10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q/A

(Amendment #1)

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934:

For the quarterly period ended June 30, 2012

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 0-21743

NeoMedia Technologies, Inc.

(Exact name of registrant as specified in its charter)

Delaware	36-3680347
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

100 West Arapahoe Avenue, Suite 9, Boulder, CO 80302

(Address, including zip code, of principal executive offices)

678-638-0460

(Registrants’ telephone number, including area code)

Securities Registered Under Section 12(b) of the Exchange Act:	None
Name of exchange on which registered:	None – Quoted on the OTCBB and OTCQB
Securities registered pursuant to Section 12(g) of the Act:	Common Stock, $0.001 par value per share

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ¨    No x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.    Yes ¨    No x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days.    

Yes x     No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or such shorter period that the registrant was required to submit and post such files).  Yes x     No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated file ¨ Accelerated filer ¨ Non-accelerated filer ¨ Smaller Reporting Company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ¨    No x

The aggregate market value of the common stock held by non-affiliates of the registrant as of June 30, 2011, the last business day of the registrant’s most recently completed second fiscal quarter, was approximately $10,758,765, based on the closing sale price for the registrant’s common stock on that date. For purposes of determining this number, all officers and directors of the registrant are considered to be affiliates of the registrant. This number is provided only for the purpose of this report on Form 10-K and does not represent an admission by either the registrant or any such person as to the status of such person.

The number of outstanding shares of the registrant’s Common Stock on August 6, 2012 was 1,323,665,957.

Documents Incorporated By Reference - None

Explanatory Note

The sole purpose of this Amendment No. 1 on Form 10–Q/A to our Annual Report on Form 10–Q for the period ended June 30, 2012 originally filed with the Securities and Exchange Commission  (the “SEC”) on August 14, 2012 (the “Form 10–Q”), is to furnish Exhibit 101 to the Form 10–Q, which contains the XBRL (eXtensible Business Reporting Language) Interactive Data File for the financial statements and notes included in Part I of the Form 10-Q, in accordance with Rule 201 of Regulation S-T.

No other changes have been made to the Form 10–Q. This Amendment No. 1 speaks as of the original filing date of the Form 10–Q, and does not reflect events that may have occurred subsequent to the original filing date and does not modify or update in any way, disclosures made in the original Form 10–Q.  Accordingly, this amendment should be read in conjunction with the original Form 10-K filing, as well as  our other filings made with the SEC pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, subsequent to the original filing of the Form 10-K.

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

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ITEM 15. Exhibits and Financial Statement Schedules

(a) Financial Statements and Schedules

The financial statements are set forth under Item 8 of this Annual Report on Form 10-K. Financial statement schedules have been omitted because they are either not required, not applicable, or the information is otherwise included.

(b) Exhibits

Exhibit No.	Description	Filed Herewith	Form	Exhibit	Filing Date
3.1	By-laws of NeoMedia Technologies, Inc.		8-K	3.2	12/21/2010
3.2	Restated Certificate of Incorporation of DevSys, Inc.		SB-2	3.3	11/25/1996
3.3	Certificate of Merger of Dev-Tech Associates, Inc. into DevSys, Inc.		SB-2	3.6	11/25/1996
3.4	Certificate of Amendment to Certificate of Incorporation of DevSys, Inc. changing our name to NeoMedia Technologies, Inc.		SB-2	3.13	11/25/1996
3.5	Form of Certificate of Amendment to Certificate of Incorporation of NeoMedia Technologies, Inc. authorizing a reverse stock split		SB-2	3.14	11/25/1996
3.6	Form of Certificate of Amendment to Restated Certificate of Incorporation of NeoMedia Technologies, Inc. increasing authorized capital and creating preferred stock		SB-2	3.15	11/25/1996
3.7	Certificate of Amendment to the Certificate of Designation of the Series "C" Convertible Preferred Stock dated January 5, 2010.		8-K	3.1	1/11/2010
3.8	Certificate of Designation of the Series "D" Convertible Preferred Stock dated January 5, 2010.		8-K	3.2	1/11/2010
3.9	Certificate of Amendment to the Certificate of Designation of the Series "D" Convertible Preferred Stock dated January 7, 2010		8-K	3.3	1/11/2010
3.10	Certificate of amendment to the certificate of designation of the series D convertible preferred stock issued by the Company to YA Global dated March 5, 2010.		8-K	3.1	3/11/2010
10.1	Agreement, dated April 26, 2012, by and between the Company and YA Global Investments, L.P.		8-K	10.1	5/1/2012
10.2	Secured Convertible Debenture, No. NEOM-12-4, dated April 26, 2012, issued by the Company to YA Global Investments, L.P.		8-K	10.2	5/1/2012
10.3	Warrant, No. NEOM-0412, dated April 26, 2012, issued by the Company to YA Global Investments, L.P.		8-K	10.3	5/1/2012
10.4	Eighteenth Ratification Agreement, dated April 26, 2012, by and among the Company, each of the Company’s subsidiaries made a party thereto, and YA Global Investments, L.P.		8-K	10.6	5/1/2012
10.5	Irrevocable Transfer Agent Instructions, dated April 26, 2012, by and among the Company, the Buyer, David Gonzalez, Esq. and WorldWide Stock Transfer, LLC		8-K	10.7	5/1/2012
10.6	Debenture Extension Agreement, dated May 25, 2012, by and between YA Global Investments, L.P. and the Company		8-K	10.1	5/29/2012
10.7	Agreement, dated June 1, 2012, by and between the Company and YA Global Investments, L.P.		8-K	10.1	6/7/2012
10.8	Secured Convertible Debenture, No. NEOM-12-24, dated June 1, 2012, issued by the Company to YA Global Investments, L.P.		8-K	10.2	6/7/2012
10.9	Warrant, No. NEOM-0512, dated June 1, 2012, issued by the Company to YA Global Investments, L.P.		8-K	10.3	6/7/2012
10.10	Nineteenth Ratification Agreement, dated June 1, 2012, by and among the Company, each of the Company’s subsidiaries made a party thereto, and YA Global Investments, L.P.		8-K	10.6	6/7/2012
10.11	Irrevocable Transfer Agent Instructions, dated June 1, 2012, by and among the Company, the Buyer, David Gonzalez, Esq. and WorldWide Stock Transfer, LLC		8-K	10.7	6/7/2012
31.1	Certification by Principal Executive Officer pursuant to Rule 13a-14(a)/ 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	X
31.2	Certification by Principal Financial and Accounting Officer pursuant to Rule 13a-14(a)/ 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	X
32.1	Certification by Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	X
32.2	Certification by Principal Financial and Principal Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	X
101	**Interactive data **In accordance with the temporary hardship exemption provided by rule 201 of Regulation S-T, the date by which the interactive data files required to be submitted has been extended by six business days.	X

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SIGNATURES

In accordance with Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	NEOMEDIA TECHNOLOGIES, INC.
Date: August 23, 2012
	By:	/s/ Laura A. Marriott
		Laura A. Marriott
		Chief Executive Officer, Principal Executive Officer
		/s/ Colonel Barry S. Baer
		Colonel (Ret.) Barry S. Baer
		Chief Financial Officer, Principal Financial Officer and Principal Accounting Officer

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Stock-Based Compensation (Details 2) (USD $) In Thousands, except Per Share data, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Stock Option, Nonvested (in shares)	667
Stock Option, Granted (in shares)	75
Stock Option, Vested (in shares)	(229)
Stock Option, Forfeited (in shares)	(102)
Stock Option, Nonvested (in shares)	411
Weighted Average Grant Date Fair Value, Nonvested (in dollars per share)	$ 0.01
Weighted Average Grant Date Fair Value, Granted (in dollars per share)	$ 0.14
Weighted Average Grant Date Fair Value, Vested (in dollars per share)	$ 0.04
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share)	$ 0.03
Weighted Average Grant Date Fair Value, Nonvested (in dollars per share)	$ 0.01

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Financing (Details 9) (USD $) In Thousands, except Per Share data, unless otherwise specified					6 Months Ended		6 Months Ended		6 Months Ended		6 Months Ended		6 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 01, 2012	Apr. 26, 2012	Dec. 31, 2011	Jun. 30, 2012 Warrants Issued With Debentures 2007 [Member]	Dec. 31, 2011 Warrants Issued With Debentures 2007 [Member]	Jun. 30, 2012 Warrants Issued With Debentures 2008 [Member]	Dec. 31, 2011 Warrants Issued With Debentures 2008 [Member]	Jun. 30, 2012 Warrants Issued With Debentures 2010 [Member]	Dec. 31, 2011 Warrants Issued With Debentures 2010 [Member]	Jun. 30, 2012 Warrants Issued With Debentures 2011 [Member]	Dec. 31, 2011 Warrants Issued With Debentures 2011 [Member]	Jun. 30, 2012 Warrants Issued With Debentures 2012 [Member]	Dec. 31, 2011 Warrants Issued With Debentures 2012 [Member]	Jun. 30, 2012 Series D Preferred Stock [Member]	Dec. 31, 2011 Series D Preferred Stock [Member]
Expiration Year					2012		2015		2015		2016		2017		2017
Anti-Dilution Adjusted Exercise Price		$ 0.0093	$ 0.0117		$ 0.007125	$ 0.00998	$ 0.007125	$ 0.00998	$ 0.007125	$ 0.00998	$ 0.007125	$ 0.00998	$ 0.007125	$ 0	$ 0.007125	$ 0.00998
Warrants	1,996,665	1,000	1,000	1,601,629	210,526	401,002	860,526	614,662	294,035	210,025	210,526	150,376	105,263	0	315,789	225,564
Fair Value	$ 14,105			$ 14,942	$ 492	$ 1,510	$ 6,325	$ 6,876	$ 2,152	$ 2,335	$ 1,684	$ 1,686	$ 865	$ 0	$ 2,587	$ 2,535

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Financing (Details 1) (Debenture Issuance 2006 [Member], USD $) In Thousands, unless otherwise specified	Jun. 30, 2012
Debenture Issuance 2006 [Member]
Face Amount	$ 304
Interest Rate	10.00%
Default Interest Rate	0.00%
Conversion Price - Lower of Fixed Price or Percentage of VWAP for Look-back Period, Fixed Price	2.00
Conversion Price - Lower of Fixed Price or Percentage of VWAP for Look-back Period, Anti-Dilution Adjusted Price	0.00648
Conversion Price - Lower of Fixed Price or Percentage of VWAP for Look-back Period, Anti-Dilution Adjusted Price, %	90.00%
Conversion Price - Lower of Fixed Price or Percentage of VWAP for Look-back Period, Default percentage	0.00%
Look-back Period	125 days

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Accrued Liabilities (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Accruals for disputed services	$ 2,318	$ 2,318
Accrued operating expenses	1,940	2,010
Accrued payroll related expenses	4	130
Accrued interest	74	7,677
Total	$ 4,336	$ 12,135

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Stock-Based Compensation (Details)	6 Months Ended
	Jun. 30, 2012
Volatility, Minimum	156.00%
Volatility, Maximum	169.00%
Expected dividends	0.00%
Expected term (in years)	5 years 9 months 14 days
Risk-free rate, Minimum	2.70%
Risk-free rate, Maxiumum	2.89%

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Financing

6 Months Ended

Jun. 30, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note 3 – Financing

At June 30, 2012, financial instruments arising from our financing transactions with YA Global, an accredited investor, included shares of our Series C preferred stock issued in February 2006, Series D preferred stock issued in January 2010, a series of thirty-four secured convertible debentures issued between August 2006 and June 2012 and various warrants to purchase shares of our common stock. All of our assets are pledged to secure our obligations under the debt securities. At various times, YA Global has assigned or distributed portions of its holdings of these securities to other holders, including persons who are officers of YA Global and its related entities, as well as to other holders who are investors in YA Global’s funds.

Secured Debentures - The underlying agreements for each of the thirty-four debentures are very similar in form, except in regard to the interest rate, conversion prices, and the number of warrants that were issued in conjunction with each of the debentures. The debentures are convertible into our common stock, at the option of the holder, at the lower of a fixed conversion price per share or a percentage of the lowest volume-weighted average price (“VWAP”) for a specified number of days prior to the conversion (the “look-back period”). The conversion is limited such that the holder cannot exceed 9.99% ownership of the outstanding common stock, unless the holder waives their right to such limitation. All of the debentures are secured according to the terms of a Security Pledge Agreement dated August 23, 2006, which was entered into in connection with the first convertible debenture issued to YA Global and which provides YA Global with a security interest in substantially all of our assets.  The debentures are also secured by a Patent Security Agreement dated July 29, 2008. On August 13, 2010, our wholly owned subsidiary, NeoMedia Europe GmbH, became a guarantor of all outstanding financing transactions between us and YA Global, through pledges of their intellectual property and other movable assets. As security for our obligations to YA Global, all of our Pledged Property, Patent Collateral and other collateral is affirmed through the several successive Ratification Agreements which have been executed in connection with each of the 2010, 2011 and 2012 financings.

All debentures with YA Global contain provisions for acceleration of principal and interest upon default. Certain debentures also contain default interest rates and conversion prices, as reflected in the table below.

We evaluated the financing transactions in accordance with FASB ASC 815, Derivatives and Hedging, and determined that the conversion features of the Series C and Series D preferred stock and the Debentures were not afforded the exemption for conventional convertible instruments due to their variable conversion rates. The contracts have no explicit limit on the number of shares issuable so they did not meet the conditions set forth in current accounting standards for equity classification. Accordingly, either the embedded derivative instruments, including the conversion option, must be bifurcated and accounted for as derivative instrument liabilities or, as permitted by FASB ASC 815-15-25-4, Recognition of Embedded Derivatives, the instruments may be carried in their entirety at fair value.

At inception, we elected to bifurcate the embedded derivatives related to the Series C and Series D preferred stock and certain debentures, while electing the fair value option for the March 2007, August 2007, April 2008, May 2008 and April 2012 Debentures. FASB ASC 825, Financial Instruments, allows us to elect the fair value option for recording financial instruments when they are initially recognized or if there is an event that requires re-measurement of the instruments at fair value, such as a significant modification of the debt.

On May 25, 2012, the terms of the debentures held by YA Global were modified to extend the stated maturity dates to August 1, 2013 and reduce the interest rates to 9.5% per year, with interest being payable on the maturity date in cash or, provided certain equity conditions are satisfied, in shares of our Common Stock at the applicable conversion price. Because the effect of the modifications exceeded a significance threshold relative to cash flows prescribed by ASC 470-50, Debt Modifications and Extinguishments, the modifications of the amounts due under these arrangements were accounted for as extinguishments, whereby the existing debentures are considered to be retired and new debentures issued. The existing instruments were first adjusted to fair value as of May 25, 2012 using the interest rate and maturity date prior to the amendment. The fair value of the new instruments was then calculated using the modified interest rate and maturity date to determine the fair value of the instrument subsequent to the amendment. The differences in the fair values before and after the amendment were recorded as an extinguishment loss of approximately $27.5 million in the accompanying statements of operations.

As of the date of the modification, we have elected to carry all modified debentures at the fair value of the hybrid instrument with changes in the fair value of the debentures charged or credited to income each period.

The following table summarizes the significant terms of each of the debentures for which the entire hybrid instrument is recorded at fair value as of June 30, 2012:

									Conversion Price – Lower of Fixed Price or Percentage of VWAP for Look-back Period
Debenture	Face		Interest Rate Prior to		Interest Rate Subsequent to		Default Interest		Fixed		Anti-Dilution Adjusted				Default		Look-back
Issuance Year	Amount		Modification		Modification		Rate		Price		Price		%		%		Period
	(in thousands)
2006	$	6,080		10%		9.5%		n/a	$	2.00	$	0.00648		90%		n/a	125 Days
2007		7,036		13%-14%		9.5%		n/a	$	2.00		$0.00576-$0.00648		80%-90%		n/a	125 Days
2008		6,468		14%- 15%		9.5%		20%-24%		$1.00-$2.00		$0.00576-$0.00684		80%-95%		50%-75%	125 Days
2009		1,778		14%		9.5%		20%	$	2.00	$	0.006840		95%		50%	125 Days
2010		3,881		14%		9.5%		20%		$0.10- $0.30	$	0.006840		95%		50%	60 Days
2011		2,576		14%		9.5%		20%	$	0.10	$	0.006840		95%		50%	60 Days
2012		2,200		14%		9.5%		20%	$	0.10	$	0.006840		95%		50%	60 Days
Total	$	30,019

For the portion of the debentures held by investors other than YA Global (which debentures were not modified on May 25, 2012) and for the Series C and Series D preferred stock, the election to carry the instruments at fair value in their entirety is not available. Accordingly, we continue to bifurcate the compound embedded derivatives related to the Series C and Series D preferred stock and these debentures and carry these financial instruments as liabilities in the accompanying balance sheet. Significant components of the compound embedded derivative include (i) the embedded conversion feature, (ii) down-round anti-dilution protection features and (iii) default, non-delivery and buy-in puts, all of which were combined into one compound instrument that is carried at fair value as a derivative liability. Changes in the fair value of the compound derivative liability are charged or credited to income each period.

The table below summarizes the significant terms of the debentures that are carried at their amortized cost and for which the compound embedded derivative is bifurcated and accounted for as a derivative liability as of June 30, 2012:

							Conversion Price – Lower of Fixed Price or Percentage of VWAP for Look-back Period
Debenture Issuance Year	Face Amount		Interest Rate		Default Interest Rate		Fixed Price		Anti-Dilution Adjusted Price		%		Default %	Look-back Period
	(in thousands)
2006	$	304		10.0%		n/a	$	2.00	$	0.00648		90%	n/a	125 days

Conversions –Our preferred stock and convertible debentures are convertible into shares of our common stock. Upon conversion of any of the convertible financial instruments in which the compound embedded derivative is bifurcated, the carrying amount of the debt, including any unamortized premium or discount, and the related derivative instrument liability are credited to the capital accounts upon conversion to reflect the stock issued and no gain or loss is recognized. For instruments that are recorded in their entirety at the fair value of the hybrid instrument, the fair value of the hybrid instrument converted is credited to the capital accounts upon conversion to reflect the stock issued and no gain or loss is recognized.

The following table provides a summary of the preferred stock conversions that have occurred since inception and the number of common shares issued upon conversion.

			Preferred		Preferred		Common
	Preferred shares		shares		shares		shares
	issued		converted		remaining		issued
	(in thousands)
Series C preferred stock		22		17		5		273,382
Series D preferred stock		25		22		3		245,162

The outstanding principal and accrued interest for the debentures as of June 30, 2012 is reflected in the following table in addition to the principal and interest converted since inception and the number of common shares issued upon conversion.

	Outstanding		Principal and
	principal and		accrued interest		Common
	accrued interest at		converted since		shares
	June 30, 2012		inception		issued
	(in thousands)
Debentures	$	44,258	$	5,576		717,367

Warrants - YA Global holds warrants to purchase shares of our common stock that were issued in connection with the convertible debentures and the Series C and Series D preferred stock. The warrants are exercisable at a fixed exercise price which, from time to time, has been reduced due to anti-dilution provisions when the Company has entered into subsequent financing arrangements with a lower price. The exercise prices may be reset again in the future if we subsequently issue stock or enter into a financing arrangement with a lower price. In addition, upon each adjustment in the exercise price, the number of warrant shares issuable is adjusted to the number of shares determined by multiplying the warrant exercise price in effect prior to the adjustment by the number of warrant shares issuable prior to the adjustment divided by the warrant exercise price resulting from the adjustment.

The warrants issued to YA Global do not meet all of the established criteria for equity classification in FASB ASC 815-40, Derivatives and Hedging – Contracts in Entity’s Own Equity, and accordingly, are recorded as derivative liabilities at fair value. Changes in the fair value of the warrants are charged or credited to income each period.

2012 Financing Transactions – During 2012, we entered into Agreements to issue and sell five debentures to YA Global in the aggregate principal amount of $2,200,000. The debentures are convertible, at the option of the holder, at a conversion price equal to the lesser of (i) $0.10 or (ii) 95% of the lowest closing bid price of our common stock for the 60 trading days preceding the date of conversion. Except for the June 1, 2012 debenture, at inception, all the debentures had an interest rate of 14% per year and had a maturity date of July 29, 2012. Subsequent to the May 25, 2012 modification, all the debentures bear interest at 9.5% and mature on August 1, 2013. We have the right to redeem a portion or all amounts outstanding under the debentures at a redemption premium of 10%, plus accrued interest.  We also issued warrants to YA Global in conjunction with the debentures. The warrants were issued with an initial fixed exercise price of $0.15 per share; however, as a result of the anti-dilution protection in these warrants, the issuance of subsequent debentures for a lower price resets the fixed exercise price of the warrants to the lower price and adjusts the number of warrant shares issuable. All warrants issued during 2012 have a term of five years.  

The following table provides a summary of the allocation of the components of the new debentures and warrants issued during the three months ended June 30, 2012. The hybrid debt instruments were valued as the present value of the cash flows, enhanced by the fair value of the conversion option valued using a Monte Carlo Simulation valuation method. The warrants were valued using a binomial lattice option valuation method. Significant assumptions used to value the hybrid debt instruments and warrants as of inception of the financings are also provided in the table below.

	April 26,			June 1,
	2012			2012
	issuance			issuance
	(in thousands)
Gross proceeds	$	450		$	450
Structuring and due diligence fee		(25	)		(25	)
	$	425		$	425
Hybrid instrument	$	(878	)	$	(799	)
Derivative warrants		(11	)		(9	)
Day one derivative loss		464			383
	$	(425	)	$	(425	)
Warrant shares issued (in thousands)		1,000			1,000
Initial exercise price of warrants	$	0.1500		$	0.1500
Warrant valuation inputs:
Anti-dilution adjusted exercise price	$	0.0117		$	0.0093
Expected life		5 years			5 years
Estimated volatility		178%			179%
Risk free rate of return		0.36%			0.32%
Dividend yield		--			--
Hybrid instrument valuation inputs:
Conversion price	$	0.007125		$	0.009300
Equivalent volatility		247%			178%
Equivalent interest risk		14.00%			14.00%
Equivalent credit risk		7.20%			7.18%

Fair value disclosures

Bifurcated Embedded Derivative Instruments – Series C and Series D preferred stock and Convertible Debentures held by investors other than YA Global - For financings in which the embedded derivative instruments are bifurcated and recorded separately, the compound embedded derivative instruments are valued using a Monte Carlo Simulation methodology because that model embodies certain relevant assumptions (including, but not limited to, interest rate risk, credit risk, and conversion/redemption privileges) that are necessary to value these complex derivatives.

The conversion price in each of the convertible debentures is subject to adjustment for down-round, anti-dilution protection.  Accordingly, if we sell common stock or common share indexed financial instruments below the stated or variable conversion price of the debenture, the conversion price adjusts to that lower amount.

The assumptions included in the calculations are highly subjective and subject to interpretation.  Assumptions used as of June 30, 2012 included exercise estimates/behaviors and the following other significant estimates: (i) Preferred Stock: remaining term of 1.09 years, equivalent volatility of 164%, equivalent interest rate of 8%, equivalent credit-risk adjusted rate of 7.21% and anti-dilution adjusted conversion price of $0.006984, (ii) Convertible Debentures: remaining term of 0.08 years, equivalent volatility of 118%, equivalent interest rate of 10%, equivalent credit-risk adjusted rate of 7.21% and anti-dilution adjusted conversion price of $0.00648. Equivalent amounts reflect the net results of multiple modeling simulations that the Monte Carlo Simulation methodology applies to underlying assumptions.

Due to the variability of the conversion prices, fluctuations in the trading market price of our common stock may result in significant variations to the calculated conversion price. For each debenture, we analyze the ratio of the conversion price (as calculated based on the percentage of VWAP for the appropriate look-back period) to the trading market price for a period of time equal to the term of the debenture to determine the average ratio for the term of the note. Each quarter, the ratio in effect on the date of the valuation is compared with the average ratio over the term of the debenture to determine if the calculated conversion price is representative of past trends or if it is considered unrepresentative due to a large fluctuation in the Common Stock price over a short period of time. If the calculated conversion price results in a ratio that deviates significantly from the average ratio over the term of the agreement, the average ratio of the conversion price to the trading market price is then multiplied by the current trading market price to determine the variable conversion price for use in the fair value calculations. This variable conversion price is then compared with the fixed conversion price and, as required by the terms of the debentures, the lower of the two amounts is used as the conversion price in the Monte Carlo Simulation model used for valuation purposes. On June 30, 2012, the fixed conversion price for each of the debentures was equal to or higher than the calculated variable conversion price. Accordingly, the variable conversion price was used in the Monte Carlo Simulation model. This analysis is performed each quarter to determine if the calculated conversion price is reasonable for purposes of determining the fair value of the embedded conversion features (for instruments recorded under FASB ASC 815-15-25-1) or the fair value of the hybrid instrument (for instruments recorded under FASB ASC 815-15-25-4).

 The following table reflects the face value of the instruments, their amortized carrying value and the fair value of the separately-recognized compound embedded derivative, as well the number of common shares into which the instruments are convertible as of June 30, 2012 and December 31, 2011.

June 30, 2012							Embedded		Common
	Face		Carrying		Accrued		Conversion		Stock
	Value		Value		Interest		Feature		Shares
	(in thousands)
Series C preferred stock	$	4,840	$	4,840	$	-	$	3,124		692,965
Series D preferred stock	$	348	$	348	$	-		203		49,842
Debentures:
2006	$	304	$	304	$	36		82		51,585
Total	$	304	$	304	$	36	$	3,409		794,392

December 31, 2011							Embedded		Common
	Face		Carrying		Accrued		Conversion		Stock
	Value		Value		Interest		Feature		Shares
	(in thousands)
Series C preferred stock	$	5,086	$	5,086	$	-	$	554		499,084
Series D preferred stock	$	1,395	$	1,395	$	-		152		136,899
Debentures:
2006	$	7,061	$	7,061	$	3,550		1,554		1,128,515
2008		4,788		4,788		2,226		932		712,474
2009		1,983		1,965		736		370		278,427
2010		3,881		1,426		770		2,692		470,718
2011		4,725		1,077		376		2,917		436,730
Total	$	22,438	$	16,317	$	7,658	$	9,171		3,662,847

The terms of the embedded conversion features in the convertible instruments presented above provide for variable conversion rates that are indexed to our quoted common stock price. As a result, the number of indexed shares is subject to continuous fluctuation. For presentation purposes, the number of shares of common stock into which the embedded conversion feature of the Series C and Series D preferred stock was convertible as of June 30, 2012 and December 31, 2011 was calculated as face value plus assumed dividends (if declared), divided by the lesser of the fixed rate or the calculated variable conversion price using the 125 day look-back period. The number of shares of common stock into which the embedded conversion feature in the convertible debentures was convertible as of June 30, 2012 and December 31, 2011 was calculated as the face value of each instrument divided by the variable conversion price using the appropriate look-back period.

As discussed above, on May 25, 2012, the terms of the debentures held by YA Global were modified to extend the stated maturity dates to August 1, 2013 and those debentures are now accounted for as hybrid instruments and are carried in their entirety at fair value. The debentures outstanding at June 30, 2012 of $304,000 shown above represent a portion of the debentures issued to YA Global which had previously been transferred by YA Global to other parties. These debentures were not modified and continued to mature on July 29, 2012. Subsequent to June 30, 2012 and prior to their maturity on July 29, 2012, all these debentures were converted by the holders into shares of our common stock.

Changes in the fair value of derivative instrument liabilities related to the bifurcated embedded derivative features of convertible instruments not carried at fair value are reported as “Gain (loss) from change in fair value of derivative liability – Series C and Series D preferred stock and debentures” in the accompanying consolidated statements of operations.

 The changes in fair value of these derivative financial instruments were as follows:

	Three months ended June 30,					Six months ended June 30,
	2012		2011			2012			2011
	(in thousands)					(in thousands)
Series C preferred stock	$	11,915	$	(10,285	)	$	(3,202	)	$	(7,845	)
Series D preferred stock		1,946		(2,813	)		(1,346	)		(2,261	)
Debentures:
2006		18,815		(8,901	)		(3,070	)		(7,013	)
2008		13,391		(5,503	)		(1,350	)		(4,265	)
2009		4,964		(2,260	)		(486	)		(1,871	)
2010		11,901		(4,702	)		(34	)		(4,067	)
2011		8,896		(3,072	)		(4,825	)		(2,767	)
2012		3,523		-			15			-
		75,351		(37,536	)		(14,298	)		(30,089	)
Less: Day-one loss from debenture financings		-		(405	)		-			(1,181	)
Gain (loss) from change in fair value of derivative liability	$	75,351	$	(37,941	)	$	(14,298	)	$	(31,270	)

Hybrid Financial Instruments Carried at Fair Value –- Since inception, the March 2007, August 2007, April 2008, May 2008 and April 2012 convertible debentures have been recorded in their entirety at fair value as hybrid instruments in accordance with FASB ASC 815-15-25-4 with subsequent changes in fair value charged or credited to income each period. As of May 25, 2012, we elected the fair value option for all other convertible debentures held by YA Global upon a re-measurement date that was triggered by significant modifications of the financial instruments.

Because these debentures are carried in their entirety at fair value, the value of the embedded conversion feature is embodied in those fair values. At inception, the March 2007, August 2007, April 2008 and May 2008 debentures were valued using the common stock equivalent approach.  For the April 26, 2012 debenture and, effective May 25, 2012 for all other debentures, the Company changed its method of estimating the fair value of the hybrid instrument to consider the present value of the cash flows of the instrument, using a risk-adjusted interest rate, enhanced by the value of the conversion option, valued using a Monte Carlo model. This method was considered by our management to be the most appropriate method of encompassing the credit risk and exercise behavior that a market participant would consider when valuing the hybrid financial instrument. Inputs used to value the hybrid instruments as of June 30, 2012 included: (i) present value of future cash flows for the debenture using a risk adjusted interest rate of 7.21%, (ii) remaining term of 1.09 years, (iii) equivalent volatility of 164%, equivalent interest rate of 9.5%, equivalent credit-risk adjusted rate of 7.21% and anti-dilution adjusted conversion prices ranging from $0.00576- $0.00684.

The following table reflects the face value of the financial instruments, the fair value of the hybrid financial instrument and the number of common shares into which the instruments are convertible as of June 30, 2012 and December 31, 2011.

June 30, 2012					Common
	Face		Fair		Stock
	Value		Value		Shares
	(in thousands)
Debentures:
2006	$	6,080	$	17,301		1,531,358
2007		7,036		19,512		1,748,554
2008		6,468		17,758		1,586,202
2009		1,778		4,478		391,651
2010		3,881		8,355		735,667
2011		2,576		5,259		464,141
2012		2,200		3,854		342,958
Total	$	30,019	$	76,517		6,800,531

December 31, 2011					Common
	Face		Fair		Stock
	Value		Value		Shares
	(in thousands)
Debentures:
2007	$	7,682	$	13,115		836,428
2008		1,680		3,343		200,001
Total	$	9,362	$	16,458		1,036,429

Changes in the fair value of convertible instruments that are carried in their entirety at fair value are reported as “Gain (loss) from change in fair value of hybrid financial instruments” in the accompanying consolidated statements of operations. The changes in fair value of these hybrid financial instruments were as follows:

	Three months ended June 30,						Six months ended June 30,
	2012			2011			2012			2011
	(in thousands)						(in thousands)
2006	$	1,734		$	-		$	1,734		$	-
2007		24,068			(12,052	)		(989	)		(10,032	)
2008		9,663			(3,847	)		3,550			(3,396	)
2009		433			-			433			-
2010		896			-			896			-
2011		512			-			512			-
2012		314			-			314			-
		37,620			(15,899	)		6,450			(13,428	)
Less: Day-one loss from debenture financings		(847	)					(847	)
Gain (loss) from changes in fair value of hybrid instruments	$	36,773		$	(15,899	)	$	5,603		$	(13,428	)

Warrants - The following table summarizes the warrants outstanding, their fair value and their exercise price after adjustment for anti-dilution provisions:

			June 30, 2012						December 31, 2011
			Anti-Dilution						Anti-Dilution
			Adjusted						Adjusted
	Expiration		Exercise				Fair		Exercise				Fair
	Year		Price		Warrants		Value		Price		Warrants		Value
Warrants issued with preferred stock:					(in thousands)						(in thousands)
Series D preferred stock		2017		0.007125		315,789	$	2,587		0.00998		225,564	$	2,535
Warrants issued with debentures:
2007		2012		0.007125		210,526		492		0.00998		401,002		1,510
2008		2015		0.007125		860,526		6,325		0.00998		614,662		6,876
2010		2015		0.007125		294,035		2,152		0.00998		210,025		2,335
2011		2016		0.007125		210,526		1,684		0.00998		150,376		1,686
2012		2017		0.007125		105,263		865		n/a		--		--
Total						1,996,665	$	14,105				1,601,629	$	14,942

The warrants are valued using a binomial lattice option valuation methodology because that model embodies all of the significant relevant assumptions that address the features underlying these instruments. Significant assumptions used in this model as of June 30, 2012 included an expected life equal to the remaining term of the warrants, an expected dividend yield of zero, estimated volatility ranging from 88% to 216%, and risk-free rates of return of 0.04% to 0.72%. For the risk-free rates of return, we use the published yields on zero-coupon Treasury Securities with maturities consistent with the remaining term of the warrants and volatility is based upon our expected Common Stock price volatility over the remaining term of the warrants. As a result of the anti-dilution provisions, the fixed exercise price of the warrants has been reset equal to the lowest price of any subsequently issued common share indexed instruments with a conversion price below the previously stated exercise price of the warrant.

Changes in the fair value of the warrants are reported as "(Gain) loss from change in fair value of derivative liability - warrants" in the accompanying consolidated statement of operations. The changes in the fair value of the warrants were as follows:

	Three months ended June 30,					Six months ended June 30,
	2012		2011			2012			2011
Warrants issued with preferred stock:	(in thousands)					(in thousands)
Series C preferred stock	$	-	$	-		$	-		$	53
Series D preferred stock		6,819		(11	)		(52	)		178
Warrants issued with debentures:
2006		-		(13	)		-			127
2007		4,356		(14	)		1,019			129
2008		19,093		(25	)		550			383
2010		6,525		(43	)		183			668
2011		4,578		19			1			157
2012		1,038		-			(780	)		-
Total	$	42,409	$	(87	)		921		$	1,695

Reconciliation of changes in fair value – Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. Our derivative financial instruments that are measured at fair value on a recurring basis are all measured at fair value using Level 3 inputs. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The following represents a reconciliation of the changes in fair value of financial instruments measured at fair value using Level 3 inputs and changes in the fair value of hybrid instruments carried at fair value during the six months ended June 30, 2012:

	Compound
	Embedded			Warrant			Hybrid
	Derivatives			Derivatives			Instruments			Total
Beginning balance, December 31, 2011:	$	9,171		$	14,942		$	16,458		$	40,571
Issuances:
January 11, 2012		289			13			-			302
February 6, 2012		176			9			-			185
March 26, 2012		287			42			-			329
April 26, 2012		-			11			878			889
June 1, 2012		-			9			799			808
Fair value adjustments:
Compound embedded derivatives		14,298			-			-			14,298
Warrant derivatives		-			(921	)		-			(921	)
Hybrid instruments		-			-			(5,603	)		(5,603	)
Change to fair value option related to		(29,656	)		-			29,656			-
compound embedded derivative
Change to fair value option related to
debenture carrying value		-			-			26,809			26,809
Day-one loss from derivative financings		-			-			(847	)		(847	)
Extinguished		17,787						9,692			27,479
Conversions:
Series C preferred stock		(632	)		-			-			(632	)
Series D preferred stock		(1,295	)		-			-			(1,295	)
August 24, 2006 financing		(740	)		-			-			(740	)
December 29, 2006 financing		(176	)		-			-			(176	)
March 27, 2007 financing		-			-			(740	)		(740	)
August 24, 2007 financing		-			-			(585	)		(585	)
May 1, 2009 financing		(21	)		-			-			(21	)
April 13, 2011 financing		(226	)		-			-			(226	)
May 31, 2011 financing		(885	)		-			-			(885	)
June 28, 2011  financing		(414	)		-			-			(414	)
July 13, 2011 financing		(1,656	)		-			-			(1,656	)
August 15, 2011 financing		(1,440	)		-			-			(1,440	)
September 15, 2011 financing		(1,458	)		-			-			(1,458	)
Ending balance, June 30, 2012	$	3,409		$	14,105		$	76,517		$	94,031

Estimating fair values of derivative financial instruments requires the development of significant and subjective estimates that may, and are likely to, change over the duration of the instrument with related changes in internal and external market factors. In addition, valuation techniques are sensitive to changes in the trading market price of our common stock, which has a high estimated historical volatility. Because derivative financial instruments are initially and subsequently carried at fair values, our income will reflect the volatility in these estimate and assumption changes.

Subsequent events 

Subsequent to June 30, 2012, holders of convertible debentures converted $479,898 of principal and accrued interest on those debentures into 72,661,957 shares of our common stock. 

A secured convertible debenture in the amount of $450,000, together with warrants to purchase 1,000,000 common shares, was issued on July 20, 2012. The debenture is convertible, at the option of the holder, at a conversion price equal to the lesser of (i) $0.10 or (ii) 95% of the lowest closing bid price of our common stock for the 60 trading days preceding the date of conversion. The stated maturity date of the debenture is August 1, 2013.

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Geographic and Segment Reporting (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Revenue:	$ 461	$ 767	$ 1,187	$ 1,136
Net income (loss):	124,119	(55,862)	(41,415)	(47,071)
Identifiable assets:	7,538		7,538		7,600
United States [Member]
Revenue:	430	454	1,107	773
Net income (loss):	124,435	(55,664)	(40,765)	(46,421)
Identifiable assets:	7,059		7,059		6,998
Germany [Member]
Revenue:	31	313	80	363
Net income (loss):	(316)	(198)	(650)	(650)
Identifiable assets:	$ 479		$ 479		$ 602

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Financing (Details 5) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Face Value, Debentures	$ 304	$ 22,438
Carrying Value, Debentures	304	16,317
Accrued Interest, Debentures	36	7,658
Embedded Conversion Feature, Debentures	3,409	9,171
Common Stock Shares, Debentures (in shares)	794,392	3,662,847
Series C Preferred Stock [Member]
Face Value Preferred stock	4,840	5,086
Carrying Value, preferredstock	4,840	5,086
Preferred Stock Interest Rate	0	0
Preferred Stock, Embedded Conversion Feature	3,124	554
Common Stock Shares, Converted Preferred Stock (in shares)	273,382	499,084
Series D Preferred Stock [Member]
Face Value Preferred stock	348	1,395
Carrying Value, preferredstock	348	1,395
Preferred Stock Interest Rate	0	0
Preferred Stock, Embedded Conversion Feature	203	152
Common Stock Shares, Converted Preferred Stock (in shares)	245,162	136,899
Debentures 2006 Series [Member]
Face Value, Debentures	304	7,061
Carrying Value, Debentures	304	7,061
Accrued Interest, Debentures	36	3,550
Embedded Conversion Feature, Debentures	82	1,554
Common Stock Shares, Debentures (in shares)	51,585	1,128,515
Debentures 2008 Series [Member]
Face Value, Debentures		4,788
Carrying Value, Debentures		4,788
Accrued Interest, Debentures		2,226
Embedded Conversion Feature, Debentures		932
Common Stock Shares, Debentures (in shares)		712,474
Debentures 2009 Series [Member]
Face Value, Debentures	1,778	1,983
Carrying Value, Debentures		1,965
Accrued Interest, Debentures		736
Embedded Conversion Feature, Debentures		370
Common Stock Shares, Debentures (in shares)		278,427
Debentures 2010 Series [Member]
Face Value, Debentures	3,881	3,881
Carrying Value, Debentures		1,426
Accrued Interest, Debentures		770
Embedded Conversion Feature, Debentures		2,692
Common Stock Shares, Debentures (in shares)		470,718
Debentures 2011 Series [Member]
Face Value, Debentures	3,766	4,725
Carrying Value, Debentures		1,077
Accrued Interest, Debentures		376
Embedded Conversion Feature, Debentures		$ 2,917
Common Stock Shares, Debentures (in shares)		436,730

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Financing (Details 4) (USD $) In Thousands, except Per Share data, unless otherwise specified	0 Months Ended
	Jun. 01, 2012	Apr. 26, 2012	Jun. 30, 2012	Dec. 31, 2011
Gross proceeds	$ 450	$ 450
Structuring and due diligence fee: Direct expenses	(25)	(25)
Net Proceeds From Derivative Instrument	425	425
Derivative warrants	(9)	(11)
Day one derivative loss	383	464
Convertible Debt Total	$ (425)	$ (425)
Warrant shares issued (in thousands)	1,000	1,000	1,996,665	1,601,629
Initial exercise price of warrants	$ 0.1500	$ 0.1500
Warrant valuation inputs:
Anti-dilution adjusted exercise price	$ 0.0093	$ 0.0117
Expected life	5 years	5 years
Estimated volatility	179.00%	178.00%
Risk free rate of return	0.32%	0.36%
Dividend yield	0	0
Hybrid instrument valuation inputs
Conversion price	$ 0.009300	$ 0.007125
Equivalent volatility	178.00%	247.00%
Equivalent interest risk	14.00%	14.00%
Equivalent credit risk	7.18%	7.20%

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Transactions with Related Parties (Details Textual) (USD $)	3 Months Ended	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012
Chief Executive Officer [Member]
Related Party Transaction, Amounts of Transaction	$ 105,600	$ 205,600
Chief Operating Officer [Member]
Related Party Transaction, Amounts of Transaction	5,920	11,760
Chief Financial Officer [Member]
Related Party Transaction, Amounts of Transaction	$ 22,122	$ 35,247
Stock Incentive Plan 2011 [Member] | Subsequent Event [Member]
Subsequent Event, Description		the Board approved the issuance, under our 2011 Stock Incentive Plan, of four option agreements (each for 25,000 shares of our common stock) to each member of the Board of Directors, at an exercise price of $0.008 per share. Each of these grantees' options vest over four years from the date of the grant.

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Financing (Details 6) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Increase (Decrease) In Fair Value Of Derivative Instruments, Not Designated As Hedging Instruments	$ 75,351	$ (37,536)	$ (14,298)	$ (30,089)
Less: Day-one loss from debenture financings	0	(405)	0	(1,181)
Gain (loss) from change in fair value of derivative liability	75,351	(37,941)	(14,298)	(31,270)
Series C Preferred Stock [Member]
Increase (Decrease) In Fair Value Of Derivative Instruments, Not Designated As Hedging Instruments	11,915	(10,285)	(3,202)	(7,845)
Gain (loss) from change in fair value of derivative liability			(632)
Series D Preferred Stock [Member]
Increase (Decrease) In Fair Value Of Derivative Instruments, Not Designated As Hedging Instruments	1,946	(2,813)	(1,346)	(2,261)
Gain (loss) from change in fair value of derivative liability			(370)
Debentures 2006 Series [Member]
Increase (Decrease) In Fair Value Of Derivative Instruments, Not Designated As Hedging Instruments	18,815	(8,901)	(3,070)	(7,013)
Debentures 2008 Series [Member]
Increase (Decrease) In Fair Value Of Derivative Instruments, Not Designated As Hedging Instruments	13,391	(5,503)	(1,350)	(4,265)
Debentures 2009 Series [Member]
Increase (Decrease) In Fair Value Of Derivative Instruments, Not Designated As Hedging Instruments	4,964	(2,260)	(486)	(1,871)
Debentures 2010 Series [Member]
Increase (Decrease) In Fair Value Of Derivative Instruments, Not Designated As Hedging Instruments	11,901	(4,702)	(34)	(4,067)
Debentures 2011 Series [Member]
Increase (Decrease) In Fair Value Of Derivative Instruments, Not Designated As Hedging Instruments	8,896	(3,702)	(4,825)	(2,767)
Debentures 2012 Series [Member]
Increase (Decrease) In Fair Value Of Derivative Instruments, Not Designated As Hedging Instruments	$ 3,523	$ 0	$ 15	$ 0

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Financing (Details 7) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Face Value	$ 30,019	$ 9,362
Fair Value	76,517	16,458
Common stock Shares	6,800,531	1,036,429
Debentures 2006 Series [Member]
Face Value	6,080
Fair Value	17,301
Common stock Shares	1,531,358
Debentures 2007 Series [Member]
Face Value	7,036	7,682
Fair Value	19,512	13,115
Common stock Shares	1,748,554	836,428
Debentures 2008 Series [Member]
Face Value	6,468	1,680
Fair Value	17,758	3,343
Common stock Shares	1,586,202	200,001
Debentures 2009 Series [Member]
Face Value	1,778
Fair Value	4,478
Common stock Shares	391,651
Debentures 2010 Series [Member]
Face Value	3,881
Fair Value	8,355
Common stock Shares	735,667
Debentures 2011 Series [Member]
Face Value	2,576
Fair Value	5,259
Common stock Shares	464,141
Debentures 2012 Series [Member]
Face Value	2,200
Fair Value	3,854
Common stock Shares	$ 342,958

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

Note 2 - Summary of Significant Accounting Policies

The accompanying unaudited consolidated financial statements have been prepared in accordance with US GAAP for interim financial information and Rule 8.03 of Regulation S-X. They do not include all of the information and footnotes required by US GAAP for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation have been included. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year. For further information, refer to our financial statements as of December 31, 2011 and 2010, and for the years then ended, including notes thereto, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.

Basis of Presentation – The consolidated financial statements include the accounts of NeoMedia Technologies, Inc. and our wholly-owned subsidiaries. We operate as one reportable segment. All significant intercompany accounts and transactions have been eliminated.

Use of Estimates – The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Changes in facts and circumstances may result in revised estimates, which are recorded in the period in which they become known.

 Stock-Based Compensation - FASB ASC 718, Stock Compensation, requires that all stock-based compensation be recognized as an expense in the financial statements and that such cost be measured at the grant date fair value of the award.  We account for modifications of the terms of existing option grants as exchanges of the existing equity instruments for new instruments.  The fair value of the modified option at the grant date is compared with the value at that date of the original option immediately before its terms are modified.  Any excess fair value of the modified option over the original option is recognized as additional compensation expense.

Basic and Diluted Net Income (Loss) Per Share – Basic net income (loss) per share is computed by dividing net income (loss) attributable to common shareholders by the weighted average number of shares of our common stock, par value $0.001 per share (“Common Stock”), outstanding during the period. During the three and six months ended June 30, 2011 and the six months ended June 30, 2012, we reported a net loss per share, and as such, basic and diluted losses per share were equivalent. During the three months ended June 30, 2012, we reported net income per share and included dilutive instruments in the fully diluted net income per share calculation.

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Numerator:
Net income (loss)	$	124,119		$	(55,862	)	$	(41,415	)	$	(47,071	)
Effect of dilutive securities – adjustment for:
Change in fair value of derivative liability Series C and D preferred stock and debentures		(75,351	)		-			-			-
Change in fair value of derivative liability - warrants		(42,409	)		-			-			-
Change in fair value of hybrid financial instruments		(36,773	)		-			-			-
Loss on extinguishment of debt		27,479			-			-			-
Interest expense on convertible debt		2,003			-						-
Numerator for diluted earnings per share- income (loss) available to common stockholders after assumed conversions of debentures and exercise of warrants	$	(932	)	$	(55,862	)	$	(41,415	)	$	(47,071	)
Denominator
Weighted average shares used to compute basic EPS		1,148,526,738			137,692,460			326,414,797			46,114,822
Effect of dilutive securities:
Employee stock options		-			-			-			-
Derivative warrants		1,091,953,786
Convertible debentures		5,129,818,595			-			-			-
Convertible preferred stock		742,807,130			-			-			-
Dilutive potential common shares		6,964,579,511			-			-			-
Denominator for diluted earnings per share-adjusted weighted average shares and assumed conversions and exercise of options		8,113,106,249			137,692,460			326,414,797			46,114,822
Basic earnings per share	$	0.11		$	(0.41	)	$	(0.13	)	$	(1.02	)
Diluted earnings per share	$	0.00		$	(0.41	)	$	(0.13	)	$	(1.02	)

Goodwill –Goodwill represents the excess of the purchase price paid for NeoMedia Europe over the fair value of the identifiable net assets and liabilities acquired, based on an independent appraisal of the assets and liabilities acquired. In accordance with FASB ASC 350, Intangibles - Goodwill and Other goodwill is not amortized, but is tested for impairment, at least annually, by applying the recognition and measurement provisions of FASB ASC 350, which require that we compare the carrying amount of the asset to its fair value. If impairment of the carrying value based on the estimated fair value exists, we measure the impairment through the use of discounted cash flows. If the carrying amount exceeds fair value, an impairment loss is recognized.

Recent Accounting Pronouncements - The following Accounting Standards Codification Updates have recently been issued:

ASU No. 2012-01	July 2012	Health Care Entities (Topic 954): Continuing Care Retirement Communities—Refundable Advance Fees
ASU No. 2012-02	July 2012	Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment

To the extent appropriate, the guidance in the above Accounting Standards Codification Updates is already reflected in our consolidated financial statements and management does not anticipate that these accounting pronouncements will have any material future effect on our consolidated financial statements.

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Financing (Details 8) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Unrealized Gain Loss On Hybrid Instrument Gross	$ 37,620	$ (15,899)	$ 6,450	$ (13,428)
Less: Day-one loss from debenture financings	(847)		(847)
Change in fair value of hybrid financial instruments	36,773	(15,899)	5,603	(13,428)
Debentures 2007 Series [Member]
Change in fair value of hybrid financial instruments	24,068	(12,052)	(989)	(10,032)
Debentures 2008 Series [Member]
Change in fair value of hybrid financial instruments	9,663	(3,847)	3,550	(3,396)
Debentures 2006 Series [Member]
Change in fair value of hybrid financial instruments	1,734	0	1,734	0
Debentures 2009 Series [Member]
Change in fair value of hybrid financial instruments	433	0	433	0
Debentures 2010 Series [Member]
Change in fair value of hybrid financial instruments	896	0	896	0
Debentures 2011 Series [Member]
Change in fair value of hybrid financial instruments	512	0	512	0
Debentures 2012 Series [Member]
Change in fair value of hybrid financial instruments	$ 314	$ 0	$ 314	$ 0

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Stock-Based Compensation (Details 3) (USD $) In Thousands, except Per Share data, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Number of Shares (in shares)	1,100
Weighted- Average Remaining Life	9 years 1 month 6 days
Weighted- Average Exercise Price (in dollars per share)	$ 0.02
Number of Shares (in shares)	689
Weighted- Average Exercise Price (in dollars per share)	$ 0.02
Stock Option Plan Exercise Range 1 0.014 To 0.03 [Member]
Number of Shares (in shares)	990
Weighted- Average Remaining Life	9 years
Weighted- Average Exercise Price (in dollars per share)	$ 0.02
Number of Shares (in shares)	601
Weighted- Average Exercise Price (in dollars per share)	$ 0.02
Stock Option Plan Exercise Range 2 0.05 [Member]
Number of Shares (in shares)	100
Weighted- Average Remaining Life	8 years 8 months 12 days
Weighted- Average Exercise Price (in dollars per share)	$ 0.05
Number of Shares (in shares)	83
Weighted- Average Exercise Price (in dollars per share)	$ 0.05
Stock Option Plan Exercise Range 3 0.14 [Member]
Number of Shares (in shares)	10
Weighted- Average Remaining Life	8 years 4 months 24 days
Weighted- Average Exercise Price (in dollars per share)	$ 0.14
Number of Shares (in shares)	5
Weighted- Average Exercise Price (in dollars per share)	$ 0.14

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
ASSETS
Cash and cash equivalents	$ 136	$ 30
Trade accounts receivable, net of allowance of $19 and $19	916	674
Prepaid expenses and other current assets	238	194
Total current assets	1,290	898
Property and equipment, net	59	81
Goodwill	3,418	3,418
Proprietary software, net	428	757
Patents and other intangible assets, net	1,631	1,764
Cash surrender value of life insurance policies	687	653
Other long-term assets	25	29
Total assets	7,538	7,600
LIABILITIES AND SHAREHOLDERS' DEFICIT
Accounts payable	615	598
Accrued expenses	4,336	12,135
Deferred revenues and customer prepayments	1,554	1,820
Note payable	15	91
Accrued purchase price guarantee	4,535	4,535
Deferred tax liability	706	706
Derivative financial instruments - warrants	14,105	14,942
Derivative financial instruments - Series C and D preferred stock and debentures payable	3,409	9,171
Debentures payable - carried at amortized cost	304	16,317
Debentures payable - carried at fair value	76,517	16,458
Total current liabilities	106,096	76,773
Commitments and contingencies (Note 6)
Shareholders' deficit:
Common stock, $0.001 par value, 5,000,000,000 shares authorized, 1,258,734,000 and 541,999,246 shares issued and 1,258,718,865 and 541,984,111 shares outstanding as of June 30, 2012 and December 31, 2011, respectively	1,251	542
Additional paid-in capital	182,635	170,006
Accumulated deficit	(286,659)	(245,244)
Accumulated other comprehensive loss	(194)	(179)
Treasury stock, at cost, 2,012 shares of common stock	(779)	(779)
Total shareholders' deficit	(103,746)	(75,654)
Total liabilities and shareholders' deficit	7,538	7,600
Series C Convertible Preferred Stock [Member]
LIABILITIES AND SHAREHOLDERS' DEFICIT
Face Value Preferred stock	4,840	5,086
Series D Convertible Preferred Stock [Member]
LIABILITIES AND SHAREHOLDERS' DEFICIT
Face Value Preferred stock	$ 348	$ 1,395

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Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash Flows from Operating Activities:
Net Income (loss)	$ (41,415)	$ (47,071)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	487	489
Loss on extinguishment of debt	27,479	0
(Gain)/Loss from change in fair value of hybrid financial instruments	(5,603)	13,428
(Gain)/Loss from change in fair value of derivative liability - warrants	(921)	(1,695)
(Gain)/Loss from change in fair value of derivative liability - Series C and D preferred stock and debentures	14,298	31,270
Interest expense related to convertible debt	4,395	1,657
Interest paid on convertible debt	0	(1,000)
Stock-based compensation expense	14	52
Increase in value of life insurance policies	(34)	(2)
Changes in operating assets and liabilities
Trade and other accounts receivable	(242)	99
Inventories	0	(33)
Prepaid expenses and other assets	(44)	(60)
Accounts payable and accrued liabilities	(53)	(116)
Deferred revenue and other current liabilities	(342)	510
Net cash used in operating activities	(1,981)	(2,472)
Cash Flows from Investing Activities:
Acquisition of property and equipment	(3)	(5)
Net cash used in investing activities	(3)	(5)
Cash Flows from Financing Activities:
Borrowings under convertible debt instruments, net	2,075	2,460
Net cash provided by financing activities	2,075	2,460
Effect of exchange rate changes on cash	15	5
Net change in cash and cash equivalents	106	(12)
Cash and cash equivalents, beginning of period	30	80
Cash and cash equivalents, end of period	136	68
Supplemental cash flow information:
Interest paid during the period	0	1,000
Series C preferred stock converted to common stock	878	7,736
Series D preferred stock converted to common stock	2,342	0
Convertible debentures converted to common stock	10,104	0
Shares issued for acquisition of patent rights	$ 0	$ 350

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Financing (Details 11) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Beginning balance, December 31, 2011:			$ 40,571
January 11, 2012			302
February 6, 2012			185
March 26, 2012			329
April 26, 2012			889
June 1, 2012			808
Fair value adjustments:
Compound embedded derivatives	75,351	(37,941)	(14,298)	(31,270)
Warrant derivatives	42,409	(87)	921	1,695
Hybrid instruments	36,773	(15,899)	5,603	(13,428)
Change to fair value option related to compound embedded derivative			0
Change to fair value option related to debenture carrying value			26,809
Day One Loss From Debenture Financings	(847)		(847)
Extinguished			27,479
Conversions:
August 24, 2006 financing			(740)
December 29, 2006 financing			(176)
March 27, 2007 financing			(740)
August 24, 2007 financing			(585)
May 1, 2009 financing			(21)
April 13, 2011 financing			(226)
May 31, 2011 financing			(885)
June 28, 2011 financing			(414)
July 13, 2011 financing			(1,656)
August 15, 2011 financing			(1,440)
September 15, 2011 financing			(1,458)
Ending balance, June 30, 2012	94,031		94,031
Series C Preferred Stock [Member]
Fair value adjustments:
Compound embedded derivatives			(632)
Warrant derivatives	0	0	0	53
Series D Preferred Stock [Member]
Fair value adjustments:
Compound embedded derivatives			(370)
Warrant derivatives	6,819	(11)	(52)	178
Embedded Derivative Financial Instruments [Member]
Beginning balance, December 31, 2011:			9,171
January 11, 2012			289
February 6, 2012			176
March 26, 2012			287
April 26, 2012			0
June 1, 2012			0
Fair value adjustments:
Compound embedded derivatives			14,298
Warrant derivatives			0
Hybrid instruments			0
Change to fair value option related to compound embedded derivative			(29,656)
Change to fair value option related to debenture carrying value			0
Day One Loss From Debenture Financings			0
Extinguished			17,787
Conversions:
August 24, 2006 financing			(740)
December 29, 2006 financing			(176)
March 27, 2007 financing			0
August 24, 2007 financing			0
May 1, 2009 financing			(21)
April 13, 2011 financing			(226)
May 31, 2011 financing			(885)
June 28, 2011 financing			(414)
July 13, 2011 financing			(1,656)
August 15, 2011 financing			(1,440)
September 15, 2011 financing			(1,458)
Ending balance, June 30, 2012	3,409		3,409
Embedded Derivative Financial Instruments [Member] | Series C Preferred Stock [Member]
Fair value adjustments:
Compound embedded derivatives			(632)
Embedded Derivative Financial Instruments [Member] | Series D Preferred Stock [Member]
Fair value adjustments:
Compound embedded derivatives			(1,295)
Warrant [Member]
Beginning balance, December 31, 2011:			14,942
January 11, 2012			13
February 6, 2012			9
March 26, 2012			42
April 26, 2012			11
June 1, 2012			9
Fair value adjustments:
Compound embedded derivatives			0
Warrant derivatives			(921)
Hybrid instruments			0
Change to fair value option related to compound embedded derivative			0
Change to fair value option related to debenture carrying value			0
Day One Loss From Debenture Financings			0
Conversions:
August 24, 2006 financing			0
December 29, 2006 financing			0
March 27, 2007 financing			0
August 24, 2007 financing			0
May 1, 2009 financing			0
April 13, 2011 financing			0
May 31, 2011 financing			0
June 28, 2011 financing			0
July 13, 2011 financing			0
August 15, 2011 financing			0
September 15, 2011 financing			0
Ending balance, June 30, 2012	14,105		14,105
Warrant [Member] | Series C Preferred Stock [Member]
Fair value adjustments:
Compound embedded derivatives			0
Warrant derivatives			0
Warrant [Member] | Series D Preferred Stock [Member]
Fair value adjustments:
Compound embedded derivatives			0
Warrant derivatives			0
Hybrid Instrument [Member]
Beginning balance, December 31, 2011:			16,458
January 11, 2012			0
February 6, 2012			0
March 26, 2012			0
April 26, 2012			878
June 1, 2012			799
Fair value adjustments:
Compound embedded derivatives			0
Warrant derivatives			0
Hybrid instruments			(5,603)
Change to fair value option related to compound embedded derivative			29,656
Change to fair value option related to debenture carrying value			26,809
Day One Loss From Debenture Financings			(847)
Extinguished			9,692
Conversions:
August 24, 2006 financing			0
December 29, 2006 financing			0
March 27, 2007 financing			(740)
August 24, 2007 financing			(585)
May 1, 2009 financing			0
April 13, 2011 financing			0
May 31, 2011 financing			0
June 28, 2011 financing			0
July 13, 2011 financing			0
August 15, 2011 financing			0
September 15, 2011 financing			0
Ending balance, June 30, 2012	76,517		76,517
Hybrid Instrument [Member] | Series C Preferred Stock [Member]
Fair value adjustments:
Compound embedded derivatives			0
Hybrid instruments			0
Hybrid Instrument [Member] | Series D Preferred Stock [Member]
Fair value adjustments:
Compound embedded derivatives			0
Hybrid instruments			$ 0

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Summary of Significant Accounting Policies (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Numerator:
Net income (loss)	$ 124,119	$ (55,862)	$ (41,415)	$ (47,071)
Effect of dilutive securities adjustment for:
Change in fair value of derivative liability Series C and D preferred stock and debentures	75,351	(37,941)	(14,298)	(31,270)
Change in fair value of derivative liability - warrants	42,409	(87)	921	1,695
Change in fair value of hybrid financial instruments	36,773	(15,899)	5,603	(13,428)
Loss on extinguishment of debt			(27,479)	0
Interest expense related to convertible debt			0	1,000
Denominator
Weighted average shares used to compute basic EPS	1,148,526,738,000	137,692,460,000	326,414,797,000	46,114,822,000
Effect of dilutive securities:
Denominator for diluted earnings per share-adjusted weighted average shares and assumed conversions and exercise of options	8,113,106,249,000	137,692,460,000	326,414,797,000	46,114,822,000
Basic earnings per share	$ 0.11	$ (0.41)	$ (0.13)	$ (1.02)
Diluted earnings per share	$ 0.00	$ (0.41)	$ (0.13)	$ (1.02)
Numerator [Member]
Numerator:
Net income (loss)	124,119	(55,862)	(41,415)	(47,071)
Effect of dilutive securities adjustment for:
Change in fair value of derivative liability Series C and D preferred stock and debentures	(75,351)	0	0	0
Change in fair value of derivative liability - warrants	(42,409)	0	0	0
Change in fair value of hybrid financial instruments	(36,773)	0	0	0
Loss on extinguishment of debt	27,479	0	0	0
Interest expense related to convertible debt	2,003	0		0
Numerator for diluted earnings per share- income (loss) available to common stockholders after assumed conversions of debentures and exercise of warrants	$ (932)	$ (55,862)	$ (41,415)	$ (47,071)
Denominator [Member]
Denominator
Weighted average shares used to compute basic EPS	1,148,526,738	137,692,460	326,414,797	46,114,822
Effect of dilutive securities:
Employee stock options	0	0	0	0
Derivative warrants	1,091,953,786
Convertible debentures	5,129,818,595	0	0	0
Convertible preferred stock	742,807,130	0	0	0
Dilutive potential common shares	6,964,579,511	0	0	0
Denominator for diluted earnings per share-adjusted weighted average shares and assumed conversions and exercise of options	8,113,106,249	137,692,460	326,414,797	46,114,822
Basic earnings per share	$ 0.11	$ (0.41)	$ (0.13)	$ (1.02)
Diluted earnings per share	$ 0.00	$ (0.41)	$ (0.13)	$ (1.02)

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Financing (Details Textual) (USD $) Share data in Thousands, except Per Share data, unless otherwise specified	0 Months Ended		1 Months Ended		3 Months Ended		6 Months Ended
	Mar. 31, 2012	Jan. 11, 2012	Jun. 30, 2012	Feb. 29, 2012	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Jun. 01, 2012	May 25, 2012	Apr. 26, 2012	Dec. 31, 2011	Dec. 23, 2011
Name Of Accredited Investor							YA Global
Ownership Stock Issued On Conversation Of Debt Maximum							9.99%
Debt Instrument, Convertible, Terms of Conversion Feature							The debentures are convertible, at the option of the holder, at a conversion price equal to the lesser of (i) $0.10 or (ii) 95% of the lowest closing bid price of our common stock for the 60 trading days preceding the date of conversion
Debt Instrument, Interest Rate, Stated Percentage			14.00%		14.00%		14.00%			9.50%
Debt Instrument, Maturity Date							Aug. 01, 2013
Debt Instrument Maturity Date Inception							Jul. 29, 2012
Debt Instrument Redemption Premium Percentage							10.00%
Credit Risk Adjusted Rate							164.00%
Class Of Warrant Exercisable Price		$ 0.15
Class Of Warrant Or Right Exercise Term							5 years
Fair Value Assumptions, Expected Term							0 years 3 months 29 days
Equivalent volatility	170.00%	170.00%	0.00%	166.00%			168.00%
Fair Value Assumptions Risk Free Interest Rate Minimum			8.00%		8.00%		8.00%
Fair Value Assumptions Risk Free Interest Rate Maximum			14.00%		14.00%		14.00%
Fair Value Inputs, Entity Credit Risk							7.19%
Antidilution Adjusted Conversion Price Minimum			$ 0.006000		$ 0.006000		$ 0.006000
Antidilution Adjusted Conversion Price Maximum			$ 0.007125		$ 0.007125		$ 0.007125
Embedded Convertible Preferred Stock Terms Of Conversion							The number of shares of common stock into which the embedded conversion feature of the Series C and Series D preferred stock was convertible as of March 31, 2012 and December 31, 2011 was calculated as face value plus assumed dividends (if declared), divided by the lesser of the fixed rate or the calculated variable conversion price using the 125 day look-back period.
Payment For Accrued Interest													$ 1,000,000
Face Value, preferredstock			304,000		304,000		304,000					22,438,000
Common			794,392		794,392		794,392					3,662,847
Loss on extinguishment of debt							(27,479,000)	0
Debentures Converted Description							holders of convertible debentures converted $479,898 of principal and accrued interest on those debentures into 72,661,957 shares of our common stock.
Preferred Stock Remaining Term							1 year 10 months 24 days
Debt Instrument, Maturity Date							Aug. 01, 2013
Extinguishment Of Debt, Gain (Loss), Income Tax					27,479,000	0	27,479,000	0
Proceeds from Issuance of Debt							2,200,000
Debt Instrument, Convertible, Conversion Price									$ 0.009300		$ 0.007125
Bifurcated Embedded Derivative Instruments [Member]
Fair Value Assumptions Equivalent Credit Risk Adjusted Rate							7.21%
Debt Instrument, Convertible, Conversion Price			$ 0.006984		$ 0.006984		$ 0.006984
Debentures Transferred By Ya Global [Member]
Debt Instrument, Maturity Date							Jul. 29, 2012
Convertible Debt			304,000		304,000		304,000
Debt Instrument, Maturity Date							Jul. 29, 2012
Debt Instrument, Convertible, Number of Equity Instruments							72,661,957
Maximum [Member]
Equivalent volatility							216.00%
Minimum [Member]
Equivalent volatility							88.00%
Subsequent Event [Member]
Face Value, preferredstock											450,000
Subsequent Event [Member] | Convertible Debt [Member]
Convertible Debt Aggregate Principal and Accrued Interest			$ 835,339		$ 835,339		$ 835,339
Common			144,513		144,513		144,513
Warrant [Member]
Fair Value Assumptions Risk Free Interest Rate Minimum			4.00%		4.00%		4.00%
Fair Value Assumptions Risk Free Interest Rate Maximum			72.00%		72.00%		72.00%
Fair Value Assumptions Expected Volatility Rate Minimum Percenatge			136.00%		136.00%		136.00%
Fair Value Assumptions Expected Volatility Rate Maximum Percenatge			251.00%		251.00%		251.00%
Fair Value Assumption Risk Free Interest Rate Minimum			0.07%		0.07%		0.07%
Fair Value Assumption Risk Free Interest Rate Maximum			0.44%		0.44%		0.44%
Debenture [Member]
Credit Risk Adjusted Rate							7.20%
Fair Value Assumptions, Expected Term							8 months
Equivalent volatility							118.00%
Fair Value Assumptions, Risk Free Interest Rate							10.00%
Fair Value Inputs, Entity Credit Risk							7.19%
Antidilution Adjusted Conversion Price Minimum			$ 0.005776		$ 0.005776		$ 0.005776
Antidilution Adjusted Conversion Price Maximum			$ 0.000684		$ 0.000684		$ 0.000684

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Financing (Details) (USD $) In Thousands, unless otherwise specified			6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2012 Debenture Issuance 2006 [Member]	Jun. 30, 2012 Debenture Issuance 2007 [Member]	Jun. 30, 2012 Debenture Issuance 2008 [Member]	Jun. 30, 2012 Debenture Issuance 2009 [Member]	Jun. 30, 2012 Debenture Issuance 2010 [Member]	Jun. 30, 2012 Debenture Issuance 2011 [Member]	Jun. 30, 2012 Debenture Issuance 2012 [Member]
Debt Instrument, Face Amount	$ 304	$ 22,438	$ 6,080	$ 7,036	$ 6,468	$ 1,778	$ 3,881	$ 2,576	$ 2,200
Interest Rate			10.00%			14.00%	14.00%	14.00%	14.00%
Interest Rate Prior To Modification Minimum				13.00%	14.00%
Interest Rate Prior To Modification Maximum				14.00%	15.00%
Interest Rate Subsequent To Modification			9.50%	9.50%	9.50%	9.50%	9.50%	9.50%	9.50%
Default Interest Rate			0.00%	0.00%		20.00%	20.00%	20.00%	20.00%
Default Interest Rate, Minimum					20.00%
Default Interest Rate, Maximum					24.00%
Conversion Price - Lower of Fixed Price or Percentage of VWAP for Look-back Period, Fixed Price			2.00	2.00		2.00		0.10	0.10
Conversion Price - Lower of Fixed Price or Percentage of VWAP for Look-back Period, Fixed Price, Lower					1.00		0.10
Conversion Price - Lower of Fixed Price or Percentage of VWAP for Look-back Period, Fixed Price, Upper					2.00		0.30
Conversion Price - Lower of Fixed Price or Percentage of VWAP for Look-back Period, Anti-Dilution Adjusted Price			0.00648			0.006840	0.006840	0.006840	0.006840
Conversion Price - Lower of Fixed Price or Percentage of VWAP for Look-back Period, Anti-Dilution Adjusted Price, Lower				0.00576	0.00576
Conversion Price - Lower of Fixed Price or Percentage of VWAP for Look-back Period, Anti-Dilution Adjusted Price, Upper				0.00648	0.00684
Conversion Price - Lower of Fixed Price or Percentage of VWAP for Look-back Period, Anti-Dilution Adjusted Price, Percentage			90.00%			95.00%	95.00%	95.00%	95.00%
Conversion Price - Lower of Fixed Price or Percentage of VWAP for Look-back Period, Anti-Dilution Adjusted Price, Percentage, Lower				80.00%	80.00%
Conversion Price - Lower of Fixed Price or Percentage of VWAP for Look-back Period, Anti-Dilution Adjusted Price, Percentage, Upper				90.00%	95.00%
Conversion Price - Lower of Fixed Price or Percentage of VWAP for Look-back Period, Default Percentage			0.00%	0.00%		50.00%	50.00%	50.00%	50.00%
Conversion Price - Lower of Fixed Price or Percentage of VWAP for Look-back Period, Default Percentage, Lower					50.00%
Conversion Price - Lower of Fixed Price or Percentage of VWAP for Look-back Period, Default Percentage, Upper					75.00%
Look-back Period			125 days	125 days	125 days	125 days	60 days	60 days	60 days

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General

6 Months Ended

Jun. 30, 2012

General [Abstract]

General and Going Concern [Text Block]

Note 1 - General

Business – NeoMedia Technologies, Inc., a Delaware corporation (“NeoMedia”, and also referred to herein as “us”, “we” and “our”), was founded in 1989 and is headquartered in Boulder, Colorado. We have pioneered 2D mobile barcode technology and infrastructure solutions that enable the mobile barcode ecosystem world-wide. NeoMedia strives to harness the power of the mobile phone in innovative ways with state-of-the-art mobile barcode technology. With this technology, mobile phones with cameras become barcode scanners and this enables a range of practical applications including mobile marketing and advertising as well as mobile couponing. We offer barcode management and infrastructure, reader solutions and intellectual property licensing.

NeoMedia has been involved in, and has strived to be an innovator in, the mobile barcode field since the mid-1990s, and during that time has spearheaded the development of a robust IP portfolio that encompasses many preferred mobile implementations. Our IP portfolio currently consists of seventy-four issued and pending patents. We believe that our extensive IP portfolio differentiates us from the competition.

Going Concern – We have historically incurred net losses from operations and we expect that we will continue to have negative cash flows as we implement our business plan. There can be no assurance that our continuing efforts to execute our business plan will be successful and that we will be able to continue as a going concern. The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which contemplates our continuation as a going concern. Net loss for the six months ended June 30, 2012 and 2011, respectively, was $41.4 million and $47.1 million, of which $35.3 million and $43.0 million, respectively, were net losses related to our financing instruments. Net cash used by operations during the six months ended June 30, 2012 and 2011 was $2.0 million and $2.5 million, respectively. At June 30, 2012, we have an accumulated deficit of $286.7 million. We also have a working capital deficit of $104.8 million, of which $94.3 million is related to our financing instruments, including $90.6 million related to the fair value of warrants and those debentures that are recorded as hybrid financial instruments, and $3.7 million related to the amortized cost carrying value of certain of our debentures and the fair value of the associated derivative liabilities. Our working capital deficit also includes a continuing purchase price guarantee obligation of $4.5 million associated with an acquisition of a business in 2006, which we subsequently sold in 2007.

The items discussed above raise substantial doubt about our ability to continue as a going concern.

We currently do not have sufficient cash or commitments for financing to sustain our operations for the next twelve months. We will require additional financing in order to execute our operating plan and continue as a going concern. Our management’s plan is to attempt to secure adequate funding to bridge the commercialization of our patent licensing and barcode ecosystem businesses. We cannot predict whether this additional financing will be in the form of equity, debt, or another form and we may not be able to obtain the necessary additional capital on a timely basis, on acceptable terms, or at all. In the event that these financing sources do not materialize, or that we are unsuccessful in increasing our revenues and profits, we may be unable to implement our current plans for expansion, repay our debt obligations as they become due or respond to competitive pressures, any of which circumstances would have a material adverse effect on our business, prospects, financial condition and results of operations. Should our lender, YA Global Investments, L.P. (“YA Global”) choose not to provide us with continued financing, or if we do not find alternative sources of financing to fund our operations or if we are unable to generate significant product revenues, we may not have sufficient funds to sustain our current operations. Our debenture obligations to YA Global currently mature on August 1, 2013.

The financial statements do not include any adjustments relating to the recoverability and reclassification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern.

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Condensed Consolidated Balance Sheets [Parenthetical] (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Allowance for trade accounts receivable (in dollars)	$ 19	$ 19
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	5,000,000,000	5,000,000,000
Common stock, shares issued	1,258,734,000	541,999,246
Common stock, shares outstanding	1,258,718,865	541,984,111
Treasury stock, shares	2,012,000	2,012,000
Series C Convertible Preferred Stock [Member]
Convertible preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Convertible preferred stock, shares authorized	27,000,000	27,000,000
Convertible preferred stock, shares issued	4,840,000	5,086,000
Convertible preferred stock, shares outstanding	4,840,000	5,086,000
Convertible preferred stock, liquidation value (in dollars)	4,840	5,086
Series D Convertible Preferred Stock [Member]
Convertible preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Convertible preferred stock, shares authorized	25,000,000	25,000,000
Convertible preferred stock, shares issued	3,481,000	13,950,000
Convertible preferred stock, shares outstanding	3,481,000	13,950,000
Convertible preferred stock, liquidation value (in dollars)	$ 348	$ 1,395

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Financing (Tables)

6 Months Ended

Jun. 30, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule Of Significant Terms Of Debentures Carried At Amortized Cost [Table Text Block]

The following table summarizes the significant terms of each of the debentures for which the entire hybrid instrument is recorded at fair value as of June 30, 2012:

									Conversion Price – Lower of Fixed Price or Percentage of VWAP for Look-back Period
Debenture	Face		Interest Rate Prior to		Interest Rate Subsequent to		Default Interest		Fixed		Anti-Dilution Adjusted				Default		Look-back
Issuance Year	Amount		Modification		Modification		Rate		Price		Price		%		%		Period
	(in thousands)
2006	$	6,080		10%		9.5%		n/a	$	2.00	$	0.00648		90%		n/a	125 Days
2007		7,036		13%-14%		9.5%		n/a	$	2.00		$0.00576-$0.00648		80%-90%		n/a	125 Days
2008		6,468		14%- 15%		9.5%		20%-24%		$1.00-$2.00		$0.00576-$0.00684		80%-95%		50%-75%	125 Days
2009		1,778		14%		9.5%		20%	$	2.00	$	0.006840		95%		50%	125 Days
2010		3,881		14%		9.5%		20%		$0.10- $0.30	$	0.006840		95%		50%	60 Days
2011		2,576		14%		9.5%		20%	$	0.10	$	0.006840		95%		50%	60 Days
2012		2,200		14%		9.5%		20%	$	0.10	$	0.006840		95%		50%	60 Days
Total	$	30,019

Schedule Of Significant Terms Debentures For Entire Hybrid Instrument [Table Text Block]

The table below summarizes the significant terms of the debentures that are carried at their amortized cost and for which the compound embedded derivative is bifurcated and accounted for as a derivative liability as of June 30, 2012:

							Conversion Price – Lower of Fixed Price or Percentage of VWAP for Look-back Period
Debenture Issuance Year	Face Amount		Interest Rate		Default Interest Rate		Fixed Price		Anti-Dilution Adjusted Price		%		Default %	Look-back Period
	(in thousands)
2006	$	304		10.0%		n/a	$	2.00	$	0.00648		90%	n/a	125 days

Schedule Of Number Of Shares Issued Convertible Preferred Stock [Table Text Block]

The following table provides a summary of the preferred stock conversions that have occurred since inception and the number of common shares issued upon conversion.

			Preferred		Preferred		Common
	Preferred shares		shares		shares		shares
	issued		converted		remaining		issued
	(in thousands)
Series C preferred stock		22		17		5		273,382
Series D preferred stock		25		22		3		245,162

Schedule of Debt Conversions [Table Text Block]

The outstanding principal and accrued interest for the debentures as of June 30, 2012 is reflected in the following table in addition to the principal and interest converted since inception and the number of common shares issued upon conversion.

	Outstanding		Principal and
	principal and		accrued interest		Common
	accrued interest at		converted since		shares
	June 30, 2012		inception		issued
	(in thousands)
Debentures	$	44,258	$	5,576		717,367

Schedule Of Allocation Embeded Debt Instument Warrants and Assumption [Table Text Block]

Significant assumptions used to value the hybrid debt instruments and warrants as of inception of the financings are also provided in the table below.

	April 26,			June 1,
	2012			2012
	issuance			issuance
	(in thousands)
Gross proceeds	$	450		$	450
Structuring and due diligence fee: Direct expenses		(25	)		(25	)
	$	425		$	425
Hybrid instrument	$	(878	)	$	(799	)
Derivative warrants		(11	)		(9	)
Day one derivative loss		464			383
	$	(425	)	$	(425	)
Warrant shares issued (in thousands)		1,000			1,000
Initial exercise price of warrants	$	0.1500		$	0.1500
Warrant valuation inputs:
Anti-dilution adjusted exercise price	$	0.0117		$	0.0093
Expected life		5 years			5 years
Estimated volatility		178	%		179	%
Risk free rate of return		0.36	%		0.32	%
Dividend yield		—			—
Hybrid instrument valuation inputs:
Conversion price	$	0.007125		$	0.009300
Equivalent volatility		247	%		178	%
Equivalent interest risk		14.00	%		14.00	%
Equivalent credit risk		7.20	%		7.18	%

Schedule Of Activities Of Compound Embedded Derivative [Table Text Block]

 The following table reflects the face value of the instruments, their amortized carrying value and the fair value of the separately-recognized compound embedded derivative, as well the number of common shares into which the instruments are convertible as of June 30, 2012 and December 31, 2011.

June 30, 2012							Embedded		Common
	Face		Carrying		Accrued		Conversion		Stock
	Value		Value		Interest		Feature		Shares
	(in thousands)
Series C preferred stock	$	4,840	$	4,840	$	-	$	3,124		692,965
Series D preferred stock	$	348	$	348	$	-		203		49,842
Debentures:
2006	$	304	$	304	$	36		82		51,585
Total	$	304	$	304	$	36	$	3,409		794,392

December 31, 2011							Embedded		Common
	Face		Carrying		Accrued		Conversion		Stock
	Value		Value		Interest		Feature		Shares
	(in thousands)
Series C preferred stock	$	5,086	$	5,086	$	-	$	554		499,084
Series D preferred stock	$	1,395	$	1,395	$	-		152		136,899
Debentures:
2006	$	7,061	$	7,061	$	3,550		1,554		1,128,515
2008		4,788		4,788		2,226		932		712,474
2009		1,983		1,965		736		370		278,427
2010		3,881		1,426		770		2,692		470,718
2011		4,725		1,077		376		2,917		436,730
Total	$	22,438	$	16,317	$	7,658	$	9,171		3,662,847

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

The changes in fair value of these derivative financial instruments were as follows:

	Three months ended June 30,						Six months ended June 30,
	2012			2011			2012			2011
	(in thousands)						(in thousands)
Series C preferred stock	$	11,915		$	(10,285	)	$	(3,202	)	$	(7,845	)
Series D preferred stock		1,946			(2,813	)		(1,346	)		(2,261	)
Debentures:
2006		18,815			(8,901	)		(3,070	)		(7,013	)
2008		13,391			(5,503	)		(1,350	)		(4,265	)
2009		4,964			(2,260	)		(486	)		(1,871	)
2010		11,901			(4,702	)		(34	)		(4,067	)
2011		8,896			(3,072	)		(4,825	)		(2,767	)
2012		3,523			-			15			-
		75,351			(37,536	)		(14,298	)		(30,089	)
Less: Day-one loss from debenture financings		(847	)		(405	)		(847	)		(1,181	)
Gain (loss) from change in fair value of derivative liability	$	74,504		$	(37,941	)	$	(15,145	)	$	(31,270	)

Schedule Of Hybrid Financial Instrument Disclosure [Table Text Block]

The following table reflects the face value of the financial instruments, the fair value of the hybrid financial instrument and the number of common shares into which the instruments are convertible as of June 30, 2012 and December 31, 2011.

June 30, 2012					Common
	Face		Fair		Stock
	Value		Value		Shares
			(in thousands)
Debentures:
2006	$	6,134	$	13,457		1,531,358
2007		7,036		15,547		1,748,554
2008		6,468		14,142		1,586,202
2009		1,778		3,625		391,651
2010		3,881		7,312		735,667
2011		2,576		4,731		464,141
2012		2,200		3,771		3,771
Total	$	30,073	$	62,585		6,461,344

December 31, 2011					Common
	Face		Fair		Stock
	Value		Value		Shares
			(in thousands)
Debentures:
2007	$	7,682	$	13,115		836,428
2008		1,680		3,343		200,001
Total	$	9,362	$	16,458		1,036,429

Schedule Of Fair Value Hybrid Financial Instrument Disclosure [Table Text Block]

Changes in the fair value of convertible instruments that are carried in their entirety at fair value are reported as “Gain (loss) from change in fair value of hybrid financial instruments” in the accompanying consolidated statements of operations. The changes in fair value of these hybrid financial instruments were as follows:

	Three months ended June 30,						Six months ended June 30,
	2012			2011			2012			2011
	(in thousands)						(in thousands)
2006	$	1,734		$	-		$	1,734		$	-
2007		24,068			(12,052	)		(989	)		(10,032	)
2008		9,663			(3,847	)		3,550			(3,396	)
2009		433			-			433			-
2010		896			-			896			-
2011		512			-			512			-
2012		314			-			314			-
		37,620			(15,899	)		6,450			(13,428	)
Less: Day-one loss from debenture financings		(847	)					(847	)
Gain (loss) from changes in fair value of hybrid instruments	$	36,773		$	(15,899	)	$	5,603		$	(13,428	)

Schedule Of Warrants Embedded Warrants Fair Value Outsanding and Anti Diluative Adjustment Disclosure [Table Text Block]

The following table summarizes the warrants outstanding, their fair value and their exercise price after adjustment for anti-dilution provisions:

			June 30, 2012						December 31, 2011
			Anti-Dilution						Anti-Dilution
			Adjusted						Adjusted
	Expiration		Exercise				Fair		Exercise				Fair
	Year		Price		Warrants		Value		Price		Warrants		Value
					(in thousands)						(in thousands)
Warrants issued with preferred stock:
Series D preferred stock		2017		0.007125		315,789	$	2,587		0.00998		225,564	$	2,535
Warrants issued with debentures:
2007		2012		0.007125		210,526		492		0.00998		401,002		1,510
2008		2015		0.007125		860,526		6,325		0.00998		614,662		6,876
2010		2015		0.007125		294,035		2,152		0.00998		210,025		2,335
2011		2016		0.007125		210,526		1,684		0.00998		150,376		1,686
2012		2017		0.007125		63,158		519		n/a		—		—
Total						1,954,560	$	13,759				1,601,629	$	14,942

Schedule Of Changes In Fair Value Of Warrants [Table Text Block]

Changes in the fair value of the warrants are reported as "(Gain) loss from change in fair value of derivative liability - warrants" in the accompanying consolidated statement of operations. The changes in the fair value of the warrants were as follows:

	Three months ended June 30,					Six months ended June 30,
	2012		2011			2012			2011
Warrants issued with preferred stock:	(in thousands)					(in thousands)
Series C preferred stock	$	-	$	-		$	-		$	53
Series D preferred stock		6,819		(11	)		(52	)		178
Warrants issued with debentures:
2006		-		(13	)		-			127
2007		4,356		(14	)		1,019			129
2008		19,093		(25	)		550			383
2010		6,525		(43	)		183			668
2011		4,578		19			1			157
2012		1,038		-			(780	)		-
Total	$	42,409	$	(87	)		921		$	1,695

Schedule Of Reconciliation Changes In Fair Value Of Financial Instruments and Hybrid Instruments Carried At Fair Value [Table Text Block]

The following represents a reconciliation of the changes in fair value of financial instruments measured at fair value using Level 3 inputs and changes in the fair value of hybrid instruments carried at fair value during the six months ended June 30, 2012:

	Compound
	Embedded			Warrant			Hybrid
	Derivatives			Derivatives			Instruments			Total
Beginning balance, December 31, 2011:	$	9,171		$	14,942		$	16,458		$	40,571
Issuances:
January 11, 2012		289			13			-			302
February 6, 2012		176			9			-			185
March 26, 2012		287			42			-			329
April 26, 2012		-			11			878			889
June 1, 2012		-			9			799			808
Fair value adjustments:
Compound embedded derivatives		14,298			-			-			14,298
Warrant derivatives		-			(921	)		-			(921	)
Hybrid instruments		-			-			(5,603	)		(5,603	)
Change to fair value option related to		(29,656	)		-			29,656			-
compound embedded derivative
Change to fair value option related to
debenture carrying value		-			-			26,809			26,809
Day-one loss from derivative financings		-			-			(847	)		(847	)
Extinguished		17,787						9,692			27,479
Conversions:
Series C preferred stock		(632	)		-			-			(632	)
Series D preferred stock		(1,295	)		-			-			(1,295	)
August 24, 2006 financing		(740	)		-			-			(740	)
December 29, 2006 financing		(176	)		-			-			(176	)
March 27, 2007 financing		-			-			(740	)		(740	)
August 24, 2007 financing		-			-			(585	)		(585	)
May 1, 2009 financing		(21	)		-			-			(21	)
April 13, 2011 financing		(226	)		-			-			(226	)
May 31, 2011 financing		(885	)		-			-			(885	)
June 28, 2011  financing		(414	)		-			-			(414	)
July 13, 2011 financing		(1,656	)		-			-			(1,656	)
August 15, 2011 financing		(1,440	)		-			-			(1,440	)
September 15, 2011 financing		(1,458	)		-			-			(1,458	)
Ending balance, June 30, 2012	$	3,409		$	14,105		$	76,517		$	94,031

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Document and Entity Information	6 Months Ended
	Jun. 30, 2012	Aug. 06, 2012
Entity Registrant Name	NEOMEDIA TECHNOLOGIES INC
Entity Central Index Key	0001022701
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	neom
Entity Common Stock, Shares Outstanding		1,323,665,957
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2012
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2012

XML

Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2012

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

We used the following assumptions to value the stock options granted during the six months ended June 30, 2012:

	June 30,
	2012
Volatility		156%-169%
Expected dividends		-
Expected term (in years)		5.79
Risk-free rate		2.7%-2.89%

Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable [Table Text Block]

A summary of the transactions and status of our granted, vested and exercisable options during the six months ended June 30, 2012 follows:

								Weighted-
								Average
				Weighted-				Contractual
				Average		Aggregate		Life
				Exercise		Intrinsic		Remaining
	Shares			Price		Value		in Years
	(in thousands)					(in thousands)
Outstanding at December 31, 2011		1,127		$	0.02
Granted		75		$	0.02
Exercised		-		$	-
Forfeited		(102	)	$	0.03
Outstanding at June 30, 2012		1,100		$	0.02	$	-		9.6
Exercisable at June 30, 2012		689		$	0.02	$	-		8.4

Schedule of Unvested Restricted Stock Units Roll Forward [Table Text Block]

A summary of the status of our non-vested options as of June 30, 2012 and changes during the six months ended is presented below:

				Weighted
				Average
				Grant Date
Nonvested Shares	Shares			Fair Value
	(in thousands)
Nonvested at December 31, 2011		667		$	0.01
Granted		75		$	0.14
Vested		(229	)	$	0.04
Forfeited		(102	)	$	0.03
Nonvested at June 30, 2012		411		$	0.01

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]

The following table summarizes information about our stock options outstanding at June 30, 2012:

Options Outstanding								Options Exercisable
Exercise Prices		Number of Shares		Weighted- Average Remaining Life		Weighted- Average Exercise Price		Number of Shares		Weighted- Average Exercise Price
		(in thousands)		(in years)				(in thousands)
	$0.014 to $0.03		990		9.0	$	0.02		601	$	0.02
	$0.05		100		8.7	$	0.05		83	$	0.05
	$0.14		10		8.4	$	0.14		5	$	0.14
			1,100		9.1	$	0.02		689	$	0.02

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Condensed Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenues	$ 461	$ 767	$ 1,187	$ 1,136
Cost of revenues	6	237	28	475
Gross profit	455	530	1,159	661
Sales and marketing expenses	215	305	420	621
General and administrative expenses	913	827	1,913	1,621
Research and development costs	259	429	593	830
Operating Loss	(932)	(1,031)	(1,767)	(2,411)
Loss on extinguishment of debt	(27,479)	0	(27,479)	0
Gain/(Loss) from change in fair value of hybrid financial instruments	36,773	(15,899)	5,603	(13,428)
Gain/(Loss)from change in fair value of derivative liability - warrants	42,409	(87)	921	1,695
Gain/(Loss) from change in fair value of derivative liability - Series C and D preferred stock and debentures	75,351	(37,941)	(14,298)	(31,270)
Interest expense related to convertible debt	(2,003)	(904)	(4,395)	(1,657)
Net Income (loss)	124,119	(55,862)	(41,415)	(47,071)
Dividends on convertible preferred stock	0	0	0	0
Net Income (loss) available to common shareholders	124,119	(55,862)	(41,415)	(47,071)
Comprehensive income (loss):
Net income (loss)	124,119	(55,862)	(41,415)	(47,071)
Other comprehensive loss - foreign currency translation adjustment	(8)	(4)	(15)	(13)
Comprehensive Income (loss)	$ 124,111	$ (55,866)	$ (41,430)	$ (47,084)
Net income (loss) per share, basic and diluted:
Basic earnings per share	$ 0.11	$ (0.41)	$ (0.13)	$ (1.02)
Fully diluted (in dollars per share)	$ 0.00	$ (0.41)	$ (0.13)	$ (1.02)
Weighted average number of common shares:
Basic (in shares)	1,148,526,738	137,692,460	326,414,797	46,114,822
Fully diluted (in shares)	8,113,106,249	137,692,460	326,414,797	46,114,822

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Contingencies

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Note 6 – Contingencies

We are involved in various legal actions arising in the normal course of business, both as claimant and defendant. Although it is not possible to determine with certainty the outcome of these matters, it is the opinion of management that the eventual resolution of the following legal actions is unlikely to have a material effect on our financial position or operating results.

William Klawonn v. Y.A. Global Investments, L.P. and NeoMedia Technologies, Inc. – On April 28, 2010, William Klawonn, a shareholder of NeoMedia, filed a derivative action, in the United States District Court for the District of New Jersey, against YA Global and us claiming trading activities that violated section 15 U.S.C. § 78p(b).  On July 8, 2010, an order was granted in the case stipulating that the plaintiff had agreed that we have no liability in the action.  The order also stipulated that we will be considered a nominal party to the action, and as such we remain subject to the discovery rights and obligations of the action. On December 6, 2010, an order was granted in the case to dismiss for the plaintiff’s failure to state a valid claim for relief, without prejudice. However the order also allowed the plaintiff 45 days to amend the complaint. On January 20, 2011, the plaintiff filed an amended complaint. On February 4, 2011, a further order was granted in the case again stipulating that the plaintiff had agreed that we have no liability in the action. The order also again stipulated that we will continue to be considered a nominal party to the action, and as such we remain subject to the discovery rights and obligations of the action. On March 24, 2011, YA Global filed a motion to dismiss the amended complaint and on May 9, 2011, plaintiff filed a memorandum of law in opposition to YA Global’s motion to dismiss the amended complaint. On June 8, 2011, YA Global filed a reply memorandum of law in further support of its motion to dismiss the amended complaint.   The Court heard oral argument on the motion on August 4, 2011. On August 10, 2011, the Court issued an opinion and order granting the motion to dismiss as to some claims and denying it as to others.  We are not able to predict with any certainty the outcome of this litigation, including the merits or value of the amended complaint. There is no new status on this case to report. 

SpyderLynk, LLC – On April 9, 2012, we filed a complaint against SpyderLynk, LLC in the District Court for the District of Colorado. The complaint asserts infringement of two NeoMedia patents related to our mobile barcode resolution technology. Specifically the complaint asserts infringement of U.S. Patent No. 6,199,048, and U.S. Patent No. 8,131,597. The complaint seeks to enjoin SpyderLynk from using NeoMedia’s patented technology and to recover damages caused by the infringement.

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Accrued Liabilities

6 Months Ended

Jun. 30, 2012

Payables and Accruals [Abstract]

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

Note 5 – Accrued Liabilities

Accrued liabilities consist of the following as of June 30, 2012 and December 31, 2011:

	June 30,		December 31,
	2012		2011
	(in thousands)
Accruals for disputed services	$	2,318	$	2,318
Accrued operating expenses		1,940		2,010
Accrued payroll related expenses		4		130
Accrued interest		74		7,677
Total	$	4,336	$	12,135

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Summary of Significant Accounting Policies (Details Textual) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001

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Accrued Liabilities (Table)

6 Months Ended

Jun. 30, 2012

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities [Table Text Block]

Accrued liabilities consist of the following as of June 30, 2012 and December 31, 2011:

	June 30,		December 31,
	2012		2011
	(in thousands)
Accruals for disputed services	$	2,318	$	2,318
Accrued operating expenses		1,940		2,010
Accrued payroll related expenses		4		130
Accrued interest		74		7,677
Total	$	4,336	$	12,135

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation– The consolidated financial statements include the accounts of NeoMedia Technologies, Inc. and our wholly-owned subsidiaries. We operate as one reportable segment. All significant intercompany accounts and transactions have been eliminated.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates– The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Changes in facts and circumstances may result in revised estimates, which are recorded in the period in which they become known.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock-Based Compensation - FASB ASC 718, Stock Compensation , requires that all stock-based compensation be recognized as an expense in the financial statements and that such cost be measured at the grant date fair value of the award.  We account for modifications of the terms of existing option grants as exchanges of the existing equity instruments for new instruments.  The fair value of the modified option at the grant date is compared with the value at that date of the original option immediately before its terms are modified.  Any excess fair value of the modified option over the original option is recognized as additional compensation expense.

Earnings Per Share, Policy [Policy Text Block]

Basic and Diluted Net Income (Loss) Per Share – Basic net income (loss) per share is computed by dividing net income (loss) attributable to common shareholders by the weighted average number of shares of our common stock, par value $0.001 per share (“Common Stock”), outstanding during the period. During the three and six months ended June 30, 2011 and the six months ended June 30, 2012, we reported a net loss per share, and as such, basic and diluted losses per share were equivalent. During the three months ended June 30, 2012, we reported net income per share and included dilutive instruments in the fully diluted net income per share calculation.

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Numerator:
Net income (loss)	$	124,119		$	(55,862	)	$	(41,415	)	$	(47,071	)
Effect of dilutive securities – adjustment for:
Change in fair value of derivative liability Series C and D preferred stock and debentures		(75,351	)		-			-			-
Change in fair value of derivative liability - warrants		(42,409	)		-			-			-
Change in fair value of hybrid financial instruments		(36,773	)		-			-			-
Loss on extinguishment of debt		27,479			-			-			-
Interest expense on convertible debt		2,003			-						-
Numerator for diluted earnings per share- income (loss) available to common stockholders after assumed conversions of debentures and exercise of warrants	$	(932	)	$	(55,862	)	$	(41,415	)	$	(47,071	)
Denominator
Weighted average shares used to compute basic EPS		1,148,526,738			137,692,460			326,414,797			46,114,822
Effect of dilutive securities:
Employee stock options		-			-			-			-
Derivative warrants		1,091,953,786
Convertible debentures		5,129,818,595			-			-			-
Convertible preferred stock		742,807,130			-			-			-
Dilutive potential common shares		6,964,579,511			-			-			-
Denominator for diluted earnings per share-adjusted weighted average shares and assumed conversions and exercise of options		8,113,106,249			137,692,460			326,414,797			46,114,822
Basic earnings per share	$	0.11		$	(0.41	)	$	(0.13	)	$	(1.02	)
Diluted earnings per share	$	0.00		$	(0.41	)	$	(0.13	)	$	(1.02	)

Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]

Goodwill –Goodwill represents the excess of the purchase price paid for NeoMedia Europe over the fair value of the identifiable net assets and liabilities acquired, based on an independent appraisal of the assets and liabilities acquired. In accordance with FASB ASC 350, Intangibles - Goodwill and Other goodwill is not amortized, but is tested for impairment, at least annually , by applying the recognition and measurement provisions of FASB ASC 350, which require that we compare the carrying amount of the asset to its fair value. If impairment of the carrying value based on the estimated fair value exists, we measure the impairment through the use of discounted cash flows. If the carrying amount exceeds fair value, an impairment loss is recognized.

Inventory, Policy [Policy Text Block]

Inventories– All of our inventory of $341,000 is fully reserved for as of June 30, 2012 and December 31, 2011, respectively as we believe the inventory is slow moving and obsolete.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements - The following Accounting Standards Codification Updates have recently been issued:

ASU No. 2011-10	December  2011	Property, Plant, and Equipment (Topic 360): Derecognition of in Substance Real Estate—a Scope Clarification (a consensus of the FASB Emerging Issues Task Force)
ASU No. 2011-11	December  2011	Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities
ASU No. 2011-12	December  2011	Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05

To the extent appropriate, the guidance in the above Accounting Standards Codification Updates is already reflected in our consolidated financial statements and management does not anticipate that these accounting pronouncements will have any material future effect on our consolidated financial statements.

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Geographic and Segment Reporting

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

 Note 7 – Geographic and Segment Reporting

We are structured and evaluated by our Board of Directors and management as one business unit.

	Three months ended June 30,						Six months ended June 30,
	2012			2011			2012			2011
	(in thousands )						(in thousands)
Revenue:
United States	$	430		$	454		$	1,107		$	773
Germany		31			313			80			363
Total	$	461		$	767		$	1,187		$	1,136
Net income (loss):
United States	$	124,435		$	(55,664	)	$	(40,765	)	$	(46,421	)
Germany		(316	)		(198	)		(650	)		(650	)
Total	$	124,119		$	(55,862	)	$	(41,415	)	$	(47,071	)

	June 30,		December, 31
	2012		2011
Identifiable assets:
United States	$	7,059	$	6,998
Germany		479		602
Total	$	7,538	$	7,600

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Transactions with Related Parties

6 Months Ended

Jun. 30, 2012

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

Note 8 – Transactions with Related Parties

Ms. Laura A. Marriott serves as our Chairperson of the Board of Directors and Chief Executive Officer. In addition to her compensation as a non-executive member of our Board, Ms. Marriott is compensated as our Chief Executive Officer under a consulting agreement for which she received $105,600 and $205,600 in compensation from us during the three and six months ended June 30, 2012, respectively.

Mr. George G. O’Leary serves as a member of the Board of Directors and as Chief Operating Officer. Mr. O’Leary is also the Chairman of our Audit Committee. In addition to his compensation as a member of our Board, Mr. O’Leary is compensated as our acting Chief Operating Officer under a consulting agreement for which he received $5,920 and $11,760 in compensation from us during the three and six months ended June 30, 2012, respectively.

Mr. Barry S. Baer serves as Chief Financial Officer. Mr. Baer is compensated as our Chief Financial Officer under a consulting agreement for which he received $22,122 and $35,247 in compensation from us during the three and six months ended June 30, 2012, respectively.

 Subsequent Event:

On July 23, 2012, the Board approved the issuance, under our 2011 Stock Incentive Plan, of four option agreements (each for 25,000 shares of our common stock) to each member of the Board of Directors, at an exercise price of $0.008 per share. Each of these grantees’ options vest over four years from the date of the grant.

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Summary of Significant Accounting Policies (Table)

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Table Text Block]

During the three months ended June 30, 2012, we reported net income per share and included dilutive instruments in the fully diluted net income per share calculation.

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Numerator:
Net income (loss)	$	124,119		$	(55,862	)	$	(41,415	)	$	(47,071	)
Effect of dilutive securities – adjustment for:
Change in fair value of derivative liability Series C and D preferred stock and debentures		(75,351	)		-			-			-
Change in fair value of derivative liability - warrants		(42,409	)		-			-			-
Change in fair value of hybrid financial instruments		(36,773	)		-			-			-
Loss on extinguishment of debt		27,479			-			-			-
Interest expense on convertible debt		2,003			-						-
Numerator for diluted earnings per share- income (loss) available to common stockholders after assumed conversions of debentures and exercise of warrants	$	(932	)	$	(55,862	)	$	(41,415	)	$	(47,071	)
Denominator
Weighted average shares used to compute basic EPS		1,148,526,738			137,692,460			326,414,797			46,114,822
Effect of dilutive securities:
Employee stock options		-			-			-			-
Derivative warrants		1,091,953,786
Convertible debentures		5,129,818,595			-			-			-
Convertible preferred stock		742,807,130			-			-			-
Dilutive potential common shares		6,964,579,511			-			-			-
Denominator for diluted earnings per share-adjusted weighted average shares and assumed conversions and exercise of options		8,113,106,249			137,692,460			326,414,797			46,114,822
Basic earnings per share	$	0.11		$	(0.41	)	$	(0.13	)	$	(1.02	)
Diluted earnings per share	$	0.00		$	(0.41	)	$	(0.13	)	$	(1.02	)

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Financing (Details 10) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Change in fair value of derivative liability - warrants	$ 42,409	$ (87)	$ 921	$ 1,695
Series C Preferred Stock [Member]
Change in fair value of derivative liability - warrants	0	0	0	53
Series D Preferred Stock [Member]
Change in fair value of derivative liability - warrants	6,819	(11)	(52)	178
Warrants With Debenture Attached Series 2006 [Member]
Change in fair value of derivative liability - warrants	0	(13)	0	127
Warrants With Debenture Attached Series 2007 [Member]
Change in fair value of derivative liability - warrants	4,356	(14)	1,019	129
Warrants With Debenture Attached Series 2008 [Member]
Change in fair value of derivative liability - warrants	19,093	(25)	550	383
Warrants With Debenture Attached Series 2010 [Member]
Change in fair value of derivative liability - warrants	6,525	(43)	183	668
Warrants With Debenture Attached Series 2011 [Member]
Change in fair value of derivative liability - warrants	4,578	19	1	157
Warrants With Debenture Attached Series 2012 [Member]
Change in fair value of derivative liability - warrants	$ 1,038	$ 0	$ (780)	$ 0

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General (Details Textual) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Net Income (Loss) Attributable To Parent	$ 124,119,000	$ (55,862,000)	$ (41,415,000)	$ (47,071,000)
Net Cash Provided By (Used In) Operating Activities	(1,981,000)	(2,472,000)	(1,981,000)	(2,472,000)
Retained Earnings (Accumulated Deficit)	(286,659,000)		(286,659,000)		(245,244,000)
Working Capital Deficit	104,900,000		104,900,000
Derivative Instruments Gain Loss on Derivative Net			35,300,000	43,000,000
Hybrid Instruments at Fair Value, Net	90,600,000		90,600,000
Amortized Cost Financial Instruments	370,000		370,000
Purchase Obligation Related to Business Acquisition	4,500,000		4,500,000
Going Concern Note			We currently do not have sufficient cash or commitments for financing to sustain our operations for the next twelve months. We will require additional financing in order to execute our operating plan and continue as a going concern. Our management's plan is to attempt to secure adequate funding to bridge the commercialization of our patent licensing and barcode ecosystem businesses. We cannot predict whether this additional financing will be in the form of equity, debt, or another form and we may not be able to obtain the necessary additional capital on a timely basis, on acceptable terms, or at all. In the event that these financing sources do not materialize, or that we are unsuccessful in increasing our revenues and profits, we may be unable to implement our current plans for expansion, repay our debt obligations as they become due or respond to competitive pressures, any of which circumstances would have a material adverse effect on our business, prospects, financial condition and results of operations. Should our lender, YA Global Investments, L.P. ("YA Global") choose not to provide us with continued financing, or if we do not find alternative sources of financing to fund our operations or if we are unable to generate significant product revenues, we may not have sufficient funds to sustain our current operations. Our debenture obligations to YA Global currently mature on August 1, 2013.
Working Capital Deficit Related To Financing Instruments	$ 94,300,000		$ 94,300,000

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Financing (Details 2) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Series C Preferred Stock [Member]
Preferred shares issued	22
Preferred shares converted	17
Preferred shares remaining	5
Common shares issued	273,382	499,084
Series D Preferred Stock [Member]
Preferred shares issued	25
Preferred shares converted	22
Preferred shares remaining	3
Common shares issued	245,162	136,899

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Stock-Based Compensation (Details Textual) (USD $)	3 Months Ended		6 Months Ended		1 Months Ended				6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Apr. 25, 2012 Stock Incentive Plan 2011 [Member]	Apr. 30, 2012 Stock Incentive Plan 2011 [Member]	Apr. 26, 2012 Stock Incentive Plan 2011 [Member]	Apr. 02, 2012 Stock Incentive Plan 2011 [Member]	Jun. 30, 2012 Subsequent Event [Member] Stock Incentive Plan 2011 [Member]
Allocated Share-based Compensation Expense	$ 6,500	$ 25,000	$ 13,700	$ 52,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized							50,000	25,000
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased							$ 0.01	$ 0.03
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					4 years	4 years
Subsequent Event, Description									the Board approved the issuance, under our 2011 Stock Incentive Plan, of four option agreements (each for 25,000 shares of our common stock) to each member of the Board of Directors, at an exercise price of $0.008 per share. Each of these grantees' options vest over four years from the date of the grant.

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Condensed Consolidated Statement of Shareholders' Deficit (USD $) In Thousands, except Share data	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Total
Balance at Dec. 31, 2011	$ 542	$ 170,006	$ (179)	$ (245,244)	$ (779)	$ (75,654)
Balance (in shares) at Dec. 31, 2011	541,984,111				2,012
Shares issued upon conversions of Series C preferred stock	34	844				878
Shares issued upon conversions of Series C preferred stock (in shares)	34,168,248
Shares issued upon conversions of Series D preferred stock	143	2,199				2,342
Shares issued upon conversions of Series D preferred stock (in shares)	142,457,436
Shares issued upon conversions of convertible debentures	532	9,572				10,104
Shares issued upon conversions of convertible debentures (in shares)	532,394,205
Stock-based compensation expense		14				14
Comprehensive income (loss) - foreign currency translation adjustment			(15)			(15)
Net loss				(41,415)		(41,415)
Balance at Jun. 30, 2012	$ 1,251	$ 182,635	$ (194)	$ (286,659)	$ (779)	$ (103,746)
Balance (in shares) at Jun. 30, 2012	1,251,004,000				2,012

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2012

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 4 – Stock-Based Compensation

On April 2, 2012 and April 25, 2012, the Board approved and issued two option agreements for a total of 25,000 shares and 50,000 shares, respectively, of our common stock from our 2011 Stock Incentive Plan at an exercise price of $0.03 per share and $0.01 per share, respectively. Each of these grantees’ options vest over four years from the grant date.  

We used the following assumptions to value the stock options granted during the six months ended June 30, 2012:

	June 30,
	2012
Volatility		156%-169%
Expected dividends		-
Expected term (in years)		5.79
Risk-free rate		2.7%-2.89%

Total stock-based compensation expense recorded in the statement of operations was $6,500 and $25,000 for the three months ended June 30, 2012 and 2011, respectively and $13,700 and $52,000 for the six months ended June 30, 2012 and 2011, respectively.

A summary of the transactions and status of our granted, vested and exercisable options during the six months ended June 30, 2012 follows:

								Weighted-
								Average
				Weighted-				Contractual
				Average		Aggregate		Life
				Exercise		Intrinsic		Remaining
	Shares			Price		Value		in Years
	(in thousands)					(in thousands)
Outstanding at December 31, 2011		1,127		$	0.02
Granted		75		$	0.02
Exercised		-		$	-
Forfeited		(102	)	$	0.03
Outstanding at June 30, 2012		1,100		$	0.02	$	-		9.6
Exercisable at June 30, 2012		689		$	0.02	$	-		8.4

A summary of the status of our non-vested options as of June 30, 2012 and changes during the six months ended is presented below:

				Weighted
				Average
				Grant Date
Nonvested Shares	Shares			Fair Value
	(in thousands)
Nonvested at December 31, 2011		667		$	0.01
Granted		75		$	0.14
Vested		(229	)	$	0.04
Forfeited		(102	)	$	0.03
Nonvested at June 30, 2012		411		$	0.01

The following table summarizes information about our stock options outstanding at June 30, 2012:

Options Outstanding								Options Exercisable
Exercise Prices		Number of Shares		Weighted- Average Remaining Life		Weighted- Average Exercise Price		Number of Shares		Weighted- Average Exercise Price
		(in thousands)		(in years)				(in thousands)
	$0.014 to $0.03		990		9.0	$	0.02		601	$	0.02
	$0.05		100		8.7	$	0.05		83	$	0.05
	$0.14		10		8.4	$	0.14		5	$	0.14
			1,100		9.1	$	0.02		689	$	0.02

There were no stock options exercised during the three and six months ended June 30, 2012. 

Subsequent Events:

On July 23, 2012, the Board approved the issuance, under our 2011 Stock Incentive Plan, of four option agreements (each for 25,000 shares of our common stock) to each member of the Board of Directors, at an exercise price of $0.008 per share. Each of these grantees’ options vest over four years from the date of the grant.

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Financing (Details 3) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Debentures, Outstanding principal and accrued interest	$ 44,258
Debentures, Principal and accrued interest converted since inception	$ 5,576
Common shares issued (in shares)	717,367

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Stock-Based Compensation (Details 1) (USD $) In Thousands, except Per Share data, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Options, Outstanding (in shares)	1,127
Options, Granted (in shares)	75
Options, Exercised (in shares)	0
Options, Forfeited (in shares)	(102)
Options, Outstanding (in shares)	1,100
Options, Exercisable (in shares)	689
Weighted-Average Exercise Price, Outstanding (in dollars per share)	$ 0.02
Weighted-Average Exercise Price, Granted (in dollars per share)	$ 0.02
Weighted-Average Exercise Price, Exercised (in dollars per share)	$ 0
Weighted-Average Exercise Price, Forfeited (in dollars per share)	$ 0.03
Weighted-Average Exercise Price, Outstanding (in dollars per share)	$ 0.02
Weighted-Average Exercise Price, Exercisable (in dollars per share)	$ 0.02
Aggregate Intrinsic Value, Outstanding	$ 0
Aggregate Intrinsic Value, Exercisable	$ 0
Weighted-Average Contractual Life Remaining in Years, Outstanding	9 years 7 months 6 days
Weighted-Average Contractual Life Remaining in Years, Exercisable	8 years 4 months 24 days

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Geographic and Segment Reporting (Table)

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Geographic and Segment Reporting [Table Text Block]

We are structured and evaluated by our Board of Directors and management as one business unit.

	Three months ended June 30,						Six months ended June 30,
	2012			2011			2012			2011
	(in thousands )						(in thousands)
Revenue:
United States	$	430		$	454		$	1,107		$	773
Germany		31			313			80			363
Total	$	461		$	767		$	1,187		$	1,136
Net income (loss):
United States	$	127,610		$	(55,664	)	$	(37,590	)	$	(46,421	)
Germany		(316	)		(198	)		(650	)		(650	)
Total	$	127,294		$	(55,862	)	$	(38,240	)	$	(47,071	)

	June 30,		December, 31
	2012		2011
Identifiable assets:
United States	$	7,059	$	6,998
Germany		479		602
Total	$	7,538	$	7,600