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| UNITED STATES                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| SECURITIES AND EXCHANGE COMMISSION                                                                                                                                                                                                                                                                                                                                                                                                                |
| WASHINGTON, D.C. 20549                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| FORM 10-K                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| [ X ]  Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934                                                                                                                                                                                                                                                                                                                                             |
| For the fiscal year ended December 31, 2012                                                                                                                                                                                                                                                                                                                                                                                                       |
| OR                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| [    ]  Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934                                                                                                                                                                                                                                                                                                                    |
| For the transition period from _____ to _______                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Commission File Number: 001-09014                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| CHYRON CORPORATION                                                                                                                                                                                                                                                                                                                                                                                                                                |
| (Exact name of registrant as specified in its charter)                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |
| New York                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 11-2117385 |
| (State or other jurisdiction of incorporation or organization)                                                                                                                                                                                                                                                                                                                                                                                    |   | (I.R.S. Employer Identification No.) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |
| 5 Hub Drive, Melville, New York                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 11747 |
| (Address of principal executive offices)                                                                                                                                                                                                                                                                                                                                                                                                          |   | (Zip Code) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Registrant's telephone number, including area code: (631) 845-2000                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Securities registered pursuant to Section 12(b) of the Act:                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Common Stock, par value $0.01 per share                                                                                                                                                                                                                                                                                                                                                                                                           |   | The NASDAQ Stock Market LLC |
| (Title of Class)                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | (Name of exchange on which registered) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |
| Securities registered pursuant to Section 12(g) of the Act:   None                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.     Yes[  ]      No[x]                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.     Yes[  ]      No[x]                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes[x]      No[  ]        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     Yes[ x ]      No[   ] |
|                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.   [  ]                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Large accelerated filer [  ]                                                                                                                                                                                                                                                                                                                                                                                                       | Accelerated filer[  ] | Non-accelerated filer [  ] | Smaller reporting company [x] |
|                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | (do not check if a smaller reporting company) |   |
| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes [  ]   No [x]                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| The aggregate market value of the Company's voting and non-voting common equity held by non-affiliates of the Company (without admitting that any person whose shares are not included in such calculations is an affiliate) on June 30, 2012 was $13,530,978.The number of shares outstanding of the issuer's common stock, par value $.01 per share, on February 25, 2013 was 17,373,390.                                                       |
|  DOCUMENTS INCORPORATED BY REFERENCE                                                                                                                                                                                                                                                                                                                                                                                                    |
| Portions of the proxy statement for the 2013 Annual Meeting of Shareholders are incorporated by reference into Part III.                                                                                                                                                                                                                                                                                                                          |

----

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| ·   | create online or offline, high definition (HD) or standard definition (SD), mono- or stereoscopic graphics containing text, logos, images, three dimensional (3D) elements, movies, clips and flipbooks by applying special effects, animation, 3D transformations, lighting, digital video effects (DVE), multi-layer compositing and audio; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | perform real-time playout of graphics without the necessity of time- and resource-consuming file conversion and/or platform changes; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------|

| ·   | perform instant updates of text and data using a variety of Chyron and third-party tools; |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | manage clips, stills and other assets in a central storage location making the assets network- and web-accessible; |
|--------------------|--------------------------------------------------------------------------------------------------------------------|

| ·   | use our CAMIO Graphics Asset Management solution to enable journalists and producers to quickly create and update graphics for immediate playout; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | create and order graphics on the web, using the Chyron-hosted Axis SaaS applications; |
|--------------------|---------------------------------------------------------------------------------------|

| ·   | automate channel branding to enable facilities to pre-program promos, snipes, coming-ups, etc., that display automatically updated information and graphics without the necessity of recreating each graphic with the new information;  |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | play clips from a dedicated clip server that can operate under automation; |
|--------------------|----------------------------------------------------------------------------|

| ·   | produce live-data tickers and crawls on dedicated systems; |
|--------------------|------------------------------------------------------------|

| ·   | integrate with third-party production systems to stream HD or SD full motion graphics over a network connection (ChyronIP); |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------|

| ·   | route, manage, and insert social media conversations from Twitter, Facebook, RSS Feeds and other social media services into a broadcasters programming (SHOUT™), automatically incorporating the brand look and feel (graphic design) of that broadcaster; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | integrate 2nd screen, social media, synchronized program content and social data into live TV broadcasts (ENGAGE®) via audience polling and other viewer-engaging social interactions. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | our broadcast customers do not continue to order our products at the same rate or in the same quantities following their transition to HD, or their budgets for such products are reduced or eliminated; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | we fail to increase sales of our Axis graphics solutions in sufficient amounts to offset any declines in sales of our traditional broadcast products; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | we fail to complete and introduce new product designs and services in a timely manner; |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | we are unable to have these new products manufactured or developed according to design specifications; |
|--------------------|--------------------------------------------------------------------------------------------------------|

| ·   | our customers do not perceive value in our new offerings and demand deep discounts; |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | we do not open the appropriate marketing/sales channels for our hosted and non-broadcast products; |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | our sales channels do not create adequate demand for our products; or |
|--------------------|-----------------------------------------------------------------------|

| ·   | market demand for our new products and services does not develop as anticipated. |
|--------------------|----------------------------------------------------------------------------------|

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|   | · | maximize visibility and adoption of our products and services through distribution arrangements; |
|--------|--------|--------------------------------------------------------------------------------------------------|

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| ·   | managing foreign dealers and foreign customers, which may be state corporations or government agencies; |
|--------------------|---------------------------------------------------------------------------------------------------------|

| ·   | staffing and managing foreign branch offices; |
|--------------------|-----------------------------------------------|

| ·   | political and economic instability; |
|--------------------|-------------------------------------|

| ·   | foreign currency exchange fluctuations; |
|--------------------|-----------------------------------------|

| ·   | changes in tax laws, tariffs, environmental directives, freight rates and governmental royalties; |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | timing and availability of export licenses; |
|--------------------|---------------------------------------------|

| ·   | changes in laws and policies governing operations of foreign-based companies; |
|--------------------|-------------------------------------------------------------------------------|

| ·   | inadequate protection of intellectual property rights in some countries; |
|--------------------|--------------------------------------------------------------------------|

| ·   | longer collection cycles for accounts receivable payment cycles and difficulties in enforcing contracts; |
|--------------------|----------------------------------------------------------------------------------------------------------|

| ·   | obtaining governmental approvals for certain products; and |
|--------------------|------------------------------------------------------------|

| ·   | technical standards which may differ and/or be more stringent that those of the United States, and would cause us to incur expenses associated with obtaining required certifications. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | authorizing the issuance of "blank check" preferred stock that could be issued by our board of directors to increase the number of outstanding shares, issue shares of stock with voting, liquidation and other rights in preference to the rights of common shareholders and thwart a takeover attempt, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | limiting who may call special meetings of our shareholders, and |
|--------------------|-----------------------------------------------------------------|

| ·   | establishing advance notice requirements for nominations of candidates for election to our board of directors, or for proposing matters that can be acted upon by our shareholders at shareholder meetings. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | ITEM 5.   MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED |
|--------|------------------------------------------------------------------------------|

|   |  SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY |
|--------|----------------------------------------------------------|

|   |  SECURITIES |
|--------|------------------|

|                         | High   | Low    |
|------------------------------|--------|--------|
| Year ended December 31, 2012 |   |   |
|   Fourth quarter   | $1.02  | $0.48  |
|   Third quarter    | 1.42   | 0.80   |
|   Second quarter   | 1.90   | 1.33   |
|   First quarter    | 2.00   | 1.33   |
|                         |   |   |
| Year ended December 31, 2011 |   |   |
|   Fourth quarter   | $2.02  | $1.17  |
|   Third quarter    | 2.80   | 1.86   |
|   Second quarter   | 2.65   | 1.91   |
|   First quarter    | 3.40   | 1.94   |

----

|               |   | 12/07  | 12/08  | 12/09  | 12/10  | 12/11  | 12/12  |
|--------------------|--------|--------|--------|--------|--------|--------|--------|
|               |   |   |   |   |   |   |   |
| Chyron Corporation | 100.00 | 27.52  | 38.17  | 40.37  | 25.51  | 13.03  |
| Russell MicroCap   |   | 100.00 | 60.22  | 76.77  | 98.95  | 89.77  | 107.50 |
| Peer Group         |   | 100.00 | 39.71  | 49.05  | 63.08  | 34.77  | 37.58  |

----

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|     |              | % of   |              | % of   |
|----------|-------------------|--------|-------------------|--------|
|     | 2012    | Total  | 2011              | Total  |
| Product  | $21,674           | 72%    | $23,877           | 76%    |
| Services |   8,548 | 28%    |   7,710 | 24%    |
|     | $30,222           |   | $31,587           |   |

----

|                       | Years Ended       |
|----------------------------|-------------------|
|                       | December 31,      |
|                       | 2012              | 2011 |
| Sales and marketing        | $13,008           | $12,537 |
| General and administrative |   4,201 |   4,750 |
|                       | $17,209           | $17,287 |

|                              | 2012       | 2011       |
|-----------------------------------|---------------------------|---------------------------|
| Foreign exchange transaction gain | $13             | $16             |
| Other                             |   2   |   -   |
|                              | $15             | $16             |

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|                               | Payments Due by Period                       |
|------------------------------------|----------------------------------------------|
|                               |                                         | Less Than | One to | Three to | More Than |
| Contractual Obligations            | Total                                        | One Year | Three Years | Five Years | Five Years |
|                               |                                         |   |   |   |   |
| Operating lease obligations        | $  4,700                           | $    689 | $  1,382 | $ 1,433 | $ 1,196 |
| Pension obligations (1)            | 4,151                                        | 278 | 3,873 |   |   |
| Purchase commitments for inventory | 2,331                                        | 2,331 |   |   |   |
| Commitment for hosting services    | 2,619                                        | 616 | 1,849 | 154 |   |
| Term Loan (2)                      | 677                                          | 280 | 397 |   |   |
| Capital lease obligations          |        44 |       20 |       24 |            |            |
| Total                              | $14,522                                      | $ 4,214 | $ 7,525 | $ 1,587 | $ 1,196 |

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| Financial Statements:                                                      | Page   |
|----------------------------------------------------------------------------|--------|
|                                                                       |   |
| Report of BDO USA, LLP, Independent Registered Public                      |   |
|   Accounting Firm                                                | 46     |
|                                                                       |   |
| Consolidated Balance Sheets at December 31, 2012 and 2011                  | 47     |
|                                                                       |   |
| Consolidated Statements of Operations for the Years Ended                  |   |
|   December 31, 2012 and 2011                                     | 48     |
|                                                                       |   |
| Consolidated Statements of Comprehensive Income (Loss) for the Years Ended |   |
|   December 31, 2012 and 2011                                     | 49     |
|                                                                       |   |
| Consolidated Statements of Cash Flows for the Years Ended                  |   |
|   December 31, 2012 and 2011                                     | 50     |
|                                                                       |   |
| Consolidated Statements of Shareholders' Equity for the Years Ended        |   |
|   December 31, 2012 and 2011                                     | 51     |
|                                                                       |   |
| Notes to the Consolidated Financial Statements                             | 52     |

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|                                                                                  | December 31,                                       |
|---------------------------------------------------------------------------------------|----------------------------------------------------|
| Assets                                                                                | 2012                                     | 2011   |
| Current assets:                                                                       |                                               |   |
|   Cash and cash equivalents                                                 | $  2,483                            | $  4,216  |
|   Accounts receivable, net                                                  | 5,630                                         | 5,727  |
|   Inventories, net                                                          | 2,285                                         | 2,132  |
|   Deferred taxes                                                            | -                                             | 2,508  |
|   Prepaid expenses and other current assets                            |      626             |      792  |
|     Total current assets                                          | 11,024                                        | 15,375  |
|                                                                                  |                                               |   |
| Property and equipment, net                                                           | 1,347                                         | 1,620  |
| Intangible assets, net                                                                | 559                                           | 658  |
| Goodwill                                                                              | 2,066                                         | 2,066  |
| Deferred taxes                                                                        | -                                             | 15,994  |
| Other assets                                                                     |      119             |         93  |
| TOTAL ASSETS                                                                          | $15,115                                       | $35,806  |
|                                                                                  |
| Liabilities and Shareholders' Equity                                                  |                                               |
| Current liabilities:                                                                  |                                               |   |
|   Accounts payable and accrued expenses                                     | $  3,100                            | $  3,847  |
|   Deferred revenue                                                          | 3,637                                         | 3,203  |
|   Current portion of pension liability                                      | 278                                           | 783  |
|   Current portion of term loan                                              | 280                                           | 135  |
|   Capital lease obligations                                                 |        20  |        38  |
|     Total current liabilities                                     | 7,315                                         | 8,006  |
|                                                                                  |                                               |   |
| Pension liability                                                                     | 3,873                                         | 2,664  |
| Deferred revenue                                                                      | 1,198                                         | 765  |
| Term loan                                                                             | 397                                           | -  |
| Other liabilities                                                                     |      351             |      329  |
|     Total liabilities                                             | 13,134                                        | 11,764  |
|                                                                                  |                                               |   |
| Commitments and contingencies                                                         |                                               |   |
|                                                                                  |                                               |   |
| Shareholders' equity:                                                                 |                                               |   |
|   Preferred stock, par value without designation                            |                                               |   |
|    Authorized - 1,000,000 shares, Issued - none                        |                                               |   |
|   Common stock, par value $.01                                              |                                               |   |
|    Authorized - 150,000,000 shares                                     |                                               |   |
|     Issued and outstanding – 17,135,239 and 16,639,704      |                                               |   |
|        at December 31, 2012 and 2011, respectively | 171                                           | 166  |
|   Additional paid-in capital                                                | 84,539                                        | 83,407  |
|   Accumulated deficit                                                       | (80,404)                                           | (58,103) |
|   Accumulated other comprehensive loss                                      | (2,325)                                            |  (1,428) |
|      Total shareholders' equity                              |   1,981                             | 24,042  |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                            | $15,115                                       | $35,806  |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Years Ended December 31,                                       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 2012                                                 | 2011   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                           |   |
| Product revenues                                                                                                                        | $21,674                                                   | $23,877  |
| Service revenues                                                                                                                        |   8,548                                         |   7,710  |
| Total revenues                                                                                                                          | 30,222                                                    | 31,587  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                           |   |
| Cost of sales                                                                                                                           |   9,319                                         |   9,473  |
| Gross profit                                                                                                                            | 20,903                                                    | 22,114  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                           |   |
| Operating expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                           |   |
|   Selling, general and administrative                                                                                         | 17,209                                                    | 17,287  |
|   Research and development                                                                                                    |   7,443                                         |   6,775  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                           |   |
| Total operating expenses                                                                                                                | 24,652                                                    | 24,062  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                           |   |
| Operating loss                                                                                                                          | (3,749)                                                        | (1,948) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                           |   |
| Interest expense                                                                                                                        | (28)                                                           | (37) |
| Other income, net                                                                                                                       |          15  |         16  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                           |   |
| Loss before income taxes                                                                                                                | (3,762)                                                        | (1,969) |
|    Income tax expense, net                                                                                               | (18,539)                                                       |  (2,277) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                           |   |
| Net loss                                                                                                                                | $(22,301)                                                      | $ (4,246) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                           |   |
| Net loss per share:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                           |   |
|    Basic                                                                                                                 | $    (1.31)                                | $   (0.26) |
|    Diluted                                                                                                               | $    (1.31)                                | $   (0.26) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                           |   |
| Weighted average shares used in computing net loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                           |   |
|   per share:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                           |   |
|     Basic                                                                                                           | 16,961                                                    | 16,458  |
|     Diluted                                                                                                         | 16,961                                                    | 16,458  |

----

|                                                                   | Years Ended December 31,                                       |
|------------------------------------------------------------------------|----------------------------------------------------------------|
|                                                                   | 2012                                                 | 2011   |
|                                                                   |                                                           |   |
| Net loss                                                               | $(22,301)                                                      | $(4,246) |
|                                                                   |                                                           |   |
| Other comprehensive (loss) income:                                     |                                                           |   |
|                                                                   |                                                           |   |
|    Deferred pension loss, net of tax of                 |                                                           |   |
|        of $0 and $519, respectively | (910)                                                          | (940) |
|                                                                   |                                                           |   |
|    Cumulative translation adjustment                    |          13  |        (1) |
|                                                                   |                                                           |   |
| Comprehensive loss                                                     | $(23,198)                                                      | $(5,187) |
|                                                                   |                                                           |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Years Ended December 31,                      |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 2012                                          | 2011 |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                          |   |
|   Net loss                                                                                                                                            | $(22,301)                                     | $ (4,246) |
|   Adjustments to reconcile net loss to net cash used in                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                          |   |
|    operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                          |   |
|       Depreciation and amortization                                                                                               | 919                                      | 975  |
|       Deferred tax asset allowance                                                                                                | 19,475                                   | 2,724  |
|       Deferred income tax benefit                                                                                                 | (974)                                         | (495) |
|       Share-based compensation expense                                                                                            | 938                                      | 1,005  |
|       Shares issued for 401(k) match                                                                                              | 288                                      | 265  |
|       Inventory provisions                                                                                                        | 85                                       | 109  |
|       Other                                                                                                                       | (63)                                          | (16) |
|   Changes in operating assets and liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                          |   |
|      Accounts receivable                                                                                                               | 97                                       | (1,586) |
|      Inventories                                                                                                                       | (238)                                         | (79) |
|      Prepaid expenses and other assets                                                                                                 | 127                                      | (12) |
|      Accounts payable and accrued expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (747)                                         | 865  |
|      Deferred revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 867                                      | 480  |
|      Other liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |     (164)                 |     (177) |
|   Net cash used in operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  (1,691)                                 |     (188) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                          |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                          |   |
|   Acquisition of property and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |     (546)                 |     (915) |
|   Net cash used in investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |     (546)                 |     (915) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                          |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                          |   |
|   Proceeds from term loan                                                                                                                             | 700                                      | -   |
|   Payments on term loan                                                                                                                               | (159)                                         | (325) |
|   Proceeds from exercise of stock options                                                                                                             | 1                                        | 112  |
|   Payments on capital lease obligations                                                                                                               |      (38)            |      (33) |
|   Net cash provided by (used in) financing activities                                                                                                 |     504              |    (246) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                          |   |
|   Change in cash and cash equivalents                                                                                                                 | (1,733)                                       | (1,349) |
|   Cash and cash equivalents at beginning of  year                                                                                           |  4,216                              |  5,565  |
|   Cash and cash equivalents at end of year                                                                                                            | $ 2,483                             | $ 4,216  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                          |   |
| SUPPLEMENTAL CASH FLOW INFORMATION:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                          |   |
|   Interest paid                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $      15  | $      36  |
|   Taxes paid                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 29                                       | 50  |
|   Deferred pension loss, net of tax in 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 910                                      | 940  |

----

|                                                                                                                                                                                                                                                                                                                       |                              |                                              |                                    |                                                                                 | Accumulated                                                                    |                                                |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|---------------------------------------------------|-----------------------------------------|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------------|-----------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                       |                              |                                              | Additional                              |                                                                                 | Other                                                                          |                                                |
|                                                                                                                                                                                                                                                                                                                       | Common Stock                      | Paid-In                                           | Accumulated                             | Comprehensive                                                                        |                                                                           |
|                                                                                                                                                                                                                                                                                                                       | Shares                            | Amount                                            | Capital                                 | (Deficit)                                                                            | Income (loss)                                                                  | Total                                               |
|                                                                                                                                                                                                                                                                                                                       |                              |                                              |                                    |                                                                                 |                                                                           |                                                |
| Balance at January 1, 2011                                                 | 16,054                            | $  161                             | $81,793                            | $(53,857)                                                                            | $  (487)                                                             | $27,610                                        |
|                                                                                                                                                                                                                                                                                                                       |                              |                                              |                                    |                                                                                 |                                                                           |                                                |
| Net loss                                                                   |                              |                                              |                                    | (4,246)                                                                              |                                                                           | (4,246)                                             |
|                                                                                                                                                                                                                                                                                                                       |                              |                                              |                                    |                                                                                 |                                                                           |                                                |
| Other comprehensive loss                                                   |                              |                                              |                                    |                                                                                 | (941)                                                                          | (941)                                               |
|                                                                                                                                                                                                                                                                                                                       |                              |                                              |                                    |                                                                                 |                                                                           |                                                |
| Share-based compensation                                                   |                              |                                              | 1,005                              |                                                                                 |                                                                           | 1,005                                          |
|                                                                                                                                                                                                                                                                                                                       |                              |                                              |                                    |                                                                                 |                                                                           |                                                |
| Shares issued upon exercise of stock                                                                                                                                                                                                                                                                                       |                              |                                              |                                    |                                                                                 |                                                                           |                                                |
|   options                                                        | 105                               | 1                                            | 90                                 |                                                                                 |                                                                           | 91                                                  |
|                                                                                                                                                                                                                                                                                                                       |                              |                                              |                                    |                                                                                 |                                                                           |                                                |
| Shares issued for vesting of restricted                                                                                                                                                                                                                                                                                    |                              |                                              |                                    |                                                                                 |                                                                           |                                                |
|   stock units and restricted stock                                                                                                                                                                                                                                                                               | 350                               | 3                                            | 255                                |                                                                                 |                                                                           | 258                                                 |
|                                                                                                                                                                                                                                                                                                                       |                              |                                              |                                    |                                                                                 |                                                                           |                                                |
| Shares issued for 401(k) match                                                                                                                                                                                                                                                                                             |      130 |        1  |      264  |                |               |         265 |
|                                                                                                                                                                                                                                                                                                                       |                              |                                              |                                    |                                                                                 |                                                                           |                                                |
| Balance at December 31, 2011                                                                                                                                                                                                                                                                                               | 16,639                            |   166                              | 83,407                             | (58,103)                                                                             |  (1,428)                                                                  | 24,042                                         |
|                                                                                                                                                                                                                                                                                                                       |                              |                                              |                                    |                                                                                 |                                                                           |                                                |
| Net loss                                                                   |                              |                                              |                                    | (22,301)                                                                             |                                                                           | (22,301)                                            |
|                                                                                                                                                                                                                                                                                                                       |                              |                                              |                                    |                                                                                 |                                                                           |                                                |
| Other comprehensive loss                                                   |                              |                                              |                                    |                                                                                 | (897)                                                                          | (897)                                               |
|                                                                                                                                                                                                                                                                                                                       |                              |                                              |                                    |                                                                                 |                                                                           |                                                |
| Share-based compensation                                                   |                              |                                              | 938                                |                                                                                 |                                                                           | 938                                            |
|                                                                                                                                                                                                                                                                                                                       |                              |                                              |                                    |                                                                                 |                                                                           |                                                |
| Shares issued upon exercise of stock                                                                                                                                                                                                                                                                                       |                              |                                              |                                    |                                                                                 |                                                                           |                                                |
|   options                                                        | 2                                 |                                              | 1                                  |                                                                                 |                                                                           | 1                                              |
|                                                                                                                                                                                                                                                                                                                       |                              |                                              |                                    |                                                                                 |                                                                           |                                                |
| Shares issued for vesting of restricted                                                                                                                                                                                                                                                                                    |                              |                                              |                                    |                                                                                 |                                                                           |                                                |
|   stock units and restricted stock                                                                                                                                                                                                                                                                               | 261                               | 3                                            | (93)                                    |                                                                                 |                                                                           | (90)                                                |
|                                                                                                                                                                                                                                                                                                                       |                              |                                              |                                    |                                                                                 |                                                                           |                                                |
| Shares issued for 401(k) match                                                                                                                                                                                                                                                                                             |      233 |        2  |      286  |                |                    |      288              |
|                                                                                                                                                                                                                                                                                                                       |                              |                                              |                                    |                                                                                 |                                                                           |                                                |
| Balance at December 31, 2012                                                                                                                                                                                                                                                                                               | 17,135                            | $   171                       | $84,539                            | $(80,404)                                                                            | $(2,325)                                                                       | $  1,981                             |

----

----

| Machinery and equipment | 3-10 years                                                                   |
|-------------------------|------------------------------------------------------------------------------|
| Furniture and fixtures  | 5-10 years                                                                   |
| Leasehold improvements  | Shorter of the life of improvement or  remaining life of the lease |

----

----

----

----

|                                                         | Years Ended December 31,                                      |
|--------------------------------------------------------------|---------------------------------------------------------------|
|                                                         | 2012                                                          | 2011 |
| Basic weighted average shares outstanding                    | 16,961                                                        | 16,458 |
|    Effect of dilutive stock options           |           - |           - |
| Diluted weighted average shares outstanding                  | 16,961                                                        | 16,458 |
|                                                         |                                                          |   |
| Weighted average shares which are not included               |                                                          |   |
|   in the calculation of diluted earnings per share |                                                          |   |
|   because their impact is antidilutive             |                                                          |   |
|      Stock options                  | 3,087                                                         | 1,361 |
|      Restricted stock units         | 173                                                           | 510 |

----

|             | December 31,    |
|------------------|--------------------------------|
|             | 2012                           | 2011 |
| Finished goods   | $   465         | $   653 |
| Work-in-progress | 468                            | 170 |
| Raw material     | 1,352                          | 1,309 |
|             | $2,285                         | $2,132 |

----

|                            | 2012                             |                                  |
|---------------------------------|----------------------------------|---------------------------------------|
|                            | Gross                            | Accumulated                           | Net | Estimated |
|                            | Amount                           | Amortization                          | Amount | Useful Life |
| Tradenames                      | $  304                 | $  101                      | $  203 | 15 years |
| Proprietary technology          | 620                              | 310                                   | 310 | 10 years |
| Non-compete agreement           | 25                               | 25                                    | - | 3 years |
| Customer relationships          | 170                              | 138                                   | 32 | 10 years |
| Domain name and related website |      23 |       9 |     14 | 15 years |
|                            | $1,142                           | $  583                      | $  559 |   |

|                            | 2011                             |                            |                 |
|---------------------------------|----------------------------------|---------------------------------|----------------------|
|                            | Gross                            | Accumulated                     | Net                  | Estimated |
|                            | Amount                           | Amortization                    | Amount               | Useful Life |
| Tradenames                      | $   304           | $    81     | $ 223           | 15 years |
| Proprietary technology          | 620                              | 248                             | 372                  | 10 years |
| Non-compete agreement           | 25                               | 25                              | -                    | 3 years |
| Customer relationships          | 170                              | 123                             | 47                   | 10 years |
| Domain name and related website |      23 |      7 |    16 | 15 years |
|                            | $1,142                           | $ 484                      | $ 658           |   |

----

| 2013       | $  95 |
|------------|-----------------|
| 2014       | 92              |
| 2015       | 89              |
| 2016       | 88              |
| 2017       | 87              |
| Thereafter | 108             |

|                                                                         | December 31,    |
|------------------------------------------------------------------------------|--------------------------------|
|                                                                         | 2012                           | 2011 |
| Machinery and equipment                                                      | $5,194                         | $4,755 |
| Furniture and fixtures                                                       | 1,129                          | 1,047 |
| Leasehold improvements                                                       |    167          |    162 |
|                                                                         | 6,490                          | 5,964 |
| Less: Accumulated depreciation                                               |                           |   |
|           and amortization | 5,143                          | 4,344 |
|                                                                         | $1,347                         | $1,620 |

|                                          | December 31,    |
|-----------------------------------------------|--------------------------------|
|                                          | 2012                           | 2011 |
| Accounts payable                              | $1,924                         | $2,266 |
| Accrued salaries, and other employee benefits | 529                            | 1,013 |
| Accrued warranty (Note 12)                    | 50                             | 50 |
| Accrued medical costs                         | 197                            | 257 |
| Other                                         |    400          |    261 |
|                                          | $3,100                         | $3,847 |

----

----

----

|                                    | 2012   | 2011   |
|-----------------------------------------|--------|--------|
| Expected volatility                     | 71.46% | 70.26% |
| Risk-free interest rate                 | 0.58%  | 1.36%  |
| Expected dividend yield                 | 0.00%  | 0.00%  |
| Expected life (in years)                | 6.00   | 6.00   |
| Estimated fair value per option granted | $0.67  | $1.04  |

|                                |            |   |     |   | Weighted     |   |               |
|-------------------------------------|-----------------|--------|----------|--------|--------------|--------|--------------------|
|                                |            |   | Weighted |   | average      |   |               |
|                                | Number          |   | average  |   | remaining    |   | Aggregate          |
|                                | of              |   | exercise |   | contractual  |   | intrinsic          |
|                                | options         |   | price    |   | life (years) |   | value              |
| Outstanding at January 1, 2012      | 3,224,879  |   | $2.34    |   |         |   |               |
|   Granted                 | 1,576,574  |   | 1.45     |   |         |   |               |
|   Exercised               | (1,667)         |   | 0.86     |   |         |   |               |
|   Forfeited and cancelled |  (505,513) |   | 1.75     |   |         |   |               |
| Outstanding at December 31, 2012    | 4,294,273  |   | 2.07     |   | 4.70         |   | $19,266            |
| Exercisable at December 31, 2012    | 2,551,124  |   | 2.51     |   | 4.53         |   | $  2,610 |

|                           |                      |   | Weighted   |
|--------------------------------|---------------------------|--------|------------|
|                           |                      |   | average    |
|                           |                      |   | grant date |
|                           | Shares                    |   | fair value |
| Nonvested at January 1, 2012   | 528,443              |   | $2.00      |
| Granted                        | 152,328              |   | 1.37       |
| Vested                         | (327,216)                 |   | 1.96       |
| Forfeited and cancelled        |   (10,394)      |   | 2.21       |
| Nonvested at December 31, 2012 |   343,161  |   | 1.76       |

----

|                                | 2012         | 2011    |
|-------------------------------------|-----------------------------|------------------------|
| Cost of sales                       | $    75 | $   101 |
| Research and development            | 323                         | 360                    |
| Selling, general and administrative |   540             |    544  |
|                                | $  938            | $1,005                 |

|                                         | December 31,                                                               |
|----------------------------------------------|----------------------------------------------------------------------------|
|                                         | 2012                                                             | 2011   |
| Deferred tax assets:                         |                                                                       |   |
|   Net operating loss carryforwards | $ 14,491                                                         | $  16,728  |
|   Inventory                        | 1,769                                                                 | 1,736  |
|   Other liabilities                | 3,055                                                                 | 2,229  |
|   Fixed assets                     | 440                                                                   | 452  |
|   Other temporary differences      |        589                         |        625  |
|                                         | 20,344                                                                | 21,770  |
| Deferred tax valuation allowance             | (20,344)                                                                   |   (3,268) |
|                                         | $           -  | $  18,502  |

----

|                          | 2012                            | 2011                            |
|-------------------------------|-----------------------------------------------------|-----------------------------------------------------|
| Current:                      |                                                |                                                |
|   State and foreign | $       (38)     | $       (48)     |
|                          |                                                |                                                |
| Deferred:                     |                                                |                                                |
|   State             | 53                                             | 22                                             |
|   Federal           |        921  |        473  |
|                          |        974  |        495  |
| Valuation allowance           | (19,475)                                            |   (2,724)                                 |
| Income tax expense            | $(18,539)                                           | $  (2,277)                                |

|                                       | 2012                           |          | 2011   |
|--------------------------------------------|--------------------------------|---------------|--------|
|                                       | Amount                         | %   |   | Amount | %   |
| Federal income tax benefit at statutory    |                           |          |   |   |   |
|   rate                           | $   1,279  | 34.0     |   | $   669  | 34.0  |
| Permanent differences                      | (150)                          | (4.1)         |   | (197) | (10.0) |
| International taxes and rate differentials |                           |          |   |   |   |
|   and other                      | (193)                          | (5.0)         |   | (25) | (1.2) |
| Effect of increase in valuation allowance  |                           |          |   |   |   |
|   for deferred tax assets        | (19,475)                       | (517.7)       |   | (2,724) | (138.4) |
|                                       | $(18,539)                      | (492.8)       |   | $(2,277) | (115.6) |

----

| ·   | Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. |
|--------------------|--------------------------------------------------------------------------------------------------------------------|

| ·   | Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                | 2012                                                 | 2011                                      |
|-----------------------------------------------------|----------------------------------------------------------------|-----------------------------------------------------|
| Reconciliation of projected benefit obligation:     |                                                           |                                                |
|   Obligation at January 1                 | $  7,535                                        | $  5,866                             |
|   Service cost                            | 482                                                       | 401                                            |
|   Interest cost                           | 360                                                       | 331                                            |
|   Actuarial loss                          | 1,164                                                     | 1,215                                          |
|   Benefit payments                        |       (62)                       |     (278)                       |
| Obligation at December 31                           | $  9,479                                        | $  7,535                             |
|                                                |                                                           |                                                |
| Reconciliation of fair value of plan assets:        |                                                           |                                                |
|   Fair value of plan assets at January 1  | $  4,088                                        | $  3,643                             |
|   Actual return on plan assets            | 407                                                       | 35                                             |
|   Employer contributions                  | 895                                                       | 688                                            |
|   Benefit payments                        |       (62)                       |     (278)                       |
| Fair value of plan assets at December 31            | $  5,328                                        | $  4,088                             |
|                                                |                                                           |                                                |
| Funded Status:                                      |                                                           |                                                |
|   Unfunded status at December 31          | $ (4,151)                                                 | $ (3,447)                                      |
|                                                |                                                           |                                                |
| Projected benefit obligation                        | $  9,479                                        | $  7,535                             |
| Accumulated benefit obligation                      | 8,701                                                     | 6,928                                          |
| Fair value of plan assets                           | 5,328                                                     | 4,088                                          |
|                                                |                                                           |                                                |
| Amounts recognized in consolidated balance sheets:  |                                                           |                                                |
|   Prior service credit                    | $         7  | $       19  |
|   Net loss                                |  (3,093)                                                  |  (2,194)                                       |
|   Accumulated other comprehensive loss    | (3,086)                                                        | (2,175)                                             |
|                                                |                                                           |                                                |
| Net periodic benefit cost in excess of              |                                                           |                                                |
|   accumulated contributions               |  (1,065)                                                  |  (1,272)                                       |
| Net amount recognized in consolidated balance sheet | $ (4,151)                                                 | $ (3,447)                                      |

----

|                                                                               | 2012                         | 2011                         |
|------------------------------------------------------------------------------------|----------------------------------------|----------------------------------------|
| Components of net periodic pension cost:                                           |                                   |                                   |
|   Service cost                                                           | $   482            | $   401            |
|   Interest cost                                                          | 360                               | 331                               |
|   Expected return on plan assets                                         | (345)                                  | (294)                                  |
|   Amortization of net loss                                               | 203                               | 39                                |
|   Amortization of prior service credit                                   |    (11)                 |    (25)                 |
|   Net periodic benefit cost                                              |   689                   |   452                   |
|                                                                               |                                   |                                   |
| Other changes in plan assets and benefit obligations                               |                                   |                                   |
|   recognized in other comprehensive income:                              |                                   |                                   |
|     Net loss                                                   | 1,102                             | 1,473                             |
|     Amortization of net loss                                   | (203)                                  | (39)                                   |
|     Amortization of prior service cost                         |      11  |      25  |
|     Total loss recognized in other comprehensive (income) loss |    910             | 1,459                             |
|                                                                               |                                   |                                   |
| Total recognized in net periodic benefit cost and other                            |                                   |                                   |
|   comprehensive (income) loss                                            | $1,599                            | $1,911                            |

|                                                               | 2012   | 2011   |
|--------------------------------------------------------------------|--------|--------|
| Weighted-average assumptions used to determine net                 |   |   |
|   periodic benefit cost for the years ended December 31: |   |   |
|     Discount rate                              | 4.61%  | 5.61%  |
|     Expected long-term return on plan assets   | 7.50%  | 7.50%  |
|     Rate of compensation increase              | (1)    | 2.00%  |
|                                                               |   |   |
|                                                               |   |   |
|                                                               |   |   |
| Weighted-average assumptions used to determine pension             |   |   |
|   benefit obligation as of December 31:                  |   |   |
|     Discount rate                              | 4.03%  | 4.61%  |
|     Rate of compensation increase              | (1)    | 2.00%  |

----

|                      | Target            |   | Actual     |
|---------------------------|-------------------|--------|------------|
|                      | Allocation Range  |   | Allocation |
| Asset Category            | 2012              |   | 2012       | 2011 |
| Equity securities         | 60% (+/- 1 to 5%) |   | 58%        | 58% |
| Debt securities           | 35% (+/- 1 to 5%) |   | 33%        | 33% |
| Cash and cash equivalents | 5% (+/- 1 to 5%)  |   | 9%         | 9% |

| 2013         | $   369 |
|--------------|------------------------|
| 2014         | 220                    |
| 2015         | 183                    |
| 2016         | 301                    |
| 2017         | 412                    |
| 2018 to 2022 | 2,995                  |

|                                | 2012                   |
|-------------------------------------|------------------------|
|                                | Level 1      |   | Level 2   |   | Level 3   |   | Total |
| Government and other                |                   |   |   |   |   |   |   |
|   fixed income securities | $   601 |   | $1,158 |   | $        - |   | $1,759 |
|                                |                   |   |   |   |   |   |   |
| Equities                            | 3,063                  |   |         - |   |         - |   | 3,063 |
|                                | $3,664                 |   | $1,158 |   | $        - |   | $4,822 |

|                                | 2011                |
|-------------------------------------|---------------------|
|                                | Level 1   |   | Level 2   |   | Level 3   |   | Total |
| Government and other                |                |   |   |   |   |   |   |
|   fixed income securities | $  335    |   | $1,013 |   | $        - |   | $1,348 |
|                                |                |   |   |   |   |   |   |
| Equities                            | 2,386               |   |         - |   |         - |   | 2,386 |
|                                | $2,721              |   | $1,013 |   | $        - |   | $3,734 |

----

|                           | 2012             | 2011                  |
|--------------------------------|-----------------------|-----------------------|
| Balance at beginning of period | $  50  | $  50  |
| Provisions                     | 49               | 38               |
| Warranty services provided     | (49)                  | (38)                  |
|                           | $  50  | $  50  |

----

|                                                                                                                                                                                                                                           | Operating        | Capital         |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|-----------------|
| 2013                                             | $  689 | $  20 |
| 2014                                             | 700              | 14              |
| 2015                                             | 682              | 10              |
| 2016                                             | 705              |            |
| 2017                                             | 728              |            |
| thereafter                                       | 1,196            |            |

----

|                                                    | 2012              | 2011              |
|---------------------------------------------------------|-------------------|-------------------|
| Revenues from external customers:                       |              |              |
|    North America                         | $21,218           | $24,273           |
|    Europe, Middle East and Africa (EMEA) | 4,254             | 4,256             |
|    Latin America                         | 2,538             | 2,006             |
|    Asia                                  |   2,212 |   1,052 |
|                                                    | $30,222           | $31,587           |

| (a)   | Evaluation of Disclosure Controls and Procedures |
|-----------------|--------------------------------------------------|

| (b)   | Changes in Internal Control Over Financial Reporting |
|-----------------|------------------------------------------------------|

----

| ·   | pertain to the maintenance of records that in reasonable detail accurately and fairly reflect our transactions and dispositions of our assets; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | provide reasonable assurance that our transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition or disposition of our assets that could have a material effect on the financial statements. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (a)   | The following documents are filed as part of this Annual Report on Form 10-K: |
|-----------------|-------------------------------------------------------------------------------|

| ExhibitNumber |  Description                                                                                                                                                                                                                                                                                                        |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |                                                                                                                                                                                                                                                                                                                     |
| 3.1           | Restated Certificate of Incorporation filed with the State of New York on December 27, 1991 (previously filed as Exhibit 3(a) to the Registrant's Annual Report on Form 10-K for the fiscal year ended June 30, 1991 (File No. 000-05110) and incorporated herein by reference)                                          |
| 3.2           | Certificate of Amendment of the Restated Certificate of Incorporation filed with the State of New York on February 7, 1997 (previously filed as Exhibit 3(c) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 1996 (File No. 001-09014) and incorporated herein by reference)       |
| 3.3           | Certificate of Amendment of the Restated Certificate of Incorporation filed with the State of New York on September 19, 2007 (previously filed as Exhibit 3(i) to the Registrant's Current Report on Form 8-K filed with the Commission on September 24, 2007 (File No. 000-05110) and incorporated herein by reference) |
| 3.4           | Amended and Restated By-Laws (previously filed as Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed with the Commission on May 15, 2009 (File No. 001-09014) and incorporated herein by reference)                                                                                                        |
| 10.1*         | Indemnification Agreement between Chyron Corporation and Christopher R. Kelly effective as of August 30, 1999 (previously filed as Exhibit 10(f) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2002 (File No. 000-05110) and incorporated herein by reference)                   |
| 10.2*         | Indemnification Agreement between Chyron Corporation and Michael Wellesley-Wesley effective as of November 19, 1996 previously filed as Exhibit 10(xx) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 1996 (File No. 001-09014) and incorporated herein by reference)             |
| 10.3*         | Indemnification Agreement between Chyron Corporation and Jerry Kieliszak effective as of March 1, 2002 (previously filed as Exhibit 10(s) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2002 (File No. 000-05110) and incorporated herein by reference)                          |

----

| 10.4*  | Indemnification Agreement between Chyron Corporation and Michael Wheeler effective as of February 1, 2006( previously filed as Exhibit 10(g) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2007 (File No. 001-09014) and incorporated herein by reference)                                 |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.5*  | Indemnification Agreement between Chyron Corporation and Peter Frey effective as of May 14, 2008 (previously filed as Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Commission on May 20, 2008 (File No. 001-09014) and incorporated herein by reference)                                             |
| 10.6*  | Indemnification Agreement between Chyron Corporation and Roger L. Ogden effective as of May 14, 2008 (previously filed as Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed with the Commission on May 20, 2008 (File No. 001-09014) and incorporated herein by reference)                                    |
| 10.7*  | Indemnification Agreement between Chyron Corporation and Robert A. Rayne effective as of May 14, 2008 (previously filed as Exhibit 10.3 to the Registrant's Current Report on Form 8-K filed with the Commission on May 20, 2008 (File No. 001-09014) and incorporated herein by reference)                                        |
| 10.8*  | Indemnification Agreement between Chyron Corporation and Susan Clark-Johnson effective as of March 10, 2010 (previously filed as Exhibit 10.30 to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2009 (File No. 001-09014) and incorporated herein by reference)                               |
| 10.9*  | Indemnification Agreement between Chyron Corporation and Dawn Johnston effective as of April 3, 2002 (previously filed as Exhibit 10(i) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2007 (File No. 001-09014) and incorporated herein by reference)                                      |
| 10.10* | Indemnification Agreement between Chyron Corporation and Kathleen Power effective as of November 6, 2012**                                                                                                                                                                                                                         |
| 10.11* | Employment Agreement by and between Chyron Corporation and Kathleen Power effective as of March 7, 2012**                                                                                                                                                                                                                          |
| 10.12* | Employment Agreement by and between Chyron Corporation and Michael Wellesley-Wesley effective as of May 23, 2012 (previously filed as Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Commission on May 29, 2012 (File No. 001-09014) and incorporated herein by reference)                             |
| 10.13* | Change in Control Agreement between Michael Wellesley-Wesley and Chyron Corporation effective May 23, 2012 (previously filed as Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed with the Commission on May 29, 2012 (File No. 001-09014) and incorporated herein by reference)                                   |
| 10.14* | Amended and Restated Change in Control Agreement by and between Chyron Corporation and Michael Wellesley-Wesley dated November 19, 2012 (previously filed as Exhibit 10.3 to the Registrant's Current Report on Form 8-K filed with the Commission on November 20, 2012 (File No. 001-09014) and incorporated herein by reference) |
| 10.15* | Change in Control Agreement between Chyron Corporation and Jerry Kieliszak dated November 19, 2012 (previously filed as Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed with the Commission on November 20, 2012 (File No. 001-09014) and incorporated herein by reference)                                      |
| 10.16* | Terms of Severance Agreement between Chyron Corporation and Jerry Kieliszak dated November 19, 2012 (previously filed as Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Commission on November 20, 2012 (File No. 001-09014) and incorporated herein by reference)                                     |
| 10.17* | Chyron Corporation 1999 Incentive Compensation Plan (previously filed as Exhibit 1 to the Registrant's Definitive Proxy Statement on Schedule 14A filed with the Commission on April 7, 1999 (SEC File No. 000-05110) and incorporated herein by reference)                                                                        |

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| 10.18* | Chyron Corporation 2008 Long-Term Incentive Plan approved on May 14, 2008 and amended on May 19, 2010 (previously filed as Exhibit 99.1 to the Registrant's Current Report on Form 8-K filed with the Commission on May 25, 2010 (File No. 001-09014) and incorporated herein by reference)                                                 |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.19* | Chyron Corporation Employees Severance Plan amended August 9, 2006 (previously filed as Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Commission on August 14, 2006 (File No. 001-09014) and incorporated herein by reference)                                                                                 |
| 10.20  | Loan and Security Agreement between Silicon Valley Bank and Chyron Corporation dated as of June 19, 2008 (previously filed as Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Commission on June 23, 2008 (File No. 001-09014) and incorporated herein by reference)                                             |
| 10.21  | First Loan Modification Agreement between Silicon Valley Bank and Chyron Corporation dated April 16, 2009 (previously filed as Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Commission on June 18, 2009 (File No. 001-09014) and incorporated herein by reference)                                            |
| 10.22  | Second Loan Modification Agreement between Silicon Valley Bank and Chyron Corporation dated June 18, 2009 (previously filed as Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed with the Commission on June 18, 2009 (File No. 001-09014) and incorporated herein by reference)                                            |
| 10.23  | Third Loan Modification Agreement between Silicon Valley Bank and Chyron Corporation dated March 24, 2010 and effective as of March31, 2010 (previously filed as Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Commission on March 30, 2010 (File No. 001-09014) and incorporated herein by reference)         |
| 10.24  | Fourth Loan Modification Agreement between Silicon Valley Bank and Chyron Corporation dated March 24, 2011 and effective as of March 30, 2011 (previously filed as Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Commission on March 25, 2011 (File No. 001-09014) and incorporated herein by reference)       |
| 10.25  | Fifth Loan Modification Agreement between Silicon Valley Bank and Chyron Corporation dated December 28, 2011 and effective as of December 31, 2011 (previously filed as Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Commission on January 4, 2012 (File No. 001-09014) and incorporated herein by reference) |
| 10.26  | Sixth Loan Modification Agreement between Silicon Valley Bank and Chyron Corporation dated August 13, 2012 (previously filed as exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Commission on August 16, 2012 (File No. 001-09014) and incorporated herein by reference)                                         |
| 10.27  | Second Amendment to Lease by and between Rechler Equity B-1 LLC and Chyron Corporation dated January 20, 2009 (previously filed as exhibit 10.29 to the Registrant's Annual Report on Form 10-K filed with the commission on March 25, 2009 (File No. 001-09014) and incorporated herein by reference)                                      |
| 10.28* | 2011 Management Incentive Compensation Plan (previously filed as Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Commission on May 11, 2011 (File No. 001-09014) and incorporated herein by reference)                                                                                                           |
| 10.29* | Form of Restricted Stock Unit Award under the Chyron Corporation 2008 Long-Term Incentive Plan (previously filed as Exhibit 10.1 the Registrant's Current Report on Form 8-K filed with the Commission on November 13, 2009 (File No. 001-09014) and incorporated herein by reference)                                                      |
| 10.30* | Chyron Corporation Non-Employee Director Compensation Policy (previously filed as exhibit 10.30 to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2011 (File No. 001-09014) and incorporated herein by reference)                                                                                       |

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| 10.31* | 2012 Management Incentive Compensation Plan (previously filed as Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Commission on March 13, 2012 (File No. 001-09014) and incorporated herein by reference)                                                                                                                                                                                                                                                                    |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.32* | Form of Restricted Stock Unit Award Cancellation Agreement under the Chyron Corporation 2008 Long-Term Incentive Plan Policy (previously filed as exhibit 10.32 to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2011 (File No. 001-09014) and incorporated herein by reference)                                                                                                                                                                                  |
| 21.1   | Subsidiaries of the Registrant (previously filed as exhibit 21.1 to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2011 (File No. 001-09014) and incorporated herein by reference)                                                                                                                                                                                                                                                                                 |
| 23.1   | Consent of BDO USA, LLP **                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 31.1   | Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**                                                                                                                                                                                                                                                                                                                                                                                               |
| 31.2   | Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**                                                                                                                                                                                                                                                                                                                                                                                               |
| 32     | Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**                                                                                                                                                                                                                                                                                                                                                              |
| 101    | The following materials from Chyron Corporation's Annual Report on Form 10-K for the year ended December 31, 2012, formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income (Loss), (iv) the Consolidated Statements of Cash Flows, (v) the Consolidated Statements of Shareholders' Equity, and (vi) Notes to Consolidated Financial Statements.*** |

| * | Management contract or compensatory plan or arrangement. |
|---|----------------------------------------------------------|

|    ** | Filed herewith. |
|----------------------|-----------------|

|   *** | Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                | CHYRON CORPORATION                    |
|---------------------|---------------------------------------|
|                |                                  |
| Date: March 7, 2013 | /s/ Michael Wellesley-Wesley          |
|                | Michael Wellesley-Wesley              |
|                | President and Chief Executive Officer |
|                | (Principal Executive Officer)         |

| Signature                    |   | Title                                     | Date          |
|------------------------------|--------|-------------------------------------------|---------------|
|                         |   |                                      |          |
| /s/ Michael Wellesley-Wesley |   | President, CEO and Director               | March 7, 2013 |
| Michael Wellesley-Wesley     |   | (principal executive officer)             |          |
|                         |   |                                      |          |
| /s/ Jerry Kieliszak          |   | Senior Vice President and Chief Financial | March 7, 2013 |
| Jerry Kieliszak              |   | Officer (principal financial officer)     |          |
|                         |   |                                      |          |
| /s/ Roger L. Ogden           |   | Chairman of the Board of Directors        | March 7, 2013 |
| Roger L. Ogden               |   |                                      |          |
|                         |   |                                      |          |
| /s/ Susan Clark-Johnson      |   | Director                                  | March 7, 2013 |
| Susan Clark-Johnson          |   |                                      |          |
|                         |   |                                      |          |
| /s/ Peter F. Frey            |   | Director                                  | March 7, 2013 |
| Peter F. Frey                |   |                                      |          |
|                         |   |                                      |          |
| /s/ Christopher R. Kelly     |   | Director                                  | March 7, 2013 |
| Christopher R. Kelly         |   |                                      |          |
|                         |   |                                      |          |
| /s/ Robert A. Rayne          |   | Director                                  | March 7, 2013 |
| Robert A. Rayne              |   |                                      |          |
|                         |   |                                      |          |
| /s/ Michael C. Wheeler       |   | Director                                  | March 7, 2013 |
| Michael C. Wheeler           |   |                                      |          |
|                         |   |                                      |          |
| /s/ Dawn R. Johnston         |   | Corporate Controller (principal           | March 7, 2013 |
| Dawn R. Johnston             |   |   accounting officer)           |          |

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