----

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| x      |     | Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934     |
|--------|--------------------|------------------------------------------------------------------------------------------|
|   |               | For the fiscal year ended December 31, 2009                                              |
|   |
|   |               | Or                                                                                       |
|   |
| o      |               | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|   |               | For the transition period from ________ to ___________                                   |

| Delaware                                 | 13-3864870                         |
|------------------------------------------|------------------------------------|
| (State or other jurisdiction of          | (IRS Employer Identification. No.) |
| incorporation or organization)           |                               |
|                                     |
| 35 East 62ndStreet                       | 10065                              |
| New York, NY                             | (zip code)                         |
| (Address of principal executive offices) |                               |

| Securities registered pursuant to Section 12(b) of the Act: |
|-------------------------------------------------------------|
| Title of each class                                         | Name of each exchange on which registered |
| common stock, $.0001 par value                              | Nasdaq Global Market |

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| Document                                      | Parts Into Which Incorporated |
|-----------------------------------------------|-------------------------------|
| Proxy Statement for the Company's 2010 Annual | Part III                      |
| Meeting of Stockholders                       |                          |

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----

----

----

    -  Part I – Item 1A. Risk Factors  
    -  Part II – Item 6. Selected Financial Data  
    -  Part II – Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations;  
    -  Part II – Item 8. Financial Statements and Supplementary Data;      
    -  Part II – Item 9A. Controls and Procedures; and      
    -  Part IV – Item 15(b). Exhibits. 

----

|       |      |                                                                                                               | Page No. |
|------------|--------------------------|--------------------------------------------------------------------------------------------------------------------|----------|
| PART I     |                     |                                                                                                               |     |
| Item 1.    |                     | Business                                                                                                           | 4        |
| Item 1A.   |                     | Risk Factors                                                                                                       | 4        |
| Item 1B.   |                     | Unresolved Staff Comments                                                                                          | 19       |
| Item 2.    |                     | Properties                                                                                                         | 19       |
| Item 3.    |                     | Legal Proceedings                                                                                                  | 19       |
|       |                     |                                                                                                               |     |
| PART II    |                     |                                                                                                               |     |
| Item 5.    |                     | Market For Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 20       |
| Item 6.    |                     | Restated Selected Financial Data                                                                                   | 20       |
| Item 7.    |                     | Management’s Discussion and Analysis of Financial Condition and Results of Operations                        | 21       |
| Item 7A.   |                     | Quantitative and Qualitative Disclosures About Market Risk                                                         | 29       |
| Item 8.    |                     | Restated Financial Statements and Supplementary Data                                                               | 30       |
| Item 9.    |                     | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                               | 56       |
| Item 9A.   |                     | Controls and Procedures                                                                                            | 56       |
| Item 9B.   |                     | Other Information                                                                                                  | 57       |
|       |                     |                                                                                                               |     |
| PART III   |                     |                                                                                                               |     |
| Item 10.   |                     | Directors, Executive Officers and Corporate Governance                                                             | 58       |
| Item 11.   |                     | Executive Compensation                                                                                             | 58       |
| Item 12.   |                     | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                     | 58       |
| Item 13.   |                     | Certain Relationships and Related Transactions, and Director Independence                                          | 58       |
| Item 14.   |                     | Principal Accountant Fees and Services                                                                             | 58       |
|       |                     |                                                                                                               |     |
| PART IV    |                     |                                                                                                               |     |
| Item 15.   |                     | Exhibits, Financial Statements and Schedules                                                                       | 59       |
| SIGNATURES | 65                       |

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              - publicity regarding actual or potential clinical results relating to products under development by our competitors or us;   
              - initiating, completing or analyzing, or a delay or failure in initiating, completing or analyzing, pre-clinical or clinical trials or the design or results of these trials;   
              - achievement or rejection of regulatory approvals by our competitors or us;   
              - announcements of technological innovations or new commercial products by our competitors or us;    
              - developments concerning proprietary rights, including patents;   
              - developments concerning our collaborations;   
              - regulatory developments in the United States and foreign countries;     
              - economic or other crises and other external factors;     
              - period-to-period fluctuations in our revenues and other results of operations; and     
              - changes in financial estimates by securities analysts. 

----

                    - the need to devote substantial time and attention of management and key employees to the preparation of bids and proposals for contracts that may not be awarded to us;  
                    - the need to accurately estimate the resources and cost structure that will be required to perform any contract that we might be awarded;  
                    - the risk that the government will issue a request for proposal to which we would not be eligible to respond; 

----

                    - the risk that third parties may submit protests to our responses to requests for proposal that could result in delays or withdrawals of those requests for proposal; and  
                    - the expenses that we might incur and the delays that we might suffer if our competitors protest or challenge contract awards made to us pursuant to competitive bidding, and the risk that any such protest or challenge could result in the resubmission of bids based on modified specifications, or in termination, reduction or modification of the awarded contract. 
                    - procurement integrity;     
                    - export control;  
                    - government security regulations;  
                    - employment practices;     
                    - protection of the environment;     
                    - accuracy of records and the recording of costs; and     
                    - foreign corrupt practices. 
                    - terminate existing contracts, in whole or in part, for any reason or no reason;     
                    - unilaterally reduce or modify contracts or subcontracts, including through the use of equitable price adjustments;     
                    - cancel multi-year contracts and related orders if funds for contract performance for any subsequent year become unavailable;  
                    - decline to exercise an option to renew a contract;  
                    - exercise an option to purchase only the minimum amount specified in a contract; 

----

                    - decline to exercise an option to purchase the maximum amount specified in a contract;     
                    - claim rights to products, including intellectual property, developed under the contract;     
                    - take actions that result in a longer development timeline than expected;  
                    - direct the course of a development program in a manner not chosen by the government contractor;     
                    - suspend or debar the contractor from doing business with the government or a specific government agency;     
                    - pursue criminal or civil remedies under the False Claims Act and False Statements Act; and     
                    - control or prohibit the export of products. 
                    - successful development, formulation and cGMP scale-up of drug manufacturing that meets FDA  requirements;  
                    - successful development of animal models;  
                    - successful completion of non-clinical development, including studies in approved animal models;  
                    - our ability to pay the expense of filing, prosecuting, defending and enforcing patent claims and other  intellectual property rights.  
                    - successful completion of clinical trials;  
                    - receipt of marketing approvals from the FDA and similar foreign regulatory authorities;  
                    - a determination by BARDA that our biodefense drug candidates should be purchased for the SNS prior to  FDA approval;  
                    - establishing commercial manufacturing processes of our own or arrangements on reasonable terms with  contract manufacturers; 

----

                    - manufacturing stable commercial supplies of drug candidates, including availability of raw materials;  
                    - launching commercial sales of the product, whether alone or in collaboration with others; and  
                    - acceptance of the product by potential government customers, physicians, patients, healthcare payors and  others in the medical community. 
                    - regulators or institutional review boards may not authorize us to commence a clinical trial or conduct a  clinical trial at a prospective trial site;  
                    - we may decide, or regulators may require us, to conduct additional preclinical testing or clinical trials, or  we may abandon projects that we expect to be promising, if our pre-clinical tests, clinical trials or animal  efficacy studies produce negative or inconclusive results;     
                    - we might have to suspend or terminate our clinical trials if the participants are being exposed to  unacceptable health risks;     
                    - regulators or institutional review boards may require that we hold, suspend or terminate clinical  development for various reasons, including noncompliance with regulatory requirements;     
                    - the cost of our clinical trials could escalate and become cost prohibitive;     
                    - any regulatory approval we ultimately obtain may be limited or subject to restrictions or post-approval  commitments that render the product not commercially viable;  
                    - we may not be successful in recruiting a sufficient number of qualifying subjects for our clinical trials; and  
                    - the effects of our drug candidates may not be the desired effects or may include undesirable side effects or  the drug candidates may have other unexpected characteristics. 

----

                    - be safe, non-toxic and effective;  
                    - otherwise meet applicable regulatory standards;  
                    - receive the necessary regulatory approvals;  
                    - develop into commercially viable drugs;  
                    - be manufactured or produced economically and on a large scale;   
                    - be successfully marketed;  
                    - be reimbursed by government and private insurers; and   
                    - achieve customer acceptance. 

----

                    - must be conducted in conformance with the FDA regulations;  
                    - must meet requirements for institutional review board oversight;  
                    - must meet requirements for informed consent;  
                    - must meet requirements for good clinical and manufacturing practices;  
                    - are subject to continuing FDA oversight;   
                    - may require large numbers of test subjects; and  
                    - may be suspended by us or the FDA at any time if it is believed that the subjects participating in these trials are being exposed to unacceptable health risks or if the FDA finds deficiencies in any of the Company’s IND applications or the conduct of these trials. 
                    - the establishment and demonstration in the medical community of the clinical efficacy and safety of such products;  
                    - the potential advantage of such products over existing treatment methods;  
                    - the cost of our products relative to their perceived benefits; and  
                    - reimbursement policies of government and third-party payors. 

----

                    - regulatory approval may be withdrawn;  
                    - reformulation of our products, additional clinical trials, changes in labeling of our products may be required;  
                    - changes to or re-approvals of our manufacturing facilities may be required;  
                    - sales of the affected products may drop significantly;  
                    - our reputation in the marketplace may suffer; and  
                    - lawsuits, including class action suits, may be brought against us. 

----

----

                - termination of contracts;  
                - forfeiture of profits;    
                - suspension of payments;    
                - fines; and  
                - suspension of prohibition from doing business with the U.S. government. 

----

                - the Federal Acquisition Regulations, and agency-specific regulations supplemental to the Federal Acquisition Regulations, which comprehensively regulate the procurement, formation, administration and performance of government contracts;  
                - the business ethics and public integrity obligations, which govern conflicts of interest and the hiring of former government employees, restrict the granting of gratuities and funding of lobbying activities and incorporate other requirements such as the Anti-Kickback Act and Foreign Corrupt Practices Act;  
                - export and import control laws and regulations; and  
                - laws, regulations and executive orders restricting the use and dissemination of information classified for national security purposes and the exportation of certain products and technical data . 

----

----

----

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|           |                           |           |                           |           |                           | Selling, general |                           |              |                           |             |   |           |   |     |       |          |   |
|----------------|--------------------------------|----------------|--------------------------------|----------------|--------------------------------|------------------|--------------------------------|-------------------|--------------------------------|------------------|--------|----------------|--------|----------|------------|---------------|--------|
| The year ended |                           |           |                           |           |                           | and              |                           | Research and      |                           | Patent           |   |           |   |     |
| December 31,   |                           | Revenues       |                           | administrative |                           | development      |                           | preparation fees  |                           |             |   |           |
| 2009           |                           | $              | 13,812                         |           |                           | $                | 7,533                          |              |                           | $                | 17,423 |           |   | $        | 734        |          |   |   |   |
| 2008           |                           |           | 8,066                          |           |                           |             | 4,608                          |              |                           |             | 11,613 |           |   |     | 582        |          |   |   |   |
| 2007           |                           |           | 6,699                          |           |                           |             | 3,704                          |              |                           |             | 9,943  |           |   |     | 515        |          |   |   |   |
| 2006           |                           |           | 7,258                          |           |                           |             | 4,624                          |              |                           |             | 9,149  |           |   |     | 295        |          |   |   |   |
| 2005           |                           |           | 8,477                          |           |                           |             | 2,481                          |              |                           |             | 8,295  |           |   |     | 232        |          |   |   |   |
|           |
|           |                           |           |                           |           |                           |             |                           |              |                           |             |   |           |   | Weighted |       |          |   |   |
|           |                           |           |                           |           |                           |             |                           |              |                           | Net loss per     |   | average shares |   |     |       |          |
| The year ended |                           |           |                           |           |                           |             |                           |              |                           | share: basic and |   | outstanding:   |   |     |       |          |
| December 31,   |                           | Operating loss |                           | Net loss       |                           | diluted          |                           | basic and diluted |                           |             |   |           |
| 2009           |                           | $              | (11,879                        | )              |                           | $                | (19,400                        | )                 | *                              | $                | (0.52  | )              | *      |     | 37,463,255 |          |   |   |   |
| 2008           |                           |           | (8,737                         | )              |                           |             | (10,153                        | )                 | *                              |             | (0.29  | )              | *      |     | 34,732,625 |          |   |   |   |
| 2007           |                           |           | (7,463                         | )              |                           |             | (5,639                         | )                 |                           |             | (0.17  | )              |   |     | 33,330,814 |          |   |   |   |
| 2006           |                           |           | (6,810                         | )              |                           |             | (9,899                         | )                 |                           |             | (0.35  | )              |   |     | 28,200,130 |          |   |   |   |
| 2005           |                           |           | (2,532                         | )              |                           |             | (2,288                         | )                 |                           |             | (0.09  | )              |   |     | 24,824,824 |          |   |   |   |
|           |
| As of and for  |                           |           |                           |           |                           |             |                           |              |                           |             |   |           |   | Total    |       | Net cash used |
| the year ended |                           |           |                           |           |                           | Cash and cash    |                           | Long term         |                           | stockholders'    |   | in operating   |
| December 31,   |       | Total assets   |       | equivalents    |       | obligations      |       | equity            |       | activities       |
| 2009           |                           | $              | 25,915                         |           |                           | $                | 14,496                         |              |                           | $                | 9,734  |           | *      | $        | 7,152      | *             | $      | (8,471 | ) |
| 2008           |                           |           | 8,797                          |           |                           |             | 2,322                          |              |                           |             | 4,477  |           | *      |     | 1          | *             |   | (7,198 | ) |
| 2007           |                           |           | 10,589                         |           |                           |             | 6,832                          |              |                           |             | 3,243  |           |   |     | 5,228      |          |   | (5,448 | ) |
| 2006           |                           |           | 14,028                         |           |                           |             | 10,640                         |              |                           |             | 4,696  |           |   |     | 7,282      |          |   | (4,438 | ) |
| 2005           |                           |           | 6,132                          |           |                           |             | 1,772                          |              |                           |             | 642    |           |   |     | 3,231      |          |   | (1,392 | ) |

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                        - Level 1 – Quoted prices for identical instruments in active markets.  
                        - Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations where inputs are observable or where significant value drivers are observable.  
                        - Level 3 – Instruments where significant value drivers are unobservable to third parties. 

|                                                      |                           | 2009                                  |                           | 2008       |
|-----------------------------------------------------------|--------------------------------|---------------------------------------|--------------------------------|------------|
|                                                      |       | (Restated)                            |       | (Restated) |
| Common stock warrants classified as current liabilities   |                           | $       | 3,260,000                      |       | $       | - |
| Common stock warrants classified as long term liabilities |                           |                                  | 9,733,870                      |       |   | 4,476,770 |
| Total                                                     |                           | $                                     | 12,993,870                     |       | $ | 4,476,770 |

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|                  |                           | As reported on                                                                  |                           | As adjusted on  |                           | Effect of change in                               |
|-----------------------|--------------------------------|---------------------------------------------------------------------------------|--------------------------------|-----------------|--------------------------------|---------------------------------------------------|
|                  |       | December 31, 2008                                                               |       | January 1, 2009 |       | accounting principle                              |
|                  |                           | (Restated)                                                                      |                           | (Restated)      |                           |                                              |   |   |
| Common stock warrants |                           | $              | -                              |            |                           | $         | 2,710,000 |   |   | $ | 2,710,000 |   |
| Accumulated deficit   |                           |                                                                            | (72,158,791                    | )               |                           |                                              | (74,868,791 | ) |   |   |                  (2,710,000 | ) |

----

|                                |      | 2009                                |       | 2008                                |       | 2007                                |
|-------------------------------------|--------------------------|-------------------------------------|--------------------------------|-------------------------------------|--------------------------------|-------------------------------------|
| Revenue                             |                     |       100% |                           |       100% |                           |       100% |
| Selling, general and administrative |                     | 55%                                 |                           | 57%                                 |                           | 55%                                 |
| Research and development            |                     | 126%                                |                           | 144%                                |                           | 148%                                |
| Patent preparation fees             |                     | 5%                                  |                           | 7%                                  |                           | 8%                                  |
| Operating loss                      |                     | 86%                                 |                           | 108%                                |                           | 111%                                |

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|                    | 2010   |       |   | 562,808   |
|--------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|-----------|
|                                                                                                         | 2011   |                           |   | 573,077   |
|                                                                                                         |   |                           | $      | 1,135,885 |
|                                                                                                         |

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| Report of Independent Registered Public Accounting Firm                                                               |       | 31     |
|-----------------------------------------------------------------------------------------------------------------------|--------------------------------|--------|
|                                                                                                                  |                           |   |
| Consolidated Balance Sheets as of December 31, 2009 and 2008                                                          |                           | 33     |
|                                                                                                                  |                           |   |
| Consolidated Statements of Operations for the years ended December 31, 2009, 2008, and 2007                           |                           | 34     |
|                                                                                                                  |                           |   |
| Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 31, 2009, 2008 and 2007 |                           | 35     |
|                                                                                                                  |                           |   |
| Consolidated Statements of Cash Flows for the years ended December 31, 2009, 2008, and 2007                           |                           | 36     |
|                                                                                                                  |                           |   |
| Notes to Consolidated Financial Statements                                                                            |                           | 37     |

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|                                                                                                                                  |                           | December 31,                    |                           | December 31, |
|---------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|---------------------------------|--------------------------------|--------------|
|                                                                                                                                  |                           | 2009                            |                           | 2008         |
|                                                                                                                                  |       | (Restated)                      |       | (Restated)   |
| ASSETS                                                                                                                                |                           |                            |                           |         |   |   |   |   |
| Current assets                                                                                                                        |                           |                            |                           |         |   |   |   |   |
|        Cash and cash equivalents                                                                        |                           | $      | 14,496,313                     |         |   | $      | 2,321,519 |   |
|        Short term investments                                                                           |                           |                            | 4,999,300                      |         |   |   | - |   |
|        Accounts receivable                                                                              |                           |                            | 2,405,861                      |         |   |   | 1,959,608 |   |
|        Deferred transaction costs                                                                       |                           |                            | -                              |         |   |   | 581,358 |   |
|        Prepaid expenses                                                                                 |                           |                            | 1,585,072                      |         |   |   | 1,392,607 |   |
|               Total current assets                                   |                           |                            | 23,486,546                     |         |   |   | 6,255,092 |   |
|                                                                                                                                  |                           |                            |                           |         |   |   |   |   |
|        Property, plant and equipment, net                                                               |                           |                            | 1,225,656                      |         |   |   | 1,360,018 |   |
|        Goodwill                                                                                         |                           |                            | 898,334                        |         |   |   | 898,334 |   |
|        Other assets                                                                                     |                           |                            | 304,751                        |         |   |   | 283,856 |   |
|               Total assets                                           |                           | $                               | 25,915,287                     |         |   | $ | 8,797,300 |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                  |                           |                            |                           |         |   |   |   |   |
|        Current liabilities                                                                              |                           |                            |                           |         |   |   |   |   |
|        Accounts payable                                                                                 |                           | $                               | 3,458,013                      |         |   | $ | 1,806,073 |   |
|        Accrued expenses and other                                                                       |                           |                            | 740,333                        |         |   |   | 1,210,496 |   |
|        Deferred revenue                                                                                 |                           |                            | 1,570,234                      |         |   |   | 1,302,600 |   |
|        Common stock warrants                                                                            |                           |                            | 3,260,000                      |         |   |   | - |   |
|               Total current liabilities                              |                           |                            | 9,028,580                      |         |   |   | 4,319,169 |   |
|                                                                                                                                  |                           |                            |                           |         |   |   |   |   |
|        Common stock warrants                                                                            |                           |                            | 9,733,870                      |         |   |   | 4,476,770 |   |
|               Total liabilities                                      |                           |                            | 18,762,450                     |         |   |   | 8,795,939 |   |
|                                                                                                                                  |                           |                            |                           |         |   |   |   |   |
|        Stockholders' equity                                                                             |                           |                            |                           |         |   |   |   |   |
|        Common stock ($.0001 par value, 100,000,000 shares authorized,                                   |                           |                            |                           |         |   |   |   |   |
|               43,061,635 and 35,383,720 issued and outstanding at    |                           |                            |                           |         |   |   |   |   |
|               December 31, 2009 and December 31, 2008, respectively) |                           |                            | 4,306                          |         |   |   | 3,538 |   |
|        Additional paid-in capital                                                                       |                           |                            | 101,417,677                    |         |   |   | 72,156,614 |   |
|        Accumulated deficit (See Note 2)                                                                 |                           |                            | (94,269,146                    | )            |   |   | (72,158,791 | ) |
|               Total stockholders' equity                             |                           |                            | 7,152,837                      |         |   |   | 1,361 |   |
|               Total liabilities and stockholders' equity             |                           | $                               | 25,915,287                     |         |   | $ | 8,797,300 |   |
|                                                                                                                                  |                           |                            |                           |         |   |   |   |   |

----

|                                                                                                    |                           | 2009                            |                           | 2008       |                           | 2007                            |
|---------------------------------------------------------------------------------------------------------|--------------------------------|---------------------------------|--------------------------------|------------|--------------------------------|---------------------------------|
|                                                                                                    |       | (Restated)                      |       | (Restated) |       |                            |   |   |
| Revenues                                                                                                |                           |                            |                           |       |                           |                            |   |   |   |   |   |   |
|        Research and development                                           |                           | $      | 13,811,858                     |       |                           | $      | 8,065,618 |   |   | $      | 6,698,717 |   |
|                                                                                                    |                           |                            |                           |       |                           |                            |   |   |   |   |   |   |
| Operating expenses                                                                                      |                           |                            |                           |       |                           |                            |   |   |   |   |   |   |
|        Selling, general and administrative                                |                           |                            | 7,533,167                      |       |                           |                            | 4,608,089 |   |   |   | 3,704,058 |   |
|        Research and development                                           |                           |                            | 17,423,453                     |       |                           |                            | 11,612,892 |   |   |   | 9,942,503 |   |
|        Patent preparation fees                                            |                           |                            | 734,165                        |       |                           |                            | 581,548 |   |   |   | 515,263 |   |
|               Total operating expenses |                           |                            | 25,690,785                     |       |                           |                            | 16,802,529 |   |   |   | 14,161,824 |   |
|                                                                                                    |                           |                            |                           |       |                           |                            |   |   |   |   |   |   |
|               Operating loss           |                           |                            | (11,878,927                    | )          |                           |                            | (8,736,911 | ) |   |   | (7,463,107 | ) |
|                                                                                                    |                           |                            |                           |       |                           |                            |   |   |   |   |   |   |
| (Increase) decrease in fair value of common                                                             |                           |                            |                           |       |                           |                            |   |   |   |   |   |   |
|        stock rights and common stock warrants                             |                           |                            | (7,522,865                     | )          |                           |                            | (1,509,756 | ) |   |   | 1,430,301 |   |
| Other income (expense), net                                                                             |                           |                            | 1,437                          |       |                           |                            | 94,052 |   |   |   | 394,249 |   |
|               Net loss                 |                           | $                               | (19,400,355                    | )          |                           | $                               | (10,152,615 | ) |   | $ | (5,638,557 | ) |
|                                                                                                    |                           |                            |                           |       |                           |                            |   |   |   |   |   |   |
| Weighted average shares outstanding: basic and diluted                                                  |                           |                            | 37,463,255                     |       |                           |                            | 34,732,625 |   |   |   | 33,330,814 |   |
| Net loss per share: basic and diluted                                                                   |                           | $                               | (0.52                          | )          |                           | $                               | (0.29 | ) |   | $ | (0.17 | ) |
|                                                                                                    |                           |                            |                           |       |                           |                            |   |   |   |   |   |   |

----

|                                                                         |         |         |         |             |         |        |                            |          |         |   |    |        |   |   | Total          |
|------------------------------------------------------------------------------|--------------|--------------|--------------|------------------|--------------|-------------|---------------------------------|---------------|--------------|--------|---------|-------------|--------|--------|----------------|
|                                                                         |         | Common Stock |         | Additional Paid- |         | Accumulated |                            | Stockholders' |
|                                                                         |    | Shares       |    | Amount           |    | in Capital  |                       | Deficit       |    | Equity |
|        Balance at January 1, 2007              |         | 32,452,210   |         | $      | 3,245        |        | $      | 63,646,224    |         |   | $  | (56,367,619 | )      |   | $    | 7,281,850 |   |
| Issuance of common stock upon exercise of stock                              |         |         |         |             |         |        |                            |          |         |   |    |        |   |   |           |   |   |
|        options and warrants                    |         | 1,485,339    |         |             | 149          |        |                            | 3,013,841     |         |   |    |        |   |   |           | 3,013,990 |   |
| Stock based compensation                                                     |         |         |         |             |         |        |                            | 570,922       |         |   |    |        |   |   |           | 570,922 |   |
| Net loss                                                                     |         |         |         |             |         |        |                            |          |         |   |    | (5,638,557  | )      |   |           | (5,638,557 | ) |
|        Balance at December 31, 2007            |         | 33,937,549   |         | $                | 3,394        |        | $                               | 67,230,987    |         |   | $       | (62,006,176 | )      |   | $              | 5,228,205 |   |
|                                                                         |         |         |         |             |         |        |                            |          |         |   |    |        |   |   |           |   |   |
| Issuance of common stock upon exercise of stock                              |         |         |         |             |         |        |                            |          |         |   |    |        |   |   |           |   |   |
|        options and warrants                    |         | 1,446,171    |         |             | 144          |        |                            | 3,186,220     |         |   |    |        |   |   |           | 3,186,364 |   |
| Stock based compensation                                                     |         |         |         |             |         |        |                            | 1,041,293     |         |   |    |        |   |   |           | 1,041,293 |   |
| Fair value of warrants issued for financing commitment                       |         |         |         |             |         |        |                            | 422,331       |         |   |    |        |   |   |           | 422,331 |   |
| Fair value of exercised common stock warrants                                |         |         |         |             |         |        |                            | 275,783       |         |   |    |        |   |   |           | 275,783 |   |
| Net loss (Restated)                                                          |         |         |         |             |         |        |                            |          |         |   |    | (10,152,615 | )      |   |           | (10,152,615 | ) |
|        Balance at December 31, 2008 (Restated) |         | 35,383,720   |         | $                | 3,538        |        | $                               | 72,156,614    |         |   | $       | (72,158,791 | )      |   | $              | 1,361 |   |
|                                                                         |         |         |         |             |         |        |                            |          |         |   |    |        |   |   |           |   |   |
| Issuance of common stock upon exercise of stock                              |         |         |         |             |         |        |                            |          |         |   |    |        |   |   |           |   |   |
|        options and warrants                    |         | 4,952,576    |         |             | 495          |        |                            | 7,419,737     |         |   |    |        |   |   |           | 7,420,232 |   |
| Net proceeds from the issuance of 2,725,339 shares                           |         |         |         |             |         |        |                            |          |         |   |    |        |   |   |           | - |   |
|        of common stock ($7.35 per share)       |         | 2,725,339    |         |             | 273          |        |                            | 18,565,147    |         |   |    |        |   |   |           | 18,565,420 |   |
| Stock based compensation                                                     |         |         |         |             |         |        |                            | 2,141,772     |         |   |    |        |   |   |           | 2,141,772 |   |
| Fair value of exercised common stock warrants                                |         |         |         |             |         |        |                            | 1,715,765     |         |   |    |        |   |   |           | 1,715,765 |   |
| Recognition of deferred transaction costs                                    |         |         |         |             |         |        |                            | (581,358      | )            |   |    |        |   |   |           | (581,358 | ) |
| Cumulative Effect of Accounting Change                                       |         |         |         |             |         |        |                            |          |         |   |    | (2,710,000  | )      |   |           | (2,710,000 | ) |
| Net loss (Restated)                                                          |         |         |         |             |         |        |                            |          |         |   |    | (19,400,355 | )      |   |           | (19,400,355 | ) |
|        Balance at December 31, 2009 (Restated) |         | 43,061,635   |         | $                | 4,306        |        | $                               | 101,417,677   |         |   | $       | (94,269,146 | )      |   | $              | 7,152,837 |   |

----

|                                                                                                                     |                           | 2009                            |                           | 2008       |                           | 2007                            |
|--------------------------------------------------------------------------------------------------------------------------|--------------------------------|---------------------------------|--------------------------------|------------|--------------------------------|---------------------------------|
|                                                                                                                     |       | (Restated)                      |       | (Restated) |       |                            |   |   |
| Cash flows from operating activities:                                                                                    |                           |                            |                           |       |                           |                            |   |   |   |   |   |   |
| Net loss                                                                                                                 |                           | $      | (19,400,355                    | )          |                           | $      | (10,152,615 | ) |   | $      | (5,638,557 | ) |
| Adjustments to reconcile net loss to net                                                                                 |                           |                            |                           |       |                           |                            |   |   |   |   |   |   |
|        cash used in operating activities:                                                  |                           |                            |                           |       |                           |                            |   |   |   |   |   |   |
|        Depreciation                                                                        |                           |                            | 475,091                        |       |                           |                            | 459,882 |   |   |   | 1,083,705 |   |
|        Amortization of intangible assets                                                   |                           |                            | -                              |       |                           |                            | - |   |   |   | 165,243 |   |
|        Increase (decrease) in fair value of rights and warrants                            |                           |                            | 7,522,865                      |       |                           |                            | 1,509,756 |   |   |   | (1,430,301 | ) |
|        Stock based compensation                                                            |                           |                            | 2,141,772                      |       |                           |                            | 1,041,293 |   |   |   | 570,922 |   |
|        Changes in assets and liabilities:                                                  |                           |                            |                           |       |                           |                            |   |   |   |   |   |   |
|               Accounts receivable                       |                           |                            | (446,253                       | )          |                           |                            | (973,119 | ) |   |   | (369,457 | ) |
|               Prepaid expenses                          |                           |                            | (192,465                       | )          |                           |                            | (1,262,492 | ) |   |   | 10,917 |   |
|               Other assets                              |                           |                            | (20,895                        | )          |                           |                            | (22,090 | ) |   |   | (15,565 | ) |
|               Deferred revenue                          |                           |                            | 267,634                        |       |                           |                            | 1,302,600 |   |   |   | - |   |
|               Accounts payable and accrued expenses     |                           |                            | 1,181,777                      |       |                           |                            | 898,899 |   |   |   | 175,260 |   |
|               Net cash used in operating activities     |                           |                            | (8,470,829                     | )          |                           |                            | (7,197,886 | ) |   |   | (5,447,833 | ) |
|                                                                                                                     |                           |                            |                           |       |                           |                            |   |   |   |   |   |   |
| Cash flows from investing activities:                                                                                    |                           |                            |                           |       |                           |                            |   |   |   |   |   |   |
|        Capital expenditures                                                                |                           |                            | (340,729                       | )          |                           |                            | (340,222 | ) |   |   | (1,243,068 | ) |
|        Purchases of short term investments                                                 |                           |                            | (4,999,300                     | )          |                           |                            | - |   |   |   | - |   |
|               Net cash used in investing activities     |                           |                            | (5,340,029                     | )          |                           |                            | (340,222 | ) |   |   | (1,243,068 | ) |
|                                                                                                                     |                           |                            |                           |       |                           |                            |   |   |   |   |   |   |
| Cash flows from financing activities:                                                                                    |                           |                            |                           |       |                           |                            |   |   |   |   |   |   |
|        Net proceeds from exercise of warrants and options                                  |                           |                            | 7,420,232                      |       |                           |                            | 3,186,364 |   |   |   | 3,013,990 |   |
|        Net proceeds from the sale of 2,725,339 shares                                      |                           |                            |                           |       |                           |                            |   |   |   |   |   |   |
|               of common stock ($7.35 per share)         |                           |                            | 18,565,420                     |       |                           |                            | - |   |   |   | - |   |
|        Deferred transaction costs                                                          |                           |                            | -                              |       |                           |                            | (159,027 | ) |   |   | - |   |
|        Repayment of notes payable                                                          |                           |                            | -                              |       |                           |                            | - |   |   |   | (130,329 | ) |
|               Net cash provided by financing activities |                           |                            | 25,985,652                     |       |                           |                            | 3,027,337 |   |   |   | 2,883,661 |   |
| Net (decrease) increase in cash and cash equivalents                                                                     |                           |                            | 12,174,794                     |       |                           |                            | (4,510,771 | ) |   |   | (3,807,240 | ) |
| Cash and cash equivalents at beginning of period                                                                         |                           |                            | 2,321,519                      |       |                           |                            | 6,832,290 |   |   |   | 10,639,530 |   |
| Cash and cash equivalents at end of period                                                                               |                           | $                               | 14,496,313                     |       |                           | $                               | 2,321,519 |   |   | $ | 6,832,290 |   |
|                                                                                                                     |                           |                            |                           |       |                           |                            |   |   |   |   |   |   |
| Cash paid for interest on notes payable                                                                                  |                           | $                               | -                              |       |                           | $                               | - |   |   | $ | 10,192 |   |

----

----

|                  |                           | As reported on    |                                                                                | As adjusted on  |                           | Effect of change |
|-----------------------|--------------------------------|-------------------|-------------------------------------------------------------------------------------|-----------------|--------------------------------|------------------|
|                  |                           | December 31, 2008 |                                                                                | January 1, 2009 |                           | in accounting    |
|                  |       | (Restated)        |                                                            | (Restated)      |       | principle        |
| Common stock warrants |                           | $                 | -                                                                                   |            |                           | $                | 2,710,000 |   |   | $ | 2,710,000 |   |
| Accumulated deficit   |                           |              |             (72,158,791 | )               |                           |             |       (74,868,791 | ) |   |   |        (2,710,000 | ) |

----

----

          - Level 1 – Quoted prices for identical instruments in active markets.  
          - Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations where inputs are observable or where significant value drivers are observable.  
          - Level 3 – Instruments where significant value drivers are unobservable to third parties. 

|                                                      |                           | 2009       |                           | 2008       |
|-----------------------------------------------------------|--------------------------------|------------|--------------------------------|------------|
|                                                      |       | (Restated) |       | (Restated) |
| Common stock warrants classified as current liabilities   |                           | $          | 3,260,000                      |       | $ | - |
| Common stock warrants classified as long term liabilities |                           |       | 9,733,870                      |       |   | 4,476,770 |
|        Total                |                           | $          | 12,993,870                     |       | $ | 4,476,770 |

----

----

|                                                                                                                      |         | December 31, 2009 |         | December 31, 2008 |
|---------------------------------------------------------------------------------------------------------------------------|--------------|-------------------|--------------|-------------------|
|                                                                                                                      |         | As                |         |              |   |   |   |   |   |   | As |   |   |   |   |   |   |   |   |
|                                                                                                                      |         | Originally        |         |              |   |   |   |   |   |   | Originally |   |   |   |   |   |   |   |   |
|                                                                                                                      |    | Reported          |    | Adjustments       |    | As Restated |    | Reported |    | Adjustments |    | As Restated |
| ASSETS                                                                                                                    |         |              |         |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current assets                                                                                                            |         |              |         |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Cash and cash equivalents                                                            |         | $                 | 14,496,313   |              |   |   |   |   | $ | 14,496,313 |   |   | $ | 2,321,519 |   |   |   |   |   |   | $ | 2,321,519 |   |
|        Short term investments                                                               |         |              | 4,999,300    |              |   |   |   |   |   | 4,999,300 |   |   |   | - |   |   |   |   |   |   |   | - |   |
|        Accounts receivable                                                                  |         |              | 2,405,861    |              |   |   |   |   |   | 2,405,861 |   |   |   | 1,959,608 |   |   |   |   |   |   |   | 1,959,608 |   |
|        Deferred transaction costs                                                           |         |              | -            |              |   |   |   |   |   | - |   |   |   | 581,358 |   |   |   |   |   |   |   | 581,358 |   |
|        Prepaid expenses                                                                     |         |              | 1,585,072    |              |   |   |   |   |   | 1,585,072 |   |   |   | 1,392,607 |   |   |   |   |   |   |   | 1,392,607 |   |
|               Total current assets                       |         |              | 23,486,546   |              |   |   |   |   |   | 23,486,546 |   |   |   | 6,255,092 |   |   |   |   |   |   |   | 6,255,092 |   |
|                                                                                                                      |         |              |         |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Property, plant and equipment, net                                                   |         |              | 1,225,656    |              |   |   |   |   |   | 1,225,656 |   |   |   | 1,360,018 |   |   |   |   |   |   |   | 1,360,018 |   |
|        Goodwill                                                                             |         |              | 898,334      |              |   |   |   |   |   | 898,334 |   |   |   | 898,334 |   |   |   |   |   |   |   | 898,334 |   |
|        Other assets                                                                         |         |              | 304,751      |              |   |   |   |   |   | 304,751 |   |   |   | 283,856 |   |   |   |   |   |   |   | 283,856 |   |
|               Total assets                               |         | $                 | 25,915,287   |              |   |   |   |   | $ | 25,915,287 |   |   | $ | 8,797,300 |   |   |   |   |   |   | $ | 8,797,300 |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                      |         |              |         |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Current liabilities                                                                  |         |              |         |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Accounts payable                                                                     |         | $                 | 3,458,013    |              |   |   |   |   | $ | 3,458,013 |   |   |   | 1,806,073 |   |   |   |   |   |   |   | 1,806,073 |   |
|        Accrued expenses and other                                                           |         |              | 740,333      |              |   |   |   |   |   | 740,333 |   |   |   | 1,210,496 |   |   |   |   |   |   |   | 1,210,496 |   |
|        Deferred revenue                                                                     |         |              | 1,570,234    |              |   |   |   |   |   | 1,570,234 |   |   |   | 1,302,600 |   |   |   |   |   |   |   | 1,302,600 |   |
|        Common stock warrants                                                                |         |              | 3,260,000    |              |   |   |   |   |   | 3,260,000 |   |   |   | - |   |   |   |   |   |   |   | - |   |
|               Total current liabilities                  |         |              | 9,028,580    |              |   |   |   |   |   | 9,028,580 |   |   |   | 4,319,169 |   |   |   |   |   |   |   | 4,319,169 |   |
|                                                                                                                      |         |              |         |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Common stock warrants                                                                |         |              | 6,398,216    |              |   | 3,335,654 |   |   |   | 9,733,870 |   |   |   | 2,923,532 |   |   |   | 1,553,238 |   |   |   | 4,476,770 |   |
|               Total liabilities                          |         |              | 15,426,796   |              |   | 3,335,654 |   |   |   | 18,762,450 |   |   |   | 7,242,701 |   |   |   | 1,553,238 |   |   |   | 8,795,939 |   |
|                                                                                                                      |         |              |         |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stockholders' equity                                                                                                      |         |              |         |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Common stock                                                                         |         |              | 4,306        |              |   |   |   |   |   | 4,306 |   |   |   | 3,538 |   |   |   |   |   |   |   | 3,538 |   |
|        Additional paid-in capital                                                           |         |              | 101,417,677  |              |   |   |   |   |   | 101,417,677 |   |   |   | 72,156,614 |   |   |   |   |   |   |   | 72,156,614 |   |
|        Accumulated deficit (See Note 2)                                                     |         |              | (90,933,492  | )                 |   | (3,335,654 | ) |   |   | (94,269,146 | ) |   |   | (70,605,553 | ) |   |   | (1,553,238 | ) |   |   | (72,158,791 | ) |
|               Total stockholders' equity                 |         |              | 10,488,491   |              |   | (3,335,654 | ) |   |   | 7,152,837 |   |   |   | 1,554,599 |   |   |   | (1,553,238 | ) |   |   | 1,361 |   |
|               Total liabilities and stockholders' equity |         | $                 | 25,915,287   |              |   |   |   |   | $ | 25,915,287 |   |   | $ | 8,797,300 |   |   | $ | - |   |   | $ | 8,797,300 |   |
|                                                                                                                      |         |              |         |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                                                    |         | Year ended December 31, 2009 |         |        |         | Year ended December 31, 2008 |         |
|---------------------------------------------------------------------------------------------------------|--------------|------------------------------|--------------|-------------|--------------|------------------------------|--------------|
|                                                                                                    |         | As Originally                |         |        |         |                         |         |   |   |   |   | As Originally |   |   |   |   |   |   |   |   |
|                                                                                                    |    | Reported                     |    | Adjustments |    | As Restated                  |    | Reported |    | Adjustments |    | As Restated |
| Revenues                                                                                                |         |                         |         |        |         |                         |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Research and development                                           |         | $                            | 13,811,858   |        |         |                         |         |   |   | $ | 13,811,858 |   |   | $ | 8,065,618 |   |   |   |   |   |   | $ | 8,065,618 |   |
|                                                                                                    |         |                         |         |        |         |                         |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                                                                                      |         |                         |         |        |         |                         |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Selling, general and administrative                                |         |                         | 7,533,167    |        |         |                         |         |   |   |   | 7,533,167 |   |   |   | 4,608,089 |   |   |   |   |   |   |   | 4,608,089 |   |
|        Research and development                                           |         |                         | 17,423,453   |        |         |                         |         |   |   |   | 17,423,453 |   |   |   | 11,612,892 |   |   |   |   |   |   |   | 11,612,892 |   |
|        Patent preparation fees                                            |         |                         | 734,165      |        |         |                         |         |   |   |   | 734,165 |   |   |   | 581,548 |   |   |   |   |   |   |   | 581,548 |   |
|               Total operating expenses |         |                         | 25,690,785   |        |         |                         |         |   |   |   | 25,690,785 |   |   |   | 16,802,529 |   |   |   |   |   |   |   | 16,802,529 |   |
|               Operating loss           |         |                         | (11,878,927  | )           |         |                         |         |   |   |   | (11,878,927 | ) |   |   | (8,736,911 | ) |   |   |   |   |   |   | (8,736,911 | ) |
|                                                                                                    |         |                         |         |        |         |                         |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Decrease (increase) in fair value of common                                                             |         |                         |         |        |         |                         |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        stock rights and common stock warrants                             |         |                         | (5,740,449   | )           |         |                         | (1,782,416   | ) |   |   | (7,522,865 | ) |   |   | 43,482 |   |   |   | (1,553,238 | ) |   |   | (1,509,756 | ) |
| Other income (expense), net                                                                             |         |                         | 1,437        |        |         |                         |         |   |   |   | 1,437 |   |   |   | 94,052 |   |   |   |   |   |   |   | 94,052 |   |
|        Net loss                                                           |         | $                            | (17,617,939  | )           |         | $                       | (1,782,416   | ) |   | $ | (19,400,355 | ) |   | $ | (8,599,377 | ) |   | $ | (1,553,238 | ) |   | $ | (10,152,615 | ) |
|                                                                                                    |         |                         |         |        |         |                         |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding: basic                                                         |         |                         |         |        |         |                         |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        and diluted                                                        |         |                         | 37,463,255   |        |         |                         |         |   |   |   | 37,463,255 |   |   |   | 34,732,625 |   |   |   |   |   |   |   | 34,732,625 |   |
| Net loss per share: basic and diluted                                                                   |         | $                            | (0.47        | )           |         | $                            | (0.05        | ) |   | $ | (0.52 | ) |   | $ | (0.25 | ) |   | $ | (0.04 | ) |   | $ | (0.29 | ) |
|                                                                                                    |         |                         |         |        |         |                         |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                     |         | Year ended December 31, 2009 |         | Year ended December 31, 2008 |
|--------------------------------------------------------------------------------------------------------------------------|--------------|------------------------------|--------------|------------------------------|
|                                                                                                                     |         | As Originally                |         |                         |   |   |   |   |   |   |   | As Originally |   |   |   |   |   |   |   |   |
|                                                                                                                     |    | Reported                     |    | Adjustments                  |    | As Restated |    | Reported |    | Adjustments |    | As Restated |
| Cash flows from operating activities:                                                                                    |         |                         |         |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                                 |         | $             | (17,617,939  | )                            |   | $ | (1,782,416 | ) |   | $ | (19,400,355 | ) |   | $ | (8,599,377 | ) |   | $ | (1,553,238 | ) |   | $ | (10,152,615 | ) |
| Adjustments to reconcile net loss to net                                                                                 |         |                         |         |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        cash used in operating activities:                                                  |         |                         |         |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Depreciation                                                                        |         |                         | 475,091      |                         |   |   |   |   |   |   | 475,091 |   |   |   | 459,882 |   |   |   |   |   |   |   | 459,882 |   |
|        (Increase) decrease in fair value                                                   |         |                         |         |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|               of rights and warrants                    |         |                         | 5,740,449    |                         |   |   | 1,782,416 |   |   |   | 7,522,865 |   |   |   | (43,482 | ) |   |   | 1,553,238 |   |   |   | 1,509,756 |   |
|        Stock based compensation                                                            |         |                         | 2,141,772    |                         |   |   |   |   |   |   | 2,141,772 |   |   |   | 1,041,293 |   |   |   |   |   |   |   | 1,041,293 |   |
|        Changes in assets and liabilities:                                                  |         |                         |         |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|               Accounts receivable                       |         |                         | (446,253     | )                            |   |   |   |   |   |   | (446,253 | ) |   |   | (973,119 | ) |   |   |   |   |   |   | (973,119 | ) |
|               Prepaid expenses                          |         |                         | (192,465     | )                            |   |   |   |   |   |   | (192,465 | ) |   |   | (1,262,492 | ) |   |   |   |   |   |   | (1,262,492 | ) |
|               Other assets                              |         |                         | (20,895      | )                            |   |   |   |   |   |   | (20,895 | ) |   |   | (22,090 | ) |   |   |   |   |   |   | (22,090 | ) |
|               Deferred revenue                          |         |                         | 267,634      |                         |   |   |   |   |   |   | 267,634 |   |   |   | 1,302,600 |   |   |   |   |   |   |   | 1,302,600 |   |
|               Accounts payable and accrued expenses     |         |                         | 1,181,777    |                         |   |   |   |   |   |   | 1,181,777 |   |   |   | 898,899 |   |   |   |   |   |   |   | 898,899 |   |
|               Net cash used in operating activities     |         |                         | (8,470,829   | )                            |   |   |   |   |   |   | (8,470,829 | ) |   |   | (7,197,886 | ) |   |   |   |   |   |   | (7,197,886 | ) |
|                                                                                                                     |         |                         |         |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                                                                    |         |                         |         |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Capital expenditures                                                                |         |                         | (340,729     | )                            |   |   |   |   |   |   | (340,729 | ) |   |   | (340,222 | ) |   |   |   |   |   |   | (340,222 | ) |
|        Purchases of short term investments                                                 |         |                         | (4,999,300   | )                            |   |   |   |   |   |   | (4,999,300 | ) |   |   | - |   |   |   |   |   |   |   | - |   |
|               Net cash used in investing activities     |         |                         | (5,340,029   | )                            |   |   |   |   |   |   | (5,340,029 | ) |   |   | (340,222 | ) |   |   |   |   |   |   | (340,222 | ) |
| Cash flows from financing activities:                                                                                    |         |                         |         |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Net proceeds from exercise of                                                  |         |                         |         |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|               warrants and options                      |         |                         | 7,420,232    |                         |   |   |   |   |   |   | 7,420,232 |   |   |   | 3,186,364 |   |   |   |   |   |   |   | 3,186,364 |   |
|        Net proceeds from the sale of 2,725,339 shares                                      |         |                         |         |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|               of common stock ($7.35 per share)         |         |                         | 18,565,420   |                         |   |   |   |   |   |   | 18,565,420 |   |   |   | - |   |   |   |   |   |   |   | - |   |
|        Deferred transaction costs                                                          |         |                         | -            |                         |   |   |   |   |   |   | - |   |   |   | (159,027 | ) |   |   |   |   |   |   | (159,027 | ) |
|               Net cash provided by financing activities |         |                         | 25,985,652   |                         |   |   |   |   |   |   | 25,985,652 |   |   |   | 3,027,337 |   |   |   |   |   |   |   | 3,027,337 |   |
| Net (decrease) increase in cash and cash equivalents                                                                     |         |                         | 12,174,794   |                         |   |   |   |   |   |   | 12,174,794 |   |   |   | (4,510,771 | ) |   |   |   |   |   |   | (4,510,771 | ) |
| Cash and cash equivalents at beginning of period                                                                         |         |                         | 2,321,519    |                         |   |   |   |   |   |   | 2,321,519 |   |   |   | 6,832,290 |   |   |   |   |   |   |   | 6,832,290 |   |
| Cash and cash equivalents at end of period                                                                               |         | $                            | 14,496,313   |                         |   |   |   |   |   | $ | 14,496,313 |   |   | $ | 2,321,519 |   |   |   |   |   |   | $ | 2,321,519 |   |

----

----

| Balance on December 31, 2008                                                                                             |       | $      | -                                               |   |
|--------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------|-------------------------------------------------|--------|
|        Cumulative effect of the change in accounting principle recorded on January 1, 2009 |                           |   | 2,710,000                                       |   |
|        The fair value of warrants issued to M&F in the fiscal year 2009                |                           |   | (1,715,765                                      | )      |
|        Increase in the fair value of the common stock warrants                             |                           |   | 2,265,765                                       |   |
| Balance on December 31, 2009                                                                                             |                           | $      |         3,260,000 |   |

----

| Weighted Average Assumptions                                 |       | 2009   |       | 2008   |       | 2007          |
|--------------------------------------------------------------|--------------------------------|--------|--------------------------------|--------|--------------------------------|---------------|
|        Expected volatility     |                           | 81.40% |                           | 68.50% |                           | 66.00%        |
|        Dividend Yield          |                           | 0.00%  |                           | 0.00%  |                           | 0.00%         |
|        Risk-free interest rate |                           | 2.21%  |                           | 2.79%  |                           | 4.61% - 4.83% |
|        Expected holding period |                           | 5 Yrs  |                           | 5 Yrs  |                           | 5 Yrs         |

----

| Options outstanding at January 1, 2007         |       | 7,546,145  |   |       |                                  | 2.07 |
|------------------------------------------------|--------------------------------|------------|--------|--------------------------------|---------------------------------------|------|
|        Granted   |                           | 935,000    |   |                           |                                  | 3.17 |
|        Forfeited |                           | (92,086    | )      |                           |                                  | 2.29 |
|        Expired   |                           | (50,393    | )      |                           |                                  | 5.04 |
|        Exercised |                           | (368,898   | )      |                           |                                  | 1.71 |
| Options outstanding at December 31, 2007       |                           | 7,969,768  |   |                           | $                                     | 2.28 |
|        Granted   |                           | 900,000    |   |                           |                                  | 2.93 |
|        Forfeited |                           | (26,167    | )      |                           |                                  | 3.20 |
|        Expired   |                           | (190,834   | )      |                           |                                  | 4.34 |
|        Exercised |                           | (1,146,713 | )      |                           |                                  | 2.45 |
| Options outstanding at December 31, 2008       |                           | 7,506,054  |   |                           | $                                     | 2.28 |
|        Granted   |                           | 568,500    |   |                           |                                  | 6.48 |
|        Forfeited |                           | (290,001   | )      |                           |                                  | 3.25 |
|        Expired   |                           | -          |   |                           |                                  | -    |
|        Exercised |                           | (1,659,636 | )      |                           |                                  | 1.76 |
| Options outstanding at December 31, 2009       |                           | 6,124,917  |   |                           | $       | 2.76 |

|                                                         |       |      |                                           |       | Weighted |
|--------------------------------------------------------------|--------------------------------|-----------|------------------------------------------------|--------------------------------|----------|
|                                                         |                           | Number of |                                           | Average                        |
|                                                         |                           | Shares    |                                           | Intrinsic Value                |
| Nonvested options at December 31, 2008                       |                           |      | 1,452,291                                      |                           | $        | 0.41 |
| Nonvested options at December 31, 2009                       |                           |      | 1,180,165                                      |                           |     | 2.22 |
| Options vested during 2009                                   |                           |      | 340,627                                        |                           |     | 2.88 |
| Options available for future grant at December 31, 2009      |                           |      | 584,464                                        |                           |     |   |
| Weighted average fair value of options granted during 2009   |                           | $         | 4.29                                           |                           |     |   |
| Weighted average fair value of options granted during 2008   |                           | $         | 1.72                                           |                           |     |   |
| Weighted average fair value of options granted during 2007   |                           | $         | 1.87                                           |                           |     |   |
| Weighted average fair value of options forfeited during 2009 |                           | $         | 3.25                                           |                           |     |   |
| Weighted average fair value of options forfeited during 2008 |                           | $         | 1.70                                           |                           |     |   |
| Weighted average fair value of options forfeited during 2007 |                           | $         | 1.33                                           |                           |     |   |
| Total intrinsic value of options exercised during 2009       |                           | $         |        6,959,180 |                           |     |   |
| Total intrinsic value of options exercised during 2008       |                           | $         | 937,630                                        |                           |     |   |
| Total intrinsic value of options exercised during 2007       |                           | $         | 506,000                                        |                           |     |   |

----

|        |       |        |       | Weighted Average |       |           |                                      |       |      |       | Number of |       | Weighted |                  |   |   |
|-------------|--------------------------------|-------------|--------------------------------|------------------|--------------------------------|----------------|-------------------------------------------|--------------------------------|-----------|--------------------------------|-----------|--------------------------------|----------|-------------------------------------------|--------|--------|
| Range of    |                           | Number of   |                           | Remaining        |                           | Weighted       |                                      | Number Fully                   |      | Options                        |      | Average                        |     | Aggregate                                 |
| Exercise    |                           | Options     |                           | Contractual Life |                           | Average        |                                      | Vested and                     |      | Expected to                    |      | Exercise                       |     | Intrinsic                                 |
| Price       |                           | Outstanding |                           | (Years)          |                           | Exercise Price |                                      | Exercisable                    |      | Vest                           |      | Price                          |     | Value                                     |
| 0.94 - 1.85 |                           | 1,298,750   |                           | 4.59             |                           | $              |        1.36 |                           | 1,298,750 |                           | -         |                           | $        |        1.36 |   | $      | 5,764,740 |
| 2.00 - 2.73 |                           | 3,181,000   |                           | 2.75             |                           |           | 2.47                                      |                           | 2,747,667 |                           | 414,894   |                           |     | 2.47                                      |   |   | 9,146,952 |
| 3.10 - 5.95 |                           | 1,311,667   |                           | 7.84             |                           |           | 3.66                                      |                           | 788,336   |                           | 501,063   |                           |     | 3.74                                      |   |   | 1,635,577 |
| 6.10 - 9.32 |                           | 333,500     |                           | 9.52             |                           |           | 7.35                                      |                           | 110,000   |                           | 213,990   |                           |     | 6.17                                      |   |   | - |
|        |                           | 6,124,917   |                           |             |                           |           |                                      |                           | 4,944,753 |                           | 1,129,947 |                           |     |                                      |   | $      |        16,547,269 |
|        |

|                                                    |       |                                                                                                        |   |       | Weighted Average |
|---------------------------------------------------------|--------------------------------|-------------------------------------------------------------------------------------------------------------|--------|--------------------------------|------------------|
|                                                    |                           | Number of Warrants                                                                                          |   | Exercise Price                 |
| Outstanding at January 1, 2007                          |                           | 9,441,915                                                                                                   |   |                           | $                | 2.52 |
|        Granted            |                           | -                                                                                                           |   |                           |             | - |
|        Exercised          |                           | (1,179,538                                                                                                  | )      |                           |             | 2.26 |
|        Canceled / Expired |                           | -                                                                                                           |   |                           |             | - |
| Outstanding at December 31, 2007                        |                           | 8,262,377                                                                                                   |   |                           | $                | 2.55 |
|        Granted (Restated) |                           | 868,839                                                                                                     |   |                           |             | 3.06 |
|        Exercised          |                           | (595,624                                                                                                    | )      |                           |             | 2.62 |
|        Canceled / Expired |                           | (1,079,186                                                                                                  | )      |                           |             | 3.34 |
| Outstanding at December 31, 2008 (Restated)             |                           | 7,456,406                                                                                                   |   |                           | $                | 2.23 |
|        Granted (Restated) |                           | 405,347                                                                                                     |   |                           |             | 3.25 |
|        Exercised          |                           |                  (2,850,612 | )      |                           |             | 1.87 |
|        Canceled / Expired |                           | -                                                                                                           |   |                           |             | - |
| Outstanding at December 31, 2009 (Restated)             |                           | 5,011,141                                                                                                   |   |                           | $                | 3.17 |
|                                                    |

| Number of   |       |               |   |
|-------------|--------------------------------|--------------------|--------|
| Warrants    |                           |               |   |
| Outstanding |                           | Exercise Price ($) |   |
| (Restated)  |                           | (Restated)         |   |
| 2,523,146   |                           | 1.16 - 1.88        |   |
| 1,919,438   |                           | 3.02               |   |
| 568,557     |                           | 3.21 - 4.91        |   |
| 5,011,141   |                           |               |   |
|        |

----

----

|                                                                 |       | 2009   |                       | 2008   |
|----------------------------------------------------------------------|--------------------------------|--------|------------------------------------------------|--------|
| Laboratory equipment                                                 |                           | $      | 2,301,312                                      |   |   | $ | 2,104,673 |   |
| Leasehold improvements                                               |                           |   | 2,868,849                                      |   |   |   | 2,868,848 |   |
| Computer equipment                                                   |                           |   | 229,209                                        |   |   |   | 136,540 |   |
| Furniture and fixtures                                               |                           |   | 310,898                                        |   |   |   | 310,899 |   |
|                                                                 |                           |   | 5,710,268                                      |   |   |   | 5,420,960 |   |
|        Less - accumulated depreciation |                           |   | (4,484,612                                     | )      |   |   | (4,060,942 | ) |
| Property, plant and equipment, net                                   |                           | $      |        1,225,656 |   |   | $ |        1,360,018 |   |
|                                                                 |

|                                          |       | 2009   |                     | 2008   |
|-----------------------------------------------|--------------------------------|--------|----------------------------------------------|--------|
|        Vacation |                           | $      | 159,591                                      |   | $ | 158,000 |
|        Bonuses  |                           |   | 194,700                                      |   |   | 292,000 |
|        Legal    |                           |   | 55,000                                       |   |   | 360,000 |
|        Other    |                           |   | 331,042                                      |   |   | 400,496 |
| Total accrued expenses and other              |                           | $      |        740,333 |   | $ |        1,210,496 |

|                                         |       | 2009   |                     | 2008   |
|----------------------------------------------|--------------------------------|--------|----------------------------------------------|--------|
| Net Operating Losses                         |                           |   | 20,302                                       |   |   |   | 17,271 |   |
| Deferred Research and Development Costs      |                           |   | 6,613                                        |   |   |   | 5,607 |   |
| Amortization of Acquired Assets              |                           |   | 571                                          |   |   |   | 683 |   |
| Stock Based Compensation                     |                           |   | -                                            |   |   |   | - |   |
| Depreciation of Property Plant and Equipment |                           |   | 866                                          |   |   |   | 984 |   |
| Total Deferred Tax Asset                     |                           |   | 28,352                                       |   |   |   | 24,545 |   |
| Valuation Allowance                          |                           |   |        (28,352 | )      |   |   |        (24,545 | ) |
| Net Deferred Tax Assets                      |                           | $      |  -                                      |   |   | $ |  - |   |
|                                         |

----

|   |       | Balance at        |                    | Additions Charged to |       |                                       |   |       | Balance at End of                        |
|--------|--------------------------------|-------------------|---------------------------------------------|----------------------|--------------------------------|--------------------------------------------|--------|--------------------------------|------------------------------------------|
|   |                           | Beginning of Year |                                        | Costs and Expenses   |                           | Deductions                                 |   | Year                           |
| 2009   |                           | $                 |        24,545 |                 | $                              |        3,919 |   | $                              |        112 |   | $ |        28,352 |
| 2008   |                           |              | 21,621                                      |                 |                           | 3,020                                      |   |                           | 96                                       |   |   | 24,545 |
| 2007   |                           |              | 19,057                                      |                 |                           | 2,603                                      |   |                           | 39                                       |   |   | 21,621 |
|                                                    |       | 2009       |       | 2008       |
|---------------------------------------------------------|--------------------------------|------------|--------------------------------|------------|
|                                                    |                           | (Restated) |                           | (Restated) |
| Statutory federal income tax rate                       |                           | -34.00%    |                           | -34.00%    |
| State tax benefit, net of federal taxes                 |                           | -2.52%     |                           | -4.10%     |
| Other                                                   |                           | 16.94%     |                           | 8.54%      |
| Valuation allowance on deferred tax assets              |                           | 19.58%     |                           | 29.56%     |
|        Effective tax rate |                           | 0.00%      |                           | 0.00%      |

| 2010   |       |   | 562,808                                        |
|--------|--------------------------------|--------|------------------------------------------------|
| 2011   |                           |   | 573,077                                        |
|   |                           | $      |        1,135,885 |
|   |

----

| 2009, For The Quarter Ended               |       | March 30, |                                     | June 30, |       | September 30, |                          | December 31,  |
|-------------------------------------------|--------------------------------|-----------|--------------------------------------------------------------|----------|--------------------------------|---------------|---------------------------------------------------|---------------|
|                                      |                           | As        |                                                         | As       |                           | As            |                                              | As Originally |       | As |
|                                      |                           | Restated  |                                                         | Restated |                           | Restated      |                                              | Reported      |   | Restated |
| Revenues                                  |                           | $         |           1,926 |     |                           | $             |          4,009 |          |   | $ |                 3,922 |   |   | $ |                 3,955 |   |   | $ |          3,955 |   |
| Selling, general & administrative     |                           |      | 2,060                                                        |     |                           |          | 1,802                                             |          |   |   | 1,522 |   |   |   | 2,149 |   |   |   | 2,149 |   |
| Research and development                  |                           |      | 2,697                                                        |     |                           |          | 4,713                                             |          |   |   | 4,828 |   |   |   | 5,185 |   |   |   | 5,185 |   |
| Patent preparation fees                   |                           |      | 109                                                          |     |                           |          | 84                                                |          |   |   | 191 |   |   |   | 350 |   |   |   | 350 |   |
| Operating loss                            |                           |      | (2,940                                                       | )        |                           |          | (2,590                                            | )             |   |   | (2,619 | ) |   |   | (3,730 | ) |   |   | (3,730 | ) |
| Net income (loss)                         |                           |      | (8,080                                                       | )        |                           |          | (12,581                                           | )             |   |   | (1,190 | ) |   |   | 1,049 |   |   |   | 2,450 |   |
| Net loss per share: basic and diluted     |                           | $         | (0.23                                                        | )        |                           | $             | (0.34                                             | )             |   | $ | (0.03 | ) |   | $ | 0.02 |   |   | $ | 0.07 |   |
| Market price range for common stock       |                           |      |                                                         |     |                           |          |                                              |          |   |   |   |   |   |   |   |   |   |   |   |   |
|        High |                           | $         | 5.86                                                         |     |                           | $             | 8.88                                              |          |   | $ | 8.63 |   |   | $ | 10.09 |   |   | $ | 10.09 |   |
|        Low  |                           | $         | 3.15                                                         |     |                           | $             | 4.73                                              |          |   | $ | 6.25 |   |   | $ | 4.83 |   |   | $ | 4.83 |   |
|                                      |                           |      |                                                         |     |                           |          |                                              |          |   |   |   |   |   |   |   |   |   |   |   |   |
| 2008, For The Quarter Ended               |                           | March 30, |                                                         | June 30, |                           | September 30, |                                              | December 31,  |
|                                      |                           |      |                                                         | As       |                           | As            |                                              | As Originally |   | As |
|                                      |                           |      |                                                         | Restated |                           | Restated      |                                              | Reported      |   | Restated |
| Revenues                                  |                           | $         | 1,983                                                        |     |                           | $             | 1,732                                             |          |   | $ | 1,863 |   |   | $ | 2,488 |   |   | $ | 2,488 |   |
| Selling, general & administrative     |                           |      | 1,005                                                        |     |                           |          | 1,165                                             |          |   |   | 945 |   |   |   | 1,493 |   |   |   | 1,493 |   |
| Research and development                  |                           |      | 2,836                                                        |     |                           |          | 2,500                                             |          |   |   | 2,853 |   |   |   | 3,424 |   |   |   | 3,424 |   |
| Patent preparation fees                   |                           |      | 130                                                          |     |                           |          | 134                                               |          |   |   | 198 |   |   |   | 120 |   |   |   | 120 |   |
| Operating loss                            |                           |      | (1,988                                                       | )        |                           |          | (2,067                                            | )             |   |   | (2,134 | ) |   |   | (2,548 | ) |   |   | (2,548 | ) |
| Net income (loss)                         |                           |      | (858                                                         | )        |                           |          | (4,660                                            | )             |   |   | (3,416 | ) |   |   | (1,571 | ) |   |   | (1,218 | ) |
| Net loss per share: basic and diluted     |                           | $         | (0.03                                                        | )        |                           | $             | (0.13                                             | )             |   | $ | (0.10 | ) |   | $ | (0.04 | ) |   | $ | (0.03 | ) |
| Market price range for common stock       |                           |      |                                                         |     |                           |          |                                              |          |   |   |   |   |   |   |   |   |   |   |   |   |
|        High |                           | $         | 3.06                                                         |     |                           | $             | 3.80                                              |          |   | $ | 4.00 |   |   | $ | 3.57 |   |   | $ | 3.57 |   |
|        Low  |                           | $         | 1.93                                                         |     |                           | $             | 2.18                                              |          |   | $ | 2.36 |   |   | $ | 2.19 |   |   | $ | 2.19 |   |

----

|                                        |       | September 30, 2009 |                                       | September 30, 2008 |
|---------------------------------------------|--------------------------------|--------------------|----------------------------------------------------------------|--------------------|
|                                        |                           | As Originally      |                                       |               |   |       |   |   |   |   | As Originally |       |   |   |       |   |   |   |
|                                        |                           | Reported           |                                                           | Adjustments        |   | As Restated |   | Reported |   | Adjustments |   | As Restated |
| Total current assets                        |                           |               | 5,674                                                          |               |   |   |   |   |   | 5,674 |   |   |   | 7,190 |   |   |   |   |   |   | 7,190 |   |
| Total noncurrent assets                     |                           |               | 2,491                                                          |               |   |   |   |   |   | 2,491 |   |   |   | 2,607 |   |   |   |   |   |   | 2,607 |   |
| Total assets                                |                           | $                  | 8,165                                                          |               |   |   |   |   | $ | 8,165 |   |   | $ | 9,797 |   |   |   |   |   | $ | 9,797 |   |
| Total current liabilities                   |                           |               | 9,744                                                          |               |   |   |   |   |   | 9,744 |   |   |   | 3,348 |   |   |   |   |   |   | 3,348 |   |
| Common stock warrants                       |                           |               | 9,915                                                          |               |   | 4,738 |   |   |   | 14,653 |   |   |   | 4,166 |   |   | 1,907 |   |   |   | 6,073 |   |
| Total liabilities                           |                           |               | 19,659                                                         |               |   | 4,738 |   |   |   | 24,397 |   |   |   | 7,514 |   |   | 1,907 |   |   |   | 9,421 |   |
| Common stock and additional paid-in capital |                           |               | 80,488                                                         |               |   |   |   |   |   | 80,488 |   |   |   | 71,318 |   |   |   |   |   |   | 71,318 |   |
| Accumulated deficit                         |                           |               |           (91,982 | )                  |   |           (4,738 | ) |   |   |           (96,720 | ) |   |   |           (69,034 | ) |   |           (1,907 | ) |   |   |           (70,941 | ) |
| Total stockholders' equity                  |                           |               | (11,494                                                        | )                  |   | (4,738 | ) |   |   | (16,232 | ) |   |   | 2,284 |   |   | (1,907 | ) |   |   | 377 |   |
| Total liabilities and stockholders' equity  |                           | $                  | 8,165                                                          |               |   |   |   |   | $ | 8,165 |   |   | $ | 9,798 |   |   |   |   |   | $ | 9,798 |   |
|                                        |                           |               |                                                           |               |
|                                        |                           | June 30, 2009      |                                                           | June 30, 2008      |
|                                        |                           | As Originally      |                                                           |               |   |   |   |   |   |   | As Originally |   |   |   |   |   |   |   |
|                                        |                           | Reported           |                                                           | Adjustments        |   | As Restated |   | Reported |   | Adjustments |   | As Restated |
| Total current assets                        |                           |               | 5,926                                                          |               |   |   |   |   |   | 5,926 |   |   |   | 7,409 |   |   |   |   |   |   | 7,409 |   |
| Total noncurrent assets                     |                           |               | 2,498                                                          |               |   |   |   |   |   | 2,498 |   |   |   | 2,587 |   |   |   |   |   |   | 2,587 |   |
| Total assets                                |                           | $                  | 8,424                                                          |               |   |   |   |   | $ | 8,424 |   |   | $ | 9,996 |   |   |   |   |   | $ | 9,996 |   |
| Total current liabilities                   |                           |               | 10,812                                                         |               |   |   |   |   |   | 10,812 |   |   |   | 1,722 |   |   |   |   |   |   | 1,722 |   |
| Common stock warrants                       |                           |               | 10,759                                                         |               |   | 4,976 |   |   |   | 15,735 |   |   |   | 3,253 |   |   | 1,519 |   |   |   | 4,772 |   |
| Total liabilities                           |                           |               | 21,571                                                         |               |   | 4,976 |   |   |   | 26,547 |   |   |   | 4,975 |   |   | 1,519 |   |   |   | 6,494 |   |
| Common stock and additional paid-in capital |                           |               | 77,406                                                         |               |   |   |   |   |   | 77,406 |   |   |   | 71,026 |   |   |   |   |   |   | 71,026 |   |
| Accumulated deficit                         |                           |               | (90,553                                                        | )                  |   | (4,976 | ) |   |   | (95,529 | ) |   |   | (66,005 | ) |   | (1,519 | ) |   |   | (67,524 | ) |
| Total stockholders' equity                  |                           |               | (13,147                                                        | )                  |   | (4,976 | ) |   |   | (18,123 | ) |   |   | 5,021 |   |   | (1,519 | ) |   |   | 3,502 |   |
| Total liabilities and stockholders' equity  |                           | $                  | 8,424                                                          |               |   |   |   |   | $ | 8,424 |   |   | $ | 9,996 |   |   |   |   |   | $ | 9,996 |   |
|                                        |                           |               |                                                           |               |   |   |   |   |   |   |   |   |   |   |
|                                        |                           | March 31, 2009     |                                                           |               |   |   |   |   |   |   |   |   |   |   |
|                                        |                           | As Originally      |                                                           |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        |                           | Reported           |                                                           | Adjustments        |   | As Restated |   |   |   |   |   |   |   |   |   |   |   |
| Total current assets                        |                           |               | 4,970                                                          |               |   |   |   |   |   | 4,970 |   |   |   |   |   |   |   |   |   |   |   |   |
| Total noncurrent assets                     |                           |               | 2,436                                                          |               |   |   |   |   |   | 2,436 |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                |                           | $                  | 7,406                                                          |               |   |   |   |   | $ | 7,406 |   |   |   |   |   |   |   |   |   |   |   |   |
| Total current liabilities                   |                           |               | 8,059                                                          |               |   |   |   |   |   | 8,059 |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock warrants                       |                           |               | 5,708                                                          |               |   | 2,748 |   |   |   | 8,456 |   |   |   |   |   |   |   |   |   |   |   |   |
| Total liabilities                           |                           |               | 13,767                                                         |               |   | 2,748 |   |   |   | 16,515 |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock and additional paid-in capital |                           |               | 73,839                                                         |               |   |   |   |   |   | 73,839 |   |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated deficit                         |                           |               | (80,200                                                        | )                  |   | (2,748 | ) |   |   | (82,948 | ) |   |   |   |   |   |   |   |   |   |   |   |
| Total stockholders' equity                  |                           |               | (6,361                                                         | )                  |   | (2,748 | ) |   |   | (9,109 | ) |   |   |   |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders' equity  |                           | $                  | 7,406                                                          |               |   |   |   |   | $ | 7,406 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        |

----

|                                        |       | Three months ended September 30, 2009 |                                 | Nine months ended September 30, 2009 |
|---------------------------------------------|--------------------------------|---------------------------------------|----------------------------------------------------------|--------------------------------------|
|                                        |                           | As Originally                         |                                 |                                 |   |   |       |   |   |   |   | As Originally |       |   |   |   |       |   |   |   |
|                                        |                           | Reported                              |                                                     | Adjustments                          |   | As Restated |   | Reported |   | Adjustments |   | As Restated |
| Revenues                                    |                           | $                                     | 3,922                                                    |                                 |   |   |   |   |   | $ | 3,922 |   |   | $ | 9,857 |   |   |   |   |   |   | $ | 9,857 |   |
| Total operating expenses                    |                           |                                  | 6,541                                                    |                                 |   |   |   |   |   |   | 6,541 |   |   |   | 18,006 |   |   |   |   |   |   |   | 18,006 |   |
| Operating loss                              |                           |                                  | (2,619                                                   | )                                    |   |   |   |   |   |   | (2,619 | ) |   |   | (8,149 | ) |   |   |   |   |   |   | (8,149 | ) |
| Decrease (increase) in fair value of common |                           |                                  |                                                     |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| stock rights and common stock warrants      |                           |                                  | 1,190                                                    |                                 |   |   | 239 |   |   |   | 1,429 |   |   |   | (10,517 | ) |   |   | (3,184 | ) |   |   | (13,701 | ) |
| Net loss                                    |                           | $                                     |           (1,429 | )                                    |   | $ |            239 |   |   | $ |        (1,190 | ) |   | $ |        (18,666 | ) |   | $ |        (3,184 | ) |   | $ |        (21,850 | ) |
| Weighted average shares outstanding: basic  |                           |                                  |                                                     |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and diluted                                 |                           |                                  | 37,675                                                   |                                 |   |   |   |   |   |   | 37,675 |   |   |   | 36,761 |   |   |   |   |   |   |   | 36,761 |   |
| Net loss per share: basic and diluted       |                           | $                                     | (0.04                                                    | )                                    |   | $ | 0.01 |   |   | $ | (0.03 | ) |   | $ | (0.51 | ) |   | $ | (0.08 | ) |   | $ | (0.59 | ) |
|                                        |                           |                                  |                                                     |                                 |   |   |   |   |
|                                        |                           |                                  | Three months ended June 30, 2009                         |                                 |   |   | Six months ended June 30, 2009 |   |
|                                        |                           | As Originally                         |                                                     |                                 |   |   |   |   |   |   |   | As Originally |   |   |   |   |   |   |   |   |
|                                        |                           | Reported                              |                                                     | Adjustments                          |   | As Restated |   | Reported |   | Adjustments |   | As Restated |
| Revenues                                    |                           | $                                     | 4,009                                                    |                                 |   |   |   |   |   | $ | 4,009 |   |   | $ | 5,935 |   |   |   |   |   |   | $ | 5,935 |   |
| Total operating expenses                    |                           |                                  | 6,599                                                    |                                 |   |   |   |   |   |   | 6,599 |   |   |   | 11,465 |   |   |   |   |   |   |   | 11,465 |   |
| Operating loss                              |                           |                                  | (2,590                                                   | )                                    |   |   |   |   |   |   | (2,590 | ) |   |   | (5,530 | ) |   |   |   |   |   |   | (5,530 | ) |
| Decrease (increase) in fair value of common |                           |                                  |                                                     |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| stock rights and common stock warrants      |                           |                                  | (7,763                                                   | )                                    |   |   | (2,228 | ) |   |   | (9,991 | ) |   |   | (11,708 | ) |   |   | (3,423 | ) |   |   | (15,131 | ) |
| Net loss                                    |                           | $                                     | (10,353                                                  | )                                    |   | $ | (2,228 | ) |   | $ | (12,581 | ) |   | $ | (17,238 | ) |   | $ | (3,423 | ) |   | $ | (20,661 | ) |
| Weighted average shares outstanding: basic  |                           |                                  |                                                     |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and diluted                                 |                           |                                  | 36,748                                                   |                                 |   |   |   |   |   |   | 36,748 |   |   |   | 36,293 |   |   |   |   |   |   |   | 36,293 |   |
| Net loss per share: basic and diluted       |                           | $                                     | (0.28                                                    | )                                    |   | $ | (0.06 | ) |   | $ | (0.34 | ) |   | $ | (0.47 | ) |   | $ | (0.10 | ) |   | $ | (0.57 | ) |
|                                        |                           |                                  |                                                     |                                 |   |   |   |   |   |   |   |   |   |   |
|                                        |                           | Three months ended March 31, 2009     |                                                     |                                 |   |   |   |   |   |   |   |   |   |   |
|                                        |                           | As Originally                         |                                                     |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        |                           | Reported                              |                                                     | Adjustments                          |   | As Restated |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                    |                           | $                                     | 1,926                                                    |                                 |   |   |   |   |   | $ | 1,926 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total operating expenses                    |                           |                                  | 4,866                                                    |                                 |   |   |   |   |   |   | 4,866 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating loss                              |                           |                                  | (2,940                                                   | )                                    |   |   |   |   |   |   | (2,940 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Decrease (increase) in fair value of common |                           |                                  |                                                     |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| stock rights and common stock warrants      |                           |                                  | (3,945                                                   | )                                    |   |   | (1,195 | ) |   |   | (5,140 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                    |                           | $                                     | (6,885                                                   | )                                    |   | $ | (1,195 | ) |   | $ | (8,080 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding: basic  |                           |                                  |                                                     |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and diluted                                 |                           |                                  | 35,838                                                   |                                 |   |   |   |   |   |   | 35,838 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss per share: basic and diluted       |                           | $                                     | (0.19                                                    | )                                    |   | $ | (0.04 | ) |   | $ | (0.23 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        |

----

|                                        |                           | Three months ended September 30, 2008 |                                              | Nine months ended September 30, 2008 |
|---------------------------------------------|--------------------------------|---------------------------------------|---------------------------------------------------|--------------------------------------|
|                                        |                           | As Originally                         |                                              |                                 |   |   |   | As Originally |   |   |   |   |
|                                        |       | Reported                              |                          | Adjustments                          |       | As Restated |       | Reported |       | Adjustments |       | As Restated |
| Revenues                                    |                           | $                                     | 1,863                                             |                                 |   |   |   |   |   | $ | 1,863 |   |   | $ | 5,577 |   |   |   |   |   |   | $ | 5,577 |   |
| Total operating expenses                    |                           |                                  | 3,997                                             |                                 |   |   |   |   |   |   | 3,997 |   |   |   | 11,767 |   |   |   |   |   |   |   | 11,767 |   |
| Operating loss                              |                           |                                  | (2,134                                            | )                                    |   |   |   |   |   |   | (2,134 | ) |   |   | (6,190 | ) |   |   |   |   |   |   | (6,190 | ) |
| Decrease (increase) in fair value of common |                           |                                  |                                              |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| stock rights and common stock warrants      |                           |                                  | (913                                              | )                                    |   |   | (387 | ) |   |   | (1,300 | ) |   |   | (923 | ) |   |   | (1,907 | ) |   |   | (2,830 | ) |
| Other income, net                           |                           |                                  | 18                                                |                                 |   |   |   |   |   |   | 18 |   |   |   | 85 |   |   |   |   |   |   |   | 85 |   |
| Net loss                                    |                           | $                                     | (3,029                                            | )                                    |   | $ | (387 | ) |   | $ | (3,416 | ) |   | $ | (7,028 | ) |   | $ | (1,907 | ) |   | $ | (8,935 | ) |
| Weighted average shares outstanding: basic  |                           |                                  |                                              |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and diluted                                 |                           |                                  | 35,109                                            |                                 |   |   |   |   |   |   | 35,109 |   |   |   | 34,525 |   |   |   |   |   |   |   | 34,525 |   |
| Net loss per share: basic and diluted       |                           | $                                     | (0.09                                             | )                                    |   | $ | (0.01 | ) |   | $ | (0.10 | ) |   | $ | (0.20 | ) |   | $ | (0.06 | ) |   | $ | (0.26 | ) |
|                                        |                           |                                  |                                              |                                 |   |   |   |   |
|                                        |                           |                                  |                                              |                                 |   |   |   |   |
|                                        |                           | Three months ended June 30, 2008      |                                              | Six months ended June 30, 2008       |
|                                        |                           | As Originally                         |                                              |                                 |   |   |   | As Originally |   |   |   |   |
|                                        |                           | Reported                              |                                              | Adjustments                          |   | As Restated |   | Reported |   | Adjustments |   | As Restated |
| Revenues                                    |                           | $                                     | 1,732                                             |                                 |   |   |   |   |   | $ | 1,732 |   |   | $ | 3,715 |   |   |   |   |   |   | $ | 3,715 |   |
| Total operating expenses                    |                           |                                  | 3,799                                             |                                 |   |   |   |   |   |   | 3,799 |   |   |   | 7,770 |   |   |   |   |   |   |   | 7,770 |   |
| Operating loss                              |                           |                                  | (2,067                                            | )                                    |   |   |   |   |   |   | (2,067 | ) |   |   | (4,055 | ) |   |   |   |   |   |   | (4,055 | ) |
| Decrease (increase) in fair value of common |                           |                                  |                                              |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| stock rights and common stock warrants      |                           |                                  |         (1,097 | )                                    |   |   |         (1,519 | ) |   |   |         (2,616 | ) |   |   | (10 | ) |   |   | (1,519 | ) |   |   | (1,529 | ) |
| Other income, net                           |                           |                                  | 23                                                |                                 |   |   |   |   |   |   | 23 |   |   |   | 66 |   |   |   |   |   |   |   | 66 |   |
| Net loss                                    |                           | $                                     | (3,141                                            | )                                    |   | $ | (1,519 | ) |   | $ | (4,660 | ) |   | $ |         (3,999 | ) |   | $ |         (1,519 | ) |   | $ |         (5,518 | ) |
| Weighted average shares outstanding: basic  |                           |                                  |                                              |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and diluted                                 |                           |                                  | 34,507                                            |                                 |   |   |   |   |   |   | 34,507 |   |   |   | 34,227 |   |   |   |   |   |   |   | 34,227 |   |
| Net loss per share: basic and diluted       |                           | $                                     | (0.09                                             | )                                    |   | $ | (0.04 | ) |   | $ | (0.13 | ) |   | $ | (0.12 | ) |   | $ | (0.04 | ) |   | $ | (0.16 | ) |
|                                        |

----

----

----

----

| Exhibit                                              |                           |                                                                                                                                                                                                                                                                                                                      |
|------------------------------------------------------|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| No.                                                  |       | Description                                                                                                                                                                                                                                                                                                               |   |
| 3(a)         |                           | Restated Articles of Incorporation of the Company (incorporated by reference to the Form S-3 Registration Statement of the Company dated May 10, 2000 (No. 333-36682)).                                                                                                                                                   |
|                                                 |                           |                                                                                                                                                                                                                                                                                                                      |
| 3(b)                                                 |                           | Form of Certificate of Amendment of the Restated Certificate of Incorporation of SIGA Technologies, Inc. (incorporated by reference to the Proxy Statement on Schedule 14A of the Company dated June 15, 2007).                                                                                                           |
|                                                 |                           |                                                                                                                                                                                                                                                                                                                      |
| 3(c)                                                 |                           | Amended and Restated Bylaws of the Company (incorporated by reference to the Annual Report on Form 10-K of the Company for the year ended December 31, 2008), as amended by the Amendment to the Bylaws of the Company (incorporated by reference to the Current Report on Form 8-K of the Company filed March 12, 2009). |
|                                                 |                           |                                                                                                                                                                                                                                                                                                                      |
| 4(a)                                                 |                           | Form of Common Stock Certificate (incorporated by reference to the Form SB-2 Registration Statement of the Company dated March 10, 1997 (No. 333-23037)).                                                                                                                                                                 |
|                                                 |                           |                                                                                                                                                                                                                                                                                                                      |
| 4(b)                                                 |                           | Warrant Agreement dated as of September 15, 1996 between the Company and Vincent A. Fischetti (1) (incorporated by reference to the Form SB-2 Registration Statement of the Company dated March 10, 1997 (No. 333-23037)).                                                                                                |
|                                                 |                           |                                                                                                                                                                                                                                                                                                                      |
| 4(c)                                                 |                           | Warrant Agreement dated as of November 18, 1996 between the Company and David de Weese (1) (incorporated by reference to the Form SB-2 Registration Statement of the Company dated March 10, 1997 (No. 333-23037)).                                                                                                       |
|                                                 |                           |                                                                                                                                                                                                                                                                                                                      |
| 4(d)                                                 |                           | Warrant Agreement between the Company and Stefan Capital, dated September 9, 1999 (incorporated by reference to the Annual Report on Form 10-KSB of the Company for the year ended December 31, 1999).                                                                                                                    |
|                                                 |                           |                                                                                                                                                                                                                                                                                                                      |
| 4(e)                                                 |                           | Registration Rights Agreement, dated as of May 23, 2003, between the Company and Plexus Vaccine Inc. (incorporated by reference to the Current Report on Form 8-K of the Company filed on June 9, 2003).                                                                                                                  |
|                                                 |                           |                                                                                                                                                                                                                                                                                                                      |
| 4(f)                                                 |                           | Registration Rights Agreement, dated as of August 13, 2003, between the Company and MacAndrews & Forbes Holdings Inc. (incorporated by reference to the Current Report on Form 8-K of the Company filed on August 18, 2003).                                                                                          |
|                                                 |                           |                                                                                                                                                                                                                                                                                                                      |
| 4(g)                                                 |                           | Form of Warrant to purchase shares of common stock of the Company, issued to MacAndrews & Forbes, LLC on June 19, 2008 (incorporated by reference to the Current Report on Form 8-K of the Company filed on June 23, 2008).                                                                                           |

----

| 10(a)     |       | License and Research Support Agreement between the Company and The Rockefeller University, dated as of January 31, 1996; and Amendment to License and Research Support Agreement between the Company and The Rockefeller University, dated as of October 1, 1996(2) (incorporated by reference to the Form SB-2 Registration Statement of the Company dated March 10, 1997 (No. 333-23037)). |
|-------------------------------|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                          |                           |                                                                                                                                                                                                                                                                                                                                                                                         |
| 10(b)                         |                           | Research Agreement between the Company and Emory University, dated as of January 31, 1996(2) (incorporated by reference to the Form SB-2 Registration Statement of the Company dated March 10, 1997 (No. 333-23037)).                                                                                                                                                                        |
|                          |                           |                                                                                                                                                                                                                                                                                                                                                                                         |
| 10(c)                         |                           | Research Support Agreement between the Company and Oregon State University, dated as of January 31, 1996(2) (incorporated by reference to the Form SB-2 Registration Statement of the Company dated March 10, 1997 (No. 333-23037)).                                                                                                                                                         |
|                          |                           |                                                                                                                                                                                                                                                                                                                                                                                         |
| 10(d)                         |                           | Letter Agreement dated as of March 5, 1999 to continue the Research Support Agreement (incorporated by reference to the Annual Report on Form 10-KSB of the Company for the year ended December 31, 1999).                                                                                                                                                                                   |
|                          |                           |                                                                                                                                                                                                                                                                                                                                                                                         |
| 10(e)                         |                           | Option Agreement between the Company and Oregon State University, dated as of November 30, 1999 and related Amendments to the Agreement (incorporated by reference to the Annual Report on Form 10-KSB of the Company for the year ended December 31, 1999).                                                                                                                                 |
|                          |                           |                                                                                                                                                                                                                                                                                                                                                                                         |
| 10(f)                         |                           | Clinical Trials Agreement between the Company and National Institute of Allergy and Infectious Diseases, dated as of July 1, 1997 (incorporated by reference to Amendment No. 1 to the Form SB-2 Registration Statement of the Company dated July 11, 1997 (No. 333-23037)).                                                                                                                 |
|                          |                           |                                                                                                                                                                                                                                                                                                                                                                                         |
| 10(g)                         |                           | Research Agreement between the Company and The Research Foundation of State University of New York, dated as of July 1, 1997(2) (incorporated by reference to Amendment No. 1 to the Form SB-2 Registration Statement of the Company dated July 11, 1997 (No. 333-23037)).                                                                                                                   |
|                          |                           |                                                                                                                                                                                                                                                                                                                                                                                         |
| 10(h)                         |                           | Collaborative Research and License Agreement between the Company and Wyeth, dated as of July 1, 1997(2) (incorporated by reference to Amendment No. 3 to the Form SB-2 Registration Statement of the Company dated September 2, 1997 (No. 333-23037)).                                                                                                                                       |
|                          |                           |                                                                                                                                                                                                                                                                                                                                                                                         |
| 10(i)                         |                           | Research Collaboration and License Agreement between the Company and The Washington University, dated as of February 6, 1998 (2) (incorporated by reference to the Annual Report on Form 10-KSB of the Company for the year ended December 31, 1997).                                                                                                                                        |
|                          |                           |                                                                                                                                                                                                                                                                                                                                                                                         |
| 10(j)                         |                           | Settlement Agreement and Mutual Release between the Company and The Washington University, dated as of February 17, 2000 (incorporated by reference to the Annual Report on Form 10-KSB of the Company for the year ended December 31, 1999).                                                                                                                                                |
|                          |                           |                                                                                                                                                                                                                                                                                                                                                                                         |
| 10(k)                         |                           | Technology Transfer Agreement between the Company and MedImmune, Inc., dated as of February 10, 1998 (incorporated by reference to the Annual Report on Form 10-KSB of the Company for the year ended December 31, 1997).                                                                                                                                                                    |
|                          |                           |                                                                                                                                                                                                                                                                                                                                                                                         |
| 10(l)                         |                           | Option Agreement between the Company and Ross Products Division of Abbott Laboratories, dated February 28, 2000 (incorporated by reference to the Annual Report on Form 10-KSB of the Company for the year ended December 31, 1999).                                                                                                                                                         |
|                          |                           |                                                                                                                                                                                                                                                                                                                                                                                         |
| 10(m)                         |                           | Agreement between the Company and Oregon State University for the Company to provide contract research services to the University dated September 24, 2000 (incorporated by reference to the Annual Report on Form 10-KSB of the Company for the year ended December 31, 2000).                                                                                                              |

----

| 10(n)     |       | License and Research Agreements between the Company and the Regents of the University of California dated December 6, 2000 (incorporated by reference to the Annual Report on Form 10-KSB of the Company for the year ended December 31, 2000).                                                                      |
|-------------------------------|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                          |                           |                                                                                                                                                                                                                                                                                                                 |
| 10(o)                         |                           | Amended and Restated 1996 Incentive and Non-Qualified Stock Option Plan dated August 15, 2001 (incorporated by reference to the Annual Report on Form 10-KSB of the Company for the year ended December 31, 2001), as amended (as set forth in the Current Report on Form 8-K of the Company filed on May 27, 2005). |
|                          |                           |                                                                                                                                                                                                                                                                                                                 |
| 10(p)                         |                           | Research and License Agreement between the Company and TransTech Pharma, Inc. dated October 1, 2002 (incorporated by reference to the Annual Report on Form 10-KSB of the Company for the year ended December 31, 2002).                                                                                             |
|                          |                           |                                                                                                                                                                                                                                                                                                                 |
| 10(q)                         |                           | Contract between the Company and the Department of the United States Army dated December 12, 2002 (incorporated by reference to the Annual Report on Form 10-KSB of the Company for the year ended December 31, 2002).                                                                                               |
|                          |                           |                                                                                                                                                                                                                                                                                                                 |
| 10(r)                         |                           | Contract between the Company and Four Star Group dated February 5, 2003 (incorporated by reference to the Annual Report on Form 10-KSB of the Company for the year ended December 31, 2002).                                                                                                                         |
|                          |                           |                                                                                                                                                                                                                                                                                                                 |
| 10(s)                         |                           | Securities Purchase Agreement, dated as of August 13, 2003, between the Company and MacAndrews & Forbes Holdings Inc. (incorporated by reference to the Current Report on Form 8-K of the Company filed on August 18, 2003).                                                                                     |
|                          |                           |                                                                                                                                                                                                                                                                                                                 |
| 10(t)                         |                           | Letter Agreement dated October 8, 2003 among the Company, MacAndrews & Forbes Holdings Inc. and TransTech Pharma, Inc. (incorporated by reference to the Current Report on Form 8-K of the Company filed on August 18, 2003).                                                                                    |
|                          |                           |                                                                                                                                                                                                                                                                                                                 |
| 10(u)                         |                           | Non-Employee Director Compensation Summary Sheet (incorporated by reference to the Quarterly Report on Form 10-Q of the Company for the quarter ending March 31, 2005).                                                                                                                                              |
|                          |                           |                                                                                                                                                                                                                                                                                                                 |
| 10(v)                         |                           | Director Compensation Program, effective April 21, 2005 (incorporated by reference to the Current Report on Form 8-K of the Company filed on April 26, 2005).                                                                                                                                                        |
|                          |                           |                                                                                                                                                                                                                                                                                                                 |
| 10(w)                         |                           | Service Agreement, dated as of April 27, 2005, between the Company and TransTech Pharma, Inc. (incorporated by reference to the Current Report on Form 8-K of the Company filed on May 3, 2005).                                                                                                                     |
|                          |                           |                                                                                                                                                                                                                                                                                                                 |
| 10(x)                         |                           | Master Security Agreement, dated as of April 29, 2005, between General Electric Capital Corporation and the Company (incorporated by reference to the Current Report on Form 8-K of the Company filed on May 3, 2005).                                                                                               |
|                          |                           |                                                                                                                                                                                                                                                                                                                 |
| 10(y)                         |                           | Agreement, dated as of September 14, 2005, between Saint Louis University and the Company (incorporated by reference to the Current Report on Form 8-K of the Company filed on September 20, 2005).                                                                                                                  |
|                          |                           |                                                                                                                                                                                                                                                                                                                 |
| 10(z)                         |                           | Agreement, dated as of September 22, 2005, between the United States Army Medical Research and Material Command and the Company (incorporated by reference to the Current Report on Form 8-K of the Company filed on September 27, 2005).                                                                            |

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| 10(aa)     |       | Securities Purchase Agreement, dated as of November 2, 2005, between Iroquois Master Fund Ltd., Cranshire Capital, L.P., Omicron Master Trust, Smithfield Fiduciary LLC and the Company (incorporated by reference to the Current Report on Form 8-K of the Company filed on November 4, 2005).                                                |
|--------------------------------|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                           |                           |                                                                                                                                                                                                                                                                                                                                           |
| 10(bb)                         |                           | Exclusive Finder’s Agreement, dated as of November 1, 2005, between the Shemano Group, Inc. and the Company (incorporated by reference to the Current Report on Form 8-K of the Company filed on November 4, 2005).                                                                                                                      |
|                           |                           |                                                                                                                                                                                                                                                                                                                                           |
| 10(cc)                         |                           | Bridge Note Purchase Agreement, dated as of March 20, 2006, between the Company and PharmAthene, Inc. (incorporated by reference to the Current Report on Form 8-K of the Company filed on March 22, 2006).                                                                                                                                    |
|                           |                           |                                                                                                                                                                                                                                                                                                                                           |
| 10(dd)                         |                           | Security Agreement, dated as of March 20, 2006, between the Company and PharmAthene, Inc. (incorporated by reference to the Current Report on Form 8-K of the Company filed on March 22, 2006).                                                                                                                                                |
|                           |                           |                                                                                                                                                                                                                                                                                                                                           |
| 10(ee)                         |                           | Voting Agreement, dated as of June 8, 2006, among the Company, TransTech Pharma, Inc., MacAndrews & Forbes, Inc., Howard Gittis, Donald G. Drapkin, James J. Antal, Thomas E. Constance, Mehmet C. Oz, Eric A. Rose and Paul G. Savas (incorporated by reference to the Current Report on Form 8-K of the Company filed on June 13, 2006). |
|                           |                           |                                                                                                                                                                                                                                                                                                                                           |
| 10(ff)                         |                           | Agreement and Plan of Merger, dated as of June 8, 2006, among the Company, SIGA Acquisition Corp. and PharmAthene, Inc. (incorporated by reference to the Current Report on Form 8-K of the Company filed on June 13, 2006).                                                                                                                   |
|                           |                           |                                                                                                                                                                                                                                                                                                                                           |
| 10(gg)                         |                           | 8% Note, dated as of June 19, 2006, between the Company and PharmAthene, Inc. (incorporated by reference to the Current Report on Form 8-K of the Company filed on June 20, 2006).                                                                                                                                                             |
|                           |                           |                                                                                                                                                                                                                                                                                                                                           |
| 10(hh)                         |                           | Agreement, dated as of September 29, 2006, between SIGA Technologies, Inc. and the National Institute of Allergy and Infectious Diseases of the National Institutes for Health (incorporated by reference to the Quarterly Report on Form 10-Q/A for the quarter ending September 30, 2006).                                                   |
|                           |                           |                                                                                                                                                                                                                                                                                                                                           |
| 10(ii)                         |                           | Securities Purchase Agreement, dated as of October 18, 2006, between the Company, Iroquois Master Fund Ltd., Cranshire Capital, L.P., Omicron Master Trust, Rockmore Investment Master Fund, Ltd., and Smithfield Fiduciary LLC (incorporated by reference to the Current Report on Form 8-K of the Company filed on October 20, 2006).        |
|                           |                           |                                                                                                                                                                                                                                                                                                                                           |
| 10(jj)                         |                           | Amended and Restated Employment Agreement, dated as of January 22, 2007, between the Company and Dennis E. Hruby (incorporated by reference to the Current Report on Form 8-K of the Company filed on January 22, 2007).                                                                                                                       |
|                           |                           |                                                                                                                                                                                                                                                                                                                                           |
| 10(kk)                         |                           | Letter Agreement, dated as of June 19, 2008, between the Company and MacAndrews & Forbes, LLC (incorporated by reference to the Current Report on Form 8-K of the Company filed on June 23, 2008).                                                                                                                                         |
|                           |                           |                                                                                                                                                                                                                                                                                                                                           |
| 10(ll)                         |                           | Contract, dated September 1, 2008, between the Company and the National Institutes of Health, DHHS (incorporated by reference to the Quarterly Report on Form 10-Q of the Company for the quarter ending September 30, 2008).                                                                                                                  |

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| 10(mm)     |       | Modification of Contract, dated September 17, 2008, between the Company and the National Institute of Allergy and Infectious Diseases of the National Institutes of Health (incorporated by reference to the Quarterly Report on Form 10-Q of the Company for the quarter ending September 30, 2008).                |
|--------------------------------|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                           |                           |                                                                                                                                                                                                                                                                                                                 |
| 10(nn)                         |                           | Employment Agreement, dated as of January 31, 2007, between the Company and Eric A. Rose (incorporated by reference to the Current Report on Form 8-K of the Company filed on January 31, 2007), as amended and restated (as set forth in the Current Report on Form 8-K of the Company filed on November 17, 2008). |
|                           |                           |                                                                                                                                                                                                                                                                                                                 |
| 10(oo)                         |                           | Employment Agreement, dated January 22, 2007, between the Company and Ayelet Dugary (incorporated by reference to the Current Report on Form 8-K of the Company filed on March 12, 2009).                                                                                                                            |
|                           |                           |                                                                                                                                                                                                                                                                                                                 |
| 10(pp)                         |                           | Amendment to Employment Agreement, dated March 11, 2009, between the Company and Ayelet Dugary (incorporated by reference to the Current Report on Form 8-K of the Company filed on March 12, 2009).                                                                                                                 |
|                           |                           |                                                                                                                                                                                                                                                                                                                 |
| 10(qq)                         |                           | Letter Agreement, dated as of April 29, 2009, between the Company and Ayelet Dugary (incorporated by reference to the Current Report on Form 8-K of the Company filed on April 30, 2009).                                                                                                                            |
|                           |                           |                                                                                                                                                                                                                                                                                                                 |
| 10(rr)                         |                           | Amendment to Employment Agreement, dated March 11, 2009, between the Company and Dennis E. Hruby (incorporated by reference to the Current Report on Form 8-K of the Company filed on March 12, 2009).                                                                                                               |
|                           |                           |                                                                                                                                                                                                                                                                                                                 |
| 10(ss)                         |                           | Extension Letter Agreement, dated April 29, 2009, between MacAndrews & Forbes LLC and the Company (incorporated by reference to the Current Report on Form 8-K of the Company filed on April 30, 2009).                                                                                                          |
|                           |                           |                                                                                                                                                                                                                                                                                                                 |
| 10(tt)                         |                           | Form of Consideration Warrants (incorporated by reference to the Current Report on Form 8-K of the Company filed on April 30, 2009).                                                                                                                                                                                 |
|                           |                           |                                                                                                                                                                                                                                                                                                                 |
| 10(uu)                         |                           | Form of Subscription Agreement (incorporated by reference to the Current Report on Form 8-K of the Company filed on December 10, 2009).                                                                                                                                                                              |
|                           |                           |                                                                                                                                                                                                                                                                                                                 |
| 14                             |                           | The Company’s Code of Ethics and Business Conduct (incorporated by reference to the Annual Report on Form 10-KSB of the Company for the year ended December 31, 2003).                                                                                                                                         |
|                           |                           |                                                                                                                                                                                                                                                                                                                 |
| 21                             |                           | Subsidiaries of the Registrant.                                                                                                                                                                                                                                                                                      |
|                           |                           |                                                                                                                                                                                                                                                                                                                 |
| 23.1                           |                           | Consent of Independent Registered Public Accounting Firm.                                                                                                                                                                                                                                                            |
|                           |                           |                                                                                                                                                                                                                                                                                                                 |
| 31.1                           |                           | Certification pursuant to Rules 13a-15(e) or 15d-15(e) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 – Chief Executive Officer.                                                                                                              |
|                           |                           |                                                                                                                                                                                                                                                                                                                 |
| 31.2                           |                           | Certification pursuant to Rules 13a-15(e) or 15d-15(e) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 – Chief Financial Officer.                                                                                                              |
|                           |                           |                                                                                                                                                                                                                                                                                                                 |
| 32.1                           |                           | Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 – Chief Executive Officer.                                                                                                                                                              |

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|                                                 |                      |                                                                                                                                                    |
|------------------------------------------------------|---------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| 32.2         |       | Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 – Chief Financial Officer. |

| (1)    |      | These agreements were entered into prior to the reverse split of the Company’s common stock and, therefore, do not reflect such reverse split. |
|--------|--------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
| (2)    |                     | Confidential information is omitted and identified by an * and filed separately with the SEC with a request for Confidential Treatment.              |

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|                   | SIGA TECHNOLOGIES, INC. |
|------------------------|-------------------------|
|                   | (Registrant)            |
|                   |                    |   |   |
|                   |                    |   |   |
| Date: October 19, 2010 | By:      | /s/ Eric A. Rose |   |
|                   |                    | Eric A. Rose, M.D. |
|                   |                    | Chief Executive Officer |

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