |       |   |   |       |   |   |     |   |   |        |   |   |       |   |   |   |   |   |   |   |   |
|    party -                        |   |     |   |   |      |   |   |       |   |   |       |   |   |     |   |   |        |   |   |       |   |   |   |   |   |   |   |   |
|    2005 Credit Facility with Marr |   | $        | 4,200  |   |      | $      | -      |       |   | $      | -          |   |   | $        | -      |   |        | $      | 4,200  |       |   | $ | - |   |   | $ | 4,200 |   |
|                                             |   |     |   |   |      |   |   |       |   |   |       |   |   |     |   |   |        |   |   |       |   |   |   |   |   |   |   |   |
| 12% Convertible Debentures –               |   |     |   |   |      |   |   |       |   |   |       |   |   |     |   |   |        |   |   |       |   |   |   |   |   |   |   |   |
|    Mercator assignees                  |   | $        | 60     |   |      | $      | -      |       |   | $      | -          |   |   | $        | -      |   |        | $      | 60     |       |   | $ | - |   |   | $ | 60 |   |

----

|                                           |   |     |   |   |      |   |   |       |   |   | Conversion to |   |   |     |   |   |      |   |   |     |   |   |        |   |   | Net        |   |
|------------------------------------------------|--------|----------|--------|--------|-----------|--------|--------|------------|--------|--------|---------------|--------|--------|----------|--------|--------|-----------|--------|--------|----------|--------|--------|-------------|--------|--------|------------|--------|
|                                           |   | Balance  |   |   |      |   |   | Conversion |   |   | 4% Notes      |   |   | Asset    |   |   |      |   |   | Balance  |   |   | Discount at |   |   | Balance at |   |
|                                           |   | 12/31/09 |   |   | Additions |   |   | to Equity  |   |   |  Payable |   |   | Transfer |   |   | Repayment |   |   | 12/31/10 |   |   | 12/31/10    |   |   | 12/31/10   |   |
|                                           |   |     |   |   |      |   |   |       |   |   |          |   |   |     |   |   |      |   |   |     |   |   |        |   |   |       |   |
| Current Notes and Debentures                   |   |     |   |   |      |   |   |       |   |   |          |   |   |     |   |   |      |   |   |     |   |   |        |   |   |       |   |
|                                           |   |     |   |   |      |   |   |       |   |   |          |   |   |     |   |   |      |   |   |     |   |   |        |   |   |       |   |
| 8% Secured Convertible Notes –           |   |     |   |   |      |   |   |       |   |   |          |   |   |     |   |   |      |   |   |     |   |   |        |   |   |       |   |
|    April 4, 2005                |   | $        | 4,399  |   |      | $      | -      |       |   | $      | (1,299        | )      |   | $        | (100   | )      |      | $      | (3,000 | )        |   | $      | -           |   |   | $          | -      |   |   |   |   |   |   |   |
|    July 4, 2005 Interest        |   |     | 66     |   |      |   | -      |       |   |   | (66           | )      |   |     | -      |   |      |   | -      |     |   |   | -           |   |   |       | -      |   |   |   |   |   |   |   |
|    October 4, 2005 Interest     |   |     | 68     |   |      |   | -      |       |   |   | (68           | )      |   |     | -      |   |      |   | -      |     |   |   | -           |   |   |       | -      |   |   |   |   |   |   |   |
|    January 4, 2006 Interest     |   |     | 69     |   |      |   | -      |       |   |   | (69           | )      |   |     | -      |   |      |   | -      |     |   |   | -           |   |   |       | -      |   |   |   |   |   |   |   |
|    April 4, 2006 Interest       |   |     | 68     |   |      |   | -      |       |   |   | (68           | )      |   |     | -      |   |      |   | -      |     |   |   | -           |   |   |       | -      |   |   |   |   |   |   |   |
|    July 4 and 21, 2006 Interest |   |     | 122    |   |      |   | -      |       |   |   | (122          | )      |   |     | -      |   |      |   | -      |     |   |   | -           |   |   |       | -      |   |   |   |   |   |   |   |
|    October 4, 2006 Interest     |   |     | 91     |   |      |   | -      |       |   |   | (91           | )      |   |     | -      |   |      |   | -      |     |   |   | -           |   |   |       | -      |   |   |   |   |   |   |   |
|    January 4, 2007 Interest     |   |     | 100    |   |      |   | -      |       |   |   | (100          | )      |   |     | -      |   |      |   | -      |     |   |   | -           |   |   |       | -      |   |   |   |   |   |   |   |
|    April 3, 2007 Interest       |   |     | 99     |   |      |   | -      |       |   |   | (99           | )      |   |     | -      |   |      |   | -      |     |   |   | -           |   |   |       | -      |   |   |   |   |   |   |   |
|    July 3, 2007 Interest        |   |     | 102    |   |      |   | -      |       |   |   | (102          | )      |   |     | -      |   |      |   | -      |     |   |   | -           |   |   |       | -      |   |   |   |   |   |   |   |
|    October 3, 2007 Interest     |   |     | 106    |   |      |   | -      |       |   |   | (106          | )      |   |     | -      |   |      |   | -      |     |   |   | -           |   |   |       | -      |   |   |   |   |   |   |   |
|    January 3, 2008 Interest     |   |     | 108    |   |      |   | -      |       |   |   | (108          | )      |   |     | -      |   |      |   | -      |     |   |   | -           |   |   |       | -      |   |   |   |   |   |   |   |
|    April 3, 2008 Interest       |   |     | 110    |   |      |   | -      |       |   |   | (110          | )      |   |     | -      |   |      |   | -      |     |   |   | -           |   |   |       | -      |   |   |   |   |   |   |   |
|    July 3, 2008 Interest        |   |     | 111    |   |      |   | -      |       |   |   | (111          | )      |   |     | -      |   |      |   | -      |     |   |   | -           |   |   |       | -      |   |   |   |   |   |   |   |
|   October 3, 2008 Interest           |   |     | 115    |   |      |   | -      |       |   |   | (115          | )      |   |     | -      |   |      |   | -      |     |   |   | -           |   |   |       | -      |   |   |   |   |   |   |   |
|   January 3, 2009 Interest           |   |     | 117    |   |      |   | -      |       |   |   | (117          | )      |   |     | -      |   |      |   | -      |     |   |   | -           |   |   |       | -      |   |   |   |   |   |   |   |
|   April 3, 2009 Interest             |   |     | 117    |   |      |   | -      |       |   |   | (117          | )      |   |     | -      |   |      |   | -      |     |   |   | -           |   |   |       | -      |   |   |   |   |   |   |   |
|                                           |   |     |   |   |      |   |   |       |   |   |          |   |   |     |   |   |      |   |   |     |   |   |        |   |   |       |   |   |   |   |   |   |   |   |
| Total 8% Secured Convertible Notes             |   | $        | 5,968  |   |      | $      | -      |       |   | $      | (2,868        | )      |   | $        | (100   | )      |      | $      | (3,000 | )        |   | $      | -           |   |   | $          | -      |   |   | $ | - |   |   | $ | - |   |
|                                           |   |     |   |   |      |   |   |       |   |   |          |   |   |     |   |   |      |   |   |     |   |   |        |   |   |       |   |   |   |   |   |   |   |   |   |   |
| 7% Promissory Notes to related                 |   |     |   |   |      |   |   |       |   |   |          |   |   |     |   |   |      |   |   |     |   |   |        |   |   |       |   |   |   |   |   |   |   |   |   |   |
|    party -                      |   |     |   |   |      |   |   |       |   |   |          |   |   |     |   |   |      |   |   |     |   |   |        |   |   |       |   |   |   |   |   |   |   |   |   |   |
| 2005 Credit Facility with Marr                 |   | $        | 4,200  |   |      | $      | -      |       |   | $      | (4,200        | )      |   | $        | -      |   |      | $      | -      |     |   | $      | -           |   |   | $          | -      |   |   | $ | - |   |   | $ | - |   |
|                                           |   |     |   |   |      |   |   |       |   |   |          |   |   |     |   |   |      |   |   |     |   |   |        |   |   |       |   |   |   |   |   |   |   |   |   |   |
| 12% Convertible Debentures –             |   |     |   |   |      |   |   |       |   |   |          |   |   |     |   |   |      |   |   |     |   |   |        |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Mercator assignees                             |   | $        | 60     |   |      | $      | -      |       |   | $      | -             |   |   | $        | -      |   |      | $      | -      |     |   | $      | -           |   |   | $          | 60     |   |   | $ | - |   |   | $ | 60 |   |
|                                           |   |     |   |   |      |   |   |       |   |   |          |   |   |     |   |   |      |   |   |     |   |   |        |   |   |       |   |   |   |   |   |   |   |   |   |   |
| 4% Note Payable –                        |   |     |   |   |      |   |   |       |   |   |          |   |   |     |   |   |      |   |   |     |   |   |        |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Morningtown                                    |   | $        | -      |   |      | $      | 100    |       |   | $      | -             |   |   | $        | -      |   |      | $      | -      |     |   | $      | (44         | )      |   | $          | 56     |   |   | $ | - |   |   | $ | 56 |   |

----

----

|                                                                                |   | Years ended December 31, |   |
|-------------------------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                                |   | 2010                     |   |   | 2009 |   |
|                                                                                |   |                     |   |   |   |   |
| Interest expense on debt instruments paid or payable in cash                        |   | $                        | (190   | ) |   | $ | (365 | ) |
| Non-cash expense composed of:                                                       |   |                     |   |   |   |   |   |   |
|   Accrued interest on 8% Convertible Notes                                     |   |                     | (231   | ) |   |   | (482 | ) |
|   Accrued interest on 4% Note Payable                                          |   |                     | (4     | ) |   |   | - |   |
|   Amortization of discounts associated with March 2007 extension               |   |                     |   |   |   |   |   |   |
|     and December 2007 restructuring of 8% convertible notes and |   |                     |   |   |   |   |   |   |
|     Marr Credit Facility notes                                  |   |                     | -      |   |   |   | (626 | ) |
|   Expense attributable to dividends on mandatorily redeemable Series           |   |                     |   |   |   |   |   |   |
|     A preferred stock                                           |   |                     | (120   | ) |   |   | (120 | ) |
|                                                                                |   |                     |   |   |   |   |   |   |
| Total non-cash items                                                                |   |                     | (355   | ) |   |   | (1,228 | ) |
|                                                                                |   |                     |   |   |   |   |   |   |
| Total interest expense                                                              |   |                     | (545   | ) |   |   | (1,593 | ) |
|                                                                                |   |                     |   |   |   |   |   |   |
| Interest income                                                                     |   |                     | -      |   |   |   | 1 |   |
|                                                                                |   |                     |   |   |   |   |   |   |
| Net interest expense                                                                |   | $                        | (545   | ) |   | $ | (1,592 | ) |

----

|                   |   |             |       |   |              |   |
|------------------------|--------|------------------|------------|--------|-------------------|--------|
|                   |   | Pre-modification |       |   | Post-modification |   |
|                   |   |             |       |   |              |   |
| Number of Shares       |   |             | 10,000,833 |   |              |   | 10,000,833 |   |
| Exercise Price         |   |             | 0.05       |   |              |   | 0.03 |   |
| Terms (years)          |   |             | 0.12       |   |              |   | 0.12 |   |
| Volatility             |   |             | 227.77     | %      |              |   | 227.77 | % |
| Interest Rate          |   |             | 0.11       | %      |              |   | 0.11 | % |
| Expected Dividend Rate |   |             | 0.00       | %      |              |   | 0.00 | % |
|                   |   |             |       |   |              |   |   |   |
| Option value per share |   |             | 0.0001     |   |              |   | 0.0002 |   |
|                   |   |             |       |   |              |   |   |   |

----

|                                                                |   |      |      |   | Weighted       |   |            |
|---------------------------------------------------------------------|--------|-----------|-----------|--------|----------------|--------|-----------------|
|                                                                |   |      |      |   | Average        |   |            |
|                                                                |   | Number of |      |   | Exercise price |   |            |
|                                                                |   | Shares    |      |   | per share      |   | Expiration Date |
|                                                                |   |      |      |   |           |   |            |
| Warrants issued in connection with February 2007 Private Placement  |   |      | 2,500,001 |   |           | $      | 0.077           |   | March 27, 2012 |
| Warrants issued to placement agents in connection with the February |   |      |      |   |           |   |            |   |   |
| 2007 Private Placement                                              |   |      | 125,000   |   |           | $      | 0.062           |   | February 23, 2012 to March 27, 2012 |
| Warrant issued for investment banking services                      |   |      | 500,000   |   |           | $      | 0.085           |   | October 31, 2011 |
|                                                                |   |      |      |   |           |   |            |   |   |
|                                                                |   |      | 3,125,001 |   |           | $      | 0.078           |   |   |

----

| Shares issuable pursuant to options outstanding under benefit plans |   |   | 3,050,000                |   |
|---------------------------------------------------------------------|--------|--------|--------------------------|--------|
| Shares reserved for future issuance under benefit plans             |   |   | 13,091,367               |   |
| Shares issuable pursuant to warrants outstanding                    |   |   | 3,125,001                |   |
| Shares issuable under equity line with Fusion Capital               |   |   | 37,885,604               |   |
| Shares issuable under related party notes payable                   |   |   | 22,666,667               |   |
|                                                                |   |   |                     |   |
|                                                                |   |   | 79,818,639               |   |
|                                                                |   |   | Shares outstanding  |   |

----

|                                                |   |    |        |   | Weighted  |   |   | Weighted     |   |   | Aggregate |   |
|-----------------------------------------------------|--------|---------|-------------|--------|-----------|--------|--------|--------------|--------|--------|-----------|--------|
|                                                |   |    |        |   | Average   |   |   | Average      |   |   | Intrinsic |   |
|                                                |   |    |        |   | Exercise  |   |   | Remaining    |   |   | Value at  |   |
|                                                |   |    |        |   | Price per |   |   | Contractual  |   |   | Date      |   |
|                                                |   | Options |        |   | Share     |   |   | Term (years) |   |   | Indicated |   |
|                                                |   |    |        |   |      |   |   |         |   |   |      |   |
| Options outstanding at December 31, 2008            |   |    | 34,096,583  |   |      | $      | 0.145  |         |   |   | 4.34      |   |   | $ | 0 |   |
| Options granted                                     |   |    | -           |   |      |   |   |         |   |   |      |   |   |   |   |   |
| Options exercised                                   |   |    | -           |   |      |   |   |         |   |   |      |   |   |   |   |   |
| Options forfeited                                   |   |    | (2,500,000  | )      |      |   |   |         |   |   |      |   |   |   |   |   |
| Options expired                                     |   |    | (28,296,583 | )      |      |   |   |         |   |   |      |   |   |   |   |   |
|                                                |   |    |        |   |      |   |   |         |   |   |      |   |   |   |   |   |
| Options outstanding at December 31, 2009            |   |    | 3,300,000   |   |      | $      | 0.127  |         |   |   | 7.27      |   |   | $ | 0 |   |
|                                                |   |    |        |   |      |   |   |         |   |   |      |   |   |   |   |   |
| Options granted                                     |   |    | -           |   |      |   | -      |         |   |   |      |   |   |   |   |   |
| Options exercised                                   |   |    | -           |   |      |   | -      |         |   |   |      |   |   |   |   |   |
| Options forfeited                                   |   |    | -           |   |      |   | -      |         |   |   |      |   |   |   |   |   |
| Options expired                                     |   |    | (250,000    | )      |      | $      | 0.310  |         |   |   |      |   |   |   |   |   |
|                                                |   |    |        |   |      |   |   |         |   |   |      |   |   |   |   |   |
| Options outstanding at December 31, 2010            |   |    | 3,050,000   |   |      | $      | 0.112  |         |   |   | 6.87      |   |   | $ | 0 |   |
|                                                |   |    |        |   |      |   |   |         |   |   |      |   |   |   |   |   |
| Options vested and exercisable at December 31, 2009 |   |    | 3,300,000   |   |      | $      | 0.127  |         |   |   | 7.27      |   |   | $ | 0 |   |
|                                                |   |    |        |   |      |   |   |         |   |   |      |   |   |   |   |   |
| Options vested and exercisable at December 31, 2010 |   |    | 3,050,000   |   |      | $      | 0.112  |         |   |   | 6.87      |   |   | $ | 0 |   |

|        |   | Options Outstanding |      |   | Options Exercisable |   |
|-------------|--------|---------------------|-----------|--------|---------------------|--------|
|        |   |                |      |   | Weighted            |   |   |   |   |   |   |   |   |   |   |
|        |   |                |      |   | Average             |   |   | Weighted |   |   |   |   |   | Weighted |   |
| Range of    |   |                |      |   | Remaining           |   |   | Average |   |   |   |   |   | Average |   |
| Exercise    |   | Number              |      |   | Years to            |   |   | Exercise |   |   | Number |   |   | Exercise |   |
| Prices      |   | Outstanding         |      |   | Expiration          |   |   | Price |   |   | Exercisable |   |   | Price |   |
|        |   |                |      |   |                |   |   |   |   |   |   |   |   |   |   |
|  $0.11 |   |                | 3,000,000 |   |                |   | 6.91 |   |   | $ | 0.110 |   |   |   | 3,000,000 |   |   | $ | 0.110 |   |
|  $0.23 |   |                | 50,000    |   |                |   | 4.32 |   |   | $ | 0.230 |   |   |   | 50,000 |   |   | $ | 0.230 |   |
|        |   |                |      |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        |   |                | 3,050,000 |   |                |   | 6.87 |   |   | $ | 0.112 |   |   |   | 3,050,000 |   |   | $ | 0.112 |   |

----

|                                                            |   | 2010   |   |   | 2009   |   |
|-----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Gain / (Loss) before income taxes:                              |   |   |   |   |   |   |
|   Domestic                                            |   | $      | 9,108  |   |   | $      | (2,954 | ) |
|   International                                       |   |   | (136   | )      |   |   | (333 | ) |
|                                                            |   |   |   |   |   |   |   |   |
|     Total gain / (loss) before income taxes |   | $      | 8,972  |   |   | $      | (3,287 | ) |

|                                                                       |   | 2010   |   |   | 2009   |   |
|----------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                       |   |   |   |   |   |   |
| Computed expected tax expense                                              |   | $      | 3,067  |   |   | $      | (1,118 | ) |
| Losses and credits for which no benefits have been recognized              |   |   | 0      |   |   |   | 864 |   |
| Expense related to amortization of financing discounts in interest expense |   |   | 213    |   |   |   | 213 |   |
| State tax expense, net of federal income tax benefit                       |   |   | 180    |   |   |   | 2 |   |
| Net Operating Loss Carryover                                               |   |   | -3221  |   |   |   |   |   |
| Other, net operating losses not previously benefited                       |   |   | 40     |   |   |   | 41 |   |
|                                                                       |   | $      | 181    |   |   | $      | 2 |   |

|                                                           |   | 2010   |    |   | 2009   |   |
|----------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Deferred tax assets:                                           |   |   |    |   |   |   |
|      Net operating loss carryovers    |   | $      | 27,054  |   |   | $      | 32,410 |   |
|      Research and development credits |   | $      | 482     |   |   | $      | 482 |   |
|      Other                            |   | $      | 2,242   |   |   | $      | 2,249 |   |
| Total gross deferred tax assets                                |   | $      | 29,778  |   |   | $      | 35,141 |   |
| Valuation allowance                                            |   | $      | (29,778 | )      |   | $      | (35,141 | ) |
| Net deferred tax assets                                        |   | $      | -       |   |   | $      | - |   |

----

----

|                   |   |             |       |   |              |   |
|------------------------|--------|------------------|------------|--------|-------------------|--------|
|                   |   | Pre-modification |       |   | Post-modification |   |
|                   |   |             |       |   |              |   |
| Number of Shares       |   |             | 10,000,833 |   |              |   | 10,000,833 |   |
| Exercise Price         |   |             | 0.05       |   |              |   | 0.03 |   |
| Terms (years)          |   |             | 0.12       |   |              |   | 0.12 |   |
| Volatility             |   |             | 227.77     | %      |              |   | 227.77 | % |
| Interest Rate          |   |             | 0.11       | %      |              |   | 0.11 | % |
| Expected Dividend Rate |   |             | 0.00       | %      |              |   | 0.00 | % |
|                   |   |             |       |   |              |   |   |   |
| Option value per share |   |             | 0.0001     |   |              |   | 0.0002 |   |

| Years Ending December 31, |   |   |    |   |
|---------------------------|--------|--------|---------|--------|
| 2011                 |   | $      | 84,180  |   |
| 2012                 |   | $      | 35,075  |   |
|                      |   | $      | 119,255 |   |

----

|   | CALYPTE  BIOMEDICAL  CORPORATION(Registrant)          |                |
|--------|---------------------------------------------------------------------------|---------------------|
|   |                                                                      |                |   |
|   | By:                                                                       | /s/ Adel Karas |   |
|   | Adel Karas                                                                |                |
|   | President, Chief Executive Officer, Chief Financial Officer and Secretary |                |
|   |                                                                      |                |   |