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| ý |   | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934                                                                                                                                                                                                                                                                                                                                    |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |   | For the fiscal year ended December 31, 2010                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |   | or                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                              |
| o      |   | 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: 0-49737                                                                                                                                                                                                                                                                                                                                                                                                   |

| DELAWARE                                                      |   | 75-2926437                          |
|---------------------------------------------------------------|--------|-------------------------------------|
| (State or Other Jurisdiction ofIncorporation or Organization) |   | (I.R.S. EmployerIdentification No.) |

| 8708 Technology Forest Place, Suite 100The Woodlands, Texas 77381 |
|------------------------------------------------------------------------|
| (Address of Principal Executive Offices)                               |

| (281) 825-4500                                             |
|------------------------------------------------------------|
| (Registrant’s Telephone Number, Including Area Code) |

| Large Accelerated Filer  ̈      |    | Accelerated Filer                    ̈ |
|----------------------------------------------------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------|
| Non-Accelerated Filer    ̈ |    | Smaller reporting company   x                                                                                         |

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TABLE 

| PART I   |
|----------|
|     |
| ITEM 1.  | BUSINESS | 3 |
| ITEM 1A. | RISK FACTORS | 13 |
| ITEM 1B. | UNRESOLVED STAFF COMMENTS | 21 |
| ITEM 2.  | PROPERTIES | 21 |
| ITEM 3.  | LEGAL PROCEEDINGS | 21 |
|     |   |   |
| PART II  |
|     |
| ITEM 5.  | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES | 22 |
| ITEM 6.  | SELECTED FINANCIAL DATA | 25 |
| ITEM 7.  | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 25 |
| ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 29 |
| ITEM 8.  | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA | 29 |
| ITEM 9.  | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE | 29 |
| ITEM 9A. | CONTROLS AND PROCEDURES | 29 |
| ITEM 9B. | OTHER INFORMATION | 30 |
|     |   |   |
| PART III |
|     |
| ITEM 10. | DIRECTORS AND EXECUTIVE OFFICERS AND CORPORATE GOVERANCE | 30 |
| ITEM 11. | EXECUTIVE COMPENSATION | 33 |
| ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS | 36 |
| ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE | 38 |
| ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES | 38 |
|     |   |   |
| PART IV  |
|     |
| ITEM 15. | EXHIBITS, FINANCIAL STATEMENT SCHEDULES | 39 |
|     |   |   |
|     | SIGNATURES | 41 |

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|   | · | Increased demand for large format high resolution televisions and computer monitors; |
|--------|--------|--------------------------------------------------------------------------------------|

|   | · | Steady growth in usage of notebook, netbook, and new “tablet” computers; |
|--------|--------|--------------------------------------------------------------------------------------|

|   | · | A migration to larger color screens, which are multi-touch enabled, for mobile phones and other handheld devices; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------|

|   | · | Decreasing costs economics, increasing throughput and improving efficiency of FPD production as newer generation LCD fabrication plants are increasing production. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | High touch resolution |
|--------|--------|-----------------------|

|   | · | Pressure sensitive, works with any stylus |
|--------|--------|-------------------------------------------|

|   | · | Not affected by dirt, dust, water, or light |
|--------|--------|---------------------------------------------|

|   | · | Affordable touchscreen technology |
|--------|--------|-----------------------------------|

|   | · | 75% clarity |
|--------|--------|-------------|

|   | · | Resistive layers can be damaged by a sharp object |
|--------|--------|---------------------------------------------------|

|   | · | Less durable then 5-Wire Resistive technology |
|--------|--------|-----------------------------------------------|

|   | · | High touch resolution |
|--------|--------|-----------------------|

|   | · | High image clarity |
|--------|--------|--------------------|

|   | · | Not affected by dirt, grease, moisture. |
|--------|--------|-----------------------------------------|

|   | · | Must be touched by finger, will not work with any non-conductive input |
|--------|--------|------------------------------------------------------------------------|

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|   | · | High touch resolution |
|--------|--------|-----------------------|

|   | · | Highest image clarity |
|--------|--------|-----------------------|

|   | · | All glass panel, no coatings or layers that can wear out or damage |
|--------|--------|--------------------------------------------------------------------|

|   | · | Must be touched by finger, gloved hand, or soft-tip stylus. Something hard like a pen won’t work |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | · | Not completely sealable, can be affected by large amounts of dirt, dust, and / or water in the environment. |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | · | High touch resolution |
|--------|--------|-----------------------|

|   | · | Pressure sensitive, works with any stylus |
|--------|--------|-------------------------------------------|

|   | · | Not affected by dirt, dust, water, or light |
|--------|--------|---------------------------------------------|

|   | · | More durable then 4-Wire Resistive technology |
|--------|--------|-----------------------------------------------|

|   | · | 75% clarity |
|--------|--------|-------------|

|   | · | Resistive layers can be damaged by a sharp object |
|--------|--------|---------------------------------------------------|

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|   | · | High touch resolution |
|--------|--------|-----------------------|

|   | · | High image clarity |
|--------|--------|--------------------|

|   | · | Not affected by dirt, grease, moisture. |
|--------|--------|-----------------------------------------|

|   | · | Attached pen stylus for precise input |
|--------|--------|---------------------------------------|

|   | · | Must be touched by finger or attached pen stylus, will not work with any non-conductive input |
|--------|--------|-----------------------------------------------------------------------------------------------|

|   | 1. | Top polyester layer coated with a transparent metallic conductive coating on the bottom |
|--------|----|-----------------------------------------------------------------------------------------|

|   | 2. | Adhesive spacer |
|--------|----|-----------------|

|   | 3. | Glass layer coated with a transparent metallic conductive coating on the top |
|--------|----|------------------------------------------------------------------------------|

|   | 4. | Adhesive layer on the backside of the glass for mounting |
|--------|----|----------------------------------------------------------|

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|   | · | Develop Strategic Relationships.  We plan to target strategic partners to further our efforts in the development and commercialization of UniBoss produced touch panel films and our FPR films. We believe that if these efforts are successful, they could result in UniBoss based touch panels reaching commercial markets in products within two years.  We are already selling our FPR films.  We believe that gaining the assistance of technology leading OEMs in the deployment of UniBoss produced touch panel films for their products is a significant step for our commercialization effort of this product.  As a result, we will seek to build relationships that will allow us to leverage our existing knowledge, scale, infrastructure, manufacturing and expertise in thin films, optics, control circuitry, assembly, and logistics. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Enhance the Company’s Existing Performance Engineered Film Technology. We believe that continuing development and enhancement of our PEF technology is critical to our success. Consequently, we intend to enhance our competitive technology position through internal development efforts that expand our intellectual property portfolio, collaborative relationships, and other strategic opportunities. Our primary focus is to expand our intellectual property through development of additional prototypes and materials that enhance and extend our product capabilities or the processes by which the systems are produced, thereby allowing them to be used in a broader array of applications and to maintain performance and market leadership over time. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Develop Prototypes Suitable for Industry Demonstration.  We plan to produce prototypes that will demonstrate our ability to meet the most demanding requirements with a superior performing system and superior performing film products.  We have developed partners that provide a small volume pilot production line that provides limited quantities of films to meet demonstrate our production solutions for all applications. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Finalize a Manufacturing Process. We have completed the development of the core and foundation of our film manufacturing processes and have endeavored to protect the know-how and intellectual property in the developed processes.  While we use toll coaters to manufacture the FPR film, we intend to acquire all necessary equipment to manufacture the UniBoss films internally. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | Target Leading Manufacturers. We plan to target leading display, materials and electronics manufacturers as potential partners and/or integrators of our Performance Engineered Film products. We will provide extensive technical assistance and support to manufacturers who are early evaluators, developers, or users of our FPR and UniBoss touch screen films. We will also employ a pull strategy (targeting end device OEMs), or “pull through” strategy, of our technologies by actively marketing their advantages to these manufacturers that incorporate touch screen technology into their devices.  This would allow our production partners to gain access to the OEM supply chain driven by end OEMs seeking the competitive product advantages offered by our Performance Engineered Film technologies.  We will also target Original Design Manufacturers (ODMs) targeted to assemble our sub-components and films into OEM products. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Drive Adoption by End-Product Original Equipment Manufacturers. We plan to employ a “pull through” strategy by using prototype devices and films to demonstrate our technology to OEMs and ODMs that produce end user products. We believe that the significant advantages that our films will offer in performance and protection can position us to be the standard and will induce OEMs to request our solutions from their existing suppliers. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Build the Company’s Revenue Sources. We believe that we will be able to produce revenues from three distinct sources, licenses, film sales (UniBoss, FPR, and other film sales), and funded engineering services (in support of one of our products, paid for by a customer). |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Finalization of micro-structure design and film materials for FPR; |
|--------|--------|--------------------------------------------------------------------|

|   | · | Characterization of FPR film performance across numerous touch screen devices; |
|--------|--------|--------------------------------------------------------------------------------|

|   | · | Implementation of high volume production of FPR film; |
|--------|--------|-------------------------------------------------------|

|   | · | Establishment of numerous sales channels for FPR film; |
|--------|--------|--------------------------------------------------------|

|   | · | Development of the Uniboss process; and |
|--------|--------|-----------------------------------------|

|   | · | Finalization of specifications for the production of UniBoss films. |
|--------|--------|---------------------------------------------------------------------|

|   | · | Completion of designs for marketable products |
|--------|--------|-----------------------------------------------|

|   | · | Completion of production processes for those products |
|--------|--------|-------------------------------------------------------|

|   | · | Completion of Joint Development and Supply and Manufacturing Agreements |
|--------|--------|-------------------------------------------------------------------------|

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|   | · | Avery Dennision: We engaged Avery Dennison as an exclusive production partner for specific varieties of its FPR film products.  Avery provides assistance in the development and manufacturing of its thin film designs.  Implementation of Performance Engineered Films can be accomplished using a variety of materials that can achieve the required properties’ and characteristics.  No new or unique materials will be required, rather just the optimization of existing materials as implemented within the Avery process and system.  Initially we engaged Avery for development work with the objective of reaching a production agreement or joint venture with one or more thin film manufacturers.  During the course of 2010, we secured a subcontracted manufacturing capacity for our initial thin film production and also signed separate non-binding Memorandums of Understanding with other production partners to provide alternative manufacturing capacity. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Rambus: We sold our TMOS related patents and related intellectual property to Rambus in May of 2010.  We also signed an Engineering Services Agreement with Rambus as part of that sale, pursuant to which we may continue to support the development of TMOS and other related product development for Rambus through the provision of engineering services.  The provision of these services is at our discretion and they are not viewed as material to our business. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Drive Control Circuitry: Although not material to our business plans, wee will continue the development of our unique MEMs drive control circuitry.  We have developed unique intellectual property that will be implemented through a “fab-less” semiconductor model.  This may include potential development of new intellectual property, cross licensing, and the use of certain existing semiconductor capabilities from one or more partners.  We have developed a means to use off-the-shelf parts for certain drive control requirements that will allow us to produce prototypes in the short term, as well as leveraging the enhancements that we create over the longer term. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Manufacturing and Assembly Partners: We are seeking strategic partners that are currently manufacturing or integrating touch screen panels into end user products. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Large OEM and ODM for UniBoss touch screens and FPR films: We have demonstrated unique proof of concept prototype devices and film products to large computer system OEMs under non-disclosure agreements to advance the evaluation of the technologies.  The initial prototypes established the first products for testing, evaluation and performance characterization necessary to gather direct performance feedback.  Additional work continues specific to advancing the prototypes to implementation within an end user product. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Consumer Electronics Manufacturers: We have held initial exploratory meetings with a variety of consumer electronics OEMs, including cell phone, computer and television system manufacturers, that have all expressed a desire to possibly leverage UniBoss touch screen films and FPR films for their unique attributes in their products.  Each of these interactions has resulted in an invitation to return for further engineering specific meetings as our product development advances. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | Product revenues — Proceeds from the sales of Performance Engineered Film products from retail, wholesale and OEM sales channels. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Critical materials — Proceeds from the sales of Performance Engineered Film products to integrators or manufacturers that produce or assemble devices with touch screens. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Engineering support contracts — Integrators that are seeking differentiate their products by leveraging the unique attributes that our Performance Engineered Films can potentially provide. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | A wide range of opportunity to enter the market; |
|--------|--------|--------------------------------------------------|

|   | · | The flexibility to pursue multiple entry points to multiple market segments; |
|--------|--------|------------------------------------------------------------------------------|

|   | · | The ability to be a supplier of key materials; |
|--------|--------|------------------------------------------------|

|   | · | The ability to profitably produce relatively small volumes of products; and |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | The ability to leverage established infrastructures. |
|--------|--------|------------------------------------------------------|

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|   | · | Disappointing results from our development efforts; |
|--------|--------|-----------------------------------------------------|

|   | · | Failure to meet our revenue or profit goals or operating budget; |
|--------|--------|------------------------------------------------------------------|

|   | · | Decline in demand for our common stock; |
|--------|--------|-----------------------------------------|

|   | · | Downward revisions in securities analysts’ estimates or changes in general market conditions; |
|--------|--------|-----------------------------------------------------------------------------------------------------|

|   | · | Technological innovations by competitors or in competing technologies; |
|--------|--------|------------------------------------------------------------------------|

|   | · | Investor perception of our industry or our prospects; |
|--------|--------|-------------------------------------------------------|

|   | · | General economic trends; |
|--------|--------|--------------------------|

|   | · | Variations in our quarterly operating results; |
|--------|--------|------------------------------------------------|

|   | · | Our inability to increase revenues: |
|--------|--------|-------------------------------------|

|   | · | Announcement of new customer relationships by our competitors; |
|--------|--------|----------------------------------------------------------------|

|   | · | Departures of our executive officers; |
|--------|--------|---------------------------------------|

|   | · | General conditions in the worldwide economy, including fluctuations in interest rates; |
|--------|--------|----------------------------------------------------------------------------------------|

|   | · | Developments in patents or other intellectual property rights and litigation; |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | Developments in our relationships with our customers and suppliers; |
|--------|--------|---------------------------------------------------------------------|

|   | · | Any significant acts of terrorism against the United States; and |
|--------|--------|------------------------------------------------------------------|

|   | · | Our currently limited public float. |
|--------|--------|-------------------------------------|

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|   | · | that a broker or dealer approve a person’s account for transactions in penny stocks; and |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | · | the broker or dealer receive from the investor a written agreement to the transaction, setting forth the identity and quantity of the penny stock to be purchased. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | obtain financial information and the investment experience objectives of the person; and |
|--------|--------|------------------------------------------------------------------------------------------|

|   | · | make a reasonable determination that the transactions in penny stocks are suitable for that person and the person has sufficient knowledge and experience in financial matters to be capable of evaluating the risks of transactions in penny stocks. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | sets forth the basis on which the broker or dealer made the suitability determination; and |
|--------|--------|--------------------------------------------------------------------------------------------|

|   | · | attests that the broker or dealer received a signed, written agreement from the investor prior to the transaction. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|

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|   | · | authorize our board of directors to issue preferred stock without stockholder approval and to designate the rights, preferences and privileges of each class; if issued, such preferred stock would increase the number of outstanding shares of our capital stock and could include terms that may deter an acquisition of us; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | establish advance notice requirements for nominations to the board of directors or for proposals that can be acted on at stockholder meetings; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | limit who may call stockholder meetings; |
|--------|--------|------------------------------------------|

|   | · | do not provide for cumulative voting rights; and |
|--------|--------|--------------------------------------------------|

|   | · | provide that all vacancies, including newly created directorships, may, except as otherwise required by law, be filled by the affirmative vote of a majority of directors then in office, even if less than a quorum. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Quarter Ended |   | High   |   |   | Low    |   |
|--------------------|--------|--------|--------|--------|--------|--------|
|               |   |   |   |   |   |   |
| 2010               |   |   |   |   |   |   |
| Fourth Quarter     |   | $      | 8.40   |   |   | $      | 4.20 |   |
| Third Quarter      |   | $      | 7.65   |   |   | $      | 4.80 |   |
| Second Quarter     |   | $      | 9.75   |   |   | $      | 2.40 |   |
| First Quarter      |   | $      | 7.50   |   |   | $      | 2.25 |   |
| 2009               |   |   |   |   |   |   |   |   |
| Fourth Quarter     |   | $      | 9.60   |   |   | $      | 4.50 |   |
| Third Quarter      |   | $      | 6.90   |   |   | $      | 3.45 |   |
| Second Quarter     |   | $      | 9.00   |   |   | $      | 4.95 |   |
| First Quarter      |   | $      | 13.80  |   |   | $      | 6.00 |   |

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| Plan Category                                          |   | Number of shares ofCommon Stock to beissued upon exercise ofoutstanding options |   | Weighted-averageexercise price ofoutstandingoptions ($) |   | Number of shares ofCommon Stock remainingavailable for future issuanceunder equity compensationplans |
|--------------------------------------------------------|--------|---------------------------------------------------------------------------------|--------|---------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------|
| Equity compensation plans approved by stockholders     |   | 745,709                                                                         |   | $                                                       | 9.19   |                                                                                                 | 254,292 |
|                                                   |   |                                                                            |   |                                                    |   |                                                                                                 |
| Equity compensation plans not approved by stockholders |   | 86,668                                                                          |   | 7.50                                                    |   | —                                                                                              |
|                                                   |   |                                                                            |   |                                                    |   |                                                                                                 |
| Total                                                  |   | 832,377                                                                         |   | $                                                       | 9.01   |                                                                                                 | 254,292 |

|                             |   | OptionsYear Ended December 31, |    |   | WarrantsYear Ended December 31, |   |
|----------------------------------|--------|-------------------------------------|---------|--------|--------------------------------------|--------|
|                             |   | 2010                                |    |   | 2009                                 |   |   | 2010 |   |   | 2009 |   |
| Outstanding, beginning of year   |   |                                | 390,075 |   |                                 |   | 373,468 |   |   |   | 1,147,098 |   |   |   | 923,098 |   |
| Granted                          |   |                                | 607,684 |   |                                 |   | 38,334 |   |   |   | 386,391 |   |   |   | 894,238 |   |
| Exercised                        |   |                                | — |   |                                 |   | — |   |   |   | — |   |   |   | — |   |
| Expired or cancelled             |   |                                | 165,382 |   |                                 |   | 21,727 |   |   |   | 70,000 |   |   |   | 670,238 |   |
|                             |   |                                |    |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding, end of year         |   |                                | 832,377 |   |                                 |   | 390,075 |   |   |   | 1,463,489 |   |   |   | 1,1470,98 |   |
|                             |   |                                |    |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Exercisable, end of year         |   |                                | 491,911 |   |                                 |   | 341,629 |   |   |   | 1,463,489 |   |   |   | 1,147,098 |   |
|                             |   |                                |    |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Available for grant, end of year |   |                                | 254,292 |   |                                 |   | 96,591 |   |   |   |   |   |   |   |   |   |

|                                                                                                                                                                                                                                                                                                   |   | OptionsYear Ended December 31, |    |   | WarrantsYear Ended December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|---------|--------|--------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                   |   | 2010                                |    |   | 2009                                 |   |   | 2010 |   |   | 2009 |   |
| Outstanding, beginning of year                                                                                                                                                                                                                                                                         |   | $                                   | 23.55   |   |                                 | $      | 23.40 |   |   | $ | 9.90 |   |   | $ | 24.30 |   |
| Granted during the year                                                         |   | $                                   | 7.50    |   |                                 | $      | 21.75 |   |   | $ | 0.50 |   |   | $ | 7.50 |   |
| Exercised during the year                                                       |   | $                                   | — |   |                                 | $      | — |   |   | $ | — |   |   | $ | — |   |
| Expired or cancelled during the year                                            |   | $                                   | 7.50    |   |                                 | $      | 21.75 |   |   | $ | 16.50 |   |   | $ | 19.35 |   |
| Outstanding at end of year                                                      |   | $                                   | 9.01    |   |                                 | $      | 23.25 |   |   | $ | 7.33 |   |   | $ | 9.90 |   |
| Exercisable at end of year                                                      |   | $                                   | 10.05   |   |                                 | $      | 23.55 |   |   | $ | 7.33 |   |   | $ | 9.90 |   |

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| Grant date                                                                                                                                |   | OptionsOutstanding |   | WarrantsOutstanding |   | Exercisable |   | WeightedExercise Price |   | Remaining Life(Years) |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|---------------------|--------|-------------|--------|------------------------|--------|-----------------------|
| December 9, 2004                                                                                                                          |   | —            |   | 51,304              |   | 51,304      |   | $                      | 20.70  |                  | 3.92 |
| January 10, 2005                                                                                                                          |   | —            |   | 11,253              |   | 11,253      |   | $                      | 20.70  |                  | 3.92 |
| January 26, 2005                                                                                                                          |   | —            |   | 7,353               |   | 7,353       |   | $                      | 20.70  |                  | 3.92 |
| March 5, 2005                                                                                                                             |   | 40,000             |   | —             |   | 40,000      |   | $                      | 30.00  |                  | 1.67 |
| March 5, 2005                                                                                                                             |   | 30,000             |   | —             |   | 30,000      |   | $                      | 7.50   |                  | 4.17 |
| April 19, 2005                                                                                                                            |   | 13,334             |   | —             |   | 13,334      |   | $                      | 7.50   |                  | 1.25 |
| April 19, 2005                                                                                                                            |   | 13,334             |   | —             |   | 13,334      |   | $                      | 7.50   |                  | 4.33 |
| April 19, 2005                                                                                                                            |   | 10,000             |   | —             |   | 10,000      |   | $                      | 30.00  |                  | 0.58 |
| May 23, 2006                                                                                                                              |   | 66,667             |   | —             |   | 66,667      |   | $                      | 7.50   |                  | 5.58 |
| May 24, 2006                                                                                                                              |   | —            |   | 100,000             |   | 100,000     |   | $                      | 18.75  |                  | 0.58 |
| September 12, 2006                                                                                                                        |   | —            |   | 12,968              |   | 12,968      |   | $                      | 18.75  |                  | 0.58 |
| March 16, 2007                                                                                                                            |   | 20,001             |   | —             |   | 20,001      |   | $                      | 7.50   |                  | 6.21 |
| September 13, 2007                                                                                                                        |   | 64,001             |   | —             |   | 64,001      |   | $                      | 7.50   |                  | 6.71 |
| September 13, 2007                                                                                                                        |   | 7,000              |   | —             |   | 7,000       |   | $                      | 7.50   |                  | 1.25 |
| September 13, 2007                                                                                                                        |   | 7,813              |   | —             |   | 7,813       |   | $                      | 21.75  |                  | 0.58 |
| January 7, 2008                                                                                                                           |   | 33,334             |   | —             |   | 33,334      |   | $                      | 7.50   |                  | 7.02 |
| April 18, 2008                                                                                                                            |   | 13,500             |   | —             |   | 12,188      |   | $                      | 7.50   |                  | 7.30 |
| April 18, 2008                                                                                                                            |   | 1,702              |   | —             |   | 1,702       |   | $                      | 7.50   |                  | 1.25 |
| April 18, 2008                                                                                                                            |   | 1,346              |   | —             |   | 1,346       |   | $                      | 21.75  |                  | 0.58 |
| May 20, 2008                                                                                                                              |   | 6,667              |   | —             |   | 5,648       |   | $                      | 7.50   |                  | 7.38 |
| June 2, 2008                                                                                                                              |   | 2,667              |   | —             |   | 1,778       |   | $                      | 7.50   |                  | 7.42 |
| October 20, 2008                                                                                                                          |   | 2,667              |   | —             |   | 1,815       |   | $                      | 7.50   |                  | 7.80 |
| January 30, 2009                                                                                                                          |   | 13,336             |   | —             |   | 13,336      |   | $                      | 7.50   |                  | 8.08 |
| June 10, 2009                                                                                                                             |   | —            |   | 32,007              |   | 32,007      |   | $                      | 7.50   |                  | 8.42 |
| June 30, 2009                                                                                                                             |   | —            |   | 2,667               |   | 2,667       |   | $                      | 7.50   |                  | 8.42 |
| August 31, 2009                                                                                                                           |   | —            |   | 30,674              |   | 30,674      |   | $                      | 7.50   |                  | 8.67 |
| September 30, 2009                                                                                                                        |   | —            |   | 37,340              |   | 37,340      |   | $                      | 7.50   |                  | 8.83 |
| October 2, 2009                                                                                                                           |   | —            |   | 8,004               |   | 8,004       |   | $                      | 7.50   |                  | 8.83 |
| October 2, 2009                                                                                                                           |   | —            |   | 770,239             |   | 770,239     |   | $                      | 5.00   |                  | 8.83 |
| December 31, 2009                                                                                                                         |   | —            |   | 8,336               |   | 8,336       |   | $                      | 7.50   |                  | 9.00 |
| January 28, 2010                                                                                                                          |   | 324,004            |   | —             |   | 81,001      |   | $                      | 7.50   |                  | 9.08 |
| January 28, 2010                                                                                                                          |   | 33,334             |   | —             |   | 33,334      |   | $                      | 7.50   |                  | 4.21 |
| January 29, 2010                                                                                                                          |   | —            |   | 3,336               |   | 3,336       |   | $                      | 7.50   |                  | 9.00 |
| February 2, 2010                                                                                                                          |   | —            |   | 2,501               |   | 2,501       |   | $                      | 7.50   |                  | 9.00 |
| February 10, 2010                                                                                                                         |   | 1,667              |   | —             |   | 1,667       |   | $                      | 7.50   |                  | 2.12 |
| March 15, 2010                                                                                                                            |   | —            |   | 19,173              |   | 19,173      |   | $                      | 7.50   |                  | 9.00 |
| March 29, 2010                                                                                                                            |   | —            |   | 834                 |   | 834         |   | $                      | 7.50   |                  | 9.00 |
| April 5, 2010                                                                                                                             |   | —            |   | 20,500              |   | 20,500      |   | $                      | 7.50   |                  | 9.25 |
| May 19, 2010                                                                                                                              |   | 104,335            |   | —             |   | 26,084      |   | $                      | 7.50   |                  | 9.62 |
| May 27, 2010                                                                                                                              |   | 3,334              |   | —             |   | 1,944       |   | $                      | 7.80   |                  | 2.50 |
| July 1, 2010                                                                                                                              |   | 10,000             |   | —             |   | 2,500       |   | $                      | 7.50   |                  | 9.50 |
| July 6, 2010                                                                                                                              |   | 8,334              |   | —             |   | 2,084       |   | $                      | 7.50   |                  | 9.50 |
| December 15, 2010                                                                                                                         |   | —            |   | 300,000             |   | 300,000     |   | $                      | 6.00   |                  | 4.92 |
| December 20, 2010                                                                                                                         |   | —            |   | 45,000              |   | 45,000      |   | $                      | 6.00   |                  | 4.92 |
|                                                                                                                                      |   |               |   |                |   |        |   |                   |   |                  |
| Total                       |   | 832,377            |   | 1,463,489           |   | 1,955,400   |   |                   |   |                  |

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|   |   |
|--------|--------|

| ·   | $775,000 proceeds from convertible notes payable; |
|--------------------|---------------------------------------------------|

| ·   | $2,061,999 payments on convertible notes payable |
|--------------------|--------------------------------------------------|

| ·   | $15,275,145 proceeds from issuance of common stock, net; and |
|--------------------|--------------------------------------------------------------|

| ·   | $108,726 payment of deferred loan costs. |
|--------------------|------------------------------------------|

|   |   |
|--------|--------|

| ·   | $2,325,000 proceeds from convertible notes payable; and |
|--------------------|---------------------------------------------------------|

| ·   | $305,417 payment of deferred loan costs. |
|--------------------|------------------------------------------|

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| Name                                    |   | Age |   | Title                                                                        |
|-----------------------------------------|--------|-----|--------|------------------------------------------------------------------------------|
| Reed J. Killion                         |   | 48  |   | Chief Executive Officer, President, Principal Executive Officer and Director |
| Robert J. Petcavich                     |   | 56  |   | Vice President and General Manager Opcuity Films                             |
| Dan Van Ostrand                    |   | 52  |   | Vice President Research & Development                               |
| Jeffrey W. Tomz     |   | 39  |   | Chief Financial Officer                                                      |
| Carl J. Yankowski                       |   | 62  |   | Director                                                                     |
| Bernard Marren                          |   | 75  |   | Chairman                                                                     |
| Bruce Berkoff                           |   | 50  |   | Director                                                                     |
| Ross Young                              |   | 45  |   | Director                                                                     |

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| Name andPrincipal Position                                                                     |   | Year   |           |   | Salary (1) |          |                 | Bonus (2) |   |          | Option Awards (3)    |   |   | Non-Equity Incentive Plan Compensation |                 |   | Nonqualified Deferred Compensation Earnings |   |                 | All Other Compensation(4) |   |   | Total                |   |
|------------------------------------------------------------------------------------------------|--------|--------|----------------|--------|------------|---------------|----------------------|-----------|--------|---------------|----------------------|--------|--------|----------------------------------------|----------------------|--------|---------------------------------------------|--------|----------------------|---------------------------|--------|--------|----------------------|--------|
|                                                                                           |   |   |           |   |       |          |                 |      |   |          |                 |   |   |                                   |                 |   |                                        |   |                 |                      |   |   |                 |   |
| Reed J. KillionChief Executive Officer, President (Principal Executive Officer) & Director |   |   | 20102009  |   |       | $   | 208,833213,542  |      |   | $   | ——  |   |   | $                            | 479,312323,143  |   |                                        |   | ——  |                      |   |   | ——  |   |   | $   | 10,00011,500  |   |   | $   | 698,145548,185  |   |
|                                                                                           |   |   |           |   |       |          |                 |      |   |          |                 |   |   |                                   |                 |   |                                        |   |                 |                      |   |   |                 |   |   |   |   |   |   |   |   |   |
| Robert J. PetcavichVice President & General Manager Opcuity Films                          |   |   | 20102009  |   |       |          | 163,000167,963  |      |   |          | ——  |   |   |                                   | 375,311143,569  |   |                                        |   | ——  |                      |   |   | ——  |   |   |   | ——  |   |   |   | 538,311311,532  |   |
|                                                                                           |   |   |           |   |       |          |                 |      |   |          |                 |   |   |                                   |                 |   |                                        |   |                 |                      |   |   |                 |   |   |   |   |   |   |   |   |   |
| Dan Van OstrandVice President Research & Development                                       |   |   | 20102009       |   |       |          | 143,833136,667       |      |   |          | ——       |   |   |                                   | 92,75418,494         |   |                                        |   | ——       |                      |   |   | ——       |   |   |   | —— |   |   |   | 236,587155,161 |   |
|                                                                                           |   |   |           |   |       |          |                 |      |   |          |                 |   |   |                                   |                 |   |                                        |   |                 |                      |   |   |                 |   |   |   |   |   |   |   |   |   |
| James A. Tassone (5)Former Chief Financial Officer                                             |   |   | 20102009       |   |       |          | 7,750150,875         |      |   |          | ——       |   |   |                                   | 223,86857,986        |   |                                        |   | ——       |                      |   |   | ——       |   |   |   | 50011,500 |   |   |   | 232,118220,361 |   |
|                                                                                           |   |   |           |   |       |          |                 |      |   |          |                 |   |   |                                   |                 |   |                                        |   |                 |                      |   |   |                 |   |   |   |   |   |   |   |   |   |
| Jeffrey W. Tomz (6)Chief Financial Officer                                                     |   |   | 20102009       |   |       |          | 138,833123,854       |      |   |          | ——       |   |   |                                   | 177,20234,940        |   |                                        |   | ——       |                      |   |   | ——       |   |   |   | 10,00011,500 |   |   |   | 326,035170,294 |   |

| (1)   | Effective September 16, 2007, the base salary of Reed J. Killion is $250,000.  Effective January 7, 2008, the base salary of Robert Petcavich is $195,000.  Effective July 1, 2010, the base salary of Dan Van Ostrand and Jeffrey W. Tomz is $180,000. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Amounts reflect the aggregate annual cash bonus earned by each of our named executive officers for fiscal years 2010 and 2009.  There were no cash bonus paid for fiscal years 2010 and 2009. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | For 2010 and 2009, the amounts reflect the compensation cost recognized in 2010 and 2009, respectively, for stock options in accordance with FAS 123R, which reflects the fair value of all stock-based compensation in earnings based on the related vesting schedule.  For additional information relating to the assumptions made by us in connection with the valuation of these awards for 2010, refer to Note 3 of our financial statements herein.  For additional information relating to the assumptions made by us in connection with the valuation of these awards for 2009, refer to Note 3 of our financial statements in our Annual Report on Form 10-K for the year ended December 31, 2009. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Excludes perquisites and other personal benefits unless such compensation was greater than $10,000.  For Mr. Killion, Mr. Tassone and Mr. Tomz, amounts include a car allowance. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Effective March 14, 2010, Mr. Tassone resigned as chief financial officer. |
|-----------------|--------------------------------------------------------------------------------------|

| (6)   | Effective July 1, 2010, Mr. Tomz was appointed Chief Financial Officer.  Since June 2005, Mr. Tomz was the VP of Finance of the Company. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

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|             |   | Outstanding Equity Awards at December 31, 2010                 |   |
|------------------|--------|----------------------------------------------------------------|--------|
|             |   | Option Awards                                                  |   | Stock Awards |   |
| Name             |   | Number of Securities Underlying Unexercised OptionsExercisable |   |   | Number of Securities Underlying Unexercised OptionsUnexercisable |   |   | Option Exercise Price |   | Option Expiration Date |   | Number of Shares or Units of Stock That Have Not Vested |   | Market Value of Shares or Units of Stock That Have Not Vested |   | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested |   | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested |   |
| Reed J. Killion  |   |                                                           | 30,000 |   |   |   | -- |   |   | $ | 7.50 |   | 3/15/2015 |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |
|             |   |                                                           | 54,000 |   |   |   | -- |   |   |   | 7.50 |   | 9/13/2017 |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |
|             |   |                                                           | 12,188 | (a) |   |   | 1,312 | (a) |   |   | 7.50 |   | 4/18/2018 |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |
|             |   |                                                           | 1,667  |   |   |   | -- |   |   |   | 7.50 |   | 1/30/2019 |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |
|             |   |                                                           | 16,667 | (b) |   |   | 50,000 | (b) |   |   | 7.50 |   | 1/28/2020 |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |
|             |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Robert Petcavich |   |                                                           | 33,334 |   |   |   | -- |   |   |   | 7.50 |   | 1/7/2018 |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |
|             |   |                                                           | 1,667  |   |   |   | -- |   |   |   | 7.50 |   | 1/30/2019 |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |
|             |   |                                                           | 20,000 | (b) |   |   | 60,000 | (b) |   |   | 7.50 |   | 1/28/2020 |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |
|             |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dan Van Ostrand  |   |                                                           | 1,667  |   |   |   | -- |   |   |   | 7.50 |   | 1/30/2019 |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |
|             |   |                                                           | 8,334  | (b) |   |   | 25,000 | (b) |   |   | 7.50 |   | 1/28/2020 |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |
|             |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| James A. Tassone |   |                                                           | 13,334 |   |   |   | -- |   |   |   | 7.50 |   | 4/19/2015 |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |
|             |   |                                                           | 7,000  |   |   |   | -- |   |   |   | 7.50 |   | 9/13/2017 |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |
|             |   |                                                           | 1,702  |   |   |   | -- |   |   |   | 7.50 |   | 4/18/2018 |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |
|             |   |                                                           | 1,667  |   |   |   | -- |   |   |   | 7.50 |   | 1/30/2019 |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |
|             |   |                                                           | 33,334 |   |   |   | -- |   |   |   | 7.50 |   | 1/28/2020 |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |
|             |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Jeffrey W. Tomz  |   |                                                           | 13,334 |   |   |   | -- |   |   |   | 7.50 |   | 4/19/2015 |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |
|             |   |                                                           | 3,334  |   |   |   | -- |   |   |   | 7.50 |   | 9/13/2017 |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |
|             |   |                                                           | 1,667  |   |   |   | -- |   |   |   | 7.50 |   | 1/30/2019 |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |
|             |   |                                                           | 5,334  |   |   |   | 16,000 | (b) |   |   | 7.50 |   | 1/28/2020 |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |
|             |   |                                                           | 8,334  |   |   |   | 25,000 | (c) |   |   | 7.50 |   | 5/19/2020 |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |

----

| (a)   | vests monthly over 36 months beginning April 18, 2008 |
|-----------------|-------------------------------------------------------|

| (b)   | 25% vest on 1/28/2010; 25% vest on 1/28/2011; 25% vest on 1/28/2012; and 25% vest on 1/28/2013. |
|-----------------|-------------------------------------------------------------------------------------------------|

| (c)   | 25% vest on 5/19/2010; 25% vest on 5/19/2011; 25% vest on 5/19/2012; and 25% vest on 5/19/2013. |
|-----------------|-------------------------------------------------------------------------------------------------|

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| Name           |   | Fees Earned or Paid in Cash |   |   | Stock Awards |   |   | Option Awards |   |   | Non-Equity Incentive Plan Compensation |   |   | Nonqualified Deferred Compensation Earnings |   |   | All Other Compensation |   |   | Total  |   |
|----------------|--------|-----------------------------|--------|--------|--------------|--------|--------|---------------|--------|--------|----------------------------------------|--------|--------|---------------------------------------------|--------|--------|------------------------|--------|--------|--------|--------|
| Bruce Berkoff  |   | $                           | --     |   |         |   | --     |          |   | $      | 53,598                                 |   |   |                                        | --     |   |                   |   | --     |   |   |   | -- |   |   | $ | 53,598 |   |
| Bernard Marren |   |                        | --     |   |         |   | --     |          |   |   | 68,274                                 |   |   |                                        | --     |   |                   |   | --     |   |   |   | -- |   |   |   | 68,274 |   |
| Carl Yankowski |   |                        | --     |   |         |   | --     |          |   |   | 150,448                                |   |   |                                        | --     |   |                   |   | --     |   |   |   | -- |   |   |   | 150,448 |   |
| Ross Young     |   |                        | --     |   |         |   | --     |          |   |   | 75,444                                 |   |   |                                        | --     |   |                   |   | --     |   |   |   | -- |   |   |   | 75,444 |   |

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| Name andAddress of Beneficial Owner                                                                                          |   | Amount of Beneficial Ownership(1) |   | Percent of Class |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|------------------|--------|
| Directors and Officers:                                                                                                      |   |                              |   |             |   |
| Reed J. Killion                                                                                                              |   | 231,668                           | (2)    | 3.2              | %      |
| Robert J. Petcavich                                                                                                          |   | 133,501                           | (3)    | 1.8              | %      |
| Dan Van Ostrand                                                                                                              |   | 113,501                           | (4)    | 1.6              | %      |
| James A. Tassone                                                                                                             |   | 79,120                            | (5)    | 1.1              | %      |
| Jeffrey W. Tomz                                                                                                              |   | 88,450                            | (6)    | 1.2              | %      |
| Carl J. Yankowski                                                                                                            |   | 80,668                            | (7)    | 1.1              | %      |
| Bernard Marren                                                                                                               |   | 122,796                           | (8)    | 1.7              | %      |
| Bruce Berkoff                                                                                                                |   | 25,251                            | (9)    | 0.4              | %      |
| Ross Young                                                                                                                   |   | 24,973                            | (10)   | 0.3              | %      |
| All Directors and Executive Officers as a Group (8 persons)                                                                  |   | 820,808                           |   | 11.3             | %      |
| 5% Stockholders:                                                                                                             |   |                              |   |             |   |
| The Raptor Global Portfolio Ltd.50 Rowes Wharf6th FloorBoston, MA 02110                                                      |   | 1,423,986                         | (11)   | 18.9             | %      |
| The Altar Rock Fund Liquidating Trust50 Rowes Wharf6th FloorBoston, MA 02110                                                 |   | 12,115                            | (12)   | 0.2              | %      |
| The Tudor BVI Global Portfolio, L.P.1275 King StreetGreenwich, CT 06831                                                      |   | 455,041                           | (13)   | 6.3              | %      |
| Merrill Lynch Pierce, Fenner & Smith IncorporatedBank of America, 15th Floor600 Montgomery StreetSan Francisco, CA 94111 |   | 899,524                           | (14)   | 12.2             | %      |

----

| (1) | Beneficial ownership is determined in accordance with Rule 13d-3 under the Securities Exchange Act of 1934, as amended, and is generally determined by voting powers and/or investment powers with respect to securities. Unless otherwise noted, all of such shares of Common Stock listed above are owned of record by each individual named as beneficial owner and such individual has sole voting and dispositive power with respect to the shares of Common Stock owned by each of them. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes options to purchase 195,001 shares of Common Stock exercisable within 60 days from February 28, 2011. |
|-----|----------------------------------------------------------------------------------------------------------------|

| (3) | Includes options to purchase 127,501 shares of Common Stock exercisable within 60 days from February 28, 2011. |
|-----|----------------------------------------------------------------------------------------------------------------|

| (4) | Includes options to purchase 58,334 shares of Common Stock exercisable within 60 days from February 28, 2011. |
|-----|---------------------------------------------------------------------------------------------------------------|

| (5) | Includes options to purchase 55,370 shares of Common Stock exercisable within 60 days from February 28, 2011. As announced by the Company in March 2010, Mr. Tassone resigned as Chief Financial Officer.  Accordingly, the number of shares owned by Mr. Tassone is not included in the aggregate amount for all directors and executive officers as a group. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Includes options to purchase 77,336 shares of Common Stock exercisable within 60 days from February 28, 2011. |
|-----|---------------------------------------------------------------------------------------------------------------|

| (7) | Includes options to purchase 80,668 shares of Common Stock exercisable within 60 days from February 28, 2011. |
|-----|---------------------------------------------------------------------------------------------------------------|

| (8) | Includes options to purchase 35,417 shares of Common Stock exercisable within 60 days from February 28, 2011. |
|-----|---------------------------------------------------------------------------------------------------------------|

| (9) | Includes options to purchase 25,251 shares of Common Stock exercisable within 60 days from February 28, 2011. |
|-----|---------------------------------------------------------------------------------------------------------------|

| (10) | Includes options to purchase 24,973 shares of Common Stock exercisable within 60 days from February 28, 2011. |
|------|---------------------------------------------------------------------------------------------------------------|

| (11) | Includes warrants to purchase 395,655 shares of Common Stock exercisable within 60 days from February 28, 2011. |
|------|-----------------------------------------------------------------------------------------------------------------|

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| (12) | Includes warrants to purchase 3,366 shares of Common Stock exercisable within 60 days from February 28, 2011. |
|------|---------------------------------------------------------------------------------------------------------------|

| (13)   | Includes warrants to purchase 126,433 shares of Common Stock exercisable within 60 days from February 28, 2011. |
|------------------|-----------------------------------------------------------------------------------------------------------------|

| (14)   | Includes warrants to purchase 254,785 shares of Common Stock exercisable within 60 days from February 28, 2011. |
|------------------|-----------------------------------------------------------------------------------------------------------------|

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| ExhibitNo. |   | Description of Document                                                                                                                                                                                                                                                                                                                                                                                                                       |
|------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1        |   | Amended and Restated Certificate of Incorporation of Uni-Pixel, Inc. (14)                                                                                                                                                                                                                                                                                                                                                                               |
| 3.2        |   | Form of Certificate of Amendment to Amended and Restated Certificate of Incorporation of Uni-Pixel, Inc. (14)                                                                                                                                                                                                                                                                                                                                           |
| 3.3        |   | Amended and Restated Bylaws of Uni-Pixel, Inc. (1)                                                                                                                                                                                                                                                                                                                                                                                                      |
| 4.1        |   | Junior Subordinated Unsecured Promissory Note (1)                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.2        |   | Common Stock Purchase Warrant No. 1 (1)                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 4.3        |   | Common Stock Purchase Warrant No. 2 (1)                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 4.4        |   | Common Stock Purchase Warrant No. 3 (1)                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 4.5        |   | Form of common stock certificate (6)                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 4.6        |   | Uni-Pixel, Inc. 12% Senior Secured Convertible Debenture No. 1 issued to Trident Growth Fund, L.P., dated May 24, 2006. (7)                                                                                                                                                                                                                                                                                                                             |
| 4.7        |   | Uni-Pixel, Inc. 12% Senior Secured Convertible Debenture No. 1 issued to CapSource Fund, L.P., dated May 24, 2006. (7)                                                                                                                                                                                                                                                                                                                                  |
| 4.8        |   | Common Stock Purchase Warrant No. 1 issued to Trident Growth Fund, L.P., dated May 24, 2006. (7)                                                                                                                                                                                                                                                                                                                                                        |
| 4.9        |   | Common Stock Purchase Warrant No. 1 issued to CapSource Fund, L.P., dated May 24, 2006. (7)                                                                                                                                                                                                                                                                                                                                                             |
| 4.10       |   | Uni-Pixel, Inc. 10% Senior Unsecured Convertible Debenture dated September 12, 2006. (8)                                                                                                                                                                                                                                                                                                                                                                |
| 4.11       |   | Common Stock Purchase Warrant dated September 12, 2006. (8)                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.1       |   | Cancellation and Transfer Agreement (1)                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.2       |   | Placement Agent Agreement (1)                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.3       |   | Uni-Pixel Display, Inc. Lock-Up Agreement (1)                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.4       |   | Consulting Agreement (1)                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.5       |   | Office Lease Agreement for Synergy North By and Between First Metro Limited Partnership (“Landlord”) and Uni-Pixel Displays, Inc. (“Tenant”) (1)                                                                                                                                                                                                                                                                                |
| 10.6       |   | Employee Intellectual Property Assignment and Nondisclosure Agreement (1) (5)                                                                                                                                                                                                                                                                                                                                                                           |
| 10.7       |   | Uni-Pixel, Inc. 2005 Stock Incentive Plan (1) (5)                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.8       |   | Uni-Pixel, Inc. 2005 Stock Incentive Plan — Notice of Stock Option Award (1) (5)                                                                                                                                                                                                                                                                                                                                                                  |
| 10.9       |   | Agreement and Plan of Merger and Reorganization Among Real-Estateforlease.com, Inc., Uni-Pixel Merger Sub, Inc., Gemini V, Inc., Uni-Pixel Displays, Inc. and those Stockholders of Real-Estateforlease.com, Inc. Listed on Exhibit “A” as “Company Stockholders” (1)                                                                                                                                                           |
| 10.10      |   | Employment Agreement — Frank M. DeLape (2) (5)                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.11      |   | Employment Agreement — Reed J. Killion (2) (5)                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.12      |   | Lockheed Martin Purchase Order (2) (portions of this exhibit have been omitted pursuant to a request for confidential treatment)                                                                                                                                                                                                                                                                                                                        |
| 10.13      |   | Small Business Innovation Research Phase I Contract (3)                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.14      |   | Small Business Innovation Research Phase II Contract (3)                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.15      |   | License and Strategic Business Agreement between Uni-Pixel Displays, Inc. and Lockheed Martin Corporation, acting by and through Lockheed Martin Systems Integration-Owego, dated as of October 5, 2005.(4) (The portions of this Exhibit marked “******” have been omitted and confidentially filed with the Securities and Exchange Commission pursuant to Rule 24b-2 promulgated under the Securities Exchange Act of 1934, as amended.) |
| 10.16      |   | Employment Agreement — James A. Tassone (5) (6)                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.17      |   | Securities Purchase Agreement dated May 24, 2006, by and between Uni-Pixel, Inc., Uni-Pixel Displays, Inc., Trident Growth Fund, L.P. and CapSource Fund, L.P. (7)                                                                                                                                                                                                                                                                                      |
| 10.18      |   | Security Agreement dated May 24, 2006, by and between Uni-Pixel, Inc., Uni-Pixel Displays, Inc., Trident Growth Fund, L.P. and CapSource Fund, L.P. (7)                                                                                                                                                                                                                                                                                                 |
| 10.19      |   | Securities Purchase Agreement dated September 12, 2006 (8)                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.20      |   | Employment Agreement — Carl Yankowski (5) (9)                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.21      |   | Securities Purchase Agreement dated as of February 13, 2007, by and among Uni-Pixel, Inc., The Raptor Global Portfolio Ltd., The Tudor BVI Global Portfolio Ltd., Tudor Proprietary Trading, L.L.C. and The Altar Rock Fund L.P. (10)                                                                                                                                                                                                                   |
| 10.22      |   | Investors’ Rights Agreement dated as of February 13, 2007, by and among Uni-Pixel, Inc., The Raptor Global Portfolio Ltd., The Tudor BVI Global Portfolio Ltd., Tudor Proprietary Trading, L.L.C. and The Altar Rock Fund L.P. (10)                                                                                                                                                                                                               |

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Table of Contents

| 10.23 |   | Form of Warrant dated as of February 13, 2007. (10)                                                                                                                                  |
|-------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.24 |   | Severance Agreement between Uni-Pixel, Inc. and Frank DeLape dated September 11, 2007. (5) (11)                                                                                      |
| 10.25 |   | Uni-Pixel, Inc. 2007 Stock Incentive Plan (11) (5)                                                                                                                                   |
| 10.26 |   | Securities Purchase Agreement dated as of September 28, 2007, by and among Uni-Pixel, Inc. and Merrill Lynch Pierce, Fenner & Smith Incorporated. (12)                           |
| 10.27 |   | Investors’ Rights Agreement dated as of September 28, 2007, by and among Uni-Pixel, Inc. and Merrill Lynch Pierce, Fenner & Smith Incorporated. (12)                       |
| 10.28 |   | Form of Warrant dated as of September 28, 2007. (12)                                                                                                                                 |
| 10.29 |   | Uni-Pixel, Inc. 2010 Stock Incentive Plan (13) (5)                                                                                                                                   |
| 10.30 |   | Form of Warrant to be granted to MDB Capital Group LLC (14)                                                                                                                          |
| 14    |   | Code of Ethics (6)                                                                                                                                                                   |
| 21    |   | Subsidiaries (6)                                                                                                                                                                     |
| 31.1  |   | Certification of the Chief Executive Officer, President and Principal Executive Officer of Uni-Pixel, Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (15) |
| 31.2  |   | Certification of the Chief Financial Officer of Uni-Pixel, Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (15)                                            |
| 32.1  |   | Certification of the Chief Executive Officer, President and Principal Executive Officer of Uni-Pixel, Inc., pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (15) |
| 32.2  |   | Certification of the Chief Financial Officer of Uni-Pixel, Inc., pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (15)                                            |

----

|   | (1) | Previously filed as an exhibit to the Company’s Form 10-SB, filed on February 18, 2005, and incorporated by reference hereto. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Previously filed as an exhibit to the Company’s Amendment #1 Form 10-SB, filed on April 1, 2005, and incorporated by reference hereto. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Previously filed as an exhibit to the Company’s Amendment #2 Form 10-SB, filed on April 27, 2005, and incorporated by reference hereto. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Previously filed as an exhibit to the Company’ Form 10-QSB, filed on November 10, 2005, and incorporated by reference hereto. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Management contract or compensation plan or arrangement |
|--------|-----|---------------------------------------------------------|

|   | (6) | Previously filed as an exhibit to the Company’ Form 10-KSB, filed on March 28, 2006, and incorporated by reference hereto |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | Previously filed as an exhibit to the Company’ Form 10-QSB, filed on August 14, 2006, and incorporated by reference hereto. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (8) | Previously filed as an exhibit to the Company’ Form 10-QSB, filed on November 13, 2006, and incorporated by reference hereto. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------|

|   | (9) | Previously filed as an exhibit to the Company’s Form 8-K, filed on May 31, 2006, and incorporate by reference hereto. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------|

|   | (10) | Previously filed as an exhibit to the Company’s Form 8-K, filed on February 16, 2007, and incorporate by reference hereto. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------|

|   | (11) | Previously filed as an exhibit to the Company’s Form 8-K, filed on September 20, 2007, and incorporate by reference hereto. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (12) | Previously filed as an exhibit to the Company’s Form 8-K, filed on October 2, 2007, and incorporate by reference hereto. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------|

|   | (13) | Previously filed as an exhibit to the Company’s Form S-8, filed on June 4, 2010, and incorporate by reference hereto. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------|

|   | (14) | Previously filed as an exhibit to the Company’s Form S-1, Amendment #3, filed on December 1, 2010, and incorporate by reference hereto. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (15) | Filed herewith |
|--------|------|----------------|

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SIGNATURES

|                 | UNI-PIXEL, INC. |                                                     |
|----------------------|-----------------|----------------------------------------------------------|
|                 |            |                                                     |   |
| Date: March 10, 2011 | By:             | /s/ JEFFREY W. TOMZ                                 |   |
|                 |            | Jeffrey W. Tomz                                          |   |
|                 |            | Chief Financial Officer and Principal Accounting Officer |   |
|                 |            |                                                     |   |

| Signature                        |   | Title                                               |   | Date           |
|----------------------------------|--------|-----------------------------------------------------|--------|----------------|
|                             |   |                                                |   |           |
| /s/ REED J. KILLION              |   | President, Principal Executive Officer and Director |   | March 10, 2011 |
| Reed J. Killion                  |   |                                                |   |           |
|                             |   |                                                |   |           |
| /s/ ROBERT J. PETCAVICH          |   | Vice President and General Manager                  |   | March 10, 2011 |
| Robert J. Petcavich              |   |                                                |   |           |
|                             |   |                                                |   |           |
| /s/  DAN VAN OSTRAND   |   | Vice President Research & Development           |   | March 10, 2011 |
| Dan Van Ostrand                  |   |                                                |   |           |
|                             |   |                                                |   |           |
| /s/  Jeffrey W. Tomz   |   | Chief Financial Officer and Secretary               |   | March 10, 2011 |
| Jeffrey W. Tomz                  |   |                                                |   |           |
|                             |   |                                                |   |           |
| /s/  CARL J. YANKOWSKI |   | Director                                            |   | March 10, 2011 |
| Carl J. Yankowski                |   |                                                |   |           |
|                             |   |                                                |   |           |
| /s/  BERNARD MARREN    |   | Chairman of the Board                               |   | March 10, 2011 |
| Bernard Marren                   |   |                                                |   |           |
|                             |   |                                                |   |           |
| /s/  BRUCE BERKOFF     |   | Director                                            |   | March 10, 2011 |
| Bruce Berkoff                    |   |                                                |   |           |
|                             |   |                                                |   |           |
| /s/  ROSS YOUNG        |   | Director                                            |   | March 10, 2011 |
| Ross Young                       |   |                                                |   |           |
|                             |   |                                                |   |           |

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Table of Contents

| Report of Independent Registered Public Accounting Firm                                                     | F-2    |
|-------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                        |   |
| Consolidated Balance Sheets, December 31, 2010 and 2009                                                     | F-3    |
|                                                                                                        |   |
| Consolidated Statements of Operations for the years ended December 31, 2010 and 2009                        | F-4    |
|                                                                                                        |   |
| Consolidated Statements of Shareholders’ Equity (Deficit) from December 31, 2008 to December 31, 2010 | F-5    |
|                                                                                                        |   |
| Consolidated Statements of Cash Flows for the years ended December 31, 2010 and 2009                        | F-6    |
|                                                                                                        |   |
| Notes to Consolidated Financial Statements                                                                  | F-7    |

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Report 

| PMB Helin Donovan, LLP     |
|----------------------------|
|                       |
| /s/ PMB Helin Donovan, LLP |   |
|                       |
| March 10, 2011             |
| Houston, Texas             |

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Uni

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | December 31,2010 |        |   | December 31,2009 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|-------------|--------|-----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                  |        |   |                  |   |
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                  |        |   |                  |   |
| Current assets                                                                                                        |   |                  |        |   |                  |   |
| Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $                     | 13,049,446  |   |                  | $      | 307,850 |   |
| Restricted cash                                                                                                                      |   |                  | —     |   |                  |   | 34,877 |   |
| Accounts receivable, net                                                                                                             |   |                  | 77,889      |   |                  |   | — |   |
| Deferred loan costs                                                                                                                  |   |                  | —     |   |                  |   | 385,549 |   |
| Prepaid expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                  | —     |   |                  |   | 3,400 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                  |        |   |                  |   |   |   |
| Total current assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                  | 13,109,897  |   |                  |   | 731,676 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                  |        |   |                  |   |   |   |
| Property and equipment, net of accumulated depreciation of $1,543,839 and $1,328,662, at December 31, 2010 and 2009, respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                  | 70,734      |   |                  |   | 277,361 |   |
| Restricted cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                  | 17,439      |   |                  |   | — |   |
| Intangible assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                  | —     |   |                  |   | 168,250 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                  |        |   |                  |   |   |   |
| Total assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                     | 13,215,508  |   |                  | $      | 1,177,287 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                  |        |   |                  |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                  |        |   |                  |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                  |        |   |                  |   |   |   |
| Current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                  |        |   |                  |   |   |   |
| Accounts payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                     | 341,541     |   |                  | $      | 927,641 |   |
| Deferred revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                  | 85,906      |   |                  |   | 33,333 |   |
| Convertible notes payable, net of unamortized discounts of $0 and $41,807 at December 31, 2010 and December 31, 2009, respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                  | —     |   |                  |   | 2,283,193 |   |
| Interest payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                  | —     |   |                  |   | 61,317 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                  |        |   |                  |   |   |   |
| Total current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                  | 427,447     |   |                  |   | 3,305,484 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                  |        |   |                  |   |   |   |
| Total liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                  | 427,447     |   |                  |   | 3,305,484 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                  |        |   |                  |   |   |   |
| Commitments and contingencies (Note 6)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                  | —     |   |                  |   | — |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                  |        |   |                  |   |   |   |
| Shareholders’ equity (deficit)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                  |        |   |                  |   |   |   |
| Common stock, $0.001 par value; 100,000,000 shares authorized, 7,131,890 shares and 3,474,285 shares issued and outstanding at December 31, 2010 and 2009, respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                  | 7,132       |   |                  |   | 3,474 |   |
| Additional paid-in capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                  | 66,507,247  |   |                  |   | 47,776,853 |   |
| Accumulated deficit during development stage                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                  | (53,726,318 | )      |                  |   | (49,908,524 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                  |        |   |                  |   |   |   |
| Total shareholders’ equity (deficit)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                  | 12,788,061  |   |                  |   | (2,128,197 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                  |        |   |                  |   |   |   |
| Total liabilities and shareholders’ equity (deficit)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $                     | 13,215,508  |   |                  | $      | 1,177,287 |   |

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Uni

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | Year Ended December 31, |       |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 2010                                   |       |   | 2009 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                   |       |   |   |   |
| Thin film revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                                      | 243,519    |   |   | $ | — |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                   |       |   |   |   |   |   |
| Cost of revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                   | 20,695     |   |   |   | — |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                   |       |   |   |   |   |   |
| Gross margin                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                   | 222,824    |   |   |   | — |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                   |       |   |   |   |   |   |
| Selling, general and administrative expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                   | 2,748,697  |   |   |   | 2,365,613 |   |
| Research and development                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                   | 2,551,226  |   |   |   | 2,765,658 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                   |       |   |   |   |   |   |
| Operating loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                   | (5,077,099 | ) |   |   | (5,131,271 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                   |       |   |   |   |   |   |
| Other income (expense)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                   |       |   |   |   |   |   |
| Gain on sale of intellectual property                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                   | 2,088,835  |   |   |   | — |   |
| Debt issuance expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                   | (554,827   | ) |   |   | (164,960 | ) |
| Interest income (expense), net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                   | (274,703   | ) |   |   | (76,607 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                   |       |   |   |   |   |   |
| Net loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                                      | (3,817,794 | ) |   | $ | (5,372,838 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                   |       |   |   |   |   |   |
| Preferred stock dividends and amortization of discount                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                   | —    |   |   |   | (4,629,431 | ) |
| Net loss attributable to common shareholders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                                      | (3,817,794 | ) |   | $ | (10,002,269 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                   |       |   |   |   |   |   |
| Per share information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                   |       |   |   |   |   |   |
| Operating loss – basic and diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                                      | (1.40      | ) |   | $ | (2.56 | ) |
|     Net loss – basic and diluted                                                                              |   |                                   | (1.05      | ) |   |   | (2.68 | ) |
| Preferred stock dividends and amortization of discount                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                   | —    |   |   |   | (2.30 | ) |
| Net loss attributable to common shareholders – basic and diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $                                      | (1.05      | ) |   | $ | (4.98 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                   |       |   |   |   |   |   |
| Weighted average number of basic and diluted common shares outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                   | 3,628,454  |   |   |   | 2,006,546 |   |

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Uni

|                                                                                                                      |   | Common Stock     |      |   |   |   |    |                      |   |   |                |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|------------------|-----------|--------|--------|--------|---------|---------------------------|--------|--------|---------------------|--------|
|                                                                                                                      |   | Number of Shares |      |   | Amount |   |    | Additional Paid-InCapital |   |   | Accumulated Deficit |   |   | Total Shareholders’ Deficit |   |
| Balance, December 31, 2008                                                                                                |   |             | 1,526,897 |   |   | $      | 1,527   |                      |   | $      | 30,806,930          |   |   | $ | (43,475,391 | ) |   | $ | (12,666,934 | ) |
| Conversion of Series B & C Preferred Stock                                                                            |   |             | 1,947,388 |   |   |   | 1,947   |                      |   |   | 17,937,862          |   |   |   | — |   |   |   | 17,939,809 |   |
| Additional warrants and dividends issued to Series B & C Preferred Stock holders to induce conversion to common stock |   |             | —   |   |   |   | — |                      |   |   | 1,060,295           |   |   |   | (1,060,295 | ) |   |   |   — |   |
| Stock compensation expense                                                                                                |   |             | —   |   |   |   | — |                      |   |   | 1,234,419           |   |   |   | — |   |   |   | 1,234,419 |   |
| Issuance of warrants to convertible note investors                                                                        |   |             | —   |   |   |   | — |                      |   |   | 61,389              |   |   |   | — |   |   |   | 61,389 |   |
| Issuance of warrants to placement agent                                                                                   |   |             | —   |   |   |   | — |                      |   |   | 245,094             |   |   |   | — |   |   |   | 245,094 |   |
| Amortization of discount of Series B Preferred Stock                                                                      |   |             | —   |   |   |   | — |                      |   |   | (1,114,681          | )      |   |   | — |   |   |   | (1,114,681 | ) |
| Amortization of discount of Series C Preferred Stock                                                                      |   |             | —   |   |   |   | — |                      |   |   | (1,142,893          | )      |   |   | — |   |   |   | (1,142,893 | ) |
| Series B Preferred Stock dividends                                                                                        |   |             | —   |   |   |   | — |                      |   |   | (715,397            | )      |   |   | — |   |   |   | (715,397 | ) |
| Series C Preferred Stock dividends                                                                                        |   |             | —   |   |   |   | — |                      |   |   | (596,165            | )      |   |   | — |   |   |   | (596,165 | ) |
|        Net loss                                                                        |   |             | —   |   |   |   | — |                      |   |   | —             |   |   |   | (5,372,838 | ) |   |   | (5,372,838 | ) |
| Balance, December 31, 2009                                                                                                |   |             | 3,474,285 |   |   | $      | 3,474   |                      |   | $      | 47,776,853          |   |   | $ | (49,908,524 | ) |   | $ | (2,128,197 | ) |
| Issuance of common stock, net of issuance costs                                                                           |   |             | 3,450,000 |   |   |   | 3,450   |                      |   |   | 15,271,695          |   |   |   | — |   |   |   | 15,275,145 |   |
| Conversion of debt and accrued interest into common stock                                                                 |   |             | 207,605   |   |   |   | 208     |                      |   |   | 1,037,792           |   |   |   | — |   |   |   | 1,038,000 |   |
| Stock compensation expense                                                                                                |   |             | —   |   |   |   | — |                      |   |   | 2,348,344           |   |   |   | — |   |   |   | 2,348,344 |   |
| Issuance of warrants to convertible note investors                                                                        |   |             | —   |   |   |   | — |                      |   |   | 12,010              |   |   |   | — |   |   |   | 12,010 |   |
| Issuance of warrants to placement agent                                                                                   |   |             | —   |   |   |   | — |                      |   |   | 60,553              |   |   |   | — |   |   |   | 60,553 |   |
|        Net loss                                                                        |   |             | —   |   |   |   | — |                      |   |   | —             |   |   |   | (3,817,794 | ) |   |   | (3,817,794 | ) |
| Balance, December 31, 2010                                                                                                |   |             | 7,131,890 |   |   | $      | 7,132   |                      |   | $      | 66,507,247          |   |   | $ | (53,726,318 | ) |   | $ | 12,788,061 |   |

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Uni

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | Year Ended December 31, |       |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 2010                    |       |   | 2009 |   |
| Cash flows from operating activities                                                                                                                                                                                                                                         |   |                    |       |   |   |   |
| Net loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                       | (3,817,794 | ) |   | $ | (5,372,838 | ) |
| Adjustments to reconcile net loss to net cash used in operatingactivities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                    |       |   |   |   |   |   |
| Depreciation and amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                    | 222,261    |   |   |   | 331,700 |   |
| Stock compensation expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                    | 2,348,344  |   |   |   | 1,234,419 |   |
| Amortization of debt issuance costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                    | 554,827    |   |   |   | 164,960 |   |
|         Amortization of discounts on notes payable                                                                                                                                                                                   |   |                    | 53,817     |   |   |   | 19,582 |   |
| Gain on sale of intellectual property                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                    | (2,088,835 | ) |   |   | — |   |
| Change in operating assets and liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                    |       |   |   |   |   |   |
| Decrease in cash restricted for lease obligations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                    | 17,438     |   |   |   | — |   |
| Increase in accounts receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                    | (77,889    | ) |   |   | — |   |
| Decrease in prepaid expenses and other current assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                    | 3,400      |   |   |   | — |   |
| Increase (decrease) in accounts payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                    | (586,099   | ) |   |   | 196,619 |   |
| Increase (decrease) in accrued interest payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                    | (61,317    | ) |   |   | 61,317 |   |
| Decrease in accrued expenses and other liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                    | —    |   |   |   | (383,039 | ) |
| Increase in deferred revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                    | 52,573     |   |   |   | — |   |
| Net cash used in operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                    | (3,379,274 | ) |   |   | (3,747,280 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                    |       |   |   |   |   |   |
| Cash flows from investing activities                                                                                                                                                                                                                                         |   |                    |       |   |   |   |   |   |
| Purchase of property and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                    | (8,550     | ) |   |   | — |   |
| Proceeds from the sale of intellectual property                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                    | 2,250,000  |   |   |   | — |   |
| Net cash provided by investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                    | 2,241,450  |   |   |   | — |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                    |       |   |   |   |   |   |
| Cash flows from financing activities                                                                                                                                                                                                                                         |   |                    |       |   |   |   |   |   |
| Proceeds from convertible notes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                    | 775,000    |   |   |   | 2,325,000 |   |
| Payments on convertible notes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                    | (2,061,999 | ) |   |   | — |   |
| Payments of deferred loan costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                    | (108,726   | ) |   |   | (305,417 | ) |
| Proceeds from the issuance of common stock, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                    | 15,275,145 |   |   |   | — |   |
| Net cash provided by financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                    | 13,879,420 |   |   |   | 2,019,583 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                    |       |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                                                                                                                                                                                                         |   |                    | 12,741,596 |   |   |   | (1,727,697 | ) |
| Cash and cash equivalents, beginning of period                                                                                                                                                                                                                               |   |                    | 307,850    |   |   |   | 2,035,547 |   |
| Cash and cash equivalents, end of period                                                                                                                                                                                                                                     |   | $                       | 13,049,446 |   |   | $ | 307,850 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                    |       |   |   |   |   |   |
| Supplemental disclosures of cash flow information:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                    |       |   |   |   |   |   |
| Cash paid for interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $                       | 196,038    |   |   | $ | — |   |
| Preferred stock dividend and amortization of discount                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                       | —    |   |   | $ | 3,569,136 |   |
| Conversion of Series B preferred stock for common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $                       | —    |   |   | $ | 12,584,776 |   |
| Conversion of Series C preferred stock for common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $                       | —    |   |   | $ | 5,355,033 |   |
|     Additional warrants and dividends issued to Series B preferred stock        holders to induce conversion to common stock                                                                                     |   | $                       | —    |   |   | $ | 749,565 |   |
| Additional warrants and dividends issued to Series C preferred stock holders to induce conversion to common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $                       | —    |   |   | $ | 310,730 |   |
| Issuance of warrants to convertible note investors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $                       | 12,010     |   |   | $ | 61,389 |   |
| Issuance of warrants to Placement Agent                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $                       | 60,553     |   |   | $ | 245,094 |   |
| Issuance of warrants to underwriter                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                       | 1,530,919  |   |   | $ | — |   |

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|                               |   | EstimatedUsefulLives |   | 2010   |       |   | 2009   |   |
|------------------------------------|--------|----------------------|--------|--------|------------|--------|--------|--------|
| Research and development equipment |   | 3 to 5 years         |   | $      | 1,211,603  |   |   | $      | 1,203,053 |   |
| Leasehold improvements             |   | 5 years              |   |   | 210,086    |   |   |   | 210,086 |   |
| Computer equipment                 |   | 5 years              |   |   | 97,740     |   |   |   | 97,740 |   |
| Office equipment                   |   | 3 to 5 years         |   |   | 95,144     |   |   |   | 95,144 |   |
|                               |   |                 |   |   | 1,614,573  |   |   |   | 1,606,023 |   |
| Accumulated depreciation           |   |                 |   |   | (1,543,839 | )      |   |   | (1,328,662 | ) |
| Property and equipment, net        |   |                 |   | $      | 70,734     |   |   | $      | 277,361 |   |

|                          |   | 2010   |   |   | 2009   |   |
|-------------------------------|--------|--------|--------|--------|--------|--------|
| Patents                       |   | $      | --     |   |   | $      | 196,588 |   |
| Less accumulated amortization |   |   | --     |   |   |   | (28,338 | ) |
| Patents, net                  |   | $      | --     |   |   | $      | 168,250 |   |

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|                                                     |   | 2010   |       |   | 2009   |   |
|----------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                     |   |   |       |   |   |   |
| Income tax expense (benefit) computed at statutory rates |   | $      | 1,298,000  |   |   | $      | 1,827,000 |   |
| Increase in valuation allowance                          |   |   | (1,298,000 | )      |   |   | (1,827,000 | ) |
| Other                                                    |   |   | --         |   |   |   | -- |   |
| Tax provision for income taxes                           |   | $      | --         |   |   | $      | -- |   |

|                             |   | 2010   |        |   | 2009   |   |
|----------------------------------|--------|--------|-------------|--------|--------|--------|
|                             |   |   |        |   |   |   |
| Deferred tax assets:             |   |   |        |   |   |   |
| Net operating loss carryforwards |   | $      | 15,146,000  |   |   | $      | 13,848,000 |   |
| Valuation allowance              |   |   | (15,146,000 | )      |   |   | (13,848,000 | ) |
| Net deferred tax assets          |   | $      | --          |   |   | $      | -- |   |

| Year Ending December 31 |   |    |      |
|-------------------------|--------|---------|-----------|
| 2011                    |   | $       | 215,804   |   |
| 2012                    |   | 200,817 |      |
| 2013                    |   | 203,542 |      |
| 2014                    |   | 206,267 |      |
| 2015                    |   | 208,992 |      |
| Thereafter              |   | 76,294  |      |
| Total                   |   | $       | 1,111,716 |   |

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|                             |   | OptionsYear Ended December 31, |    |   | WarrantsYear Ended December 31, |   |
|----------------------------------|--------|-------------------------------------|---------|--------|--------------------------------------|--------|
|                             |   | 2010                                |    |   | 2009                                 |   |   | 2010 |   |   | 2009 |   |
| Outstanding, beginning of year   |   |                                | 390,075 |   |                                 |   | 373,468 |   |   |   | 1,147,098 |   |   |   | 923,098 |   |
| Granted                          |   |                                | 607,684 |   |                                 |   | 38,334 |   |   |   | 386,391 |   |   |   | 894,238 |   |
| Exercised                        |   |                                | — |   |                                 |   | — |   |   |   | — |   |   |   | — |   |
| Expired or cancelled             |   |                                | 165,382 |   |                                 |   | 21,727 |   |   |   | 70,000 |   |   |   | 670,238 |   |
|                             |   |                                |    |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding, end of year         |   |                                | 832,377 |   |                                 |   | 390,075 |   |   |   | 1,463,489 |   |   |   | 1,1470,98 |   |
|                             |   |                                |    |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Exercisable, end of year         |   |                                | 491,911 |   |                                 |   | 341,629 |   |   |   | 1,463,489 |   |   |   | 1,147,098 |   |
|                             |   |                                |    |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Available for grant, end of year |   |                                | 254,292 |   |                                 |   | 96,591 |   |   |   |   |   |   |   |   |   |

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|                                                    |   | OptionsYear Ended December 31, |    |   | WarrantsYear Ended December 31, |   |
|---------------------------------------------------------|--------|-------------------------------------|---------|--------|--------------------------------------|--------|
|                                                    |   | 2010                                |    |   | 2009                                 |   |   | 2010 |   |   | 2009 |   |
| Outstanding, beginning of year                          |   | $                                   | 23.55   |   |                                 | $      | 23.40 |   |   | $ | 9.90 |   |   | $ | 24.30 |   |
| Granted during the year                                 |   | $                                   | 7.50    |   |                                 | $      | 21.75 |   |   | $ | 0.50 |   |   | $ | 7.50 |   |
| Exercised during the year      |   | $                                   | — |   |                                 | $      | — |   |   | $ | — |   |   | $ | — |   |
| Expired or cancelled during the year                    |   | $                                   | 7.50    |   |                                 | $      | 21.75 |   |   | $ | 16.50 |   |   | $ | 19.35 |   |
| Outstanding at end of year                              |   | $                                   | 9.01    |   |                                 | $      | 23.25 |   |   | $ | 7.33 |   |   | $ | 9.90 |   |
| Exercisable at end of year                              |   | $                                   | 10.05   |   |                                 | $      | 23.55 |   |   | $ | 7.33 |   |   | $ | 9.90 |   |

|                                           |   | YearendedDecember 31, 2010 |    |   | YearendedDecember 31, 2009 |   |
|------------------------------------------------|--------|---------------------------------|---------|--------|---------------------------------|--------|
| Expected life (years)                          |   | 5 years                    |    |   | 5 years                    |   |
| Interest rate                                  |   | 1.76 to 2.41 %                  |    |   |                            | 1.85   | % |
| Dividend yield                                 |   |                            | — |   |                            |   | — |   |
| Volatility                                     |   |                            | 143.79  | %      |                            |   | 135.15 | % |
| Forfeiture rate                                |   |                            | — |   |                            |   | — |   |
| Weighted average fair value of options granted |   | $                               | 7.50    |   |                            | $      | 7.50 |   |

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| Grant date                                                                                                                                | OptionsOutstanding | WarrantsOutstanding | Exercisable |   | WeightedExercisePrice |   | RemainingLife(Years) |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------------------|---------------------|-------------|--------|-----------------------|--------|----------------------|
| December 9, 2004                                                                                                                          | —            | 51,304              | 51,304      |   | $                     | 20.70  |                 | 3.92 |
| January 10, 2005                                                                                                                          | —            | 11,253              | 11,253      |   | $                     | 20.70  |                 | 3.92 |
| January 26, 2005                                                                                                                          | —            | 7,353               | 7,353       |   | $                     | 20.70  |                 | 3.92 |
| March 5, 2005                                                                                                                             | 40,000             | —             | 40,000      |   | $                     | 30.00  |                 | 1.67 |
| March 5, 2005                                                                                                                             | 30,000             | —             | 30,000      |   | $                     | 7.50   |                 | 4.17 |
| April 19, 2005                                                                                                                            | 13,334             | —             | 13,334      |   | $                     | 7.50   |                 | 1.25 |
| April 19, 2005                                                                                                                            | 13,334             | —             | 13,334      |   | $                     | 7.50   |                 | 4.33 |
| April 19, 2005                                                                                                                            | 10,000             | —             | 10,000      |   | $                     | 30.00  |                 | 0.58 |
| May 23, 2006                                                                                                                              | 66,667             | —             | 66,667      |   | $                     | 7.50   |                 | 5.58 |
| May 24, 2006                                                                                                                              | —            | 100,000             | 100,000     |   | $                     | 18.75  |                 | 0.58 |
| September 12, 2006                                                                                                                        | —            | 12,968              | 12,968      |   | $                     | 18.75  |                 | 0.58 |
| March 16, 2007                                                                                                                            | 20,001             | —             | 20,001      |   | $                     | 7.50   |                 | 6.21 |
| September 13, 2007                                                                                                                        | 64,001             | —             | 64,001      |   | $                     | 7.50   |                 | 6.71 |
| September 13, 2007                                                                                                                        | 7,000              | —             | 7,000       |   | $                     | 7.50   |                 | 1.25 |
| September 13, 2007                                                                                                                        | 7,813              | —             | 7,813       |   | $                     | 21.75  |                 | 0.58 |
| January 7, 2008                                                                                                                           | 33,334             | —             | 33,334      |   | $                     | 7.50   |                 | 7.02 |
| April 18, 2008                                                                                                                            | 13,500             | —             | 12,188      |   | $                     | 7.50   |                 | 7.30 |
| April 18, 2008                                                                                                                            | 1,702              | —             | 1,702       |   | $                     | 7.50   |                 | 1.25 |
| April 18, 2008                                                                                                                            | 1,346              | —             | 1,346       |   | $                     | 21.75  |                 | 0.58 |
| May 20, 2008                                                                                                                              | 6,667              | —             | 5,648       |   | $                     | 7.50   |                 | 7.38 |
| June 2, 2008                                                                                                                              | 2,667              | —             | 1,778       |   | $                     | 7.50   |                 | 7.42 |
| October 20, 2008                                                                                                                          | 2,667              | —             | 1,815       |   | $                     | 7.50   |                 | 7.80 |
| January 30, 2009                                                                                                                          | 13,336             | —             | 13,336      |   | $                     | 7.50   |                 | 8.08 |
| June 10, 2009                                                                                                                             | —            | 32,007              | 32,007      |   | $                     | 7.50   |                 | 8.42 |
| June 30, 2009                                                                                                                             | —            | 2,667               | 2,667       |   | $                     | 7.50   |                 | 8.42 |
| August 31, 2009                                                                                                                           | —            | 30,674              | 30,674      |   | $                     | 7.50   |                 | 8.67 |
| September 30, 2009                                                                                                                        | —            | 37,340              | 37,340      |   | $                     | 7.50   |                 | 8.83 |
| October 2, 2009                                                                                                                           | —            | 8,004               | 8,004       |   | $                     | 7.50   |                 | 8.83 |
| October 2, 2009                                                                                                                           | —            | 770,239             | 770,239     |   | $                     | 5.00   |                 | 8.83 |
| December 31, 2009                                                                                                                         | —            | 8,336               | 8,336       |   | $                     | 7.50   |                 | 9.00 |
| January 28, 2010                                                                                                                          | 324,004            | —             | 81,001      |   | $                     | 7.50   |                 | 9.08 |
| January 28, 2010                                                                                                                          | 33,334             | —             | 33,334      |   | $                     | 7.50   |                 | 4.21 |
| January 29, 2010                                                                                                                          | —            | 3,336               | 3,336       |   | $                     | 7.50   |                 | 9.00 |
| February 2, 2010                                                                                                                          | —            | 2,501               | 2,501       |   | $                     | 7.50   |                 | 9.00 |
| February 10, 2010                                                                                                                         | 1,667              | —             | 1,667       |   | $                     | 7.50   |                 | 2.12 |
| March 15, 2010                                                                                                                            | —            | 19,173              | 19,173      |   | $                     | 7.50   |                 | 9.00 |
| March 29, 2010                                                                                                                            | —            | 834                 | 834         |   | $                     | 7.50   |                 | 9.00 |
| April 5, 2010                                                                                                                             | —            | 20,500              | 20,500      |   | $                     | 7.50   |                 | 9.25 |
| May 19, 2010                                                                                                                              | 104,335            | —             | 26,084      |   | $                     | 7.50   |                 | 9.62 |
| May 27, 2010                                                                                                                              | 3,334              | —             | 1,944       |   | $                     | 7.80   |                 | 2.50 |
| July 1, 2010                                                                                                                              | 10,000             | —             | 2,500       |   | $                     | 7.50   |                 | 9.50 |
| July 6, 2010                                                                                                                              | 8,334              | —             | 2,084       |   | $                     | 7.50   |                 | 9.50 |
| December 15, 2010                                                                                                                         | —            | 300,000             | 300,000     |   | $                     | 6.00   |                 | 4.92 |
| December 20, 2010                                                                                                                         | —            | 45,000              | 45,000      |   | $                     | 6.00   |                 | 4.92 |
|                                                                                                                                      |               |                |        |   |                  |   |                 |
| Total                       | 832,377            | 1,463,489           | 1,955,400   |   |                  |   |                 |

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| Convertible Debt                       |   | $      | 650,000 |   |
|----------------------------------------|--------|--------|---------|--------|
| Less: Current portion of debt discount |   |   | (9,608  | )      |
|                                   |   |   |    |   |
|                                   |   |   |    |   |
| Value of debt at December 31, 2009     |   | $      | 640,392 |   |
|                                   |   |   |    |   |

| Interest expense on debt   |   | $ | 28,678 |   |
|----------------------------|--------|---|--------|--------|
| Accretion of debt discount |   | $ | 10,393 |   |

| Interest expense on debt   |   | $ | 49,174 |   |
|----------------------------|--------|---|--------|--------|
| Accretion of debt discount |   | $ | 9,608  |   |

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| Convertible Debt                       |   | $      | 1,425,000 |   |
|----------------------------------------|--------|--------|-----------|--------|
| Less: Current portion of debt discount |   |   | (27,056   | )      |
|                                   |   |   |      |   |
|                                   |   |   |      |   |
| Value of debt at December 31, 2009     |   | $      | 1,397,944 |   |
|                                   |   |   |      |   |

| Interest expense on debt   |   | $ | 32,583 |   |
|----------------------------|--------|---|--------|--------|
| Accretion of debt discount |   | $ | 9,188  |   |

| Interest expense on debt   |   | $ | 107,307 |   |
|----------------------------|--------|---|---------|--------|
| Accretion of debt discount |   | $ | 27,056  |   |

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| Convertible Debt                       |   | $      | 250,000 |   |
|----------------------------------------|--------|--------|---------|--------|
| Less: Current portion of debt discount |   |   | (5,144  | )      |
|                                   |   |   |    |   |
|                                   |   |   |    |   |
| Value of debt at December 31, 2009     |   | $      | 244,856 |   |
|                                   |   |   |    |   |

| Interest expense on debt   |   | $ | 56 |   |
|----------------------------|--------|---|----|--------|
| Accretion of debt discount |   | $ | -- |   |

| Interest expense on debt   |   | $ | 66,240 |   |
|----------------------------|--------|---|--------|--------|
| Accretion of debt discount |   | $ | 17,154 |   |

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