Three Months Ended September 30,

Nine Months Ended September 30,

2004

2003

2004

2003

Product sales, net of sales allowances

$

368,383

$

102,533

$

871,721

$

1,498,057

Operating expenses:

     Cost of goods sold

331,436

307,766

1,482,329

1,513,761

     Research and development

863,334

982,983

2,260,521

4,013,389

     Selling, general and administrative

1,170,213

1,406,321

3,564,780

4,852,024

          Total operating expenses

2,364,983

2,697,070

7,307,630

10,379,174

          Loss from operations

(1,996,600

)

(2,594,537

)

(6,435,909

)

(8,881,117

)

Other income (expense):

     Interest income

59,887

62,411

158,506

233,862

     Interest expense

(1,086

)

(1,393

)

(2,376

)

(8,116

)

          Total other income

58,801

61,018

156,130

225,746

          Loss before income taxes and
             cumulative effect of adoption
             of SFAS No. 143

(1,937,799

)

(2,533,519

)

(6,279,779

)

(8,655,371

)

Income taxes

-

-

-

-

          Loss before cumulative effect of
             adoption of SFAS No. 143

(1,937,799

)

(2,533,519

)

(6,279,779

)

(8,655,371

)

Cumulative effect of adoption of
   SFAS No. 143

-

-

-

(63,508

)

          Net loss

$

(1,937,799

)

$

(2,533,519

)

$

(6,279,779

)

$

(8,718,879

)

Basic and diluted net loss per share:

     Loss before cumulative effect of
        adoption of SFAS No. 143

$

(0.08

)

$

(0.10

)

$

(0.26

)

$

(0.36

)

     Cumulative effect of adoption of
        SFAS No. 143

-

-

-

-

     Net loss

$

(0.08

)

$

(0.10

)

$

(0.26

)

$

(0.36

)

Weighted average shares outstanding
   used to compute net loss per share

24,372,261

24,354,322

24,367,725

24,334,770