----

----

|   | Nevada                                                         |  90-0416683                  |                                                                                                              |
|--------|----------------------------------------------------------------|-----------------------------------|-------------------------------------------------------------------------------------------------------------------|
|   | (State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |                                                                                                              |
|   |                                                           |                              |                                                                                                              |   |   |
|   | 7400 Paseo Padre Parkway, Fremont, CA                          |                              |                   94555 |   |   |   |   |   |
|   |                                                           |                              | (Address of principal executive offices)                                                                          |   |                    (Zip Code) |   |   |   |   |

| Title of each class: None |   |   | Name of each exchange on which registered: None |
|---------------------------|--------|--------|-------------------------------------------------|
|                      |   |   |                                            |

| Common stock, $0.001 par value per share |
|------------------------------------------|
| (Title of Class)                         |

----

|          | FORWARD LOOKING STATEMENTS                                                                                         |   |   | 1      |   |
|---------------|--------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
|          | PART I                                                                                                             |   |   |   |   |
| ITEM 1.       | Business                                                                                                           |   |   | 2      |   |
| ITEM 1A.      | Risk Factors                                                                                                       |   |   | 13     |   |
| ITEM 1B.      | Unresolved Staff Comments                                                                                          |   |   | 26     |   |
| ITEM 2.       | Properties                                                                                                         |   |   | 26     |   |
| ITEM 3.       | Legal Proceedings                                                                                                  |   |   | 26     |   |
| ITEM 4.       | (Removed and Reserved)                                                                                             |   |   | 26     |   |
|          |                                                                                                               |   |   |   |   |   |   |
|          | PART II                                                                                                            |   |   |   |   |   |   |
| ITEM 5.       | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |   |   | 27     |   |
| ITEM 7.       | Management’s Discussion and Analysis of Financial Condition and Results of Operations                        |   |   | 30     |   |
| ITEM 8.       | Financial Statements and Supplementary Data                                                                        |   |   | 38     |   |
| ITEM 9.       | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                               |   |   | 69     |   |
| ITEM 9A(T).   | Controls and Procedures                                                                                            |   |   | 69     |   |
| ITEM 9B.      | Other Information                                                                                                  |   |   | 71     |   |
|          |                                                                                                               |   |   |   |   |   |   |
|          | PART III                                                                                                           |   |   |   |   |
| ITEM 10.      | Directors, Executive Officers and Corporate Governance                                                             |   |   | 72     |   |
| ITEM 11.      | Executive Compensation                                                                                             |   |   | 72     |   |
| ITEM 12.      | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                     |   |   | 72     |   |
| ITEM 13.      | Certain Relationships and Related Transactions, and Director Independence                                          |   |   | 72     |   |
| ITEM 14.      | Principal Accountant Fees and Services                                                                             |   |   | 72     |   |
|          |                                                                                                               |   |   |   |   |
|          | PART IV                                                                                                            |   |   |   |   |
| ITEM 15.      | Exhibits and Financial Statement Schedules                                                                         |   |   | 73     |   |
|          |                                                                                                               |   |   |   |   |
| SIGNATURES    |                                                                                                               |   |   | 76     |   |
|          |                                                                                                               |   |   |   |   |   |   |
| EXHIBIT INDEX |                                                                                                               |   |   | 77     |   |

----

----

----

| 1 | DNA: (Deoxyribonucleic acid) - A polymeric molecule consisting of deoxyribonucleotide building blocks that in a double-stranded, double helical form is the genetic material of most organisms. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | Polymerase Chain Reaction (PCR) - PCR is an enzymatic process to increase the number of copies of DNA for easier detection. Real-time PCR chemistries allow for detection of the reaction in the early phase rather than the late phase of the reaction. The polymerase enzyme “reads” an intact DNA strand as a template and uses it to synthesize a new strand, which sets in motion a chain reaction in which the DNA template is exponentially amplified, generating millions or more copies of the DNA piece. Real-time PCR simultaneously amplifies and quantifies (as an absolute number of copies or relative amount) a targeted DNA molecule in real time after each amplification cycle. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 3 | RNA: (Ribonucleic acid) - A polymeric molecule consisting of ribonucleotide building blocks. The three major types in cells are ribosomal RNA (rRNA), transfer RNA (tRNA), and messenger RNA (mRNA), each of which performs an essential role in protein synthesis. RNAi is RNA interference that helps regulate turning genes on and off. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| 4 | Log (logarithm) range is the standard way of expressing sensitivity range; it is calculated by a serial dilution of the sample, with each tenfold dilution being one log; if, for example, a sample is diluted four times by tenfold, and a device is able to detect a gene signal in all these dilutions, then the dynamic range of the detector is said to be three logs. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | An oligonucleotide is a short nucleic acid polymer, typically with twenty or fewer bases. |
|---|-------------------------------------------------------------------------------------------|

----

| • |  A 5,184-assay chip for study of gene panels or for candidate genes of interest to customers; and |
|---------|--------------------------------------------------------------------------------------------------------|

| • |  A high-throughput whole-genome version with 30,000 assays per chip. |
|---------|---------------------------------------------------------------------------|

----

| • |  Support of both preclinical and clinical studies; |
|---------|---------------------------------------------------------|

| • |  Validating potential biomarkers in many samples with rapid turnaround time, allowing for expedited drug development decisions; and |
|---------|------------------------------------------------------------------------------------------------------------------------------------------|

| • |  High sensitivity and accuracy with limited amount of sample from needle biopsy. |
|---------|---------------------------------------------------------------------------------------|

----

| • |  Presentations by collaborators and in-house scientists at scientific conferences; |
|---------|-----------------------------------------------------------------------------------------|

| • |  Process SmartChip samples through our fee for service business; |
|---------|-----------------------------------------------------------------------|

| • |  Establish early access customers in the U.S., Japan and Europe; |
|---------|-----------------------------------------------------------------------|

| • |  Commercial launch of the 5,184- SmartChip System; |
|---------|---------------------------------------------------------|

| • |  Complete development of the SmartChip multi sample nano-dispenser; and |
|---------|------------------------------------------------------------------------------|

| • |  Commercial launch of four gene panels, including oncology and microRNA. |
|---------|-------------------------------------------------------------------------------|

| • |  Biomarker Discovery. New targets (biomarkers) for drugs can be identified through the analysis of gene profile expression in diseased cells. Potential applications include cancers, arthritis, and lung diseases. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • |  Drug Validation and Optimization. Genetic analysis is being used to determine the likely toxicity (toxicogenomics) of new drugs and the likelihood of therapeutic response to a specific genetic profile (pharmacogenomics). FDA guidance6calls for drug companies to voluntarily submit pharmacogenomic data to support their drug development programs. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • |  Drug Response Monitoring. Patient outcomes can be improved by evaluation of a proposed drug’s potency and specificity in order to determine individualized patient dosing, thereby decreasing adverse drug reactions, and improving drug efficacy. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • |  Detection of Rare Mutations. The Cancer Genome Project is using the human genome sequence and high throughput mutation detection techniques to identify somatically acquired7sequence variants/mutations and hence identify genes critical in the development of human cancers. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6 | FDA News Release - March 22, 2005 - issued a final guidance titled “Pharmacogenomic Data Submissions.” |
|---|--------------------------------------------------------------------------------------------------------------------|

| 7 | Mutations rising in individual cells in the body outside the “germ-line” (sperm and egg) cells that created the individual, and hence not present in all of a person’s cells. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 8 | The MicroArray Quality Control (MAQC) project shows inter- and intra-platform reproducibility of gene expression measurements, Nature Biotechnology, Vol. 24:9, p 1151, September 2006. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 9 | An inverted microscope is a microscope with its light source above the stage pointing down, while the objective is below the stage pointing up; they are used for observing living cells or organisms at the bottom of a large container (e.g., a tissue culture flask) under more natural conditions than on a glass slide, as is the case with a conventional microscope. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| • |  pursuing growth opportunities, including more rapid expansion; |
|---------|----------------------------------------------------------------------|

| • |  acquiring complementary businesses; |
|---------|-------------------------------------------|

| • |  making capital improvements to improve our infrastructure; |
|---------|------------------------------------------------------------------|

| • |  hiring qualified management and key employees; |
|---------|------------------------------------------------------|

| • |  developing new services, programming or products; |
|---------|---------------------------------------------------------|

| • |  responding to competitive pressures; |
|---------|--------------------------------------------|

| • |  complying with regulatory requirements such as licensing and registration; and |
|---------|--------------------------------------------------------------------------------------|

| • |  maintaining compliance with applicable laws. |
|---------|----------------------------------------------------|

----

----

----

----

----

----

| • |  we might not have been the first to conceive or reduce to practice one or more inventions disclosed in our pending patent applications; |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| • |  we might not have been the first to file patent applications for these inventions; |
|---------|------------------------------------------------------------------------------------------|

| • |  others may independently develop similar or alternative products and technologies or duplicate any of our products and technologies; |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------|

| • |  it is possible that none of our pending patent applications will result in issued patents, and even if they issue as patents, they may not provide a basis for commercially viable products,  and/or may not provide us with any competitive advantages, or may be challenged and invalidated by third parties; |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • |  we may not develop additional proprietary products and technologies that are patentable; and |
|---------|----------------------------------------------------------------------------------------------------|

| • |  third-party patents may have an adverse effect on our ability to continue to grow our business. |
|---------|-------------------------------------------------------------------------------------------------------|

----

----

----

----

----

| • |  actual or anticipated variations in operating results; |
|---------|--------------------------------------------------------------|

| • |  the limited number of holders of the common stock, and the limited liquidity available through the OTC Bulletin Board; |
|---------|------------------------------------------------------------------------------------------------------------------------------|

| • |  changes in financial estimates by securities analysts; |
|---------|--------------------------------------------------------------|

| • |  changes in the economic performance and/or market valuations of other biotechnology companies; |
|---------|------------------------------------------------------------------------------------------------------|

| • |  our announcement of significant acquisitions, strategic partnerships, joint ventures or capital commitments; |
|---------|--------------------------------------------------------------------------------------------------------------------|

| • |  additions or departures of key personnel; and |
|---------|-----------------------------------------------------|

| • |  sales or other transactions involving our capital stock. |
|---------|----------------------------------------------------------------|

----

----

| LOCATION        |         | SQUARE FEET              |                         | PRIMARY USE            |   | LEASE TERMS                     |
|-----------------|--------------|--------------------------|------------------------------|------------------------|--------|---------------------------------|
|            |         |                     |                         |                   |   |                            |
| Fremont, CA     | 19,186 sq ft | Corporate Office and Lab | Lease expires April 30, 2015 |
|            |         |                     |                         |                   |   |                            |
| Fremont, CA     |         | 11,222 sq ft             |                         | Office and Lab         |   | Lease expires March 31, 2010    |
|            |         |                     |                         |                   |   |                            |
| Kulim, Malaysia |         | 5,194 sq ft              |                         | Administration and Lab |   | Lease expires December 31, 2010 |
|            |         |                     |                         |                   |   |                            |

----

| Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
|---------|--------------------------------------------------------------------------------------------------------------------|

|                                                                                     |   |       |   |   |      |   |
|------------------------------------------------------------------------------------------|--------|------------|--------|--------|-----------|--------|
|       2008                                                 |   |  High |   |   |  Low |   |
|        First Quarter ended March 31, 2008   |   |       | 2.35   |   |      |   | 1.50 |   |
|        Second Quarter ended June 30, 2008        |   |       | 2.90   |   |      |   | 1.35 |   |
|        Third Quarter ended September 30, 2008    |   |       | 2.45   |   |      |   | 1.35 |   |
|        Fourth Quarter ended December 31, 2008    |   |       | 1.35   |   |      |   | 0.56 |   |
|                                                                                     |   |       |   |   |      |   |   |   |
|       2009                                                 |   |       |   |   |      |   |   |   |
|        First Quarter ended March 31, 2009             |   |       | 1.30   |   |      |   | 0.65 |   |
|        Second Quarter ended June 30, 2009        |   |       | 2.15   |   |      |   | 0.80 |   |
|        Third Quarter ended September 30, 2009    |   |       | 2.20   |   |      |   | 1.29 |   |
|        Fourth Quarter ended December 31, 2009    |   |       | 2.87   |   |      |   | 1.45 |   |
|                                                                                     |   |       |   |   |      |   |   |   |

----

----

----

----

|   |                         |                                       |   |                    |        |   |   |    |
|--------|------------------------------|--------------------------------------------|--------|-------------------------|-------------|--------|--------|---------|
|   |                         |                                       |   | Year ended December 31, |        |
|   |                         |                                       |   | 2009                    |        |   | 2008   |    |
|   |                         |                                       |   |                    |        |   |   |    |
|   | Revenue                      |                                       |   | $                       | 379,373     |   |   | $       | 621,866 |   |
|   |                         |                                       |   |                    |        |   |   |    |   |   |
|   | Cost of revenue              |                                       |   | 263,041                 |        |   |   | 241,033 |   |
|   |                         |                                       |   |                    |        |   |   |    |   |   |
|   |                         | Gross margin                               |   |                    | 116,332     |   |   |    | 380,833 |   |
|   |                         |                                       |   |                    |        |   |   |    |   |   |
|   | Operating expenses:          |                                       |   |                    |        |   |   |    |   |
|   |                         | Sales and marketing                        |   |                    | 601,245     |   |   |    | 1,179,791 |   |
|   |                         | Research and development                   |   |                    | 5,142,083   |   |   |    | 4,628,262 |   |
|   |                         | General and administrative                 |   |                    | 4,383,082   |   |   |    | 2,603,180 |   |
|   |                         |                                       |   |                    |        |   |   |    |   |   |
|   |                         | Total operating expenses                   |   |                    | 10,126,410  |   |   |    | 8,411,233 |   |
|   |                         |                                       |   |                    |        |   |   |    |   |   |
|   |                         | Operating loss                             |   |                    | (10,010,078 | )      |   |    | (8,030,400 | ) |
|   |                         |                                       |   |                    |        |   |   |    |   |   |
|   | Other income and (expenses): |                                       |   |                    |        |   |   |    |   |
|   |                         | Interest income                            |   |                    | 14,493      |   |   |    | 82,318 |   |
|   |                         | Interest expense                           |   |                    | (9,570      | )      |   |    | (14,851 | ) |
|   |                         | Miscellaneous expense                      |   |                    | (51,211     | )      |   |    | (78,504 | ) |
|   |                         |                                       |   |                    |        |   |   |    |   |   |
|   |                         | Total other income (expense)               |   |                    | (46,288     | )      |   |    | (11,037 | ) |
|   |                         |                                       |   |                    |        |   |   |    |   |   |
|   |                         | Net loss before provision for income taxes |   |                    | (10,056,366 | )      |   |    | (8,041,437 | ) |
|   |                         |                                       |   |                    |        |   |   |    |   |   |
|   | Provision for income taxes   |                                       |   | —                 |        |   |   | — |   |
|   |                         |                                       |   |                    |        |   |   |    |   |   |
|   |                         | Net loss                                   |   | $                       | (10,056,366 | )      |   | $       | (8,041,437 | ) |
|   |                         |                                       |   |                    |        |   |   |    |   |   |

| Year Ended December 31, |
|-------------------------|
| 2009                    |   | 2008 |   | % Change |
|                    |   |   |   |   |   |   |   |   |
|                    | $ | 379,373 |   |   | $ | 621,866 |   |   |   | (38.99 | ) % |

----

| Year Ended December 31, |
|-------------------------|
| 2009                    |   | 2008 |   | % Change |
|                    |   |   |   |   |   |   |   |   |
|                    | $ | 263,041 |   |   | $ | 241,033 |   |   |   | 9.13 | % |

| Year Ended December 31, |
|-------------------------|
| 2009                    |   | 2008 |   | % Change |
|                    |   |   |   |   |   |   |   |   |
|                    | $ | 601,245 |   |   | $ | 1,179,791 |   |   |   | (49.04 | ) % |

| Year Ended December 31, |
|-------------------------|
| 2009                    |   | 2008 |   | % Change |
|                    |   |   |   |   |   |   |   |   |
|                    | $ | 5,142,083 |   |   | $ | 4,628,262 |   |   |   | 11.10 | % |

----

| Year Ended December 31, |
|-------------------------|
| 2009                    |   | 2008 |   | % Change |
|                    |   |   |   |   |   |   |   |   |
|                    | $ | 4,383,082 |   |   | $ | 2,603,180 |   |   |   | 68.37 | % |

| Year Ended December 31, |
|-------------------------|
| 2009                    |   | 2008 |   | % Change |
|                    |   |   |   |   |   |   |   |   |
|                    | $ | 14,493 |   |   | $ | 82,318 |   |   |   | (82.39 | ) % |

| Year Ended December 31, |
|-------------------------|
| 2009                    |   | 2008 |   | % Change |
|                    |   |   |   |   |   |   |   |   |
|                    | $ | 9,570 |   |   | $ | 14,851 |   |   |   | (35.56 | ) % |

----

| Year Ended December 31, |
|-------------------------|
| 2009                    |   | 2008 |   | % Change |
|                    |   |   |   |   |   |   |   |   |
|                    | $ | 51,211 |   |   | $ | 78,504 |   |   |   | (34.77 | ) % |

----

----

----

|                                                              |   |              |           |   |              |   |
|-------------------------------------------------------------------|--------|-------------------|----------------|--------|-------------------|--------|
|                                                              |   | December 31, 2009 |           |   | December 31, 2008 |   |
|                                                              |   |              |           |   |              |   |
|        Risk-free interest rate |   |              | 1.31% - 2.97   | %      |              |   | 2.37% - 3.34 | % |
|                                                              |   |              |           |   |              |   |   |   |
|        Expected term           |   | 4.75 Years        |           |   | 4.75 - 5.00 Years |   |
|                                                              |   |              |           |   |              |   |   |   |
|        Expected volatility     |   |              | 40.04% - 42.22 | %      |              |   | 16.97% - 33.31 | % |
|                                                              |   |              |           |   |              |   |   |   |
|        Dividend yield          |   |              | 0              | %      |              |   | 0 | % |
|                                                              |   |              |           |   |              |   |   |   |

----

| Index to consolidated financial statements                                                    |   |   | Page |
|----------------------------------------------------------------------------------------------------|--------|--------|------|
| Report of Independent Registered Public Accounting Firm                                       |   |   | 39   |
| Consolidated Balance Sheets                                                                   |   |   | 40   |
| Consolidated Statements of Operations                                                         |   |   | 41   |
| Consolidated Statements of Series B Preferred Stock and Stockholders’ Equity (Deficit)  |   |   | 42   |
| Consolidated Statements Stockholders’ Equity (Deficit) and Comprehensive Income (Loss)  |   |   | 45   |
| Consolidated Statements of Cash Flows                                                         |   |   | 47   |
| Notes to the Consolidated Financial Statements                                                |   |   | 48   |

----

----

|                                                   |                                                                                              |   |              |        |   |              |      |
|--------------------------------------------------------|---------------------------------------------------------------------------------------------------|--------|-------------------|-------------|--------|-------------------|-----------|
|                                                   |                                                                                              |   | December 31, 2009 |        |   | December 31, 2008 |      |
|                                                   |                                                                                              |   |              |        |   |              |      |
| Assets                                                 |                                                                                              |   |              |        |   |              |
| Current assets:                                        |                                                                                              |   |              |        |   |              |
|                                                   | Cash and cash equivalents                                                                         |   | $                 | 5,953,639   |   |              | $         | 2,597,413 |   |
|                                                   | Accounts receivable                                                                               |   |              | 258,855     |   |              |      | 40,757 |   |
|                                                   | Inventories, net                                                                                  |   |              | 39,970      |   |              |      | 227,272 |   |
|                                                   | Prepaid expenses and other current assets                                                         |   |              | 138,712     |   |              |      | 135,629 |   |
|                                                   |                                                                                              |   |              |        |   |              |      |   |   |
|                                                   | Total current assets                                                                              |   |              | 6,391,176   |   |              |      | 3,001,071 |   |
|                                                   |                                                                                              |   |              |        |   |              |      |   |   |
| Property and equipment, net                            |                                                                                              |   | 441,996           |        |   |              | 795,339   |   |
| Other assets                                           |                                                                                              |   | 57,982            |        |   |              | 15,690    |   |
|                                                   |                                                                                              |   |              |        |   |              |      |   |   |
|                                                   | Total assets                                                                                      |   | $                 | 6,891,154   |   |              | $         | 3,812,100 |   |
|                                                   |                                                                                              |   |              |        |   |              |      |   |   |
| Liabilities and Stockholders’ Equity (Deficit)   |                                                                                              |   |              |        |   |              |      |   |
| Current liabilities:                                   |                                                                                              |   |              |        |   |              |      |   |
|                                                   | Accounts payable                                                                                  |   | $                 | 1,240,397   |   |              | $         | 904,094 |   |
|                                                   | Accrued rent                                                                                      |   |              | 10,493      |   |              |      | 31,671 |   |
|                                                   | Accrued payroll                                                                                   |   |              | 241,586     |   |              |      | 160,242 |   |
|                                                   | Accrued severance pay                                                                             |   |              | 371,596     |   |              |      | — |   |
|                                                   | Accrued vacation                                                                                  |   |              | 117,619     |   |              |      | 181,377 |   |
|                                                   | Accrued other expenses                                                                            |   |              | 157,699     |   |              |      | 72,012 |   |
|                                                   | Current portion of capital lease obligations                                                      |   |              | 21,663      |   |              |      | 55,934 |   |
|                                                   |                                                                                              |   |              |        |   |              |      |   |   |
|                                                   | Total current liabilities                                                                         |   |              | 2,161,053   |   |              |      | 1,405,330 |   |
|                                                   |                                                                                              |   |              |        |   |              |      |   |   |
| Capital lease obligations, net of current portion      |                                                                                              |   | 8,852             |        |   |              | 24,928    |   |
|                                                   |                                                                                              |   |              |        |   |              |      |   |   |
| Redeemable convertible preference shares in subsidiary |                                                                                              |   | 3,290,994         |        |   |              | 1,977,916 |   |
|                                                   |                                                                                              |   |              |        |   |              |      |   |   |
| Commitments and contingencies                          |                                                                                              |   | —           |        |   |              | —   |   |
|                                                   |                                                                                              |   |              |        |   |              |      |   |   |
| Stockholders’ equity (deficit):                  |                                                                                              |   |              |        |   |              |      |   |
|                                                   | Preferred Stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding |   |              | —     |   |              |      | — |   |
|                                                   | Common Stock: $0.001 par value; 300,000,000 shares authorized; 33,387,857 and 24,830,932 shares   |   |              |        |   |              |      |   |   |
|                                                   | issued and outstanding at December 31, 2009 and December 31, 2008                                 |   |              | 33,388      |   |              |      | 24,831 |   |
|                                                   | Additional paid-in capital                                                                        |   |              | 31,600,274  |   |              |      | 20,397,789 |   |
|                                                   | Accumulated deficit                                                                               |   |              | (30,266,788 | )      |              |      | (20,032,260 | ) |
|                                                   | Accumulated other comprehensive income                                                            |   |              | 63,381      |   |              |      | 13,566 |   |
|                                                   |                                                                                              |   |              |        |   |              |      |   |   |
|                                                   | Total stockholders’ equity (deficit)                                                        |   |              | 1,430,255   |   |              |      | 403,926 |   |
|                                                   |                                                                                              |   |              |        |   |              |      |   |   |
|                                                   | Total liabilities and stockholders’ equity (deficit)                                        |   | $                 | 6,891,154   |   |              | $         | 3,812,100 |   |
|                                                   |                                                                                              |   |              |        |   |              |      |   |   |

----

|                                                                |   |                    |        |   |                                        |   |       |              |   |
|---------------------------------------------------------------------|--------|-------------------------|-------------|--------|---------------------------------------------|--------|------------|-------------------|--------|
|                                                                |   |                    |        |   |                                        |   |
|                                                                |   | Year Ended December 31, |        |   | Period From October 22, 2002 (Inception) to |   |
|                                                                |   | 2009                    |        |   | 2008                                        |   |       | December 31, 2009 |   |
|                                                                |   |                    |        |   |                                        |   |       |              |   |
| Revenue                                                             |   | $                       | 379,373     |   |                                        | $      | 621,866    |              |   | $ | 1,295,507 |   |
|                                                                |   |                    |        |   |                                        |   |       |              |   |   |   |   |
| Cost of revenue                                                     |   |                    | 263,041     |   |                                        |   | 241,033    |              |   |   | 604,940 |   |
|                                                                |   |                    |        |   |                                        |   |       |              |   |   |   |   |
|     Gross margin                                |   |                    | 116,332     |   |                                        |   | 380,833    |              |   |   | 690,567 |   |
|                                                                |   |                    |        |   |                                        |   |       |              |   |   |   |   |
| Operating expenses:                                                 |   |                    |        |   |                                        |   |       |              |   |   |   |   |
|     Sales and marketing                         |   |                    | 601,245     |   |                                        |   | 1,179,791  |              |   |   | 2,782,259 |   |
|     Research and development                    |   |                    | 5,142,083   |   |                                        |   | 4,628,262  |              |   |   | 15,838,473 |   |
|     General and administrative                  |   |                    | 4,383,082   |   |                                        |   | 2,603,180  |              |   |   | 11,773,236 |   |
|                                                                |   |                    |        |   |                                        |   |       |              |   |   |   |   |
| Total operating expenses                                            |   |                    | 10,126,410  |   |                                        |   | 8,411,233  |              |   |   | 30,393,968 |   |
|                                                                |   |                    |        |   |                                        |   |       |              |   |   |   |   |
| Operating loss                                                      |   |                    | (10,010,078 | )      |                                        |   | (8,030,400 | )                 |   |   | (29,703,401 | ) |
|                                                                |   |                    |        |   |                                        |   |       |              |   |   |   |   |
| Other income and (expenses):                                        |   |                    |        |   |                                        |   |       |              |   |   |   |   |
|     Interest income                             |   |                    | 14,493      |   |                                        |   | 82,318     |              |   |   | 259,858 |   |
|     Interest expense                            |   |                    | (9,570      | )      |                                        |   | (14,851    | )                 |   |   | (321,454 | ) |
|     Miscellaneous expense                       |   |                    | (51,211     | )      |                                        |   | (78,504    | )                 |   |   | (129,715 | ) |
|                                                                |   |                    |        |   |                                        |   |       |              |   |   |   |   |
| Total other income and (expenses)                                   |   |                    | (46,288     | )      |                                        |   | (11,037    | )                 |   |   | (191,311 | ) |
|                                                                |   |                    |        |   |                                        |   |       |              |   |   |   |   |
| Net loss before provision for income taxes                          |   |                    | (10,056,366 | )      |                                        |   | (8,041,437 | )                 |   |   | (29,894,712 | ) |
|                                                                |   |                    |        |   |                                        |   |       |              |   |   |   |   |
| Provision for income taxes                                          |   |                    | —     |   |                                        |   | —    |              |   |   | — |   |
|                                                                |   |                    |        |   |                                        |   |       |              |   |   |   |   |
|     Net loss                                    |   |                    | (10,056,366 | )      |                                        |   | (8,041,437 | )                 |   |   | (29,894,712 | ) |
|                                                                |   |                    |        |   |                                        |   |       |              |   |   |   |   |
| Accretion on Redeemable Convertible Preference Shares in Subsidiary |   |                    | (178,162    | )      |                                        |   | (37,916    | )                 |   |   | (216,078 | ) |
| Accretion on Series B Preferred Stock                               |   |                    | —     |   |                                        |   | —    |              |   |   | (155,998 | ) |
|                                                                |   |                    |        |   |                                        |   |       |              |   |   |   |   |
|     Net loss applicable to common stockholders  |   | $                       | (10,234,528 | )      |                                        | $      | (8,079,353 | )                 |   | $ | (30,266,788 | ) |
|                                                                |   |                    |        |   |                                        |   |       |              |   |   |   |   |
| Net loss per share - basic and diluted                              |   | $                       | (0.37       | )      |                                        | $      | (0.33      | )                 |   |   |   |   |
|                                                                |   |                    |        |   |                                        |   |       |              |   |   |   |   |
| Shares used to compute net loss per share - basic and diluted       |   |                    | 27,378,293  |   |                                        |   | 24,214,807 |              |   |   |   |   |
|                                                                |   |                    |        |   |                                        |   |       |              |   |   |   |   |

----

|                                                     |            |   |            |    |         |    |       |   |        |   |    |   |    |    |    |   |    |   |   |    |   |   |    |
|----------------------------------------------------------|-----------------|--------|-----------------|---------|--------------|---------|------------|--------|-------------|--------|---------|--------|---------|---------|---------|--------|---------|--------|--------|---------|--------|--------|---------|
|                                                     | Series B        |   | Series A        |    |         |    | Additional |   |        |   |    |
|                                                     | Preferred Stock |   | Preferred Stock |    | Common Stock |    | Paid-in    |   | Accumulated |   |    |
|                                                     | Shares          |   | Amount          |    | Shares       |    | Amount     |   | Shares      |   | Amount  |   | Capital |    | Deficit |   | Total   |
|                                                     |            |   |            |    |         |    |       |   |        |   |    |   |    |    |    |   |    |
|                                                     |            |   |            |    |         |    |       |   |        |   |    |   |    |    |    |   |    |   |   |    |   |   |    |
| Balances as of October 22, 2002                          | —         |   | $               | — |         | — |       | $      | —     |   | — |   | $       | — |    | $      | — |   | $      | — |   | $      | — |
|                                                     |            |   |            |    |         |    |       |   |        |   |    |   |    |    |    |   |    |   |   |    |   |   |    |
| Net loss                                                 | —         |   |            | — |         | — |       |   | —     |   | — |   |    | — |    |   | — |   |   | — |   |   | — |
|                                                     |            |   |            |    |         |    |       |   |        |   |    |   |    |    |    |   |    |   |   |    |   |   |    |
|     Balances as of December 31, 2002 | —         |   | $               | — |         | — |       | $      | —     |   | — |   | $       | — |    | $      | — |   | $      | — |   | $      | — |
|                                                     |            |   |            |    |         |    |       |   |        |   |    |   |    |    |    |   |    |   |   |    |   |   |    |

|                           |                             |            |    |            |    |         |   |       |    |        |    |    |   |    |    |    |    |    |   |    |    |   |      |      |   |      |      |   |
|--------------------------------|----------------------------------|-----------------|---------|-----------------|---------|--------------|--------|------------|---------|-------------|---------|---------|--------|---------|---------|---------|---------|---------|--------|---------|---------|--------|-----------|-----------|--------|-----------|-----------|--------|
|                           |                             | Series B        |    | Series A        |    |         |   | Additional |    |        |    |    |   |
|                           |                             | Preferred Stock |    | Preferred Stock |    | Common Stock |   | Paid-in    |    | Accumulated |    |    |   |
|                           |                             | Shares          |    | Amount          |    | Shares       |   | Amount     |    | Shares      |    | Amount  |   | Capital |    | Deficit |    | Total   |   |
|                           |                             |            |    |            |    |         |   |       |    |        |    |    |   |    |    |    |    |    |   |
| Balances as of January 1, 2003 |                             | —         |    | $               | — |         |   | —    |    | $           | — |    |   | — |    | $       | — |    | $      | — |    | $      | —   |      | $      | —   |      |
|                           |                             |            |    |            |    |         |   |       |    |        |    |    |   |    |    |    |    |    |   |    |    |   |      |      |   |      |      |   |
| Net loss                       |                             | —         |    |            | — |         |   | —    |    |        | — |    |   | — |    |    | — |    |   | — |    |   | (533,985) |      |   | (533,985) |      |
|                           |                             |            |    |            |    |         |   |       |    |        |    |    |   |    |    |    |    |    |   |    |    |   |      |      |   |      |      |   |
|                           | Balances as of December 31, 2003 |            | — |            | $       | —      |   |       | — |        | $       | — |   |    | — |    | $       | — |   | $       | — |   | $         | (533,985) |   | $         | (533,985) |   |
|                           |                             |            |    |            |    |         |   |       |    |        |    |    |   |    |    |    |    |    |   |    |    |   |      |      |   |      |      |   |

|                                      |                             |            |    |            |    |         |   |       |    |        |    |    |   |      |      |    |    |   |   |    |   |   |        |        |   |        |        |   |
|-------------------------------------------|----------------------------------|-----------------|---------|-----------------|---------|--------------|--------|------------|---------|-------------|---------|---------|--------|-----------|-----------|---------|---------|--------|--------|---------|--------|--------|-------------|-------------|--------|-------------|-------------|--------|
|                                      |                             | Series B        |    | Series A        |    |         |   | Additional |    |        |    |    |   |
|                                      |                             | Preferred Stock |    | Preferred Stock |    | Common Stock |   | Paid-in    |    | Accumulated |    |    |   |
|                                      |                             | Shares          |    | Amount          |    | Shares       |   | Amount     |    | Shares      |    | Amount  |   | Capital   |      | Deficit |    | Total  |   |
|                                      |                             |            |    |            |    |         |   |       |    |        |    |    |   |      |      |    |    |   |   |
| Balances as of January 1, 2004            |                             | —         |    | $               | — |         |   | —    |    | $           | — |    |   | —   |      | $       | — |   | $      | — |   | $      | (533,985)   |        | $      | (533,985)   |        |
|                                      |                             |            |    |            |    |         |   |       |    |        |    |    |   |      |      |    |    |   |   |    |   |   |        |        |   |        |        |   |
| Issuance of Common Stock in June for cash |                             | —         |    |            | — |         |   | —    |    |        | — |    |   | 2,483,610 |      |    | 2,484   |   |   | (2,024) |   |   | —     |        |   | 460         |        |
|                                      |                             |            |    |            |    |         |   |       |    |        |    |    |   |      |      |    |    |   |   |    |   |   |        |        |   |        |        |   |
| Stock-based compensation                  |                             | —         |    |            | — |         |   | —    |    |        | — |    |   | —   |      |    | — |   |   | 1,242   |   |   | —     |        |   | 1,242       |        |
|                                      |                             |            |    |            |    |         |   |       |    |        |    |    |   |      |      |    |    |   |   |    |   |   |        |        |   |        |        |   |
| Net loss                                  |                             | —         |    |            | — |         |   | —    |    |        | — |    |   | —   |      |    | — |   |   | — |   |   | (1,124,360) |        |   | (1,124,360) |        |
|                                      |                             |            |    |            |    |         |   |       |    |        |    |    |   |      |      |    |    |   |   |    |   |   |        |        |   |        |        |   |
|                                      | Balances as of December 31, 2004 |            | — |            | $       | —      |   |       | — |        | $       | — |   |      | 2,483,610 |    | $       | 2,484  |   | $       | (782)  |   | $           | (1,658,345) |   | $           | (1,656,643) |   |
|                                      |                             |            |    |            |    |         |   |       |    |        |    |    |   |      |      |    |    |   |   |    |   |   |        |        |   |        |        |   |

----

|                                                                                                                                                     |                             |            |    |            |    |         |   |       |      |        |    |   |   |      |      |    |    |   |   |      |      |   |        |        |   |        |    |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|-----------------|---------|-----------------|---------|--------------|--------|------------|-----------|-------------|---------|--------|--------|-----------|-----------|---------|---------|--------|--------|-----------|-----------|--------|-------------|-------------|--------|-------------|---------|--------|
|                                                                                                                                                     |                             | Series B        |    | Series A        |    |         |   | Additional |      |        |    |   |   |
|                                                                                                                                                     |                             | Preferred Stock |    | Preferred Stock |    | Common Stock |   | Paid-in    |      | Accumulated |    |   |   |
|                                                                                                                                                     |                             | Shares          |    | Amount          |    | Shares       |   | Amount     |      | Shares      |    | Amount |   | Capital   |      | Deficit |    | Total  |   |
|                                                                                                                                                     |                             |            |    |            |    |         |   |       |      |        |    |   |   |      |      |    |    |   |   |
| Balances as of January 1, 2005                                                                                                                           |                             | —         |    | $               | — |         |   | —    |      | $           | — |   |   | 2,483,610 |      | $       | 2,484   |   | $      | (782)     |      | $      | (1,658,345) |        | $      | (1,656,643) |    |
|                                                                                                                                                     |                             |            |    |            |    |         |   |       |      |        |    |   |   |      |      |    |    |   |   |      |      |   |        |        |   |        |    |
| Issuance of Series A Preferred Stock in      February upon conversion of notes      payable and accrued interest |                             | —         |    |            | — |         |   | 5,915,219  |      |        | 592     |   |   | —   |      |    | — |   |   | 3,134,481 |      |   | —     |        |   | 3,135,073   |    |
|                                                                                                                                                     |                             |            |    |            |    |         |   |       |      |        |    |   |   |      |      |    |    |   |   |      |      |   |        |        |   |        |    |   |
| Issuance of Common Stock in September for      cash                                                                                  |                             | —         |    |            | — |         |   | —    |      |        | — |   |   | 917,856   |      |    | 918     |   |   | (748)     |      |   | —     |        |   | 170         |    |
|                                                                                                                                                     |                             |            |    |            |    |         |   |       |      |        |    |   |   |      |      |    |    |   |   |      |      |   |        |        |   |        |    |   |
| Stock-based compensation                                                                                                                                 |                             | —         |    |            | — |         |   | —    |      |        | — |   |   | —   |      |    | — |   |   | 8,575     |      |   | —     |        |   | 8,575       |    |
|                                                                                                                                                     |                             |            |    |            |    |         |   |       |      |        |    |   |   |      |      |    |    |   |   |      |      |   |        |        |   |        |    |   |
| Net loss                                                                                                                                                 |                             | —         |    |            | — |         |   | —    |      |        | — |   |   | —   |      |    | — |   |   | —   |      |   | (1,494,449) |        |   | (1,494,449) |    |
|                                                                                                                                                     |                             |            |    |            |    |         |   |       |      |        |    |   |   |      |      |    |    |   |   |      |      |   |        |        |   |        |    |   |
|                                                                                                                                                     | Balances as of December 31, 2005 |            | — |            | $       | —      |   |       | 5,915,219 |        | $       | 592    |   |      | 3,401,466 |    | $       | 3,402  |   | $         | 3,141,526 |   | $           | (3,152,794) |   | $           | (7,274) |   |
|                                                                                                                                                     |                             |            |    |            |    |         |   |       |      |        |    |   |   |      |      |    |    |   |   |      |      |   |        |        |   |        |    |   |

|                                                                               |                             |            |      |            |      |         |   |       |      |        |    |   |   |      |      |    |    |   |   |      |      |   |        |        |   |        |        |   |
|------------------------------------------------------------------------------------|----------------------------------|-----------------|-----------|-----------------|-----------|--------------|--------|------------|-----------|-------------|---------|--------|--------|-----------|-----------|---------|---------|--------|--------|-----------|-----------|--------|-------------|-------------|--------|-------------|-------------|--------|
|                                                                               |                             | Series B        |      | Series A        |      |         |   | Additional |      |        |    |   |   |
|                                                                               |                             | Preferred Stock |      | Preferred Stock |      | Common Stock |   | Paid-in    |      | Accumulated |    |   |   |
|                                                                               |                             | Shares          |      | Amount          |      | Shares       |   | Amount     |      | Shares      |    | Amount |   | Capital   |      | Deficit |    | Total  |   |
|                                                                               |                             |            |      |            |      |         |   |       |      |        |    |   |   |      |      |    |    |   |   |
| Balances as January 1, 2006                                                        |                             | —         |      | $               | —   |         |   | 5,915,219  |      | $           | 592     |   |   | 3,401,466 |      | $       | 3,402   |   | $      | 3,141,526 |      | $      | (3,152,794) |        | $      | (7,274)     |        |
|                                                                               |                             |            |      |            |      |         |   |       |      |        |    |   |   |      |      |    |    |   |   |      |      |   |        |        |   |        |        |   |
| Issuance of Common Stock in January for      cash              |                             | —         |      |            | —   |         |   | —    |      |        | — |   |   | 4,049     |      |    | 4       |   |   | (3)       |      |   | —     |        |   | 1           |
|                                                                               |                             |            |      |            |      |         |   |       |      |        |    |   |   |      |      |    |    |   |   |      |      |   |        |        |   |        |        |   |
| Issuance of Series B Preferred Stock in      February for cash |                             | 2,052,552       |      |            | 1,559,942 |         |   | —    |      |        | — |   |   | —   |      |    | — |   |   | —   |      |   | —     |        |   | —     |        |
|                                                                               |                             |            |      |            |      |         |   |       |      |        |    |   |   |      |      |    |    |   |   |      |      |   |        |        |   |        |        |   |
| Issuance of restricted shares in March for      services       |                             | —         |      |            | —   |         |   | —    |      |        | — |   |   | 24,296    |      |    | 24      |   |   | (24)      |      |   | —     |        |   | —     |        |
|                                                                               |                             |            |      |            |      |         |   |       |      |        |    |   |   |      |      |    |    |   |   |      |      |   |        |        |   |        |        |   |
| Issuance of Common Stock in June for cash                                          |                             | —         |      |            | —   |         |   | —    |      |        | — |   |   | 8,099     |      |    | 8       |   |   | (7)       |      |   | —     |        |   | 1           |        |
|                                                                               |                             |            |      |            |      |         |   |       |      |        |    |   |   |      |      |    |    |   |   |      |      |   |        |        |   |        |        |   |
| Issuance of restricted shares in July for      services        |                             | —         |      |            | —   |         |   | —    |      |        | — |   |   | 10,798    |      |    | 11      |   |   | (11)      |      |   | —     |        |   | —     |        |
|                                                                               |                             |            |      |            |      |         |   |       |      |        |    |   |   |      |      |    |    |   |   |      |      |   |        |        |   |        |        |   |
| Issuance of restricted shares in August for      services      |                             | —         |      |            | —   |         |   | —    |      |        | — |   |   | 16,197    |      |    | 16      |   |   | (16)      |      |   | —     |        |   | —     |        |
|                                                                               |                             |            |      |            |      |         |   |       |      |        |    |   |   |      |      |    |    |   |   |      |      |   |        |        |   |        |        |
| Issuance of Common Stock in August for      cash               |                             | —         |      |            | —   |         |   | —    |      |        | — |   |   | 17,007    |      |    | 17      |   |   | (14)      |      |   | —     |        |   | 3           |        |
|                                                                               |                             |            |      |            |      |         |   |       |      |        |    |   |   |      |      |    |    |   |   |      |      |   |        |        |   |        |        |   |
| Accretions on Series B Preferred Stock                                             |                             | —         |      |            | 104,000   |         |   | —    |      |        | — |   |   | —   |      |    | — |   |   | —   |      |   | (104,000)   |        |   | (104,000)   |
|                                                                               |                             |            |      |            |      |         |   |       |      |        |    |   |   |      |      |    |    |   |   |      |      |   |        |        |   |        |        |   |
| Issuance of restricted shares in November      for services    |                             | —         |      |            | —   |         |   | —    |      |        | — |   |   | 5,399     |      |    | 5       |   |   | (5)       |      |   | —     |        |   | —     |
|                                                                               |                             |            |      |            |      |         |   |       |      |        |    |   |   |      |      |    |    |   |   |      |      |   |        |        |   |        |        |   |
| Issuance of Common Stock in November for      cash             |                             | —         |      |            | —   |         |   | —    |      |        | — |   |   | 8,639     |      |    | 9       |   |   | (7)       |      |   | —     |        |   | 2           |        |
|                                                                               |                             |            |      |            |      |         |   |       |      |        |    |   |   |      |      |    |    |   |   |      |      |   |        |        |   |        |        |   |
| Stock-based compensation                                                           |                             | —         |      |            | —   |         |   | —    |      |        | — |   |   | —   |      |    | — |   |   | 642,076   |      |   | —     |        |   | 642,076     |        |
|                                                                               |                             |            |      |            |      |         |   |       |      |        |    |   |   |      |      |    |    |   |   |      |      |   |        |        |   |        |        |   |
| Net loss                                                                           |                             | —         |      |            | —   |         |   | —    |      |        | — |   |   | —   |      |    | — |   |   | —   |      |   | (2,686,451) |        |   | (2,686,451) |        |
|                                                                               |                             |            |      |            |      |         |   |       |      |        |    |   |   |      |      |    |    |   |   |      |      |   |        |        |   |        |        |   |
|                                                                               | Balances as of December 31, 2006 |            | 2,052,552 |            | $         | 1,663,942    |   |       | 5,915,219 |        | $       | 592    |   |      | 3,495,950 |    | $       | 3,496  |   | $         | 3,783,515 |   | $           | (5,943,245) |   | $           | (2,155,642) |   |
|                                                                               |                             |            |      |            |      |         |   |       |      |        |    |   |   |      |      |    |    |   |   |      |      |   |        |        |   |        |        |   |

----

|                                                                                                                                                    |   |            |   |            |        |         |   |        |   |        |    |   |   |        |   |    |    |   |   |       |   |   |         |   |   |        |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|--------|-----------------|-------------|--------------|--------|-------------|--------|-------------|---------|--------|--------|-------------|--------|---------|---------|--------|--------|------------|--------|--------|--------------|--------|--------|-------------|--------|--------|
|                                                                                                                                                    |   | Series B        |   | Series A        |        |         |   | Additional  |   |        |    |   |   |
|                                                                                                                                                    |   | Preferred Stock |   | Preferred Stock |        | Common Stock |   | Paid-in     |   | Accumulated |    |   |   |
|                                                                                                                                                    |   | Shares          |   | Amount          |        | Shares       |   | Amount      |   | Shares      |    | Amount |   | Capital     |   | Deficit |    | Total  |   |
|                                                                                                                                                    |   |            |   |            |        |         |   |        |   |        |    |   |   |        |   |    |    |   |   |
| Balances as January 1, 2007                                                                                                                             |   | 2,052,552       |   | $               | 1,663,942   |         |   | 5,915,219   |   | $           | 592     |   |   | 3,495,950   |   | $       | 3,496   |   | $      | 3,783,515  |   | $      | (5,943,245)  |   | $      | (2,155,642) |   |
|                                                                                                                                                    |   |            |   |            |        |         |   |        |   |        |    |   |   |        |   |    |    |   |   |       |   |   |         |   |   |        |   |   |
| Issuance of Common Stock in January for      cash                                                                                   |   | —         |   |            | —     |         |   | —     |   |        | — |   |   | 26,996      |   |    | 27      |   |   | 473        |   |   | —      |   |   | 500         |
|                                                                                                                                                    |   |            |   |            |        |         |   |        |   |        |    |   |   |        |   |    |    |   |   |       |   |   |         |   |   |        |   |   |
| Issuance of restricted shares in January for      services                                                                          |   | —         |   |            | —     |         |   | —     |   |        | — |   |   | 134,979     |   |    | 135     |   |   | (135)      |   |   | —      |   |   | —     |
|                                                                                                                                                    |   |            |   |            |        |         |   |        |   |        |    |   |   |        |   |    |    |   |   |       |   |   |         |   |   |        |   |   |
| Issuance of Series A Preferred Stock in      February for cash                                                                      |   | —         |   |            | —     |         |   | 471,698     |   |        | 47      |   |   | —     |   |    | — |   |   | 65,990     |   |   | —      |   |   | 66,037      |
|                                                                                                                                                    |   |            |   |            |        |         |   |        |   |        |    |   |   |        |   |    |    |   |   |       |   |   |         |   |   |        |   |   |
| Issuance of WaferGen Bio-systems, Inc.      Common Stock to WaferGen, Inc.'s      Preferred shareholders in May |   | (2,052,552)     |   |            | (1,715,940) |         |   | (6,386,917) |   |        | (639)   |   |   | 4,556,598   |   |    | 4,557   |   |   | 1,712,022  |   |   | —      |   |   | 1,715,940   |   |
|                                                                                                                                                    |   |            |   |            |        |         |   |        |   |        |    |   |   |        |   |    |    |   |   |       |   |   |         |   |   |        |   |   |
| Issuance of Units for cash and notes      payable in May and June, net of      offering costs of $1,917,956     |   | —         |   |            | —     |         |   | —     |   |        | — |   |   | 8,008,448   |   |    | 8,008   |   |   | 10,086,704 |   |   | —      |   |   | 10,094,712  |   |
|                                                                                                                                                    |   |            |   |            |        |         |   |        |   |        |    |   |   |        |   |    |    |   |   |       |   |   |         |   |   |        |   |   |
| WaferGen Bio-systems, Inc. shares     outstanding                                                                                   |   | —         |   |            | —     |         |   | —     |   |        | — |   |   | 11,277,782  |   |    | 11,278  |   |   | (11,278)   |   |   | —      |   |   | —     |
|                                                                                                                                                    |   |            |   |            |        |         |   |        |   |        |    |   |   |        |   |    |    |   |   |       |   |   |         |   |   |        |   |   |
| Common Stock cancelled in May in       accordance with Split-Off Agreement                                                     |   | —         |   |            | —     |         |   | —     |   |        | — |   |   | (4,277,778) |   |    | (4,278) |   |   | 4,278      |   |   | —      |   |   | —     |   |
|                                                                                                                                                    |   |            |   |            |        |         |   |        |   |        |    |   |   |        |   |    |    |   |   |       |   |   |         |   |   |        |   |   |
| Issuance of warrants in May and June to a     placement agent                                                                       |   | —         |   |            | —     |         |   | —     |   |        | — |   |   | —     |   |    | — |   |   | 66,319     |   |   | —      |   |   | 66,319      |   |
|                                                                                                                                                    |   |            |   |            |        |         |   |        |   |        |    |   |   |        |   |    |    |   |   |       |   |   |         |   |   |        |   |   |
| Issuance of warrants with debt in January,      February and March                                                                  |   | —         |   |            | —     |         |   | —     |   |        | — |   |   | —     |   |    | — |   |   | 171,053    |   |   | —      |   |   | 171,053     |   |
|                                                                                                                                                    |   |            |   |            |        |         |   |        |   |        |    |   |   |        |   |    |    |   |   |       |   |   |         |   |   |        |   |   |
| Stock-based compensation                                                                                                                                |   | —         |   |            | —     |         |   | —     |   |        | — |   |   | —     |   |    | — |   |   | 648,988    |   |   | —      |   |   | 648,988     |   |
|                                                                                                                                                    |   |            |   |            |        |         |   |        |   |        |    |   |   |        |   |    |    |   |   |       |   |   |         |   |   |        |   |   |
| Accretions on Series B Preferred Stock                                                                                                                  |   | —         |   |            | 51,998      |         |   | —     |   |        | — |   |   | —     |   |    | — |   |   | —    |   |   | (51,998)     |   |   | (51,998)    |   |
|                                                                                                                                                    |   |            |   |            |        |         |   |        |   |        |    |   |   |        |   |    |    |   |   |       |   |   |         |   |   |        |   |   |
| Common Stock cancelled in July                                                                                                                          |   | —         |   |            | —     |         |   | —     |   |        | — |   |   | (5,129)     |   |    | (5)     |   |   | —    |   |   | —      |   |   | (5)         |   |
|                                                                                                                                                    |   |            |   |            |        |         |   |        |   |        |    |   |   |        |   |    |    |   |   |       |   |   |         |   |   |        |   |   |
| Net loss                                                                                                                                                |   | —         |   |            | —     |         |   | —     |   |        | — |   |   | —     |   |    | — |   |   | —    |   |   | (5,957,664)  |   |   | (5,957,664) |   |
|                                                                                                                                                    |   |            |   |            |        |         |   |        |   |        |    |   |   |        |   |    |    |   |   |       |   |   |         |   |   |        |   |   |
| Balance as of December 31, 2007                                                                                                                         |   | —         |   | $               | —     |         |   | —     |   | $           | — |   |   | 23,217,846  |   | $       | 23,218  |   | $      | 16,527,929 |   | $      | (11,952,907) |   | $      | 4,598,240   |   |
|                                                                                                                                                    |   |            |   |            |        |         |   |        |   |        |    |   |   |        |   |    |    |   |   |       |   |   |         |   |   |        |   |   |

----

|                                                                                         |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |        |    |   |
|----------------------------------------------------------------------------------------------|----------------------------------|-----------------|---------|--------------|---------|------------|--------|-------------|------------|---------------|---------|---------|--------|------------|------------|--------|--------------|--------------|--------|---------------|--------|--------|-------------|---------|--------|
|                                                                                         |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   | Accumulated   |   |   |        |    |
|                                                                                         |                             |            |    |         |    | Additional |   |        |       |          | Other   |    |   |       |       |
|                                                                                         |                             | Preferred Stock |    | Common Stock |    | Paid-in    |   | Accumulated |       | Comprehensive |    |    |   |       |
|                                                                                         |                             | Shares          |    | Amount       |    | Shares     |   | Amount      |       | Capital       |    | Deficit |   | Income     |       |   | Total        |         |
|                                                                                         |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |
| Balances as of January 1, 2008                                                               |                             | —         |    | $            | — |       |   | 23,217,846  |       | $             | 23,218  |    | $      | 16,527,929 |       | $      | (11,952,907) |         | $      | —       |   | $      | 4,598,240   |    |
|                                                                                         |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |        |    |   |
| Issuance of Units for cash in May, net of      offering costs of $88,743 |                             | —         |    |         | — |       |   | 1,585,550   |       |          | 1,586   |    |   | 3,477,158  |       |   | —      |         |   |  — |   |   | 3,478,744   |    |
|                                                                                         |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |        |    |   |
| Issuance of Common Stock in May for cash                                                     |                             | —         |    |         | — |       |   | 27,536      |       |          | 27      |    |   | 4,052      |       |   | —      |         |   | —       |   |   | 4,079       |    |
|                                                                                         |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |        |    |   |
| Stock-based compensation                                                                     |                             | —         |    |         | — |       |   | —     |       |          | — |    |   | 388,650    |       |   | —      |         |   | —       |   |   | 388,650     |    |
|                                                                                         |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |        |    |   |
| Net loss                                                                                     |                             | —         |    |         | — |       |   | —     |       |          | — |    |   | —    |       |   | (8,041,437)  |         |   | —       |   |   | (8,041,437) |    |
|                                                                                         |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |        |    |   |
| Accretion on Redeemable Convertible      Preference Shares in Subsidiary |                             | —         |    |         | — |       |   | —     |       |          | — |    |   | —    |       |   | (37,916)     |         |   | —       |   |   | (37,916)    |    |
|                                                                                         |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |        |    |   |
| Translation adjustment                                                                       |                             | —         |    |         | — |       |   | —     |       |          | — |    |   | —    |       |   | —      |         |   | 13,566        |   |   | 13,566      |    |
|                                                                                         |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |        |    |   |
|                                                                                         | Balances as of December 31, 2008 |            | — |         | $       | —    |   |        | 24,830,932 |          | $       | 24,831  |   | $          | 20,397,789 |   | $            | (20,032,260) |   | $             | 13,566 |   | $           | 403,926 |   |
|                                                                                         |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |        |    |
| Total comprehensive income (loss)                                                            |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       | $      | (8,041,437)  |         | $      | 13,566        |   | $      | (8,027,871) |    |
|                                                                                         |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |        |    |   |

----

|                                                                                                                                 |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |         |      |   |
|--------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|-----------------|---------|--------------|---------|------------|--------|-------------|------------|---------------|---------|---------|--------|------------|------------|--------|--------------|--------------|--------|---------------|--------|--------|--------------|-----------|--------|
|                                                                                                                                 |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   | Accumulated   |   |   |         |      |
|                                                                                                                                 |                             |            |    |         |    | Additional |   |        |       | Other         |    |    |   |       |
|                                                                                                                                 |                             | Preferred Stock |    | Common Stock |    | Paid-in    |   | Accumulated |       | Comprehensive |    |    |   |       |
|                                                                                                                                 |                             | Shares          |    | Amount       |    | Shares     |   | Amount      |       | Capital       |    | Deficit |   | Income     |       |   | Total        |         |
|                                                                                                                                 |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |
| Balances as of January 1, 2009                                                                                                       |                             | —         |    | $            | — |       |   | 24,830,932  |       | $             | 24,831  |    | $      | 20,397,789 |       | $      | (20,032,260) |         | $      | 13,566        |   | $      | 403,926      |      |
|                                                                                                                                 |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |         |      |   |
| Issuance of Common Stock in June for cash      upon exercise of warrants                                         |                             | —         |    |         | — |       |   | 71,041      |       |          | 71      |    |   | 100,097    |       |   | —      |         |   |  — |   |   | 100,168      |      |
|                                                                                                                                 |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |         |      |   |
| Issuance of Units for cash in June and August,      net of offering costs of $776,755                            |                             | —         |    |         | — |       |   | 5,009,000   |       |          | 5,009   |    |   | 5,479,486  |       |   | —      |         |   | —       |   |   | 5,484,495    |      |
|                                                                                                                                 |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |         |      |   |
| Issuance of warrants in June and August to a      placement agent                                                |                             | —         |    |         | — |       |   | —     |       |          | — |    |   | 164,025    |       |   | —      |         |   | —       |   |   | 164,025      |      |
|                                                                                                                                 |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |         |      |   |
| Common Stock cancelled in June                                                                                                       |                             | —         |    |         | — |       |   | (266)       |       |          | — |    |   | —    |       |   | —      |         |   | —       |   |   | —      |      |
|                                                                                                                                 |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |         |      |   |
| Issuance of Common Stock in August, net of 4      shares forfeited in cashless exercise                          |                             | —         |    |         | — |       |   | 10,794      |       |          | 11      |    |   | (9)        |       |   | —      |         |   | —       |   |   | 2            |      |
|                                                                                                                                 |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |         |      |   |
| Restricted Stock issued in July, August,      September, October, November and      December |                             | —         |    |         | — |       |   | 130,000     |       |          | 130     |    |   | (130)      |       |   | —      |         |   | —       |   |   | —      |      |
|                                                                                                                                 |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |         |      |   |
| Issuance of Units for cash in December, net of      offering costs of $533,468                                   |                             | —         |    |         | — |       |   | 3,308,335   |       |          | 3,308   |    |   | 4,425,724  |       |   | —      |         |   | —       |   |   | 4,429,032    |      |
|                                                                                                                                 |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |         |      |   |
| Issuance of warrants in December for services                                                                                        |                             | —         |    |         | — |       |   | —     |       |          | — |    |   | 37,085     |       |   | —      |         |   | —       |   |   | 37,085       |      |
|                                                                                                                                 |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |         |      |   |
| Issuance of warrants in December to a      placement agent                                                       |                             | —         |    |         | — |       |   | —     |       |          | — |    |   | 117,309    |       |   | —      |         |   | —       |   |   | 117,309      |      |
|                                                                                                                                 |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |         |      |   |
| Issuance of Common Stock in December for      cash                                                               |                             | —         |    |         | — |       |   | 28,021      |       |          | 28      |    |   | 39,946     |       |   | —      |         |   | —       |   |   | 39,974       |      |
|                                                                                                                                 |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |         |      |   |
| Stock-based compensation                                                                                                             |                             | —         |    |         | — |       |   | —     |       |          | — |    |   | 838,952    |       |   | —      |         |   | —       |   |   | 838,952      |      |
|                                                                                                                                 |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |         |      |   |
| Net loss                                                                                                                             |                             | —         |    |         | — |       |   | —     |       |          | — |    |   | —    |       |   | (10,056,366) |         |   | —       |   |   | (10,056,366) |      |
|                                                                                                                                 |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |         |      |   |
| Accretion on Redeemable Convertible      Preference Shares in Subsidiary                                         |                             | —         |    |         | — |       |   | —     |       |          | — |    |   | —    |       |   | (178,162)    |         |   | —       |   |   | (178,162)    |      |
|                                                                                                                                 |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |         |      |   |
| Translation adjustment                                                                                                               |                             | —         |    |         | — |       |   | —     |       |          | — |    |   | —    |       |   | —      |         |   | 49,815        |   |   | 49,815       |      |
|                                                                                                                                 |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |         |      |   |
|                                                                                                                                 | Balances as of December 31, 2009 |            | — |         | $       | —    |   |        | 33,387,857 |          | $       | 33,388  |   | $          | 31,600,274 |   | $            | (30,266,788) |   | $             | 63,381 |   | $            | 1,430,255 |   |
|                                                                                                                                 |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |         |      |
| Total comprehensive income (loss)                                                                                                    |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       | $      | (10,056,366) |         | $      | 49,815        |   | $      | (10,006,551) |      |
|                                                                                                                                 |                             |            |    |         |    |       |   |        |       |          |    |    |   |       |       |   |         |         |   |          |   |   |         |      |   |

----

|                                                 |                                                                                 |                                                                                       |                                                                             |                                                                                        |                                                                                       |                                                  |  Period From October 22, 2002 (Inception) to                        |                                                                                                                           |
|------------------------------------------------------|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|-------------------------------------------------------|--------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|
|                                                 |                                                                                 |                                                                                       |                                                                             |                                                                                        |
|                                                 |                                                                                 |                                                                                       |                                                                             |                                                                                        | Year Ended December 31,                                                                    |                                                  |                                                                     |
|                                                 |                                                                                 |                                                                                       |                                                                             |                                                                                        | 2009                                                                                       |                                                  | 2008                                                                     |                                                                                                                           |  December 31, 2009 |   |
|                                                 |                                                                                 |                                                                                       |                                                                             |                                                                                        |                                                                                       |                                                  |                                                                     |                                                                                                                           |   |   |
| Cash flows from operating activities:                |                                                                                 |                                                                                       |                                                                             |                                                                                        |                                                                                       |                                                  |                                                                     |                                                                                                                           |   |
|                                                 | Net loss                                                                             |                                                                                       |                                                                             | $                                                                                           |      (10,056,366)                                                 |                                                  | $                                                                        |     (8,041,437)                                                                                            |   |  $ |             (29,894,712) |   |
|                                                 | Adjustments to reconcile net loss to net cash used in operating activities:          |                                                                                       |                                                                             |                                                                                        |                                                                                       |                                                  |                                                                     |                                                                                                                           |   |   |
|                                                 |                                                                                 | Depreciation and amortization                                                              |                                                                             |             493,112             |                                                                                       |                                                  | 294,249                                                                  |                                                                                                                           |   |                   913,660 |   |
|                                                 |                                                                                 | Non cash miscellaneous income                                                              |                                                                             | —                                                                                     |                                                                                       |                                                  | —                                                                  |                                                                                                                           |   |                             (5) |   |
|                                                 |                                                                                 | Stock-based compensation                                                                   |                                                                             |             838,952             |                                                                                       |                                                  | 388,650                                                                  |                                                                                                                           |   |                2,528,483 |   |
|                                                 |                                                                                 | Issuance of warrants for services                                                          |                                                                             |               37,085  |                                                                                       |                                                  | —                                                                  |                                                                                                                           |   |                     37,085 |   |
|                                                 |                                                                                 | Exchange loss on issuance of Redeemable Convertible Preference Shares in Subsidiary        |                                                                             |               18,029  |                                                                                       |                                                  | —                                                                  |                                                                                                                           |   |                     18,029 |   |
|                                                 |                                                                                 | Provision for excess and obsolete inventory                                                |                                                                             |             130,478             |                                                                                       |                                                  | —                                                                  |                                                                                                                           |   |                   130,478 |   |
|                                                 |                                                                                 | Equipment expensed as research & development costs                                     |                                                                             |             123,998             |                                                                                       |                                                  | —                                                                  |                                                                                                                           |   |                   123,998 |   |
|                                                 |                                                                                 | Issuance of Series A Preferred Stock for legal services                                    |                                                                             | —                                                                                     |                                                                                       |                                                  | —                                                                  |                                                                                                                           |   |                     50,000 |   |
|                                                 |                                                                                 | Issuance of Series A Preferred Stock for interest owed                                     |                                                                             | —                                                                                     |                                                                                       |                                                  | —                                                                  |                                                                                                                           |   |                   107,494 |   |
|                                                 |                                                                                 | Amortization of debt discount                                                              |                                                                             | —                                                                                     |                                                                                       |                                                  | —                                                                  |                                                                                                                           |   |                   171,053 |   |
|                                                 | Change in operating assets and liabilities:                                          |                                                                                       |                                                                             |                                                                                        |                                                                                       |                                                  |                                                                     |                                                                                                                           |   |   |
|                                                 |                                                                                 | Accounts receivable                                                                        |                                                                             |           (218,098)                       |                                                                                       |                                                  |            99,070 |                                                                                                                           |   |                  (258,855) |   |
|                                                 |                                                                                 | Inventories                                                                                |                                                                             |                                                                                        |               56,824 |                                                  |                                                                     |        (164,751)                                                                            |   |   |                  (170,448) |   |
|                                                 |                                                                                 | Prepaid expenses and other current assets                                                  |                                                                             |               (3,012) |                                                                                       |                                                  |          (48,206)           |                                                                                                                           |   |                  (138,705) |   |
|                                                 |                                                                                 | Other assets                                                                               |                                                                             |                                                                                        |             (42,209)           |                                                  |                                                                     | (13,225)                                                                                                                       |   |   |                    (58,004) |   |
|                                                 |                                                                                 | Accounts payable                                                                           |                                                                             |             337,363             |                                                                                       |                                                  |          344,804            |                                                                                                                           |   |                1,242,808 |   |
|                                                 |                                                                                 | Accrued rent                                                                               |                                                                             |                                                                                        |             (21,135)           |                                                  |                                                                     |            12,729                                                       |   |   |                     10,934 |   |
|                                                 |                                                                                 | Accrued payroll                                                                            |                                                                             |               81,344  |                                                                                       |                                                  |        (254,277)                      |                                                                                                                           |   |                   241,586 |   |
|                                                 |                                                                                 | Accrued severance pay                                                                      |                                                                             |             371,596             |                                                                                       |                                                  | —                                                                  |                                                                                                                           |   |                   371,596 |   |
|                                                 |                                                                                 | Accrued vacation                                                                           |                                                                             |             (63,911)            |                                                                                       |                                                  |            25,255 |                                                                                                                           |   |                   117,578 |   |
|                                                 |                                                                                 | Accrued other expenses                                                                     |                                                                             |               83,618  |                                                                                       |                                                  |            72,959 |                                                                                                                           |   |                   156,577 |   |
|                                                 |                                                                                 |                                                                                       |                                                                             |                                                                                        |                                                                                       |                                                  |                                                                     |                                                                                                                           |   |   |   |   |   |
|                                                 |                                                                                 |                                                                                       |                                                                             | Net cash used in operating activities                                                       |                                                                                       |        (7,832,332) |                                                                     |                                                                                                                           |     (7,284,180) |   |   |             (24,299,370) |   |
|                                                 |                                                                                 |                                                                                       |                                                                             |                                                                                        |                                                                                       |                                                  |                                                                     |                                                                                                                           |   |   |   |   |   |
| Cash flows from investing activities:                |                                                                                 |                                                                                       |                                                                             |                                                                                        |                                                                                       |                                                  |                                                                     |                                                                                                                           |   |
|                                                 | Purchase of property and equipment                                                   |                                                                                       |           (263,291)            |                                                                                        |                                                                                       |        (601,897)   |                                                                     |                                                                                                                           |               (1,239,316) |   |
|                                                 |                                                                                 |                                                                                       |                                                                             |                                                                                        |                                                                                       |                                                  |                                                                     |                                                                                                                           |   |   |   |   |   |
|                                                 |                                                                                 | Net cash used in investing activities                                                      |                                                                             |           (263,291)                       |                                                                                       |                                                  |        (601,897)                      |                                                                                                                           |   | (1,239,316) |   |
|                                                 |                                                                                 |                                                                                       |                                                                             |                                                                                        |                                                                                       |                                                  |                                                                     |                                                                                                                           |   |   |   |   |   |
| Cash flows from financing activities:                |                                                                                 |                                                                                       |                                                                             |                                                                                        |                                                                                       |                                                  |                                                                     |                                                                                                                           |   |
|                                                 | Advances from (repayments to) related party, net                                     |                                                                                       | —                                                                          |                                                                                        |                                                                                       | —                                               |                                                                     |                                                                                                                           |                     61,588 |   |
|                                                 | Repayment of capital lease obligations                                               |                                                                                       |             (50,347) |                                                                                        |                                                                                       |        (145,682)   |                                                                     |                                                                                                                           |                  (214,911) |   |
|                                                 | Proceeds from issuance of notes payable                                              |                                                                                       | —                                                                          |                                                                                        |                                                                                       | —                                               |                                                                     |                                                                                                                           |                3,665,991 |   |
|                                                 | Net proceeds from issuance of Redeemable Convertible Preference Shares in Subsidiary |                                                                                       |          1,116,887                  |                                                                                        |                                                                                       |       1,940,000         |                                                                     |                                                                                                                           |                3,056,887 |   |
|                                                 | Repayments on notes payable                                                          |                                                                                       | —                                                                          |                                                                                        |                                                                                       | —                                               |                                                                     |                                                                                                                           |                  (510,000) |   |
|                                                 | Proceeds from issuance of Series A Preferred Stock                                   |                                                                                       | —                                                                          |                                                                                        |                                                                                       | —                                               |                                                                     |                                                                                                                           |                     66,037 |   |
|                                                 | Proceeds from issuance of Series B Preferred Stock                                   |                                                                                       | —                                                                          |                                                                                        |                                                                                       | —                                               |                                                                     |                                                                                                                           |                1,559,942 |   |
|                                                 | Proceeds from issuance of Common Stock, net of offering costs                        |                                                                                       |        10,335,005                             |                                                                                        |                                                                                       |       3,482,823         |                                                                     |                                                                                                                           | 23,739,996 |   |
|                                                 |                                                                                 |                                                                                       |                                                                             |                                                                                        |                                                                                       |                                                  |                                                                     |                                                                                                                           |   |   |   |   |   |
|                                                 |                                                                                 | Net cash provided by financing activities                                                  |                                                                             |        11,401,545                                        |                                                                                       |                                                  |       5,277,141                            |                                                                                                                           |   |              31,425,530 |   |
|                                                 |                                                                                 |                                                                                       |                                                                             |                                                                                        |                                                                                       |                                                  |                                                                     |                                                                                                                           |   |   |   |   |   |
| Effect of exchange rates on cash                     |                                                                                 |               50,304 |                                                                             |                                                                                        |            16,491                   |                                                  |                                                                     |                     66,795 |   |
|                                                 |                                                                                 |                                                                                       |                                                                             |                                                                                        |                                                                                       |                                                  |                                                                     |                                                                                                                           |   |   |   |   |   |
|                                                 | Net increase (decrease) in cash and cash equivalents                                 |                                                                                       |          3,356,226                  |                                                                                        |                                                                                       |     (2,592,445)                   |                                                                     |                                                                                                                           |                5,953,639 |   |
|                                                 |                                                                                 |                                                                                       |                                                                             |                                                                                        |                                                                                       |                                                  |                                                                     |                                                                                                                           |   |   |   |   |   |
| Cash and cash equivalents at beginning of the period |                                                                                 |          2,597,413                            |                                                                             |                                                                                        |       5,189,858                                              |                                                  |                                                                     | —                                                                                                                        |   |
|                                                 |                                                                                 |                                                                                       |                                                                             |                                                                                        |                                                                                       |                                                  |                                                                     |                                                                                                                           |   |   |   |   |   |
|                                                 | Cash and cash equivalents at end of the period                                       |  $                                                                                    |          5,953,639                  |                                                                                        | $                                                                                          |       2,597,413         |                                                                     |  $                                                                                                                        |                5,953,639 |   |
|                                                 |                                                                                 |                                                                                       |                                                                             |                                                                                        |                                                                                       |                                                  |                                                                     |                                                                                                                           |   |   |   |   |   |

----

----

|   |                                    |                                    |                                                                           |                                                                 |                                      |                                     |   |
|--------|-----------------------------------------|-----------------------------------------|--------------------------------------------------------------------------------|----------------------------------------------------------------------|-------------------------------------------|------------------------------------------|--------|
|   | Gross proceeds from initial offering    | $                                       |      10,767,668                                       |                                                                 |
|   | Gross proceeds from additional offering |                                    |        1,245,000                            |                                                                 |
|   |                                    |                                    |                                                                           |                                                                 |                                      |                                     |   |
|   |                                    | Gross proceeds                          |                                                                           |      12,012,668                             |                                      |
|   | Offering costs:                         |                                    |                                                                           |                                                                 |                                      |
|   |                                    | Paid                                    |                                                                           |                                                                 |      (1,851,637) |                                     |
|   |                                    | Issuance of warrants to placement agent |                                                                           |           (66,319) |                                      |
|   |                                    |                                    |                                                                           |                                                                 |                                      |                                     |   |
|   |                                    |                                    | Total offering costs                                                           |                                                                 |      (1,917,956) |                                     |
|   |                                    |                                    |                                                                           |                                                                 |                                      |                                     |   |
|   |                                    |                                    |                                                                           | Gross proceeds less offering costs                                   |                                      |      10,094,712 |   |
|   | Issuance of warrants to placement agent |                                    |             66,319 |                                                                 |
|   | Cancellation of debt                    |                                    |         (240,000)                      |                                                                 |
|   |                                    |                                    |                                                                           |                                                                 |                                      |                                     |   |
|   |                                    | Net proceeds                            | $                                                                              |        9,921,031                  |                                      |
|   |                                    |                                    |                                                                           |                                                                 |                                      |                                     |   |

----

|                                                                                                                           |                     |   |       |       |
|--------------------------------------------------------------------------------------------------------------------------------|--------------------------|--------|------------|------------|
|            WaferGen Bio-systems, Inc. shares outstanding prior to the Merger |                     |   | 11,277,782 |       |
|            Shares issued to Wafergen, Inc. shareholders                      |                     |   | 8,214,523  |       |
|            Shares issued in the Offering                                     |                     |   | 8,008,448  |       |
|            Shares cancelled in accordance with the Split-off Agreement       |                     |   | (4,277,778 | )          |
|                                                                                                                           |                     |   |       |       |   |
|                                                                                                                           | Total shares outstanding |   |       | 23,222,975 |   |
|                                                                                                                           |                     |   |       |       |   |

----

----

----

| Equipment                                                   |  3 to 5 years                                     |
|------------------------------------------------------------------|--------------------------------------------------------|
| Tools and molds                                             |  3 years                                          |
| Leasehold improvements        |  3 to 5 years, or remaining lease term if shorter |
| Furniture and fixtures                                           |  5 years                                          |

----

|   |                    |              |            |              |   |              |   |
|--------|-------------------------|-------------------|-----------------|-------------------|--------|-------------------|--------|
|   |                    | December 31, 2009 |            | December 31, 2008 |   |
|   |                    |              |            |              |   |              |   |
|   | Risk-free interest rate |              | 1.31% - 2.97%   |              |   | 2.37% - 3.34%     |   |
|   |                    |              |            |              |   |              |   |
|   | Expected term           |              | 4.75 Years      |              |   | 4.75 - 5.00 Years |   |
|   |                    |              |            |              |   |              |   |
|   | Expected volatility     |              | 40.04% - 42.22% |              |   | 16.97% - 33.31%   |   |
|   |                    |              |            |              |   |              |   |
|   | Dividend yield          |              | 0%              |              |   | 0%                |   |
|   |                    |              |            |              |   |              |   |

----

|                                                                           |                                         |                                    |   |                    |   |    |   |
|--------------------------------------------------------------------------------|----------------------------------------------|-----------------------------------------|--------|-------------------------|--------|---------|--------|
|                                                                           |                                         |                                    |   | Year Ended December 31, |   |
|                                                                           |                                         |                                    |   | 2009                    |   | 2008    |   |
|                                                                           |                                         |                                    |   |                    |   |    |   |
|     Shares issuable upon exercise of common stock options  |                                         | 1,409,279                               |   | 524,954                 |   |
|                                                                           |                                         |                                    |   |                    |   |    |   |
|     Shares issuable upon exercise of common stock warrants |                                         | 96,125                                  |   | —                 |   |
|                                                                           |                                         |                                    |   |                    |   |    |   |
|     Shares issuable upon conversion of RCPS                |                                         | 1,095,909                               |   | 240,741                 |   |
|                                                                           |                                         |                                    |   |                    |   |    |   |
|                                                                           | Total common share equivalents excluded from |                                    |   |                    |   |    |
|                                                                           |                                         | denominator for diluted EPS computation |   | 2,601,313               |   | 765,695 |   |
|                                                                           |                                         |                                    |   |                    |   |    |   |

----

|                                                                                                   |   |              |     |   |              |   |
|--------------------------------------------------------------------------------------------------------|--------|-------------------|----------|--------|-------------------|--------|
|                                                                                                   |   | December 31, 2009 |     |   | December 31, 2008 |   |
|                                                                                                   |   |              |     |   |              |   |
|          Finished goods                                   |   | $                 | 170,448  |   |              | $      | 227,272 |   |
|          Less allowance for excess and obsolete inventory |   |              | (130,478 | )      |              |   | — |   |
|                                                                                                   |   |              |     |   |              |   |   |   |
|     Inventories, net                                                               |   | $                 | 39,970   |   |              | $      | 227,272 |   |
|                                                                                                   |   |              |     |   |              |   |   |   |

|                                                                                                 |   |              |      |   |              |   |
|------------------------------------------------------------------------------------------------------|--------|-------------------|-----------|--------|-------------------|--------|
|                                                                                                 |   | December 31, 2009 |      |   | December 31, 2008 |   |
|                                                                                                 |   |              |      |   |              |   |
|          Equipment                                      |   | $                 | 1,154,406 |   |              | $      | 1,014,212 |   |
|          Tools & molds                              |   |              | 72,437    |   |              |   | 72,437 |   |
|          Leasehold improvements                         |   |              | 63,470    |   |              |   | 63,163 |   |
|          Furniture and fixtures                         |   |              | 42,570    |   |              |   | 42,206 |   |
|                                                                                                 |   |              |      |   |              |   |   |   |
|     Total property and equipment                                                 |   |              | 1,332,883 |   |              |   | 1,192,018 |   |
|                                                                                                 |   |              |      |   |              |   |   |   |
|          Less accumulated depreciation and amortization |   |              | (890,887  | )      |              |   | (396,679 | ) |
|                                                                                                 |   |              |      |   |              |   |   |   |
|     Property and equipment, net                                                  |   | $                 | 441,996   |   |              | $      | 795,339 |   |
|                                                                                                 |   |              |      |   |              |   |   |   |
|                                                                                                 |   |              |      |   |              |   |   |   |

|   |                     |   |     |              |   |              |   |    |   |
|--------|--------------------------|--------|----------|-------------------|--------|-------------------|--------|---------|--------|
|   |                     |   |     | December 31, 2009 |   | December 31, 2008 |   |
|   |                     |   |     |              |   |              |   |    |   |
|   | Cost                     | $      | 178,712  |              | $      | 178,712           |   |
|   | Accumulated depreciation |   | (168,886 | )                 |   | (63,639)          |   |
|   |                     |   |     |              |   |              |   |    |   |
|   |                     |   | Total    | $                 | 9,826  |              | $      | 115,073 |   |
|   |                     |   |     |              |   |              |   |    |   |

----

|                                                                                                   |   |             |      |   |           |   |
|--------------------------------------------------------------------------------------------------------|--------|------------------|-----------|--------|----------------|--------|
|                                                                                                   |   | Operating Leases |      |   | Capital Leases |   |
|                                                                                                   |   |             |      |   |           |   |
|          Year ending December 31,                         |   |             |      |   |           |   |
|   2010                                                                                            |   | $                | 287,207   |   |           | $      | 23,301 |   |
|   2011                                                                                            |   |             | 399,069   |   |           |   | 9,117 |   |
|   2012                                                                                            |   |             | 441,278   |   |           |   | — |   |
|   2013                                                                                            |   |             | 464,301   |   |           |   | — |   |
|   2014                                                                                            |   |             | 487,324   |   |           |   | — |   |
|          Thereafter                                            |   |             | 168,837   |   |           |   | — |   |
|                                                                                                   |   |             |      |   |           |   |   |   |
|         Total minimum lease obligations                        |   | $                | 2,248,016 |   |           |   | 32,418 |   |
|                                                                                                   |   |             |      |   |           |   |   |   |
|          Less amounts representing interest               |   |             |      |   |           |   | (1,903 | ) |
|                                                                                                   |   |             |      |   |           |   |   |   |
|          Present value of future minimum lease payments        |   |             |      |   |           |   | 30,515 |   |
|                                                                                                   |   |             |      |   |           |   |   |   |
|          Less current portion of capital lease obligation |   |             |      |   |           |   | (21,663 | ) |
|                                                                                                   |   |             |      |   |           |   |   |   |
|          Capital lease obligation, less current portion        |   |             |      |   |           | $      | 8,852 |   |
|                                                                                                   |   |             |      |   |           |   |   |   |

----

|   | (a) to put to the Company their RCPS (or ordinary shares in WGBM received on conversion of those RCPS under paragraph (c) below) at any time during the year 2011 if the share price is below $2.25, to redeem for cash (or, for Series A, at the Company’s option, and for Series B, at the holder’s option, shares in the Company of equivalent value) the amount originally invested in USD plus a premium of 6% (for Series A) or 8% (for Series B), compounded annually, with yearly rests; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) to cause the Company to exchange their RCPS for common stock of the Company at an exchange rate of US$2.25 per share of common stock, provided (in the case of Series B RCPS) that if during the 10-day trading period immediately prior to the holder’s conversion notice the average closing price of the Company’s common stock is less than US$2.647, then the holder’s RCPS shall convert at an exchange rate equal to 85% of such 10-day average closing price; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) to convert their RCPS into ordinary shares of the subsidiary, WGBM, at any time, at a conversion rate of $33.33 per share; |
|--------|--------------------------------------------------------------------------------------------------------------------------------|

|   | (d) to cause the subsidiary, WGBM, to redeem the RCPS in whole or in part at any time after December 31, 2011 for the principal paid plus a premium of 20% per annum, not compounding, from funds legally available for distribution (i.e. retained earnings; there is presently an accumulated deficit in WGBM of approximately $1.5 million); |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) until December 31, 2010, to put to Alnoor Shivji, our CEO and President, their Series B RCPS (the Series A RCPS put rights expired on May 15, 2009) for $5.625 in cash per share in the event that Mr. Shivji (a) transfers, in one or more transactions, more than 2,603,425 shares of Common Stock, approximating 80% of his stockholding, to one or more persons other than his affiliates or relatives or (b) voluntarily resigns from the board of directors of the Company if such resignation is not approved by, or is not pursuant to a restructuring of the Company or the Malaysian Subsidiary approved by, holders of a majority of the outstanding Series B RCPS at the time of such resignation; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) of first offer on any transfers or new issuance of subsidiary shares (for Series A only); and |
|--------|---------------------------------------------------------------------------------------------------|

|   | (g) for each of Series A and Series B RCPS, to appoint one of the seven directors of the subsidiary. |
|--------|------------------------------------------------------------------------------------------------------|

----

|                                                                      |                |       |      |              |      |   |              |      |
|---------------------------------------------------------------------------|---------------------|------------|-----------|-------------------|-----------|--------|-------------------|-----------|
|                                                                      |                |       |      | December 31, 2009 |      |   | December 31, 2008 |      |
|        SERIES A                        |                |       |      |              |      |   |
|        Proceeds from issuance of RCPS  |                | $          | 2,000,000 |              |      | $      | 2,000,000         |      |
|        Issuance costs                  |                |       | (60,000   | )                 |      |   | (60,000           | )         |
|        Accretion of issuance costs     |                |       | 25,416    |              |      |   | 5,416             |      |
|        Accretion of redemption premium |                |       | 154,450   |              |      |   | 32,500            |      |
|                                                                      |                |       |      |              |      |   |              |      |   |   |
|                                                                      | Total Series A RCPS |       |      | 2,119,866         |      |   |              | 1,977,916 |   |
|                                                                      |                |       |      |              |      |   |              |      |
|        SERIES B                        |                |       |      |              |      |   |              |      |
|        Proceeds from issuance of RCPS  |                |       | 1,155,099 |              |      |   | —           |      |
|        Issuance costs                  |                |       | (38,212   | )                 |      |   | —           |      |
|        Exchange loss on issuance       |                |       | 18,029    |              |      |   | —           |      |
|        Accretion of issuance costs     |                |       | 4,538     |              |      |   | —           |      |
|        Accretion of redemption premium |                |       | 31,674    |              |      |   | —           |      |
|                                                                      |                |       |      |              |      |   |              |      |   |   |
|                                                                      | Total Series B RCPS |       |      | 1,171,128         |      |   |              | —   |   |
|                                                                      |                |       |      |              |      |   |              |      |   |   |
|                                                                      |                | Total RCPS |      | $                 | 3,290,994 |   |              | $         | 1,977,916 |   |
|                                                                      |                |       |      |              |      |   |              |      |   |   |

----

|                                               |                         |        |      | Stock Options |   | Restricted Stock |    |
|----------------------------------------------------|------------------------------|-------------|-----------|---------------|--------|------------------|---------|
|                                               |                         | Shares      |      | Number of     |   | Weighted         |    | Number of |   | Weighted |   |
|                                               |                         | Available   |      | Options       |   | Average          |    | Options |   | Average |   |
|                                               |                         | for Grant   |      | Outstanding   |   | Exercise Price   |    | Outstanding |   | Grant-Date |   |
|                                               |                         |        |      |          |   |             |    |   |   | Fair Value |   |
|                                               |                         |        |      |          |   |             |    |   |   |   |   |   |   |
|     Balance at January 1, 2008 | 390,500                      |        | 2,268,736 |          | $      | 1.3469           |    | 36,556 |   | $ | 1.0292 |   |
|     2008 Plan                  | 2,000,000                    |        | —   |          | $      | —          |    | — |   | $ | — |   |
|     2007 Plan frozen           | (10,500)                     |        | —   |          | $      | —          |    | — |   | $ | — |   |
|     Granted                    |                         | (1,807,000) |      | 1,807,000     |   | $                | 1.6704  |   | — |   | $ | — |   |
|     Exercised                  | —                      |        | (27,536)  |          | $      | 0.1482           |    | — |   | $ | — |   |
|     Vested                     |                         | —     |      | —       |   | $                | — |   | (14,173) |   | $ | 1.0071 |   |
|     Forfeited                  |                         | 161,500     |      | (310,458)     |   | $                | 2.0023  |   | — |   | $ | — |   |
|     Cancelled                  | —                      |        | (51,042)  |          | $      | 1.9751           |    | — |   | $ | — |   |
|                                               |                         |        |      |          |   |             |    |   |   |   |   |   |   |
|                                               | Balance at December 31, 2008 | 734,500     |      | 3,686,700     |   | $                | 1.4505  |   | 22,383 |   | $ | 1.0432 |   |
|     2008 Plan Amendment        | 1,500,000                    |        | —   |          | $      | —          |    | — |   | $ | — |   |
|     Granted                    |                         | (1,257,000) |      | 1,127,000     |   | $                | 1.6207  |   | 130,000 |   | $ | 2.0154 |   |
|     Exercised                  | —                      |        | (38,819)  |          | $      | 1.0298           |    | — |   | $ | — |   |
|     Vested                     |                         | —     |      | —       |   | $                | — |   | (144,175) |   | $ | 1.9163 |   |
|     Forfeited                  |                         | 310,479     |      | (393,135)     |   | $                | 1.5072  |   | — |   | $ | — |   |
|     Cancelled                  | 150,000                      |        | (232,344) |          | $      | 2.7135           |    | — |   | $ | — |   |
|                                               |                         |        |      |          |   |             |    |   |   |   |   |   |   |
|                                               | Balance at December 31, 2009 | 1,437,979   |      | 4,149,402     |   | $                | 1.4246  |   | 8,208 |   | $ | 1.1055 |   |
|                                               |                         |        |      |          |   |             |    |   |   |   |   |   |   |

----

|     |   |                |    |                |      |         |     |            |     |    |     |      |     |   |   |   |   |
|----------|--------|---------------------|---------|---------------------|-----------|--------------|----------|-----------------|----------|---------|----------|-----------|----------|--------|--------|--------|--------|
|     |   | Options Outstanding |    | Options Exercisable |      |
|     |   |                |    | Number              |      | Weighted     |     |            |     |    | Number   |      | Weighted |   |   |   |
|     |   |                |    | Outstanding         |      | Average      | Weighted | Exercisable     |     | Average | Weighted |      |
| Range of |   | as of               |    | Remaining           | Average   | as of        |     | Remaining       | Average  |    |
| Exercise |   | December 31,        |    | Contractual         | Exercise  | December 31, |     | Contractual     | Exercise |    |
| Prices   |   | 2009                |    | Life (in Years)     | Price     | 2009         |     | Life (in Years) | Price    |    |
|     |   |                |    |                |      |         |     |            |     |    |     |      |     |   |   |   |   |
| $        | 0.0002 | -                   | $0.0185 |                | 191,668   |         | 4.30     |            | $        | 0.0064  |     | 191,668   |     | 4.30   |   | $      | 0.0064 |   |
| $        | 0.1482 | -                   | $0.4630 |                | 429,234   |         | 6.86     |            | $        | 0.3561  |     | 402,692   |     | 6.87   |   | $      | 0.3667 |   |
| $        | 0.6000 | -                   | $1.0000 |                | 273,000   |         | 5.87     |            | $        | 0.9414  |     | 156,334   |     | 5.89   |   | $      | 0.8977 |   |
| $        | 1.1000 | -                   | $1.6500 |                | 1,892,000 |         | 6.75     |            | $        | 1.4060  |     | 913,935   |     | 7.05   |   | $      | 1.4738 |   |
| $        | 1.7800 | -                   | $2.2500 |                | 1,363,500 |         | 7.19     |            | $        | 2.0829  |     | 853,605   |     | 7.14   |   | $      | 2.1319 |   |
|     |   |                |    |                |      |         |     |            |     |    |     |      |     |   |   |   |   |   |
|     |   |                |    |                | 4,149,402 |         | 6.73     |            | $        | 1.4246  |     | 2,518,234 |     | 6.77   |   | $      | 1.3724 |   |
|     |   |                |    |                |      |         |     |            |     |    |     |      |     |   |   |   |   |   |

----

|                                           |   |   |      | Exercise |   | Expiration |   |
|------------------------------------------------|--------|--------|-----------|----------|--------|------------|--------|
| Securities into which warrants are convertible |   | Shares |      | Price    |   | Date       |   |
|                                           |   |   |      |     |   |       |   |
| Common Stock                                   |   |   | 44,401    |     | $      | 1.41       |   | March 2012 |   |
| Common Stock                                   |   |   | 1,795,062 |     | $      | 1.95       |   | June and August 2014 |   |
| Common Stock                                   |   |   | 2,916,459 |     | $      | 2.25       |   | May and June 2012 |   |
| Common Stock                                   |   |   | 942,877   |     | $      | 2.50       |   | December 2014 |   |
| Common Stock                                   |   |   | 752,040   |     | $      | 2.53       |   | May 2013 |   |
| Common Stock                                   |   |   | 150,000   |     | $      | 3.00       |   | November 2015 |   |
| Common Stock                                   |   |   | 50,000    |     | $      | 3.25       |   | December 2014 |   |
|                                           |   |   |      |     |   |       |   |   |   |
| Total                                          |   |   | 6,650,839 |     |   |       |   |   |   |
|                                           |   |   |      |     |   |       |   |   |   |

|                              |    |                       |   | December 31, |    |   | December 31, |   |    | Period From October 22, 2002 (Inception) to |   |
|-----------------------------------|---------|----------------------------|--------|--------------|---------|--------|--------------|--------|---------|---------------------------------------------|--------|
|                              |    |                       |   | 2009         |    |   | 2008         |   |    | December 31, 2009                           |   |
|                              |    |                       |   |         |    |   |         |   |    |                                        |   |
|     Current:  |    |                       |   |         |    |   |         |   |    |                                        |   |
|                              | Federal |                       |   | $            | — |   |         | $      | — |                                        |   | $ | — |   |
|                              | State   |                       |   |         | — |   |         |   | — |                                        |   |   | — |   |
|                              | Foreign |                       |   |         | — |   |         |   | — |                                        |   |   | — |   |
|                              |    |                       |   |         |    |   |         |   |    |                                        |   |   |   |   |
|                              |    | Total Current              |   | $            | — |   |         | $      | — |                                        |   | $ | — |   |
|                              |    |                       |   |         |    |   |         |   |    |                                        |   |   |   |   |
|     Deferred: |    |                       |   |         |    |   |         |   |    |                                        |   |   |   |   |
|                              | Federal |                       |   | $            | — |   |         | $      | — |                                        |   | $ | — |   |
|                              | State   |                       |   |         | — |   |         |   | — |                                        |   |   | — |   |
|                              | Foreign |                       |   |         | — |   |         |   | — |                                        |   |   | — |   |
|                              |    |                       |   |         |    |   |         |   |    |                                        |   |   |   |   |
|                              |    | Total Deferred             |   | $            | — |   |         | $      | — |                                        |   | $ | — |   |
|                              |    |                       |   |         |    |   |         |   |    |                                        |   |   |   |   |
|                              |    | Provision for income taxes |   | $            | — |   |         | $      | — |                                        |   | $ | — |   |
|                              |    |                       |   |         |    |   |         |   |    |                                        |   |   |   |   |

----

|                                                                                                 |                             |         |       |    |                                        |              |       |    |   |   |
|------------------------------------------------------------------------------------------------------|----------------------------------|--------------|------------|---------|---------------------------------------------|-------------------|------------|---------|--------|--------|
| December 31,                                                                                         |                             | December 31, |       |    | Period From October 22, 2002 (Inception) to |              |
|                                                                                                 |                             | 2009         |       | 2008    |                                        | December 31, 2009 |       |
|                                                                                                 |                             |         |       |    |                                        |              |       |
|         Provision for income taxes at federal statutory rate |                             | $            | (3,419,165 | )       |                                        | $                 | (2,746,980 | )       |   | $      | (10,177,094 | ) |
|         Federal research and development tax credits         |                             |         | (155,210   | )       |                                        |              | (150,000   | )       |   |   | (594,389 | ) |
|         Expenses not deductible                              |                             |         | 200,585    |    |                                        |              | 137,379    |    |   |   | 798,471 |   |
|         Foreign loss taxed at lower rates                    |                             |         | 44,792     |    |                                        |              | 64,774     |    |   |   | 109,566 |   |
|         Change in federal valuation allowance                |                             |         | 3,328,998  |    |                                        |              | 2,694,827  |    |   |   | 9,863,446 |   |
|                                                                                                 |                             |         |       |    |                                        |              |       |    |   |   |   |   |   |
|                                                                                                 |  Provision for income taxes |         | $          | — |                                        |              | $          | — |   |   | $ | — |   |
|                                                                                                 |                             |         |       |    |                                        |              |       |    |   |   |   |   |   |

|                                                                                                        |   |         |        |   |         |   |
|-------------------------------------------------------------------------------------------------------------|--------|--------------|-------------|--------|--------------|--------|
|                                                                                                        |   | December 31, |        |   | December 31, |   |
|                                                                                                        |   | 2009         |        |   | 2008         |   |
|                                                                                                        |   |         |        |   |         |   |
|         Deferred tax assets:                                        |   |         |        |   |         |   |
|         Net operating loss carryforwards                            |   | $            | 9,703,709   |   |         | $      | 6,613,525 |   |
|         Capitalized start-up cost and research and development cost |   |         | 851,082     |   |         |   | 915,399 |   |
|         Research and development tax credit                         |   |         | 973,788     |   |         |   | 700,546 |   |
|         Depreciation on property and equipment                      |   |         | 38,410      |   |         |   | 12,603 |   |
|         Reserves and accruals                                       |   |         | 201,797     |   |         |   | 81,949 |   |
|                                                                                                        |   |         |        |   |         |   |   |   |
|         Total deferred tax asset                                    |   |         | 11,768,786  |   |         |   | 8,324,022 |   |
|                                                                                                        |   |         |        |   |         |   |   |   |
|         Valuation allowance                                         |   |         | (11,768,786 | )      |         |   | (8,324,022 | ) |
|                                                                                                        |   |         |        |   |         |   |   |   |
|         Net deferred tax assets                                     |   | $            | —     |   |         | $      | — |   |
|                                                                                                        |   |         |        |   |         |   |   |   |

----

|                                                                                                        |                            |   |         |    |   |                                        |              |    |   |   |
|-------------------------------------------------------------------------------------------------------------|---------------------------------|--------|--------------|---------|--------|---------------------------------------------|-------------------|---------|--------|--------|
|                                                                                                        | December 31,                    |   | December 31, |    |   | Period From October 22, 2002 (Inception) to |              |
|                                                                                                        |                            | 2009   |         | 2008    |   |                                        | December 31, 2009 |    |
|                                                                                                        |                            |   |         |    |   |                                        |              |    |
|         Deferred tax assets:                                        |                            |   |         |    |   |                                        |              |
|         Net operating loss carryforwards                            |                            | $      | 3,090,184    |    |   | $                                           | 3,388,042         |    |   | $      | 9,703,709 |   |
|         Capitalized start-up cost and research and development cost |                            |   | (64,317      | )       |   |                                        | (130,771          | )       |   |   | 851,082 |   |
|         Research and development tax credit                         |                            |   | 273,242      |    |   |                                        | 117,564           |    |   |   | 973,788 |   |
|         Depreciation on property and equipment                      |                            |   | 25,807       |    |   |                                        | (9,167            | )       |   |   | 38,410 |   |
|         Reserves and accruals                                       |                            |   | 119,848      |    |   |                                        | (97,972           | )       |   |   | 201,797 |   |
|         Valuation allowance                                         |                            |   | (3,444,764   | )       |   |                                        | (3,267,696        | )       |   |   | (11,768,786 | ) |
|                                                                                                        |                            |   |         |    |   |                                        |              |    |   |   |   |   |   |
|                                                                                                        |  Net deferred income taxes |   | $            | — |   |                                        | $                 | — |   |   | $ | — |   |

|                                                   |                    |   | Period From October 22, |   |
|--------------------------------------------------------|-------------------------|--------|-------------------------|--------|
|                                                   | Year Ended December 31, |   | 2002 (Inception) to     |   |
|                                                   | 2009                    |   | 2008                    |   | December 31, 2009 |   |
|                                                   |                    |   |                    |   |   |   |
|        Interest     |                    | $      | 9,204                   |   |   | $ | 14,851 |   |   | $ | 42,541 |   |
|                                                   |                    |   |                    |   |   |   |   |   |   |   |   |   |
|        Income taxes |                    | $      | —                 |   |   | $ | — |   |   | $ | — |   |
|                                                   |                    |   |                    |   |   |   |   |   |   |   |   |   |

----

|                                                                                            |   |                    |    |   | Period From October 22, |   |
|-------------------------------------------------------------------------------------------------|--------|-------------------------|---------|--------|-------------------------|--------|
|                                                                                            |   | Year Ended December 31, |    |   | 2002 (Inception) to     |   |
|                                                                                            |   | 2009                    |    |   | 2008                    |   |   | December 31, 2009 |   |
|                                                                                            |   |                    |    |   |                    |   |   |   |   |
|        Accretion on Series B Preferred Stock                 |   | $                       | — |   |                    | $      | — |   |   | $ | 155,998 |   |
|                                                                                            |   |                    |    |   |                    |   |   |   |   |   |   |   |
|        Accretion on Redeemable Convertible Preference Shares |   | $                       | 178,162 |   |                    | $      | 37,916 |   |   | $ | 216,078 |   |
|                                                                                            |   |                    |    |   |                    |   |   |   |   |   |   |   |
|        Conversion of due to a stockholder to notes payable   |   | $                       | — |   |                    | $      | — |   |   | $ | 61,588 |   |
|                                                                                            |   |                    |    |   |                    |   |   |   |   |   |   |   |
|        Issuance of warrants with notes payable               |   | $                       | — |   |                    | $      | — |   |   | $ | 171,053 |   |
|                                                                                            |   |                    |    |   |                    |   |   |   |   |   |   |   |
|        Conversion of debt to Common Stock                    |   | $                       | — |   |                    | $      | — |   |   | $ | 240,000 |   |
|                                                                                            |   |                    |    |   |                    |   |   |   |   |   |   |   |
|        Conversion of debt to Series A Preferred Stock        |   | $                       | — |   |                    | $      | — |   |   | $ | 2,977,579 |   |
|                                                                                            |   |                    |    |   |                    |   |   |   |   |   |   |   |
|        Deposit in equipment in 2007 lapsed in 2008           |   | $                       | — |   |                    | $      | 51,446 |   |   | $ | 51,446 |   |
|                                                                                            |   |                    |    |   |                    |   |   |   |   |   |   |   |
|        Property and equipment acquired with capital leases   |   | $                       | — |   |                    | $      | 131,550 |   |   | $ | 256,326 |   |
|                                                                                            |   |                    |    |   |                    |   |   |   |   |   |   |   |
|        Issuance of warrants with private placement           |   | $                       | 281,334 |   |                    | $      | — |   |   | $ | 347,653 |   |
|                                                                                            |   |                    |    |   |                    |   |   |   |   |   |   |   |
|        Issuance of warrants for consulting services          |   | $                       | 37,085  |   |                    | $      | — |   |   | $ | 37,085 |   |
|                                                                                            |   |                    |    |   |                    |   |   |   |   |   |   |   |

----

|   | Level 1 - Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 2 - Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 3 - Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. |
|--------|------------------------------------------------------------------------------------------------------------------------------|

|   |                      |   |    |      |    |   |    |   |   |    |   |   |      |   |
|--------|---------------------------|--------|---------|-----------|---------|--------|---------|--------|--------|---------|--------|--------|-----------|--------|
|   |                      |   | Level 1 |      | Level 2 |   | Level 3 |   | Total  |    |
|   |                      |   |    |      |    |   |    |   |   |    |   |   |      |   |
|   | Cash and cash equivalents |   | $       | 5,953,639 |    | $      | — |   | $      | — |   | $      | 5,953,639 |   |
|   |                      |   |    |      |    |   |    |   |   |    |   |   |      |   |

----

|                                                    |          |   |   |    |    |   |    |    |   |
|---------------------------------------------------------|---------------|--------|--------|---------|---------|--------|---------|---------|--------|
|                                                    |          |   |   |    | 2009    |   |    | 2008    |   |
|                                                    |          |   |   |    |    |   |    |    |   |
|        North America |          |   | $      | 346,185 |    | $      | 318,377 |    |
|        Asia          |          |   |   |    | 1,035   |   |    | 60,773  |   |
|        Europe        |          |   |   |    | 32,153  |   |    | 210,330 |   |
|        Other         |          |   |   |    | — |   |    | 32,386  |   |
|                                                    |          |   |   |    |    |   |    |    |   |
|                                                    | Total revenue |   |   | $       | 379,373 |   | $       | 621,866 |   |
|                                                    |          |   |   |    |    |   |    |    |   |

|                                                    |                    |   |   |    |   |   |    |   |   |
|---------------------------------------------------------|-------------------------|--------|--------|---------|--------|--------|---------|--------|--------|
|                                                    |                    |   |   | 2009    |   | 2008   |    |
|                                                    |                    |   |   |    |   |   |    |   |   |
|        United States |                    |   | $      | 287,770 |   | $      | 613,256 |   |
|        Malaysia      |                    |   |   | 154,226 |   |   | 182,083 |   |
|                                                    |                    |   |   |    |   |   |    |   |   |
|                                                    | Total long-lived assets |   | $      | 441,996 |   | $      | 795,339 |   |
|                                                    |                    |   |   |    |   |   |    |   |   |

----

|                                                               |   | Year ended December 31, 2009 |       |
|--------------------------------------------------------------------|--------|------------------------------|------------|
|                                                               |   | First                        |       |   | Second |   |   | Third |   |   | Fourth |   |
|                                                               |   |                         |       |   |   |   |   |   |   |   |   |   |
|     Revenue                                    |   | $                            | 41,838     |   |   | $ | 68,918 |   |   | $ | 78,860 |   |   | $ | 189,757 |   |
|     Gross margin                               |   | $                            | 26,006     |   |   | $ | (55,014 | ) |   | $ | 11,963 |   |   | $ | 133,377 |   |
|     Net loss                                   |   | $                            | (1,777,800 | ) |   | $ | (2,870,984 | ) |   | $ | (2,464,031 | ) |   | $ | (2,943,551 | ) |
|     Net loss applicable to common stockholders |   | $                            | (1,812,800 | ) |   | $ | (2,907,400 | ) |   | $ | (2,507,707 | ) |   | $ | (3,006,621 | ) |
|     Net loss per share - basic and diluted     |   | $                            | (0.07      | ) |   | $ | (0.11 | ) |   | $ | (0.09 | ) |   | $ | (0.10 | ) |
|                                                               |   |                         |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |                         |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   | Year ended December 31, 2008 |       |
|                                                               |   | First                        |       |   | Second |   |   | Third |   |   | Fourth |   |
|                                                               |   |                         |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Revenue                                    |   | $                            | 181,640    |   |   | $ | 176,851 |   |   | $ | 197,951 |   |   | $ | 65,424 |   |
|     Gross margin                               |   | $                            | 106,623    |   |   | $ | 119,803 |   |   | $ | 123,995 |   |   | $ | 30,412 |   |
|     Net loss                                   |   | $                            | (1,892,291 | ) |   | $ | (2,143,217 | ) |   | $ | (2,070,317 | ) |   | $ | (1,935,612 | ) |
|     Net loss applicable to common stockholders |   | $                            | (1,892,291 | ) |   | $ | (2,143,217 | ) |   | $ | (2,084,900 | ) |   | $ | (1,958,945 | ) |
|     Net loss per share - basic and diluted     |   | $                            | (0.08      | ) |   | $ | (0.09 | ) |   | $ | (0.08 | ) |   | $ | (0.08 | ) |
|                                                               |   |                         |       |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|   | 1. | We have not adequately divided, or compensated for, incompatible functions among personnel to reduce the risk that a potential material misstatement of the financial statements would occur without being prevented or detected; and  |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 2. | We have insufficient documentation of our information technology general control environment.                                                                                                                                          |

----

|   | 1. | The Company has introduced employee access restrictions within our accounting system, in accordance with the formally adopted Financial Delegation Policy, which is kept up to date.  Further, the Company has formalized procedures for independent review and approval.  Nevertheless, as a small business, the Company does not have the resources to fund sufficient staff to ensure a complete segregation of responsibilities within the accounting function, and we remain reliant on management oversight.  |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 2. | The Company intends to hire a full-time IT employee, who will design and document procedures addressing our information technology general controls and management information systems.                                                                                                                                                                                                                                                                                                                                                                |

----

|   |   |   |               |      |   |       |           |   |
|--------|--------|--------|--------------------|-----------|--------|------------|----------------|--------|
|   |   | Name   |               | Votes For |   |       | Votes Withheld |   |
|   | 1      |   | Alnoor Shivji      |      |   | 14,951,361 |           |   |   | 1,007,646 |   |
|   | 2      |   | Robert Coradini    |      |   | 15,618,028 |           |   |   | 340,979 |   |
|   | 3      |   | Dr. Robert Hariri  |      |   | 15,618,028 |           |   |   | 340,979 |   |
|   | 4      |   | Dr. Dean Hautamaki |      |   | 15,618,028 |           |   |   | 340,979 |   |
|   | 5      |   | Makoto Kaneshiro   |      |   | 14,951,361 |           |   |   | 1,007,646 |   |
|   | 6      |   | Joel Kanter        |      |   | 15,618,028 |           |   |   | 340,979 |   |
|   | 7      |   | Nadine Smith       |      |   | 15,618,028 |           |   |   | 340,979 |   |
|   |   |   |               |      |   |       |           |   |   |   |   |

|   |      |       |   |          |   |   |        |   |   |             |   |
|--------|-----------|------------|--------|---------------|--------|--------|-------------|--------|--------|------------------|--------|
|   | Votes For |       |   | Votes Against |   |   | Abstentions |   |   | Broker Non-Votes |   |
|   |      | 13,671,172 |   |          |   | 78,285 |        |   |   | 80,000           |   |   |   | 2,129,550 |   |
|   |      |       |   |          |   |   |        |   |   |             |   |   |   |   |   |

|   |      |       |   |          |   |    |        |   |
|--------|-----------|------------|--------|---------------|--------|---------|-------------|--------|
|   | Votes For |       |   | Votes Against |   |    | Abstentions |   |
|   |      | 15,648,727 |   |          |   | 268,930 |        |   |   | 41,350 |   |
|   |      |       |   |          |   |    |        |   |   |   |   |

----

| Item 11. Executive Compensation |   |
|---------------------------------|--------|

| Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |   |
|---------------------------------------------------------------------------------------------------------|--------|

| Item 13. Certain Relationships and Related Transactions, and Director Independence |   |
|------------------------------------------------------------------------------------|--------|

| Item 14. Principal Accountant Fees and Services |   |
|-------------------------------------------------|--------|

----

| · | should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | may apply standards of materiality in a way that is different from what may be viewed as material to you or other investors; and |
|--------|----------------------------------------------------------------------------------------------------------------------------------|

| · | were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|          |   |                                                                                                                                         |   |          |   | Incorporated by Reference |
|---------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|---------------------------|
| ExhibitNumber |   | Exhibit Description                                                                                                                          |   | FiledHerewith |   | Form                      |   | Period Ending |   | Exhibit |   | Filing Date |
|          |   |                                                                                                                                         |   |          |   |                      |   |   |   |   |   |   |
| 2.1           |   | Agreement and Plan of Merger and Reorganization, dated as of May 31, 2007, by and among WBSI, WaferGen Acquisition Corp., and WaferGen, Inc. |   |          |   | 8-K                       |   |   |   | 2.1 |   | 6/5/2007 |
|          |   |                                                                                                                                         |   |          |   |                      |   |   |   |   |   |   |
| 2.2           |   | Certificate of Merger of WaferGen Acquisition Corp. with and into WaferGen, Inc., dated May 31, 2007                                         |   |          |   | 8-K                       |   |   |   | 2.2 |   | 1/16/2008 |
|          |   |                                                                                                                                         |   |          |   |                      |   |   |   |   |   |   |
| 3.1           |   | Certificate of Incorporation of WBSI                                                                                                         |   |          |   | SB-2                      |   |   |   | 3.1 |   | 8/9/2006 |
|          |   |                                                                                                                                         |   |          |   |                      |   |   |   |   |   |   |
| 3.2           |   | Certificate of Amendment to the Certificate of Incorporation of WBSI, dated January 31, 2007                                                 |   |          |   | 8-K                       |   |   |   | 3.1 |   | 2/1/2007 |
|          |   |                                                                                                                                         |   |          |   |                      |   |   |   |   |   |   |
| 3.3           |   | Bylaws of WBSI                                                                                                                               |   |          |   | SB-2                      |   |   |   | 3.2 |   | 8/9/2006 |
|          |   |                                                                                                                                         |   |          |   |                      |   |   |   |   |   |   |
| 4.1           |   | Lockup Agreement dated January 14, 2008, among WBSI, Rodman & Renshaw LLC and R&R Biotech Partners LLC                               |   |          |   | SB-2/A                    |   |   |   | 4.1 |   | 1/16/2008 |
|          |   |                                                                                                                                         |   |          |   |                      |   |   |   |   |   |   |
| 10.1 †  |   | Form of Warrants, made as of May 5, 2007, to purchase up to an aggregate of 115,424 shares of WBSI’s Common Stock                      |   | X             |   |                      |   |   |   |   |   |   |
|          |   |                                                                                                                                         |   |          |   |                      |   |   |   |   |   |   |
| 10.2          |   | Form of Common Stock Purchase Warrant issued to investors in a private placement, the initial closing of which was held on May 31, 2007      |   |          |   | 8-K                       |   |   |   | 10.21 |   | 6/5/2007 |
|          |   |                                                                                                                                         |   |          |   |                      |   |   |   |   |   |   |

----

|          |   |                                                                                                                                                                                                                                                                                                     |   |          |   | Incorporated by Reference |
|---------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|---------------------------|
| ExhibitNumber |   | Exhibit Description                                                                                                                                                                                                                                                                                      |   | FiledHerewith |   | Form                      |   | Period Ending |   | Exhibit |   | Filing Date |
|          |   |                                                                                                                                                                                                                                                                                                     |   |          |   |                      |   |   |   |   |   |   |
| 10.3          |   | Form of Warrant issued to Placement Agent in connection with a private placement, the initial closing of which was held on May 31, 2007                                                                                                                                                                  |   |          |   | 8-K                       |   |   |   | 10.22 |   | 6/5/2007 |
|          |   |                                                                                                                                                                                                                                                                                                     |   |          |   |                      |   |   |   |   |   |   |
| 10.4 †  |   | Employment Agreement dated May 31, 2007, between WBSI and Alnoor Shivji                                                                                                                                                                                                                                  |   |          |   | 8-K                       |   |   |   | 10.26 |   | 6/5/2007 |
|          |   |                                                                                                                                                                                                                                                                                                     |   |          |   |                      |   |   |   |   |   |   |
| 10.5          |   | Securities Purchase Agreement, dated May 19, 2008, by and among WaferGen Bio-systems, Inc. and the purchasers identified on the signature pages thereto                                                                                                                                                  |   |          |   | 8-K                       |   |   |   | 10.1 |   | 5/21/2008 |
|          |   |                                                                                                                                                                                                                                                                                                     |   |          |   |                      |   |   |   |   |   |   |
| 10.6          |   | Form of Common Stock Purchase Warrant issued to investors identified in the Securities Purchase Agreement dated May 19, 2008                                                                                                                                                                             |   |          |   | 8-K                       |   |   |   | 10.2 |   | 5/21/2008 |
|          |   |                                                                                                                                                                                                                                                                                                     |   |          |   |                      |   |   |   |   |   |   |
| 10.7 †  |   | WaferGen Bio-Systems, Inc. 2008 Stock Incentive Plan                                                                                                                                                                                                                                                     |   |          |   | 8-K                       |   |   |   | 10.1 |   | 7/3/2008 |
|          |   |                                                                                                                                                                                                                                                                                                     |   |          |   |                      |   |   |   |   |   |   |
| 10.8 †  |   | Form of Non-Qualified Stock Option award under 2008 Stock Incentive Plan                                                                                                                                                                                                                                 |   |          |   | 10-K                      |   | 12/31/2008 |   | 10.35 |   | 3/27/2009 |
|          |   |                                                                                                                                                                                                                                                                                                     |   |          |   |                      |   |   |   |   |   |   |
| 10.9          |   | Share Subscription Agreement and Shareholders’ Agreement dated May 8, 2008, by and among WaferGen Bio-systems, Inc., Malaysian Technology Development Corporation Sdn. Bhd. and WaferGen Biosystems (M) Sdn. Bhd.                                                                                  |   |          |   | 10-Q                      |   | 9/30/2008 |   | 10.1 |   | 11/14/2008 |
|          |   |                                                                                                                                                                                                                                                                                                     |   |          |   |                      |   |   |   |   |   |   |
| 10.10         |   | Put Agreement dated May 28, 2008, by and among WaferGen Bio-systems, Inc. and Holders of the Series A Redeemable Convertible Preference Shares in WaferGen Biosystems (M) Sdn. Bhd.                                                                                                                      |   |          |   | 10-Q                      |   | 9/30/2008 |   | 10.2 |   | 11/14/2008 |
|          |   |                                                                                                                                                                                                                                                                                                     |   |          |   |                      |   |   |   |   |   |   |
| 10.11         |   | Put Option Agreement dated May 28, 2008, by and among Alnoor Shivji and Malaysian Technology Development Corporation Sdn. Bhd.                                                                                                                                                                           |   |          |   | 10-Q                      |   | 9/30/2008 |   | 10.3 |   | 11/14/2008 |
|          |   |                                                                                                                                                                                                                                                                                                     |   |          |   |                      |   |   |   |   |   |   |
| 10.12 † |   | Letter Agreement dated January 16, 2009, by and between WBSI and Alnoor Shivji                                                                                                                                                                                                                           |   |          |   | 10-K                      |   | 12/31/2008 |   | 10.39 |   | 3/27/2009 |
|          |   |                                                                                                                                                                                                                                                                                                     |   |          |   |                      |   |   |   |   |   |   |
| 10.13         |   | Form of WBSI Distribution Agreement                                                                                                                                                                                                                                                                      |   |          |   | 10-K                      |   | 12/31/2008 |   | 10.42 |   | 3/27/2009 |
|          |   |                                                                                                                                                                                                                                                                                                     |   |          |   |                      |   |   |   |   |   |   |
| 10.14         |   | Share Subscription Agreement dated April 3, 2009, by and among WaferGen Bio-systems, Inc., WaferGen Biosystems (M) Sdn. Bhd., Primar Mahawangsa Sdn. Bhd. and Expedient Equity Ventures Sdn. Bhd.                                                                                                        |   |          |   | 8-K                       |   |   |   | 10.1 |   | 4/14/2009 |
|          |   |                                                                                                                                                                                                                                                                                                     |   |          |   |                      |   |   |   |   |   |   |
| 10.15         |   | Put Agreement dated April 3, 2009, by and among WaferGen Bio-systems, Inc. and Holders of Series B Redeemable Convertible Preference Shares in WaferGen Biosystems (M) Sdn. Bhd.                                                                                                                         |   |          |   | 8-K                       |   |   |   | 10.2 |   | 4/14/2009 |
|          |   |                                                                                                                                                                                                                                                                                                     |   |          |   |                      |   |   |   |   |   |   |
| 10.16         |   | Form of Put Option Agreement dated April 3, 2009, by and among Alnoor Shivji and Holders of Series B Redeemable Convertible Preference Shares in WaferGen Biosystems (M) Sdn. Bhd.                                                                                                                       |   |          |   | 8-K                       |   |   |   | 10.3 |   | 4/14/2009 |
|          |   |                                                                                                                                                                                                                                                                                                     |   |          |   |                      |   |   |   |   |   |   |
| 10.17         |   | Deed of Adherence to the Share Subscription and Shareholders’ Agreement dated May 8, 2008, by and among WaferGen Bio-systems, Inc., WaferGen Biosystems (M) Sdn. Bhd., Primar Mahawangsa Sdn. Bhd., Expedient Equity Ventures Sdn. Bhd. and Malaysian Technology Development Corporation Sdn. Bhd. |   |          |   | 10-Q                      |   | 3/31/2009 |   | 10.4 |   | 5/12/2009 |
|          |   |                                                                                                                                                                                                                                                                                                     |   |          |   |                      |   |   |   |   |   |   |
| 10.18         |   | Form of Subscription Agreement between WaferGen Bio-systems, Inc., and the investors party thereto in connection with the Company’s 2009 private placement offering of units of securities                                                                                                         |   |          |   | 10-Q                      |   | 6/30/2009 |   | 10.5 |   | 8/10/2009 |
|          |   |                                                                                                                                                                                                                                                                                                     |   |          |   |                      |   |   |   |   |   |   |
| 10.19         |   | Form of Warrants to purchase shares of Common Stock of the Company, issued June 16, 2009, to investors in the Company’s 2009 private placement offering of units of securities                                                                                                                     |   |          |   | 10-Q                      |   | 6/30/2009 |   | 10.6 |   | 8/10/2009 |
|          |   |                                                                                                                                                                                                                                                                                                     |   |          |   |                      |   |   |   |   |   |   |
| 10.20         |   | Registration Rights Agreement, dated June 16, 2009, between WaferGen Bio-systems, Inc., and the investors party thereto in connection with the Company’s 2009 private placement offering of units of securities                                                                                    |   |          |   | 10-Q                      |   | 6/30/2009 |   | 10.7 |   | 8/10/2009 |
|          |   |                                                                                                                                                                                                                                                                                                     |   |          |   |                      |   |   |   |   |   |   |
| 10.21         |   | Form of Warrant to purchase shares of Common Stock of the Company, issued to Spencer Trask Ventures, Inc. and certain related parties in connection with the Company’s 2009 private placement offering of units of securities                                                                      |   |          |   | 10-Q                      |   | 6/30/2009 |   | 10.8 |   | 8/10/2009 |
|          |   |                                                                                                                                                                                                                                                                                                     |   |          |   |                      |   |   |   |   |   |   |
| 10.22 † |   | Employment Separation Agreement, dated June 17, 2009, by and among Amjad Huda and WaferGen Bio-systems, Inc.                                                                                                                                                                                             |   | X             |   |                      |   |   |   |   |   |   |
|          |   |                                                                                                                                                                                                                                                                                                     |   |          |   |                      |   |   |   |   |   |   |
| 10.23 † |   | Employment Separation Agreement, dated June 17, 2009, by and among Victor Joseph and WaferGen Bio-systems, Inc.                                                                                                                                                                                          |   | X             |   |                      |   |   |   |   |   |   |
|          |   |                                                                                                                                                                                                                                                                                                     |   |          |   |                      |   |   |   |   |   |   |

----

|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |   | Incorporated by Reference |
|---------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|---------------------------|
| ExhibitNumber |   | Exhibit Description                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | FiledHerewith |   | Form                      |   | Period Ending |   | Exhibit |   | Filing Date |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |   |                      |   |   |   |   |   |   |
| 10.24         |   | Share Subscription Agreement dated July 1, 2009, by and among WaferGen Bio-systems, Inc., WaferGen Biosystems (M) Sdn. Bhd. and Kumpalan Modal Perdana Sdn. Bhd.                                                                                                                                                                                                                                                                                                            |   |          |   | 10-Q                      |   | 9/30/2009 |   | 10.1 |   | 11/13/2009 |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |   |                      |   |   |   |   |   |   |
| 10.25         |   | Put Agreement dated July 1, 2009, by and among WaferGen Bio-systems, Inc. and Holders of Series B Redeemable Convertible Preference Shares in WaferGen Biosystems (M) Sdn. Bhd.                                                                                                                                                                                                                                                                                             |   |          |   | 10-Q                      |   | 9/30/2009 |   | 10.2 |   | 11/13/2009 |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |   |                      |   |   |   |   |   |   |
| 10.26         |   | Put Option Agreement dated July 1, 2009, by and among Alnoor Shivji and Kumpalan Modal Perdana Sdn. Bhd.                                                                                                                                                                                                                                                                                                                                                                    |   |          |   | 10-Q                      |   | 9/30/2009 |   | 10.3 |   | 11/13/2009 |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |   |                      |   |   |   |   |   |   |
| 10.27         |   | Deed of Adherence dated July 1, 2009, to the Share Subscription and Shareholders’ Agreement dated May 8, 2008, and the Share Subscription Agreement dated April 3, 2009, by and among WaferGen Bio-systems, Inc., WaferGen Biosystems (M) Sdn. Bhd., Primar Mahawangsa Sdn. Bhd., Expedient Equity Ventures Sdn. Bhd., Malaysian Technology Development Corporation Sdn. Bhd. and Kumpalan Modal Perdana Sdn. Bhd.                                                    |   |          |   | 10-Q                      |   | 9/30/2009 |   | 10.4 |   | 11/13/2009 |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |   |                      |   |   |   |   |   |   |
| 10.28 † |   | Employment Agreement, effective October 29, 2009, by and between the Company and Mona Chadha                                                                                                                                                                                                                                                                                                                                                                                |   |          |   | 10-Q                      |   | 9/30/2009 |   | 10.5 |   | 11/13/2009 |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |   |                      |   |   |   |   |   |   |
| 10.29         |   | Lease Agreement by and between WaferGen, Inc. and LBA Realty Fund III-Company VII, LLC dated October 22, 2009                                                                                                                                                                                                                                                                                                                                                               |   |          |   | 10-Q                      |   | 9/30/2009 |   | 10.6 |   | 11/13/2009 |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |   |                      |   |   |   |   |   |   |
| 10.30 † |   | WaferGen Bio-Systems, Inc. 2008 Stock Incentive Plan, as amended                                                                                                                                                                                                                                                                                                                                                                                                            |   |          |   | 8-K                       |   |   |   | 10.1 |   | 12/10/2009 |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |   |                      |   |   |   |   |   |   |
| 10.31         |   | Form of Subscription Agreement between WaferGen Bio-systems, Inc., and the investors party thereto in connection with the Company’s December 2009 and January 2010 private placement offering of units of securities                                                                                                                                                                                                                                                  |   |          |   | S-1                       |   |   |   | 10.58 |   | 3/2/2010 |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |   |                      |   |   |   |   |   |   |
| 10.32         |   | Form of Warrants to purchase shares of Common Stock of the Company, issued December 23, 2009, to investors in the Company’s December 2009 and January 2010 private placement offering of units of securities                                                                                                                                                                                                                                                          |   |          |   | S-1                       |   |   |   | 10.59 |   | 3/2/2010 |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |   |                      |   |   |   |   |   |   |
| 10.33         |   | Registration Rights Agreement, dated December 23, 2009, between WaferGen Bio-systems, Inc., and the investors party thereto in connection with the Company’s December 2009 and January 2010 private placement offering of units of securities                                                                                                                                                                                                                         |   |          |   | S-1                       |   |   |   | 10.60 |   | 3/2/2010 |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |   |                      |   |   |   |   |   |   |
| 21.1          |   | Subsidiaries of the Registrant                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          |   | 10-K                      |   | 12/31/2008 |   | 21.1 |   | 3/27/2009 |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |   |                      |   |   |   |   |   |   |
| 23.1          |   | Letter of Consent from Independent Registered Public Accounting Firm, Rowbotham & Company LLP                                                                                                                                                                                                                                                                                                                                                                           |   | X             |   |                      |   |   |   |   |   |   |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |   |                      |   |   |   |   |   |   |
| 31.1          |   | Rule 13a-14(a)/15d-14(a) Certification of principal executive officer                                                                                                                                                                                                                                                                                                                                                                                                       |   | X             |   |                      |   |   |   |   |   |   |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |   |                      |   |   |   |   |   |   |
| 31.2          |   | Rule 13a-14(a)/15d-14(a) Certification of principal financial officer                                                                                                                                                                                                                                                                                                                                                                                                       |   | X             |   |                      |   |   |   |   |   |   |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |   |                      |   |   |   |   |   |   |
| 32.1          |   | Section 1350 Certification of principal executive officer (This certification is being furnished and shall not be deemed “filed” with the SEC for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the Registrant specifically incorporates it by reference.) |   | X             |   |                      |   |   |   |   |   |   |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |   |                      |   |   |   |   |   |   |
| 32.2          |   | Section 1350 Certification of principal financial officer (This certification is being furnished and shall not be deemed “filed” with the SEC for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the Registrant specifically incorporates it by reference.) |   | X             |   |                      |   |   |   |   |   |   |

| † |   | Indicates a management contract or compensatory plan or arrangement. |
|---------|--------|----------------------------------------------------------------------|

----

|                 |   | WAFERGEN BIO-SYSTEMS, INC.            |   |
|----------------------|--------|------------------------------------------------------|--------|
|                 | By:    | /s/ ALNOOR SHIVJI                                    |   |
| Date: March 19, 2010 |   | Alnoor Shivji                                        |   |
|                 |   | Chairman, President and Chief Executive Officer |   |

| SIGNATURE                              |   |   TITLE                                                                       |   |   DATE    |
|----------------------------------------|--------|------------------------------------------------------------------------------------|--------|----------------|
|       /s/ ALNOOR SHIVJI |   |                                                                               |   |           |
| Alnoor Shivji                |   | Chairman, President and Chief Executive Officer (principal executive officer) |   | March 19, 2010 |
| /s/ HECTOR BRUSH                       |   |                                                                               |   |           |
| Hector Brush                 |   | Treasurer (principal financial officer)                                            |   | March 19, 2010 |
| /s/ DR. R. DEAN HAUTAMAKI              |   |                                                                               |   |           |
| Dr. R. Dean Hautamaki        |   | Director                                                                           |   | March 19, 2010 |
| /s/ JOEL KANTER                        |   |                                                                               |   |           |
| Joel Kanter                  |   | Director                                                                           |   | March 19, 2010 |
|                                   |   |                                                                               |   |           |
| Makoto Kaneshiro             |   | Director                                                                           |   |           |
| /s/ NADINE SMITH                       |   |                                                                               |   |           |
| Nadine Smith                           |   | Director                                                                           |   | March 19, 2010 |

|                |   |     |   |           |
|---------------------|--------|----------|--------|----------------|
| Dr. Robert Hariri   |   | Director |   |           |
|                |   |     |   |           |
|                |   |     |   |           |
| /s/ ROBERT CORADINI |   |     |   |           |
| Robert Coradini     |   | Director |   | March 19, 2010 |
|                |   |     |   |           |

----

| Exhibit       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|---------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Number        |   | Exhibit Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
| 10.1 †  |   | Form of Warrants, made as of May 5, 2007, to purchase up to an aggregate of 115,424 shares of WBSI’s Common Stock                                                                                                                                                                                                                                                                                                                                                                |   |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
| 10.22 † |   | Employment Separation Agreement, dated June 17, 2009, by and among Amjad Huda and WaferGen Bio-systems, Inc.                                                                                                                                                                                                                                                                                                                                                                           |   |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
| 10.23 † |   | Employment Separation Agreement, dated June 17, 2009, by and among Victor Joseph and WaferGen Bio-systems, Inc.                                                                                                                                                                                                                                                                                                                                                                        |   |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
| 23.1          |   | Letter of Consent from Independent Registered Public Accounting Firm, Rowbotham & Company LLP                                                                                                                                                                                                                                                                                                                                                                                      |   |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
| 31.1          |   | Rule 13a-14(a)/15d-14(a) Certification of principal executive officer                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
| 31.2          |   | Rule 13a-14(a)/15d-14(a) Certification of principal financial officer                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
| 32.1          |   | Section 1350 Certification of principal executive officer  (This certification is being furnished and shall not be deemed “filed” with the SEC for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the Registrant specifically incorporates it by reference.) |   |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
| 32.2          |   | Section 1350 Certification of principal financial officer  (This certification is being furnished and shall not be deemed “filed” with the SEC for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the Registrant specifically incorporates it by reference.) |   |

| † |   | Indicates a management contract or compensatory plan or arrangement. |
|---------|--------|----------------------------------------------------------------------|

----

----