Three months ended September 30,       Nine months ended September 30,
                                                             --------------------------------       -------------------------------
                                                                  1998               1997               1998               1997
                                                              ------------       ------------       ------------       ------------

Revenue ................................................      $  1,001,494       $    932,650       $  3,155,714       $    932,650

Costs of sales .........................................           508,668            404,000          1,575,605            404,000
                                                              ------------       ------------       ------------       ------------

Gross margin ...........................................           492,826            528,650          1,580,109            528,650

Costs and expenses:
      Selling, general and administrative ..............         3,569,116          2,068,354         10,780,265          4,419,866
      Research and development .........................           773,119            992,370          2,784,585          3,457,893
                                                              ------------       ------------       ------------       ------------

      Total costs and expenses .........................         4,342,235          3,060,724         13,564,850          7,877,759
                                                              ------------       ------------       ------------       ------------

          Loss from operations .........................        (3,849,409)        (2,532,074)       (11,984,741)        (7,349,109)

Interest income ........................................           103,383            285,599            320,646            526,656
Interest expense .......................................          (192,411)          (507,944)        (1,019,760)          (833,033)
Other income ...........................................              --                 --                 --                9,242
                                                              ------------       ------------       ------------       ------------

          Net loss before extraordinary item ...........        (3,938,437)        (2,754,419)       (12,683,855)        (7,646,244)

Extraordinary item-debt redemption (Note 6), net of
      applicable taxes of $0 ...........................              --                 --           (1,166,463)              --
                                                              ------------       ------------       ------------       ------------

          Net loss .....................................        (3,938,437)        (2,754,419)       (13,850,318)        (7,646,244)

Accretion of preferred dividends .......................          (192,501)              --             (256,668)              --
Accretion to redemption value of
      preferred stock ..................................              --                 --                 --              247,361
                                                              ------------       ------------       ------------       ------------

          Net loss to common stockholders ..............      $ (4,130,938)      $ (2,754,419)      $(14,106,986)      $ (7,893,605)
                                                              ============       ============       ============       ============



Results per common share:
      Historical - basic and diluted:
          Net loss before extraordinary item ...........      $      (0.57)      $      (0.40)      $      (1.83)      $      (2.38)
                                                              ============       ============       ============       ============

          Extraordinary item ...........................      $       --         $       --         $      (0.17)      $       --
                                                              ============       ============       ============       ============

          Net loss .....................................      $      (0.57)      $      (0.40)      $      (2.00)      $      (2.38)
                                                              ============       ============       ============       ============

          Net loss to common stockholders ..............      $      (0.59)      $      (0.40)      $      (2.04)      $      (2.46)
                                                              ============       ============       ============       ============

Weighted average shares outstanding ....................         6,952,377          6,893,045          6,927,989          3,214,317
                                                              ============       ============       ============       ============