Page
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ABOUT
THIS PROSPECTUS
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1
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PROSPECTUS
SUMMARY
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1
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THE
OFFERINGS
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1
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THE
COMPANY
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2
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RISK
FACTORS
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3
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SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS
|
8
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USE
OF PROCEEDS
|
9
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PRICE
RANGE OF COMMON STOCK
|
9
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DIVIDEND
POLICY
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9
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MANAGEMENT’S
DISCUSSION AND ANALYSIS
|
10
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BUSINESS
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17
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MANAGEMENT
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22
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SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
|
28
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CERTAIN
RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
|
29
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SELLING
STOCKHOLDERS
|
30
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DESCRIPTION
OF SECURITIES
|
42
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PLAN
OF DISTRIBUTION
|
45
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LEGAL
MATTERS
|
47
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EXPERTS
|
47
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CHANGES
IN AND DISAGREEMENTS WITH ACCOUNTANTS
|
47
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WHERE
YOU CAN FIND MORE INFORMATION
|
48
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FINANCIAL
STATEMENTS
|
F-i
|
·
|
delay
or prevent a change in the control;
|
·
|
impede
a merger, consolidation, takeover, or other transaction involving the
Company; or
|
·
|
discourage
a potential acquirer from making a tender offer or otherwise attempting to
obtain control of the Company.
|
·
|
Investors
may have difficulty buying and selling or obtaining market
quotations;
|
·
|
Market
visibility for our common stock may be limited;
and
|
·
|
Such
a lack of visibility for our common stock may have a depressive effect on
the market price for our common
stock.
|
·
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Control
of the market for the security by one or a few broker-dealers that are
often related to the promoter or issuer;
|
·
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Manipulation
of prices through prearranged matching of purchases and sales and false
and misleading press releases;
|
·
|
"Boiler
room" practices involving high pressure sales tactics and unrealistic
price projections by inexperienced sales persons;
|
·
|
Excessive
and undisclosed bid-ask differentials and markups by selling
broker-dealers; and
|
·
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The
wholesale dumping of the same securities by promoters and broker-dealers
after prices have been manipulated to a desired level, along with the
inevitable collapse of those prices with consequent investor
losses.
|
Three
months Ended March 31, 2009
|
High
|
Low
|
||||||
January
1, 2009 — March 31, 2009
|
0.30
|
0.09
|
Twelve
months Ended December 31, 2008
|
High
|
Low
|
||||||
October
1, 2008 — December 31, 2008
|
$
|
0.25
|
0.08
|
|||||
July
1, 2008 — September 30, 2008
|
0.32
|
0.19
|
||||||
April
1, 2008 — June 30, 2008
|
0.39
|
0.26
|
||||||
January
1, 2008 — March 31, 2008
|
0.55
|
0.26
|
Twelve
months Ended December 31, 2007
|
High
|
Low
|
||||||
October
1, 2007 — December 31, 2007
|
$
|
0.70
|
$
|
0.37
|
||||
July
1, 2007 — September 30, 2007
|
0.75
|
0.20
|
||||||
April
1, 2007 — June 30, 2007
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0.26
|
0.20
|
||||||
January
1, 2007 — March 31, 2007
|
0.30
|
0.18
|
Three Months
Ended
March 31,
2009 |
Three Months
Ended
March 31,
2008 |
|||||||
Revenues
|
100.0
|
%
|
100.0
|
%
|
||||
Cost
of revenues
|
61.1
|
73.4
|
||||||
Gross
profit
|
38.9
|
26.6
|
||||||
Costs
and expenses:
|
||||||||
Research
and development
|
524.0
|
120.7
|
||||||
Selling,
general and administrative
|
2,242.8
|
590.6
|
||||||
Depreciation
and amortization
|
41.0
|
11.1
|
||||||
Total
expenses
|
2,807.8
|
722.4
|
||||||
Loss
from operations
|
(2,769.0
|
)
|
(695.8
|
)
|
||||
Other
income
|
19.3
|
31.5
|
||||||
Net
loss
|
(2,749.7
|
)
|
(664.3
|
)
|
||||
Dividends
paid or payable on Series B Preferred Stock
|
494.9
|
165.8
|
||||||
Net
loss attributable to common shareholders
|
(3,244.4
|
)
|
(825.0
|
)
|
Year
Ended
December
31,
2008 |
Year
Ended
December
31,
2007 |
|||||||
Revenues
|
100.0
|
%
|
100.0
|
%
|
||||
Cost
of revenues
|
82.8
|
69.4
|
||||||
Gross
profit
|
17.2
|
30.6
|
||||||
Costs
and expenses:
|
||||||||
Research
and development
|
211.5
|
136.1
|
||||||
Selling,
general and administrative
|
633.7
|
556.2
|
||||||
Depreciation
and amortization
|
15.5
|
9.6
|
||||||
Total
expenses
|
860.7
|
701.9
|
||||||
Loss
from operations
|
(843.5
|
)
|
(671.3
|
)
|
||||
Other
income
|
21.8
|
(122.1
|
)
|
|||||
Net
loss
|
(821.7
|
)
|
(793.4
|
)
|
·
|
Motor
and Equipment Life: The MEC extends motor life by reducing the stress and
strain on the motor and surrounding equipment, and reduces the amperage to
the motor, which results in cooler running
temperatures.
|
·
|
Successful
Utility and Customer Tests: The MEC has been successfully tested by
numerous electric utilities and customers. For example, Paragon Consulting
Services, a contractor for Nevada Power Company, the electric utility for
southern Nevada, performed 8 field tests on escalators and one on an
elevator in major Las Vegas casinos. The tests resulted in average energy
savings of over 30% on the escalators and 20% on the
elevator.
|
·
|
Utility
Incentive Financing: The product has qualified for rebate incentive
financing, most frequently called “rebates”, from many electric utilities.
This financing is generally paid to the end user of the MEC as an
incentive to invest in energy saving products. As such, this financing
effectively decreases the cost of the Company’s MEC for end users. The
utilities that have approved the Company’s products for incentive
financing include: Nevada Power Company, the Los Angeles Department of
Water and Power, Sierra Pacific Power, Southern California Edison, the New
York Power Authority, Excel Energy, Sacramento Municipal Utility District
and San Diego Gas and Electric.
|
·
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Acceptance
by Original Equipment Manufacturers: The Company’s products have been
approved and installed by numerous original equipment manufacturers
(“OEMs”) in the escalator and granulator
industries.
|
·
|
Increased
ease of installation and reduced technical support requirements. For
example, instead of approximated and manual adjustments during
installation, which can require technical support from the Company, the
digitized unit will allow more simplified and precise adjustments by
customers and third party
installers.
|
·
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Reduced
product size, which is important for many
installations.
|
·
|
Input-output
communications capabilities, so the device can communicate with external
control systems.
|
·
|
Increased
functionality. The Company expects to be able to add new functionality to
the products. These new functions may include such things
as:
|
|
o
|
Recording
and reporting of actual energy
savings;
|
|
o
|
Prediction
of maintenance problems by reading and reporting on changes in the motor’s
operating characteristics; and
|
|
o
|
More
secure intellectual property protection through the use of secured chips
and software.
|
·
|
It
combines soft start features with energy savings features in a single
integrated unit that is CSA, UL and CE certified and achieves energy
savings levels of up to 15% to 35% in independent, third party
testing;
|
·
|
Its
circuitry is proprietary, protected by one patent. Numerous other patent
filings on new innovations are pending approval of the U.S. Patent and
Trademark Office;
|
·
|
It
has been tested extensively by utilities with documented energy savings
and approval for incentive financing
rebates;
|
·
|
It
is accepted by OEMs in the escalator and granulator
industries.
|
Name
|
Age
|
Director
Since
|
Position
|
|||
Steven
Z. Strasser
|
60
|
2002
|
Chairman,
Chief Executive Officer
|
|||
John
(BJ) Lackland
|
38
|
2002
|
Director,
Chief Financial Officer, and Secretary
|
|||
George
Boyadjieff
|
70
|
2006
|
Director,
Senior Technical Advisor
|
|||
Douglas
M. Dunn
|
65
|
2006
|
Director
|
|||
Richard
Morgan
|
63
|
2007
|
Director
|
|||
Gary
Rado
|
69
|
2005
|
Director
|
|||
Gregory
Curhan
|
47
|
2009
|
Director
|
|||
Kenneth
Dickey
|
68
|
2009
|
Director
|
|
•
|
selects
the independent auditors, considering independence and
effectiveness;
|
|
•
|
discusses
the scope and results of the audit with the independent auditors and
reviews with management and the independent auditors our interim and
year-end operating results;
|
|
•
|
discusses
with the independent accountant the matters required to be discussed by
Statement on Auditing Standards No. 114 (Communications with Audit
Committees);
|
|
•
|
considers
the adequacy of our internal accounting controls and audit
procedures;
|
|
•
|
reviews
and approves all audit and non-audit services to be performed by the
independent auditors; and
|
|
•
|
administers
the whistleblower policy.
|
|
•
|
recommends
to the Board of Directors the compensation level of the executive
officers;
|
|
•
|
reviews
and makes recommendations to our Board of Directors with respect to our
equity incentive plans; and
|
|
•
|
establishes
and reviews general policies relating to compensation and benefits of our
employees.
|
SUMMARY COMPENSATION TABLE
|
||||||||||||||||||||||||||||||||||
Name and principal
position
|
Year
|
Salary ($)
|
Bonus
($)
|
Stock
Awards
($)
|
Option
Awards ($)
|
Non-Equity
Incentive Plan
Compensation ($)
|
Nonqualified
Deferred
Compensation
Earnings ($)
|
All Other
Compensation
($)
|
Total ($)
|
|||||||||||||||||||||||||
Steven
Z.
Strasser(1)
|
2008
|
$ | 311,208 | - | - | - | - | - | - | $ | 311,208 | |||||||||||||||||||||||
Chairman
and Chief
|
2007
|
$ | 297,172 | - | - | - | - | - | - | $ | 297,172 | |||||||||||||||||||||||
Executive
Officer
|
|
|||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||
John
(BJ) Lackland
(2)
|
2008
|
$ | 198,042 | - | - | - | - | - | - | $ | 198,042 | |||||||||||||||||||||||
Director
and Chief
|
2007
|
$ | 189,109 | - | - | - | - | - | - | $ | 189,109 | |||||||||||||||||||||||
Financial
Officer
|
|
- | - | - | - | - | - | - |
Name
|
Salary (1)
|
Bonus(4)
|
Common Stock
Options(5)
|
||||||
Steven
Strasser
|
$ | 275,000 | (2) | 3,000,000 | |||||
BJ
Lackland
|
$ | 175,000 | (3) | 1,800,000 |
(1)
|
To be increased annually by at
least 5% of current year’s base
salary.
|
(2)
|
First year's salary to be paid
$60,000 in cash and options to purchase 1,612,500 shares of common stock
at an exercise price equal to not less than market price at date of grant
in lieu of remaining cash vesting quarterly over one
year.
|
(3)
|
First year's salary to be paid
$120,000 in cash and options to purchase 412,500 shares of common stock at
an exercise price equal to market price at date of grant in lieu of
remaining cash vesting quarterly over one
year.
|
(4)
|
At the discretion of the
disinterested members of the
Board.
|
(5)
|
Vesting evenly and quarterly over
five years.
|
OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END
|
|||||||||||||||||||||||||||||||||
OPTION AWARDS
|
STOCK AWARDS
|
||||||||||||||||||||||||||||||||
Name
|
Number of
Securities
Underlying
Unexercised
Options (#)
Exercisable
|
Number of
Securities
Underlying
Unexercised
Options
(#)
Unexercisable
|
Equity Incentive
Plan Awards:
Number of
Securities
Underlying
Unexercised
Unearned
Options
(#)
|
Option
Exercise
Price
($)
|
Option
Expiration
Date
|
Number of
Shares or
Units of
Stock That
Have Not
Vested
(#)
|
Market
Value of
Shares or
Units of
Stock
That Have
Not
Vested
($)
|
Equity
Incentive Plan
Awards:
Number of
Unearned
Shares, Units
or Other
Rights That
Have Not
Vested
(#)
|
Equity Incentive
Plan Awards:
Market or
Payout Value of
Unearned
Shares, Units or
Other Rights
That Have Not
Vested
(#)
|
||||||||||||||||||||||||
Steven
Strasser
|
2,045,460 | 527,269 | - | $ | 0.22 |
5/31/2010
|
- | - | - | - | |||||||||||||||||||||||
1,667,060 | 327,731 | - | $ | 0.20 |
5/31/2015
|
- | - | - | - | ||||||||||||||||||||||||
600,000 | - | - | $ | 0.65 |
11/28/2015
|
- | - | - | - | ||||||||||||||||||||||||
BJ
Lackland
|
1,672,500 | 540,000 | - | $ | 0.20 |
5/31/2015
|
- | - | - | - | |||||||||||||||||||||||
375,000 | - | - | $ | 0.65 |
11/28/2015
|
- | - | - | - |
|
·
|
assumption or substitution of, or
adjustment to, each outstanding
award;
|
|
·
|
acceleration of the vesting of
options and stock appreciation
rights;
|
|
·
|
termination of any restrictions
on stock awards or cash awards;
or
|
|
·
|
cancellation of awards in
exchange for a cash payment to the
participant.
|
DIRECTOR COMPENSATION
|
||||||||||||||||||||||||||||
Name
(a)
|
Fees Earned
or Paid in
Cash
($)
|
Stock
Awards ($)
|
Option Awards
($)
|
Non-Equity Incentive
Plan Compensation
($)
|
Non-Qualified
Deferred
Compensation
Earnings
($)
|
All
Other
Compensation ($)
|
Total ($)
|
|||||||||||||||||||||
Raymond
J. Skiptunis
|
$ | 12,000 | - | $ | 38,805 | - | - | - | $ | 50,805 | ||||||||||||||||||
George
Boyadjieff
|
- | - | $ | 25,870 | - | - | - | $ | 25,870 | |||||||||||||||||||
Douglas
M. Dunn
|
- | - | $ | 32,338 | - | - | - | $ | 32,338 | |||||||||||||||||||
Richard
Morgan
|
- | - | $ | 25,870 | - | - | - | $ | 25,870 | |||||||||||||||||||
Gary
Rado
|
- | - | $ | 32,338 | - | - | - | $ | 32,338 | |||||||||||||||||||
Greg
Curahn
|
- | - | - | - | - | - | - |
Name of
|
|
Percent of
|
||||||||
Title of Class
|
Beneficial Owner(1)
|
Shares Owned
|
Shares Owned(11)
|
|||||||
Common
Stock
|
Steven
Strasser, CEO, Chairman of the Board
|
20,681,894 | (2) | 37.67 | % | |||||
Common
Stock
|
John
(BJ) Lackland, CFO, Director
|
2,455,500 | (3) | 5.39 | % | |||||
Common
Stock
|
Gregory
Curhan, Director
|
200,000 | (4) |
Less
than 1%
|
||||||
Common
Stock
|
Gary
Rado, Director
|
752,500 | (5) | 1.71 | % | |||||
Common
Stock
|
George
Boyadjieff, Director
|
2,955,000 | (6) | 6.55 | % | |||||
Common
Stock
|
Douglas
Dunn, Director
|
532,500 | (7) | 1.22 | % | |||||
Common
Stock
|
Richard
Morgan, Director
|
250,000 | (8) |
Less
than 1%
|
||||||
Common
Stock
|
Kenneth
Dickey, Director
|
200,000 | (9) |
Less
than 1%
|
||||||
Common
Stock
|
Summit
Energy Ventures, LLC
|
8,803,901 | (2) | 19.45 | % | |||||
Common
Stock
|
Sarkowski
Family L.P.
|
7,356,981 | 15.63 | % | ||||||
Common
Stock
|
Ron
Boyer
|
9,535,769 | 18.90 | % | ||||||
Common
Stock
|
Michael
J. Goldfarb Enterprises
|
2,440,001 | 5.46 | % | ||||||
Common
Stock
|
Byron
LeBow Family Trust
|
2,850,908 | 6.34 | % | ||||||
Common
Stock
|
Marathon
Resource Partners I L.P.
|
4,184,107 | 9.18 | % | ||||||
Common
Stock
|
AP
Finance, LLC
|
4,544,376 | (10) | 10.22 | % | |||||
Common
Stock
|
All
Executive Officers and Directors as a Group (8 persons)
|
27,627,394 | 45.81 | % |
(1)
|
Information in this table
regarding directors and executive officers is based on information
provided by them. Unless otherwise indicated in the footnotes and subject
to community property laws where applicable, each of the directors and
executive officers has sole voting and/or investment power with respect to
such shares. The address for each of the persons reported in the table
other than AP Finance, LLC is in care of Power Efficiency Corporation at
3960 Howard Hughes Pkwy, Ste 460, Las Vegas, Nevada
89169.
|
(2)
|
Includes 8,803,901 common shares
and common shares subject to options and warrants exercisable within 60
days of the date hereof held by Summit, in which Steven Strasser is one of
two members, 1,760,000 common shares subject to the conversion of 17,600
shares of Series B Preferred Stock, and 7,886,600 common shares subject to
options and warrants which are presently exercisable or will become
exercisable within 60 days of the date hereof. Mr. Strasser was also
granted an additional 600,000 common shares subject to options and
warrants which will become exercisable after 60 days of the date hereof.
Mr. Strasser’s options and warrants expire on various dates from May, 2010
through November, 2015.
|
(3)
|
Includes 2,277,500 common shares
and common shares subject to options and warrants presently exercisable or
which will become exercisable within 60 days of the date hereof. Mr.
Lackland was also granted an additional 360,000 common shares subject to
options, which will become exercisable after 60 days of the date hereof.
Mr. Lackland’s options and warrants expire on various dates from May, 2010
through November, 2015.
|
(4)
|
Includes 200,000 common shares
subject to options and warrants, which will become exercisable within 60
days of the date hereof. Mr. Curhan’s options and warrants
expire on various dates from April, 2014 through March,
2019.
|
(5)
|
Includes 200,000 common shares
subject to the conversion of 2,000 shares of Series B Preferred Stock, and
512,500 common shares subject to options and warrants presently
exercisable or which will become exercisable within 60 days of the date
hereof. Mr. Rado’s options and warrants expire on various dates
from October, 2012 through March,
2019.
|
(6)
|
Includes 400,000 common shares
subject to the conversion of 4,000 shares of Series B Preferred Stock, and
1,475,000 common shares subject to options and warrants presently
exercisable or which will become exercisable within 60 days of the date
hereof. Mr. Boyadjieff’s options and warrants expire on various
dates from April, 2010 through March,
2019.
|
(7)
|
Includes 100,000 common shares
subject to the conversion of 1,000 shares of Series B Preferred Stock, and
412,500 common shares subject to options presently exercisable or which
will become exercisable within 60 days of the date hereof. Dr.
Dunn’s options expire on various dates from May 2016 through March,
2019.
|
(8)
|
Includes 250,000 common shares
subject to options presently exercisable or which will become exercisable
within 60 days of the date hereof. Mr. Morgan’s options expire
March, 2019.
|
(9)
|
Includes 200,000 common shares
subject to options presently exercisable or which will become exercisable
within 60 days of the date hereof. Mr. Dickey’s options expire
May, 2019.
|
(10)
|
Includes 400,000 common shares
subject to the conversion of 4,000 shares of Series B Preferred Stock, and
815,327 common shares subject to warrants presently exercisable or which
will become exercisable within 60 days of the date hereof. AP Finance,
LLC’s warrants expire on various dates from October 2009 through November
2011.
|
(11)
|
The percentage for common stock
includes all common shares subject to options and warrants exercisable
within 60 days of the date
hereof.
|
Shares of Common Stock
|
||||||||||||||||
Beneficially Owned
|
Total Number
|
|||||||||||||||
Prior to Offering
|
of Shares of
|
Shares of Common
|
||||||||||||||
(All exercisable within
|
Common
|
Stock Beneficially
|
||||||||||||||
60 days of Prospectus)
|
Stock
|
Owned After Offering
|
||||||||||||||
Selling
|
Number of
|
Registered
|
Number of
|
|||||||||||||
Stockholder
|
Shares(1)
|
for Sale
|
Shares
|
Percent
|
||||||||||||
Ron
Boyer (2)
|
8,935,769 | 5,935,769 | 3,000,000 | 7 | % | |||||||||||
1132
SW 19th Avenue
|
||||||||||||||||
Suite
612
|
||||||||||||||||
Portland,
OR 97205
|
||||||||||||||||
Sarkowsky
Family L.P. (3)
|
7,136,981 | 6,086,981 | 1,100,000 | 3 | % | |||||||||||
Herman
Sarkowsky,
|
||||||||||||||||
700
5th Avenue, Suite 1600
|
||||||||||||||||
Seattle,
WA 981045
|
||||||||||||||||
The
LaMarque Family Trust
|
1,500,000 | 1,500,000 | - | - | ||||||||||||
Hector
LaMarque TTEE
|
||||||||||||||||
10620
Southern Highlands Pkwy
|
||||||||||||||||
#
110-466
|
||||||||||||||||
Las
Vegas, NV 89141
|
||||||||||||||||
Warren
and Cathy Smith Trustees
|
300,000 | 300,000 | - | - | ||||||||||||
of
the Warran and Cathy Smith
|
||||||||||||||||
Revocable
Trust U.A.
|
||||||||||||||||
1648
E. Mira Vista
|
||||||||||||||||
Flagstaff,
AZ 86001
|
||||||||||||||||
Ronald
R. Butler
|
1,050,000 | 1,050,000 | - | - | ||||||||||||
600
108th Street, #242
|
||||||||||||||||
Bellevue,
WA 98004
|
||||||||||||||||
Brett
Goldfarb (4)
|
200,001 | 200,001 | - | - | ||||||||||||
1420
5th Ave., #2625
|
||||||||||||||||
Seattle,
WA 98101
|
||||||||||||||||
Michael
J. Goldfarb Enterprises LLC (4)
|
2,300,001 | 2,300,001 | - | - | ||||||||||||
Michael
J. Goldfarb
|
||||||||||||||||
600
University Street, Suite 2912
|
||||||||||||||||
Seattle,
WA 98101
|
||||||||||||||||
Irwin
Helford Family Trust
|
1,800,000 | 1,800,000 | - | - | ||||||||||||
Irwin
Helford TTEE
|
||||||||||||||||
One
Hughes Center Drive, #1804
|
||||||||||||||||
Las
Vegas, NV 89169
|
AP
Finance, LLC (5)
|
4,464,376 | 777,088 | 3,687,288 | 9 | % | |||||||||||
David
Levy, Managing Partner
|
||||||||||||||||
152
West 57th
Street, 4th
Floor
|
||||||||||||||||
New
York, NY 10019
|
||||||||||||||||
Michael
A. Saltman and Sonja Saltman
|
800,001 | 800,001 | - | - | ||||||||||||
1997
Family Trust
|
||||||||||||||||
Michael
A. Saltman TTEE
|
||||||||||||||||
One
Hughes Center Drive, #1830
|
||||||||||||||||
Las
Vegas, NV 89169
|
||||||||||||||||
Byron
LeBow Revocable
|
2,700,003 | 2,700,003 | - | - | ||||||||||||
Family
Trust (6)
|
||||||||||||||||
Byron
LeBow TTEE
|
||||||||||||||||
One
Hughes Center Drive #1104N
|
||||||||||||||||
Las
Vegas, NV 89169
|
||||||||||||||||
Jerome
F. Snyder
|
150,000 | 150,000 | - | - | ||||||||||||
8628
Scarsdale Dr.
|
||||||||||||||||
Las
Vegas, NV 89117
|
||||||||||||||||
PCP
Operating LLC
|
750,000 | 750,000 | - | - | ||||||||||||
Phillip
C. Peckman
|
||||||||||||||||
9525
Hillwood Dr., Suite 160
|
||||||||||||||||
Las
Vegas, NV 89134
|
||||||||||||||||
Fred
Chin
|
150,000 | 150,000 | - | - | ||||||||||||
3230
South Plaris Avenue, Ste. 11
|
||||||||||||||||
Las
Vegas, NV 89102
|
||||||||||||||||
Arthur
& Jayn Marshall
|
150,000 | 150,000 | - | - | ||||||||||||
Family
Trust DTD 7/2/1973 (7)
|
||||||||||||||||
Arthur
Marshall TTEE
|
||||||||||||||||
Turmberry
Place
|
||||||||||||||||
2877
Paradise Road, No. 1701
|
||||||||||||||||
Las
Vegas, NV 89109
|
||||||||||||||||
Todd
Marshall Revocable Trust
|
150,000 | 150,000 | - | - | ||||||||||||
UAD
DTD 04/01/2003 (7)
|
||||||||||||||||
Todd
Marshall TTEE
|
||||||||||||||||
PO
Box 46470
|
||||||||||||||||
Las
Vegas, NV 89114
|
||||||||||||||||
Cari
Marshall Trust UAD
|
150,000 | 150,000 | - | - | ||||||||||||
DTD
01/09/1995 (7)
|
||||||||||||||||
Cari
Marshal TTEE
|
||||||||||||||||
2012
Grouse Street
|
||||||||||||||||
Las
Vegas, NV 89134
|
||||||||||||||||
George
Boyadjieff (8) (9)
|
2,775,000 | 3,550,000 | 275,000 | * | ||||||||||||
18772
Colony Circle
|
||||||||||||||||
Villa
Park, CA 92861
|
||||||||||||||||
Douglas
M. and
|
387,500 | 150,000 | 237,500 | * | ||||||||||||
Karen
M. Dunn Trustees;
|
||||||||||||||||
Dunn
Family Trust (8)
|
||||||||||||||||
Dated
April 7, 2007
|
||||||||||||||||
11817
Oakland Hills Drive
|
||||||||||||||||
Las
Vegas, NV 89141
|
||||||||||||||||
Alvin
Goldfarb (4)
|
450,000 | 450,000 | - | - | ||||||||||||
4823
Lake Washington Blvd. NE #3
|
||||||||||||||||
Kirkland,
WA 98033
|
||||||||||||||||
James
G. Coyne
|
150,000 | 150,000 | - | - | ||||||||||||
3230
South Polaris Avenue, Ste. 11
|
||||||||||||||||
Las
Vegas, NV 89102
|
||||||||||||||||
Gary
Rado (8)
|
587,500 | 400,000 | 187,500 | * | ||||||||||||
16
Chesterfield Drive
|
||||||||||||||||
Warren,
NJ 07059
|
Robert
Mullin, Managing Director (10)
|
4,000,002 | 4,000,002 | - | - | ||||||||||||
Marathon
Resource Partners I, L.P.
|
||||||||||||||||
Marathon
International
|
||||||||||||||||
Master
Fund II, L.P.
|
||||||||||||||||
One
Ferry Building, Suite 255
|
||||||||||||||||
San
Francisco, CA 94111
|
||||||||||||||||
Donald
D. and Dorothy R. Snyder
|
400,002 | 400,002 | - | - | ||||||||||||
Living
Trust 1989
|
||||||||||||||||
Donald
D. Snyder TTEE
|
||||||||||||||||
2824
High Sail Ct.
|
||||||||||||||||
Las
Vegas, NV 89117
|
||||||||||||||||
Charles
Sitkin
|
60,000 | 60,000 | - | - | ||||||||||||
1933
38th Avenue East
|
||||||||||||||||
Seattle,
WA 98112-3139
|
||||||||||||||||
Edward
& Mona Sher
|
300,000 | 300,000 | - | - | ||||||||||||
3111
Bel Air Drive
|
||||||||||||||||
Las
Vegas, NV 89109
|
||||||||||||||||
Burton
M Cohen Trust
|
75,000 | 75,000 | - | - | ||||||||||||
Burton
M. Cohen TTEE
|
||||||||||||||||
3111
Bel Air Drive
|
||||||||||||||||
Unit
14C
|
||||||||||||||||
Las
Vegas, NV 89109
|
||||||||||||||||
MSSS
Family Partners, L.P.
|
300,000 | 300,000 | - | - | ||||||||||||
Martin
D. Schaffer, General Partner
|
||||||||||||||||
1912
South Realeza Ct.
|
||||||||||||||||
Las
Vegas, NV 89102
|
||||||||||||||||
The
Richard A. Oshins
|
120,000 | 120,000 | - | - | ||||||||||||
1995
Irrevocable Trust (11)
|
||||||||||||||||
Richard
A. Oshins & Jerry Engel, TTEEs
|
||||||||||||||||
1645
Village Center Circle
|
||||||||||||||||
Suite
170
|
||||||||||||||||
Las
Vegas, NV 89134
|
||||||||||||||||
The
Richard A. Oshins
|
90,000 | 90,000 | - | - | ||||||||||||
1990
Irrevocable Trust (11)
|
||||||||||||||||
Richard
A. Oshins, Family TTEE
|
||||||||||||||||
1645
Village Center Circle
|
||||||||||||||||
Suite
170
|
||||||||||||||||
Las
Vegas, NV 89134
|
||||||||||||||||
The
Ruth S. Oshins
|
75,000 | 75,000 | - | - | ||||||||||||
2000
Irrevocable Trust (11)
|
||||||||||||||||
Richard
A. Oshins, Family TTEE
|
||||||||||||||||
1645
Village Center Circle
|
||||||||||||||||
Suite
170
|
||||||||||||||||
Las
Vegas, NV 89134
|
||||||||||||||||
The
Benjamin Oshins
|
45,000 | 45,000 | - | - | ||||||||||||
Bypass
Trust (11)
|
||||||||||||||||
Richard
A. Oshins & Ruth S. Oshins TTEEs
|
||||||||||||||||
1645
Village Center Circle
|
||||||||||||||||
Suite
170
|
||||||||||||||||
Las
Vegas, NV 89134
|
||||||||||||||||
The
Edward H. Oshins
|
120,000 | 120,000 | - | - | ||||||||||||
Revocable
Trust (11)
|
||||||||||||||||
Ruth
S. Oshins,TTEE
|
||||||||||||||||
59
John Street
|
||||||||||||||||
New
York, NY 10038
|
||||||||||||||||
LUH,
Inc.
|
300,000 | 300,000 | - | - | ||||||||||||
Thomas
Oden, CFO and Vice President
|
||||||||||||||||
1001
Lakeside Ave., Suite 900
|
||||||||||||||||
Cleveland,
OH 44114
|
The
Lionel Trust
|
300,000 | 300,000 | - | - | ||||||||||||
Samuel
Lionel, Trustee
|
||||||||||||||||
1700
Bank of America Tower
|
||||||||||||||||
300
South 4th Street
|
||||||||||||||||
Las
Vegas, NV 89101
|
||||||||||||||||
David
Heerensperger
|
1,000,002 | 1,000,002 | - | - | ||||||||||||
96
Cascade Key
|
||||||||||||||||
Bellvue,
WA 98006
|
||||||||||||||||
Terry
L. and Dana A. Wright Living
|
250,002 | 250,002 | - | - | ||||||||||||
Trust
2001, Terry Wright TTEE
|
||||||||||||||||
2500
North Buffalo Drive, Suite 150
|
||||||||||||||||
Las
Vegas, NV 89128
|
||||||||||||||||
John
"BJ" Lackland (8)(12)
|
2,455,500 | 2,737,500 | 78,000 | * | ||||||||||||
2777
Paradise Rd, Unit 3605
|
||||||||||||||||
Las
Vegas, NV 89109
|
||||||||||||||||
Robert
Murray TTEE of the RMM
|
238,000 | 150,000 | 88,000 | * | ||||||||||||
Living
Trust Dated 9/11/2006 (8)
|
||||||||||||||||
2848
Camino Serbal
|
||||||||||||||||
Carlsbad,
CA 92009
|
||||||||||||||||
Sharon
Fay Strasser (13)
|
437,502 | 437,502 | - | - | ||||||||||||
1
Hughes Center Drive
|
||||||||||||||||
#1004-N
|
||||||||||||||||
Las
Vegas, NV 89109
|
||||||||||||||||
Nevada
Trust Company
|
250,002 | 250,002 | - | - | ||||||||||||
As
Custodian F/B/O Mark L Fine
|
||||||||||||||||
Rollover
IRA
|
||||||||||||||||
U/A
Dated September 24, 1997
|
||||||||||||||||
Amended
November 12, 2002
|
||||||||||||||||
4043
South Easter Ave.
|
||||||||||||||||
Las
Vegas, NV 89193-3685
|
||||||||||||||||
William
S. Boyd Trust II
|
250,002 | 250,002 | - | - | ||||||||||||
William
S. Boyd TTEE
|
||||||||||||||||
2950
Industrial Road
|
||||||||||||||||
Las
Vegas, NV 89109
|
||||||||||||||||
Herbert
Soroca
|
174,052 | 101,965 | 72,087 | * | ||||||||||||
Bear
Stearns Securities Corp
|
||||||||||||||||
One
Metro Center
|
||||||||||||||||
Brooklyn,
NY 11201-3859
|
||||||||||||||||
Patricia
R. Schwarz (14)
|
101,965 | 101,965 | - | - | ||||||||||||
740
Pinehurst Way
|
||||||||||||||||
Palm
Beach Gardens, FL 33418
|
||||||||||||||||
David
H. Schwartz (14)
|
101,965 | 101,965 | - | - | ||||||||||||
740
Pinehurst Way
|
||||||||||||||||
Palm
Beach Gardens, FL 33418
|
||||||||||||||||
Yahia
Bagzhouz
|
24,000 | 24,000 | - | - | ||||||||||||
4504
Maryland Parkway
|
||||||||||||||||
Box
454026
|
||||||||||||||||
Las
Vegas, NV 89154
|
||||||||||||||||
Kenneth
Dickey
|
100,000 | 100,000 | - | - | ||||||||||||
6481
Wooded View Drive
|
||||||||||||||||
Boston
Heights, OH 44236
|
||||||||||||||||
Nicholas
Anderson (8)
|
66,000 | 66,000 | - | - | ||||||||||||
1536
208th Street
|
||||||||||||||||
Bayside,
NY 11360
|
||||||||||||||||
R.
Scott Caputo
|
4,285 | 4,285 | - | - | ||||||||||||
1155
Colonial Way
|
||||||||||||||||
Bridgewater,
NJ 08807
|
Norbert
Mayer (8)
|
15,000 | 15,000 | - | - | ||||||||||||
576
Grassy Hill Road
|
||||||||||||||||
Orange,
CT 06477
|
||||||||||||||||
Scott
Straka
|
14,284 | 14,284 | - | - | ||||||||||||
Hitachi
America Ltd.
|
||||||||||||||||
50
Prospect Ave
|
||||||||||||||||
Tarrytown,
NY 10591
|
||||||||||||||||
Leonard
Bellezza
|
89,927 | 81,284 | 8,643 | * | ||||||||||||
79
Talltimber Rd.
|
||||||||||||||||
Middletown,
NJ 07748
|
||||||||||||||||
Art
Marsh
|
1,428 | 1,428 | - | - | ||||||||||||
Blue
Mountain Investments
|
||||||||||||||||
7386
Fairway Lane
|
||||||||||||||||
Parker,
CO 80134
|
||||||||||||||||
Raymond
Skiptunis (8)
|
471,039 | 111,000 | 360,039 | * | ||||||||||||
4459
Via Bianca Ave.
|
||||||||||||||||
Las
Vegas, NV 89141
|
||||||||||||||||
Charles
Mataya
|
30,000 | 30,000 | - | - | ||||||||||||
2
Locust Drive
|
||||||||||||||||
Helmetta,
NJ 08828
|
||||||||||||||||
Timothy
Franzen
|
7,143 | 7,143 | - | - | ||||||||||||
260
E. Flamingo Road, #311
|
||||||||||||||||
Las
Vegas, NV 89109
|
||||||||||||||||
Joan
Dziena
|
1,214 | 1,214 | - | - | ||||||||||||
865
UN Plaza, #16E
|
||||||||||||||||
New
York, NY 10017
|
||||||||||||||||
Richard
Koch
|
154,666 | 106,354 | 48,312 | * | ||||||||||||
1604
Sound Watch Dr.
|
||||||||||||||||
Wilmington,
NC 28409
|
||||||||||||||||
Leon
Mayer
|
50,000 | 50,000 | - | - | ||||||||||||
547
McKinley
|
||||||||||||||||
Plymouth,
MI 48170
|
||||||||||||||||
Ron
Heagle
|
100,000 | 100,000 | - | - | ||||||||||||
5533
Bilbao Place
|
||||||||||||||||
Sarasota,
FL 34238
|
||||||||||||||||
Rick
Pulford
|
168,551 | 25,000 | 143,551 | * | ||||||||||||
3000
Town Center, Suite 540
|
||||||||||||||||
Southfield,
MI 48075
|
||||||||||||||||
Don
Fields (8)
|
200,000 | 200,000 | - | - | ||||||||||||
11642
Deer Forest Road
|
||||||||||||||||
Reston,
VA 20194
|
||||||||||||||||
Nils
Weibull (8)
|
118,000 | 118,000 | - | - | ||||||||||||
1689
W. Huron River Drive
|
||||||||||||||||
Ann
Arbor, MI 48103
|
||||||||||||||||
Dan
Koch
|
39,000 | 39,000 | - | - | ||||||||||||
301
W 10th St, Apt 203
|
||||||||||||||||
Charlotte,
NC 28202
|
||||||||||||||||
Brian
Chan (8)
|
300,000 | 300,000 | - | - | ||||||||||||
7594
Ironwood Knoll Ave
|
||||||||||||||||
Las
Vegas, NV 89109
|
Bradley
Reifer
|
101,828 | 57,693 | 44,135 | * | ||||||||||||
123
Fraleigh Hill Rd.
|
||||||||||||||||
Millbrook,
NY 12545
|
||||||||||||||||
Herman
Gross
|
1,153,850 | 1,153,850 | - | - | ||||||||||||
12
Jordan Drive
|
||||||||||||||||
Great
Neck, NY 11021
|
||||||||||||||||
Allan
Duffy
|
57,693 | 57,693 | - | - | ||||||||||||
741
Bayshore Drive, Apt. 14
|
||||||||||||||||
Fort
Lauderdale, FL 33304
|
||||||||||||||||
Kevin
Fisher
|
28,847 | 28,847 | - | - | ||||||||||||
Bear
Stearns Security Corp
|
||||||||||||||||
One
Metrotech Center North
|
||||||||||||||||
Brooklyn,
NY 11201-3859
|
||||||||||||||||
Abacus
Solutions
|
100,000 | 100,000 | - | - | ||||||||||||
Alan
Cohen
|
||||||||||||||||
745
5th Avenue
|
||||||||||||||||
New
York, NY 10151
|
||||||||||||||||
Justin
Bellezza
|
1,000 | 1,000 | - | - | ||||||||||||
500
Washington Avenue
|
||||||||||||||||
Carlstadt,
NJ 07072
|
||||||||||||||||
Steven
Sacharoff
|
33,000 | 33,000 | - | - | ||||||||||||
500
Washington Avenue
|
||||||||||||||||
Carlstadt,
NJ 07072
|
||||||||||||||||
Bernard
Geik
|
33,000 | 33,000 | - | - | ||||||||||||
500
Washington Avenue
|
||||||||||||||||
Carlstadt,
NJ 07072
|
||||||||||||||||
Domimick
Rizzitano
|
33,000 | 33,000 | - | - | ||||||||||||
500
Washington Avenue
|
||||||||||||||||
Carlstadt,
NJ 07072
|
||||||||||||||||
DB
Max
|
700 | 700 | - | - | ||||||||||||
8520
Roundhill Ct.
|
||||||||||||||||
Saline,
MI 48176
|
||||||||||||||||
Reed
Smith LLP
|
150,000 | 150,000 | - | - | ||||||||||||
Gerard
Difiore, Partner
|
||||||||||||||||
P.O.
Box 23416
|
||||||||||||||||
Newark,
NJ 07198
|
||||||||||||||||
Richard
A. Ackner
|
375,000 | 375,000 | - | - | ||||||||||||
14643
Draft House Lane
|
||||||||||||||||
Wellington,
FL 33414
|
||||||||||||||||
Daniel
Anderson
|
75,000 | 75,000 | - | - | ||||||||||||
4409
Willow Creek Circle
|
||||||||||||||||
Bellbrook,
OH 45305
|
||||||||||||||||
Bryan
Arakelian
|
150,000 | 150,000 | - | - | ||||||||||||
7110
N. Fresno Street
|
||||||||||||||||
Suite
410
|
||||||||||||||||
Fresno,
CA 93720
|
||||||||||||||||
Robert
F. Arnold &
|
100,000 | 100,000 | - | - | ||||||||||||
Susan
L. Arnold JR WROS
|
||||||||||||||||
2
Fielding Street
|
||||||||||||||||
Wakefield,
MA 01880
|
||||||||||||||||
Paul
J. Bargiel
|
112,500 | 112,500 | - | - | ||||||||||||
100
West Monroe
|
||||||||||||||||
Suite
902
|
||||||||||||||||
Chicago,
IL 60603
|
John
J. Bender
|
300,000 | 300,000 | - | - | ||||||||||||
2803
22nd Street S.
|
||||||||||||||||
Lacrosse,
WI 54601
|
||||||||||||||||
Berkowitz
and Garfinkel
|
187,500 | 187,500 | - | - | ||||||||||||
D.D.S.,
P.A. Employees'
|
||||||||||||||||
Pension
Plan
|
||||||||||||||||
D/T/D
7/1/1972
|
||||||||||||||||
Mark
Berkowitz & Eric
|
||||||||||||||||
Garfinkel
Trustees
|
||||||||||||||||
17
Country Club Lane
|
||||||||||||||||
Marlboro,
NJ 07746
|
||||||||||||||||
Lester
B. Boelter
|
250,000 | 250,000 | - | - | ||||||||||||
50
Shady Oak Court
|
||||||||||||||||
Winona,
MN 55987
|
||||||||||||||||
Robert
H. Brackman
|
225,000 | 225,000 | - | - | ||||||||||||
5309
Crave Avenue E
|
||||||||||||||||
Port
Orchard, WA 98366
|
||||||||||||||||
Keith
Buhrdorf
|
375,000 | 375,000 | - | - | ||||||||||||
4582
South Vister Steet
|
||||||||||||||||
Suite
550
|
||||||||||||||||
Denver,
CO 80237
|
||||||||||||||||
Jeffrey
Davis
|
125,000 | 125,000 | - | - | ||||||||||||
383
North West 112th Ave
|
||||||||||||||||
Coral
Springs, FL 33071
|
||||||||||||||||
James
Demarco & Rose
|
375,000 | 375,000 | - | - | ||||||||||||
Demarco
JT WROS
|
||||||||||||||||
274
Rose Avenue
|
||||||||||||||||
Staten
Island, NY 10306
|
||||||||||||||||
Douglas
Dotter
|
112,500 | 112,500 | - | - | ||||||||||||
3615
West Lawther Drive
|
||||||||||||||||
Dallas,
TX 75214
|
||||||||||||||||
Arun
Dua & Satish Dua
|
75,000 | 75,000 | - | - | ||||||||||||
JT
WROS
|
||||||||||||||||
25
W. Houston ST. 28
|
||||||||||||||||
New
York, NY 10012
|
||||||||||||||||
Edward
Duffy
|
75,000 | 75,000 | - | - | ||||||||||||
178
Hanson Lane
|
||||||||||||||||
New
Rochelle, NY 10804
|
||||||||||||||||
Ahsan
Farooqi
|
187,500 | 187,500 | - | - | ||||||||||||
54
Kimberly Court
|
||||||||||||||||
S.
Brunswick, NJ 08852
|
||||||||||||||||
William
L. Fox &
|
262,500 | 262,500 | - | - | ||||||||||||
Lynne
Fox JT WROS
|
||||||||||||||||
450
Music Mountain Rd.
|
||||||||||||||||
Falls
Village, CT 06031
|
||||||||||||||||
Bernie
J. Gallas
|
375,000 | 375,000 | - | - | ||||||||||||
5200
North Diversey Blvd.
|
||||||||||||||||
Suite
204
|
||||||||||||||||
Milwaikee,
WI 53217
|
||||||||||||||||
Mark
T. Hellner
|
1,159,091 | 1,159,091 | - | - | ||||||||||||
900
West Olive
|
||||||||||||||||
Suite
A
|
||||||||||||||||
Merced,
CA 95348
|
Dr.
Paul A. Kaye Family
|
75,000 | 75,000 | - | - | ||||||||||||
Trust
D/T/D 10/06/93
|
||||||||||||||||
Dr.
Paul A. Kaye Trustee
|
||||||||||||||||
9
Diamonte Lane
|
||||||||||||||||
Rancho
Palos Verdes, CA 90275
|
||||||||||||||||
Brian
J. Keller &
|
187,500 | 187,500 | - | - | ||||||||||||
Debra
M. Keller JT WROS
|
||||||||||||||||
1246
130th Avenue
|
||||||||||||||||
New
Richmond, WI 54017
|
||||||||||||||||
James
Kelly
|
75,000 | 75,000 | - | - | ||||||||||||
1558
E. County Road
|
||||||||||||||||
800
N.
|
||||||||||||||||
Ockans,
IN 47452
|
||||||||||||||||
Christopher
Kemp
|
75,000 | 75,000 | - | - | ||||||||||||
2528
Boulder Lane
|
||||||||||||||||
Auburn
Hills, MI 48326
|
||||||||||||||||
Stephen
N. Kitchens &
|
175,000 | 175,000 | - | - | ||||||||||||
Martha
M. Kitchens
|
||||||||||||||||
JT
WROS
|
||||||||||||||||
28
Fox Vale Lane
|
||||||||||||||||
Nashville,
TN 37221
|
||||||||||||||||
Lester
Krasno
|
150,000 | 150,000 | - | - | ||||||||||||
400
North 2nd Steet
|
||||||||||||||||
Pottsville,
PA 17901
|
||||||||||||||||
Edwin
Kriel
|
75,000 | 75,000 | - | - | ||||||||||||
2904
Pocock Road
|
||||||||||||||||
Monkton,
MD 21111
|
||||||||||||||||
Daniel
J. Lange
|
187,500 | 187,500 | - | - | ||||||||||||
20800
Hunters Run
|
||||||||||||||||
Brookfield,
WI 53045
|
||||||||||||||||
Lind
Family Investments LP
|
100,000 | 100,000 | - | - | ||||||||||||
1000
West Washington St.
|
||||||||||||||||
Suite
#502
|
||||||||||||||||
Chicago,
IL 60607
|
||||||||||||||||
Barry
Lind Revocable Trust
|
500,000 | 500,000 | - | - | ||||||||||||
Barry
Lind Trustee
|
||||||||||||||||
U/A/D
12/19/1989
|
||||||||||||||||
1000
West Washinton St.
|
||||||||||||||||
Suite
#502
|
||||||||||||||||
Chicago,
IL 60607
|
||||||||||||||||
National
Financial Services
|
600,000 | 600,000 | - | - | ||||||||||||
LLC
As Custodian
|
||||||||||||||||
FBO
Lance Lindsey IRA
|
||||||||||||||||
7700
Blanding Blvd.
|
||||||||||||||||
Jacksonville,
FL 32244
|
||||||||||||||||
Dwight
Long
|
375,000 | 375,000 | - | - | ||||||||||||
406
Belle Glen Lane
|
||||||||||||||||
Brentwood,
TN 37027
|
||||||||||||||||
Jeffrey
S. McCorstin
|
75,000 | 75,000 | - | - | ||||||||||||
4750
Blue Mountain
|
||||||||||||||||
Yorba
Linda, CA 92887
|
||||||||||||||||
Glen
Miskiewicz
|
187,500 | 187,500 | - | - | ||||||||||||
Apt.
724
|
||||||||||||||||
48
Par-La-Ville Road
|
||||||||||||||||
Hamilton
HM11
|
||||||||||||||||
Bermuda
|
Enrico
Monaco
|
125,000 | 125,000 | - | - | ||||||||||||
2230
Ocean Avenue
|
||||||||||||||||
Brooklyn,
NY 11229
|
||||||||||||||||
Natchez
Morice
|
150,000 | 150,000 | - | - | ||||||||||||
12
A West Bank Exwy
|
||||||||||||||||
Gretna,
LA 70056
|
||||||||||||||||
MSB
Family Trust
|
250,000 | 250,000 | - | - | ||||||||||||
D/T/D
6/25/93
|
||||||||||||||||
Michael
Blechman TTEE
|
||||||||||||||||
295
Shadowood Ln.
|
||||||||||||||||
Northfield,
IL 60093
|
||||||||||||||||
Daniel
Navarro Jr. &
|
75,000 | 75,000 | - | - | ||||||||||||
Richard
Navarro JT WROS
|
||||||||||||||||
2036
Highway 35 North
|
||||||||||||||||
South
Amboy, NJ 08879
|
||||||||||||||||
National
Financial Services
|
375,000 | 375,000 | - | - | ||||||||||||
LLC
As Custodian
|
||||||||||||||||
FBO
Michael J. Radlove IRA
|
||||||||||||||||
2748
Blackbird Hollow
|
||||||||||||||||
Cincinnati,
OH 452
|
||||||||||||||||
Prahalathan
Rajasekaran
|
187,500 | 187,500 | - | - | ||||||||||||
1
Grosvenor Place
|
||||||||||||||||
London,
England SW1X7JJ
|
||||||||||||||||
Gretchen
Kinstler
|
750,000 | 750,000 | - | - | ||||||||||||
49-365
Rio Arenoso
|
||||||||||||||||
La
Quinto, CA 92253
|
||||||||||||||||
Lawrence
Silver
|
250,000 | 250,000 | - | - | ||||||||||||
225
West Hubbard Suite 600
|
||||||||||||||||
Chicago,
IL 60610
|
||||||||||||||||
Robert
A. Snyder &
|
75,000 | 75,000 | - | - | ||||||||||||
Beverly
J. Snyder JT WROS
|
||||||||||||||||
27297
Forest Grove Road
|
||||||||||||||||
Evergreen,
CO 80439
|
||||||||||||||||
Claire
Spooner
|
225,000 | 225,000 | - | - | ||||||||||||
111
Seaview Court
|
||||||||||||||||
Neptune,
NJ 07753
|
||||||||||||||||
Henry
H. Strauss
|
75,000 | 75,000 | - | - | ||||||||||||
12
Howard Avenue
|
||||||||||||||||
Tappan,
NY 10983
|
||||||||||||||||
David
Takacs
|
150,000 | 150,000 | - | - | ||||||||||||
17073
Snyder Road
|
||||||||||||||||
Bainbridge,
OH 44023
|
||||||||||||||||
Richard
Terranova &
|
375,000 | 375,000 | - | - | ||||||||||||
Vincent
Terranova TEN COM
|
||||||||||||||||
349
Bartlett Avenue
|
||||||||||||||||
Staten
Island, NY 10312
|
||||||||||||||||
William
S. Tyrrell
|
262,500 | 262,500 | - | - | ||||||||||||
2711
Edgehill Avenue
|
||||||||||||||||
Bronx,
NY 10463
|
||||||||||||||||
Herbert
Weisberger
|
112,500 | 112,500 | - | - | ||||||||||||
2904
West Clay Street
|
||||||||||||||||
Richmond,
VA 23230
|
Darren
R. Williams
|
75,000 | 75,000 | - | - | ||||||||||||
17280
Timothy Way
|
||||||||||||||||
Gladstone,
OR 97027
|
||||||||||||||||
Robert
A. Yates
|
187,500 | 187,500 | - | - | ||||||||||||
Shakeseare
No 15-1 Piso
|
||||||||||||||||
Cuydad
De Mexico
|
||||||||||||||||
Distrito
Federal 11590
|
||||||||||||||||
Mexico
|
||||||||||||||||
Alan
J. Young
|
250,000 | 250,000 | - | - | ||||||||||||
1750
Braeside Avenue
|
||||||||||||||||
Northbrook,
IL 60062
|
||||||||||||||||
Jan
Arnett
|
187,500 | 187,500 | - | - | ||||||||||||
7
Longwood Road
|
||||||||||||||||
Sandspoint,
NY 11050
|
||||||||||||||||
Elliot
Braun
|
187,500 | 187,500 | - | - | ||||||||||||
C/O
Atlantic Beverage
|
||||||||||||||||
3775
Park Avenue
|
||||||||||||||||
Edison,
NJ 08820
|
||||||||||||||||
Larry
J. Buck
|
187,500 | 187,500 | - | - | ||||||||||||
1624
Brandon Drive
|
||||||||||||||||
Hebron,
KY 41048
|
||||||||||||||||
Keith
H. Cooper
|
100,000 | 100,000 | - | - | ||||||||||||
5840
De Claire Court
|
||||||||||||||||
Atlanta,
GA 30328
|
||||||||||||||||
Steven
Gurewitsch
|
112,500 | 112,500 | - | - | ||||||||||||
930
5th Avenue
|
||||||||||||||||
Apt.
3-G
|
||||||||||||||||
New
York, NY 10021
|
||||||||||||||||
Antonio
Hernandez
|
187,500 | 187,500 | - | - | ||||||||||||
1575
Bengal Drive
|
||||||||||||||||
El
Paso, TX 79935
|
||||||||||||||||
James
Herron
|
75,000 | 75,000 | - | - | ||||||||||||
601
Cleveland Street
|
||||||||||||||||
Suite
950
|
||||||||||||||||
Clearwater,
FL 33755
|
||||||||||||||||
Robert
W. Higginson
|
150,000 | 150,000 | - | - | ||||||||||||
247-F Rosario
Blvd.
|
||||||||||||||||
Santa
Fe, NM 87501
|
||||||||||||||||
Don
Jackler &
|
187,500 | 187,500 | - | - | ||||||||||||
Alana
Jackler JT WROS
|
||||||||||||||||
246
E. 51st Street Suite 8
|
||||||||||||||||
New
York, NY 10022
|
||||||||||||||||
Donald
Mapes
|
75,000 | 75,000 | - | - | ||||||||||||
532
Bellepoint Drive
|
||||||||||||||||
St.
Pete Beach, FL 33706
|
||||||||||||||||
Dr.
John McPhail
|
375,000 | 375,000 | - | - | ||||||||||||
603
Beamon Steet
|
||||||||||||||||
Clinton,
NC 28328
|
||||||||||||||||
Grace
Melton
|
375,000 | 375,000 | - | - | ||||||||||||
1250
S. Beverly Glen Blvd.
|
||||||||||||||||
#311
|
||||||||||||||||
Los
Angeles, CA 90024
|
Larry
R. Nichols &
|
50,000 | 50,000 | - | - | ||||||||||||
Janet
B. Nichols JT WROS
|
||||||||||||||||
9348
Burning Tree Dr.
|
||||||||||||||||
Grand
Blanc, MI 48439
|
||||||||||||||||
National
Financial Services
|
187,500 | 187,500 | - | - | ||||||||||||
LLC
As Custodian
|
||||||||||||||||
FBO
Michael J. Radlove IRA
|
||||||||||||||||
2748
Blackbird Hollow
|
||||||||||||||||
Cincinnati,
OH 45244
|
||||||||||||||||
Barry
Saxe
|
187,500 | 187,500 | - | - | ||||||||||||
325
E. 41st Street
|
||||||||||||||||
New
York, NY 10017
|
||||||||||||||||
Theodore
Staahl
|
375,000 | 375,000 | - | - | ||||||||||||
1329
Spanos Court
|
||||||||||||||||
Modesto,
CA 95355
|
||||||||||||||||
Randolph
Stephenson
|
75,000 | 75,000 | - | - | ||||||||||||
10316-300
Feld Farm Lane
|
||||||||||||||||
Charlotte,
NC 28210
|
||||||||||||||||
Anthony
Yodice
|
375,000 | 375,000 | - | - | ||||||||||||
2443
Benson Avenue
|
||||||||||||||||
Brooklyn,
NY 11214
|
||||||||||||||||
USBX
Advisory Services, Inc.
|
210,000 | 210,000 | - | - | ||||||||||||
2425
Olympic Blvd. Ste 500 East
|
||||||||||||||||
Santa
Monica, CA 90404
|
||||||||||||||||
Brooks
Dexter
|
90,000 | 90,000 | - | - | ||||||||||||
2425
Olympic Blvd. Ste 500 East
|
||||||||||||||||
Santa
Monica, CA 90404
|
||||||||||||||||
Tony
Acone
|
45,000 | 45,000 | - | - | ||||||||||||
44-489
Town Center Way #D
|
||||||||||||||||
Palm
Desert, CA 92260
|
||||||||||||||||
Total
Number of Shares of Common Stock Registered for Sale
|
59,687,619 |
(1)
|
All
share numbers are based on information that these selling stockholders
supplied to us. The term “selling stockholders” also includes any
transferees, pledges, donees, or other successors in interest to the
selling stockholders named in the table below. To our knowledge, subject
to applicable community property laws, each person named in the table has
sole voting and investment power with respect to the shares of common
stock set forth opposite such person's name, unless otherwise indicated
below. The inclusion of any shares in this table does not constitute an
admission of beneficial ownership by the selling
stockholder.
|
|
(2)
|
Ron
Boyer owns over 4% of our currently outstanding common stock and over 18%
of our common stock on a fully diluted basis, including upon conversion of
our Series B Preferred Stock and upon conversion or exercise of all
outstanding options and warrants within 60 days of the date hereof, and
under certain definitions, may be considered an affiliate of our
company.
|
(3)
|
The
Sarkowsky Family L.P. owns over 8% of our outstanding common stock
and over 16% of our common stock on a fully diluted basis, including upon
conversion of our Series B Preferred Stock and upon conversion or exercise
of all outstanding options and warrants within 60 days of the date hereof,
and under certain definitions, may be considered an affiliate of our
company.
|
(4)
|
Michael
J. Goldfarb Enterprises LLC owns over 2% of our outstanding common stock
and over 5% of our common stock on a fully diluted basis, including upon
conversion of our Series B Preferred Stock and upon conversion or exercise
of all outstanding options and warrants within 60 days of the date hereof,
and under certain definitions, may be considered an affiliate of our
company. Michael J. Goldfarb, the managing member of Michael J. Goldfarb
Enterprises LLC, is the father of Brett Goldfarb, and the brother of Alvin
Goldfarb. Mr. Goldfarb disclaims beneficial ownership of Brett Goldfarb’s
and Alvin Goldfarb’s shares.
|
(5)
|
AP
Finance, LLC owns over 8% of our outstanding common stock and over 10% of
our common stock on a fully diluted basis, including upon conversion of
our Series B Preferred Stock and upon conversion or exercise of all
outstanding options and warrants within 60 days of the date hereof, and
under certain definitions, may be considered an affiliate of our
company.
|
(6)
|
The
Byron LeBow Revocable Family Trust owns over 2% of our outstanding
common stock and over 6% of our common stock on a fully diluted basis,
including upon conversion of our Series B Preferred Stock and upon
conversion or exercise of all outstanding options and warrants within 60
days of the date hereof, and under certain definitions, may be considered
an affiliate of our company.
|
(7)
|
Arthur
and Jayn Marshall, trustees of the Arthur and Jayn Marshall Family Trust
DTD 7/2/1973, are the parents of Todd Marshall and Cari Marshall, trustees
of the Todd Marshall Revocable Trust UAD DTD 04/01/2003 and the Cari
Marshall Trust UAD DTD 01/09/1995, respectively. Arthur and Jayn Marshall
disclaim beneficial ownership of Todd Marshall’s and Cari Marshall’s
beneficial shares.
|
(8)
|
Indicates
a person that has, within the past three years, served as an employee,
officer or director of the company.
|
(9)
|
Mr.
Boyadjieff has been a Senior Technical Advisor of the Company since April
2005 and a Director of the Company since May 2006. Mr. Boyadjieff owns
over 2% of our outstanding common stock and over 6% of our common stock on
a fully diluted basis, including upon conversion of our Series B Preferred
Stock and upon conversion or exercise of all outstanding options and
warrants within 60 days of the date hereof, and under certain definitions,
may be considered an affiliate of our company. Mr. Boyadjieff beneficially
owns a total of 3,825,000 commons shares, common shares issuable upon the
exercise of stock options and warrants and common shares issuable upon the
conversion of Series B Preferred Stock.
|
(10)
|
Mr.
Mullin beneficially owns over 3% of our outstanding common stock and over
8% of our common stock on a fully diluted basis, including upon conversion
of our Series B Preferred Stock and upon conversion or exercise of all
outstanding options and warrants within 60 days of the date hereof, and
under certain definitions, may be considered an affiliate of our company.
Mr. Mullin is the managing director of Marathon Resource Partners I, L.P.
and Marathon International Master Fund II, L.P. Of the 4,000,002 shares
beneficially owned by Mr. Mullin, 3,450,000 shares are held in the name of
Marathon Resource Partners I, L.P., and 550,002 shares are held in the
name of Marathon International Master Fund II, L.P.
|
(11)
|
Richard
A. Oshins, trustee of the Richard A. Oshins 1995 Irrevocable Trust and the
Richard A. Oshins 1990 Irrevocable Trust, is married to Ruth S. Oshins,
trustee of the Ruth S. Oshins 2000 Irrevocable Trust, and is the father of
Benjamin Oshins and Edward H. Oshins, trustees of the Benjamin Oshins
Bypass Trust and the Edward H. Oshins Revocable Trust, respectively.
Richard A. Oshins disclaims beneficial owners ship of Ruth S. Oshins’,
Benjamin Oshins’, and Edward H. Oshins’ beneficial
shares.
|
(12)
|
Mr.
Lackland has been a Director of the Company since August 2007 and the
Chief Financial Officer of the Company since October 2004. Indicates a
person that has, within the past three years, served as an employee,
officer or director of the company. Mr. Lackland beneficially owns a total
of 2,815,500 commons shares and common shares issuable upon the exercise
of stock options.
|
(13)
|
Sharon
Strasser is married to the Company’s Chief Executive Officer, Steven
Strasser. Mr. Strasser disclaims beneficial ownership of Mrs. Strasser’s
Shares.
|
(14)
|
Patricia
Schwartz is married to David Schwartz. Mrs. Schwartz disclaims beneficial
ownership to Mr. Schwartz’s
shares.
|
Total Number
of Shares
Underlying
Options
Before this
|
Weighted
Average
Exercise Price
Per Share
Before This
|
Total Number
of Shares
Underlying
Options After
|
Weighted Average
Exercise Price For
Shares After this
|
|||||||||||||
Description
|
Offering
|
Offering
|
This Offering
|
Offering
|
||||||||||||
2000
Stock Option and Restricted Stock
Plan
|
15,579,896 | $ | 0.35 | 15,579,896 | $ | 0.35 | ||||||||||
1994
Stock Option Plan
|
- | $ | - | - | $ | - | ||||||||||
Total
|
15,579,896 | $ | 0.35 | 15,579,896 | $ | 0.35 |
|
·
|
prior
to such date, the corporation's Board of Directors approved either the
business combination or the transaction that resulted in the stockholder
becoming an interested stockholder;
|
|
·
|
upon
consummation of the transaction that resulted in such person becoming an
interested stockholder, the interested stockholder owned at least 85% of
the voting stock of the corporation outstanding at the time the
transaction commenced, excluding for purposes of determining the number of
shares outstanding, shares owned by certain directors or certain employee
stock plans; or
|
|
·
|
on
or after the date the stockholder became an interested stockholder, the
business combination is approved by the corporation's Board of Directors
and authorized by the affirmative vote, and not by written consent, of at
least two-thirds of the outstanding voting stock of the corporation
excluding that owned by the interested
stockholder.
|
|
·
|
ordinary
brokerage transactions and transactions in which the broker-dealer
solicits purchasers;
|
|
·
|
block
trades in which the broker-dealer will attempt to sell the shares as agent
but may position and resell a portion of the block as principal to
facilitate the transaction;
|
|
·
|
purchases
by a broker-dealer as principal and resale by the broker-dealer for its
account;
|
|
·
|
an
exchange distribution in accordance with the rules of the applicable
exchange;
|
|
·
|
privately
negotiated transactions;
|
|
·
|
settlement
of short sales entered into after the date of this
prospectus;
|
|
·
|
broker-dealers
may agree with the selling stockholders to sell a specified number of such
shares at a stipulated price per share;
|
|
·
|
a
combination of any such methods of sale;
|
|
·
|
through
the writing or settlement of options or other hedging transactions,
whether through an options exchange or otherwise; or
|
|
·
|
any
other method permitted pursuant to applicable
law.
|
|
·
|
it
intends to take possession of the registered securities or to facilitate
the transfer of such certificates;
|
|
·
|
the
complete details of how the selling stockholders shares are and will be
held, including location of the particular accounts;
|
|
·
|
whether
the member firm or any direct or indirect affiliates thereof have entered
into, will facilitate or otherwise participate in any type of payment
transaction with the selling stockholders, including details regarding any
such transactions; and
|
|
·
|
in
the event any of the securities offered by the selling stockholders are
sold, transferred, assigned or hypothecated by any selling stockholder in
a transaction that directly or indirectly involves a member firm of the
NASD or any affiliates thereof, that prior to or at the time of said
transaction the member firm will timely file all relevant documents with
respect to such transaction(s) with the Corporate Finance Department of
the NASD for review.
|
Page
|
|
Condensed
Financial Statements (unaudited):
|
|
Balance
Sheet as of March 31, 2009
|
F-1
|
Statements
of Operations for the Three Months Ended March 31, 2009 and
2008
|
F-2
|
Statements
of Cash Flows for the Three Months Ended March 31, 2009 and
2008
|
F-3
|
Notes
to Financial Statement for the Three Months Ended March 31, 2009 and
2008
|
F-4
- F-9
|
Financial
Statements as of and for the Years Ended December 31, 2008 and
2007:
|
|
Report
of Independent Registered Public Accounting Firm
|
F-10
|
Balance
Sheets
|
F-11
|
Statements
of Operations
|
F-12
|
Statements
of Changes in Stockholders' Equity
|
F-13
|
Statements
of Cash Flows
|
F-14
|
Notes
to Financial Statements
|
F-15
- F-33
|
March 31, 2009
|
||||
ASSETS
|
||||
CURRENT
ASSETS:
|
||||
Cash
|
$ | 1,201,903 | ||
Accounts
receivable, net
|
37,484 | |||
Inventory
|
360,073 | |||
Prepaid
expenses and other current assets
|
115,312 | |||
Total
Current Assets
|
1,714,772 | |||
PROPERTY
AND EQUIPMENT, Net
|
132,764 | |||
OTHER
ASSETS:
|
||||
Patents,
net
|
64,075 | |||
Deposits
|
38,206 | |||
Goodwill
|
1,929,963 | |||
Total
Other Assets
|
2,032,244 | |||
Total
Assets
|
$ | 3,879,780 | ||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||
CURRENT
LIABILITIES:
|
||||
Accounts
payable and accrued expenses
|
$ | 548,330 | ||
Dividends
payable
|
233,333 | |||
Total
Current Liabilities
|
781,663 | |||
LONG
TERM LIABILITIES
|
||||
Warrant
liability
|
1,511,305 | |||
Deferred
rent
|
11,726 | |||
Total
Long Term Liabilities
|
1,523,031 | |||
Total
Liabilities
|
2,304,694 | |||
STOCKHOLDERS'
EQUITY:
|
||||
Series
B Convertible Preferred Stock, $.001 par value, 10,000,000
shares authorized, 140,000 shares issued or outstanding in 2009 and
2008
|
140 | |||
Common
stock, $.001 par value, 140,000,000 shares authorized, 43,255,441 shares
issued and outstanding in 2009 and 2008
|
43,255 | |||
Additional
paid-in capital
|
34,357,384 | |||
Accumulated
deficit
|
(32,825,693 | ) | ||
Total
Stockholders' Equity
|
1,575,086 | |||
Total
Liabilities and Stockholders' Equity
|
$ | 3,879,780 |
For the three months ended
March 31,
|
||||||||
2009
|
2008
|
|||||||
REVENUES
|
$ | 47,147 | $ | 133,695 | ||||
COST
OF REVENUES
|
28,808 | 98,163 | ||||||
GROSS
PROFIT
|
18,339 | 35,532 | ||||||
COSTS
AND EXPENSES:
|
||||||||
Research
and development
|
247,044 | 161,398 | ||||||
Selling,
general and administrative
|
1,057,406 | 789,573 | ||||||
Depreciation
and amortization
|
19,315 | 14,847 | ||||||
Total
Costs and Expenses
|
1,323,765 | 965,818 | ||||||
LOSS
FROM OPERATIONS
|
(1,305,426 | ) | (930,286 | ) | ||||
OTHER
INCOME:
|
||||||||
Interest
income
|
9,085 | 42,130 | ||||||
Total
Other Income
|
9,085 | 42,130 | ||||||
NET
LOSS
|
(1,296,341 | ) | (888,156 | ) | ||||
DIVIDENDS
PAID OR PAYABLE ON SERIES B PREFERED STOCK
|
233,333 | 221,768 | ||||||
NET
LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS
|
$ | (1,529,674 | ) | $ | (1,102,924 | ) | ||
BASIC
AND FULLY DILUTED LOSS PER COMMON SHARE
|
$ | (0.04 | ) | $ | (0.03 | ) | ||
WEIGHTED
AVERAGE COMMON SHARES OUTSTANDING, BASIC
|
43,255,441 | 40,393,007 |
For the three months ended March 31,
|
||||||||
2009
|
2008
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net
loss
|
$ | (1,296,341 | ) | $ | (888,156 | ) | ||
Adjustments
to reconcile net loss to net cash used for operating
activities:
|
||||||||
Depreciation
and amortization
|
19,315 | 14,847 | ||||||
Warrants
and options issued to employees and consultants
|
83,399 | 207,000 | ||||||
Warrants
issued to investors
|
485,919 | - | ||||||
Provision
for bad debt
|
(11,342 | ) | - | |||||
Changes
in assets and liabilities:
|
||||||||
Accounts
receivable, net
|
18,017 | (19,780 | ) | |||||
Inventory
|
(114,053 | ) | (1,679 | ) | ||||
Prepaid
expenses and other current assets
|
(68,147 | ) | (72,481 | ) | ||||
Deposits
|
- | 41,430 | ||||||
Accounts
payable and accrued expenses
|
(7,459 | ) | (86,981 | ) | ||||
Customer
deposits
|
- | (1,605 | ) | |||||
Deferred
rent
|
(942 | ) | - | |||||
Net
Cash Used in Operating Activities
|
(891,634 | ) | (807,405 | ) | ||||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Costs
related to patent applications
|
- | (12,661 | ) | |||||
Purchases
of property and equipment
|
(6,476 | ) | (35,764 | ) | ||||
Net
Cash Used in Investing Activities
|
(6,476 | ) | (48,425 | ) | ||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Proceeds
from issuance of equity securities
|
- | 280,000 | ||||||
Net
Cash Provided by Financing Activities
|
- | 280,000 | ||||||
Decrease
in cash
|
(898,110 | ) | (575,830 | ) | ||||
Cash
at beginning of period
|
2,100,013 | 5,086,378 | ||||||
Cash
at end of period
|
$ | 1,201,903 | $ | 4,510,548 |
March 31,
2009
|
||||
Raw
materials
|
$ | 167,601 | ||
Finished
Goods
|
192,472 | |||
Inventories
|
$ | 360,073 |
Three Months
Ended March
31, 2009
|
Three Months
Ended March
31, 2008
|
|||||||
Net
loss attributable to common shareholders, as reported
|
$ | (1,529,674 | ) | $ | (1,102,924 | ) | ||
Basic
weighted average number of common shares outstanding, as
reported
|
43,255,441 | 40,393,007 | ||||||
Dilutive
effect of stock options, as reported
|
- | - | ||||||
Diluted
weighted average number of common shares outstanding, as
reported
|
43,255,441 | 40,393,007 | ||||||
Basic
and diluted loss per share, as reported
|
$ | (0.04 | ) | $ | (0.03 | ) |
Beginning
balance, January 1, 2009
|
$ | 1,025,386 | ||
Unrealized
loss on derivative liability
|
485,919 | |||
Ending
balance, March 31, 2009
|
$ | 1,511,305 |
/s/Sobel
& Co., LLC
|
Certified
Public Accountants
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
ASSETS
|
||||||||
CURRENT
ASSETS:
|
||||||||
Cash
|
$ | 2,100,013 | $ | 5,086,378 | ||||
Accounts
receivable, net of allowance of $ 26,082 in 2008 and $19,648 in
2007
|
44,159 | 109,252 | ||||||
Inventories
|
246,020 | 131,762 | ||||||
Prepaid
expenses and other current assets
|
47,165 | 41,296 | ||||||
Total
Current Assets
|
2,437,357 | 5,368,688 | ||||||
PROPERTY
AND EQUIPMENT, Net
|
144,967 | 112,106 | ||||||
OTHER ASSETS:
|
||||||||
Deposits
|
38,206 | 122,263 | ||||||
Patents,
net
|
64,711 | 39,746 | ||||||
Goodwill
|
1,929,963 | 1,929,963 | ||||||
Total
Other Assets
|
2,032,880 | 2,091,972 | ||||||
$ | 4,615,204 | $ | 7,572,766 | |||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT
LIABILITIES:
|
||||||||
Accounts
payable and accrued expenses
|
$ | 555,789 | $ | 586,458 | ||||
Customer
Deposits
|
- | 1,605 | ||||||
Total
Current Liabilities
|
555,789 | 588,063 | ||||||
LONG-TERM
LIABILITIES:
|
||||||||
Deferred
Rent
|
12,668 | 12,063 | ||||||
Total
Long-Term Liabilities
|
12,668 | 12,063 | ||||||
Total
Liabilities
|
568,457 | 600,126 | ||||||
COMMITMENTS
AND CONTINGENCIES
|
||||||||
STOCKHOLDERS'
EQUITY:
|
||||||||
Series
B Convertible Preferred Stock, $0.001 par value 10,000,000 shares
authorized, 140,000 issued and outstanding in 2008 and 134,000
issued and outstanding in 2007
|
140 | 134 | ||||||
Common
stock, $0.001 par value, 140,000,000 shares authorized, 43,255,441 shares
issued and oustanding in 2008 and 40,367,523 shares issued and
oustanding in 2007
|
43,256 | 40,368 | ||||||
Additional
paid-in capital
|
35,307,119 | 33,741,902 | ||||||
Accumulated
deficit
|
(31,303,768 | ) | (26,809,764 | ) | ||||
Total
Stockholders' Equity
|
4,046,747 | 6,972,640 | ||||||
$ | 4,615,204 | $ | 7,572,766 |
Year
Ended December 31,
|
||||||||
2008
|
2007
|
|||||||
REVENUES
|
$ | 480,513 | $ | 490,510 | ||||
COMPONENTS
OF COST OF SALES:
|
||||||||
Material,
labor and overhead
|
356,942 | 340,468 | ||||||
Inventory
obsolesence expense
|
40,758 | - | ||||||
Total
Cost of Sales
|
397,700 | 340,468 | ||||||
GROSS
PROFIT
|
82,813 | 150,042 | ||||||
COSTS
AND EXPENSES:
|
||||||||
Research
and development
|
1,016,158 | 667,786 | ||||||
Selling,
general and administrative
|
3,032,733 | 2,721,284 | ||||||
Depreciation
and amortization
|
74,539 | 47,036 | ||||||
Total
Costs and Expenses
|
4,123,430 | 3,436,106 | ||||||
LOSS
FROM OPERATIONS
|
(4,040,617 | ) | (3,286,064 | ) | ||||
OTHER
INCOME (EXPENSE):
|
||||||||
Interest
income
|
104,684 | 80,481 | ||||||
Interest
expense
|
- | (679,306 | ) | |||||
Total
Other Income (Expenses), Net
|
104,684 | (598,825 | ) | |||||
LOSS
BEFORE PROVISION FOR TAXES
|
(3,935,933 | ) | (3,884,889 | ) | ||||
PROVISION
FOR TAXES
|
(12,271 | ) | (6,906 | ) | ||||
NET
LOSS
|
$ | (3,948,204 | ) | $ | (3,891,795 | ) | ||
BASIC
AND FULLY DILUTED LOSS PER COMMON SHARE
|
$ | (0.10 | ) | $ | (0.10 | ) | ||
WEIGHTED
AVERAGE COMMON SHARES OUTSTANDING BASIC
|
40,909,504 | 38,541,012 |
Additional
|
Total
|
|||||||||||||||||||||||||||
Common
Stock
|
Preferred
Stock
|
Paid-in
|
Accumulated
|
Stockholders'
|
||||||||||||||||||||||||
Shares<
/div>
|
Amount<
/div>
|
Shares<
/div>
|
Amount<
/div>
|
Capital
|
Deficit
|
Equity<
/div>
|
||||||||||||||||||||||
Balance,
January 1, 2007
|
35,042,009 | $ | 35,042 | - | $ | - | $ | 24,927,839 | $ | (22,917,969 | ) | $ | 2,044,912 | |||||||||||||||
Issuance
of common stock
|
3,416,672 | 3,417 | - | - | 1,021,583 | - | 1,025,000 | |||||||||||||||||||||
Issuance
of preferred stock
|
- | - | 134,400 | 134 | 6,719,866 | - | 6,720,000 | |||||||||||||||||||||
Common
stock issued upon exercise of options and warrants
|
1,908,842 | 1,909 | - | - | 681,591 | - | 683,500 | |||||||||||||||||||||
Warrants
and options issued with common stock and debt and to employees and
consultants, including debt discount
|
- | - | - | - | 472,153 | - | 472,153 | |||||||||||||||||||||
Expenses
related to issuance of preferred and common stock
|
- | - | - | - | (81,130 | ) | - | (81,130 | ) | |||||||||||||||||||
Net
loss
|
- | - | - | - | - | (3,891,795 | ) | (3,891,795 | ) | |||||||||||||||||||
Balance,
December 31, 2007
|
40,367,523 | 40,368 | 134,400 | 134 | 33,741,902 | (26,809,764 | ) | 6,972,640 | ||||||||||||||||||||
Issuance
of common stock
|
40,000 | 40 | - | - | 7,960 | - | 8,000 | |||||||||||||||||||||
Issuance
of preferred stock
|
- | - | 5,600 | 6 | 279,994 | - | 280,000 | |||||||||||||||||||||
Common
stock dividends paid
|
2,729,000 | 2,729 | - | - | 543,071 | (545,800 | ) | - | ||||||||||||||||||||
Common
stock issued upon exercise of options and warrants
|
118,918 | 119 | - | - | (119 | ) | - | - | ||||||||||||||||||||
Warrants
and options issued with common stock and debt and to employees and
consultants, including debt discount
|
- | - | - | - | 765,504 | - | 765,504 | |||||||||||||||||||||
Expenses
related to issuances of preferred and common stock
|
- | - | - | - | (31,193 | ) | - | (31,193 | ) | |||||||||||||||||||
Net
loss
|
- | - | - | - | - | (3,948,204 | ) | (3,948,204 | ) | |||||||||||||||||||
Balance,
December 31, 2008
|
43,255,441 | $ | 43,256 | 140,000 | $ | 140 | $ | 35,307,119 | $ | (31,303,768 | ) | $ | 4,046,747 |
Year
Ended December 31,
|
||||||||
2008
|
2007
|
|||||||
CASH
FLOWS PROVIDED BY (USED FOR):
|
||||||||
OPERATING ACTIVITIES:
|
||||||||
Net
loss
|
$ | (3,948,204 | ) | $ | (3,891,795 | ) | ||
Adjustments
to reconcile net loss to net cash used for operating
activities:
|
||||||||
Bad
debt expense
|
7,770 | 16,934 | ||||||
Inventory
obsolescense expense
|
40,758 | - | ||||||
Depreciation
and amortization
|
74,539 | 47,036 | ||||||
Amortization
of capitalized manufacturing expenses
|
6,791 | - | ||||||
Loss
on disposition of fixed assets
|
- | 3,516 | ||||||
Debt
discount related to issuance of debt securities
|
- | 419,859 | ||||||
Amortization
of deferred financing costs
|
- | 11,228 | ||||||
Warrants
and options issued in connection with settlements, services from
consultants, vendors, the forgiveness of indebtedness, the issuance of
debt, and to employees and consultants
|
765,504 | 655,392 | ||||||
Common
Stock issued for consulting services
|
7,960 | - | ||||||
Changes
in certain assets and liabilities:
|
||||||||
Accounts
receivable
|
57,323 | (93,994 | ) | |||||
Inventory
|
(155,016 | ) | 25,090 | |||||
Prepaid
expenses and other current assets
|
(12,660 | ) | 29,173 | |||||
Deposits
|
84,057 | (88,388 | ) | |||||
Accounts
payable and accrued expenses
|
(30,669 | ) | 1,354 | |||||
Customer
deposits
|
(1,605 | ) | 1,605 | |||||
Deferred
rent
|
605 | 12,063 | ||||||
Net
Cash Used for Operating Activities
|
(3,102,847 | ) | (2,850,927 | ) | ||||
INVESTING ACTIVITIES:
|
||||||||
Costs
related to patent applications
|
(27,507 | ) | (6,927 | ) | ||||
Purchase
of property, equipment and other assets
|
(104,857 | ) | (85,610 | ) | ||||
Net
Cash Used for Investing Activities
|
(132,364 | ) | (92,537 | ) | ||||
FINANCING ACTIVITIES:
|
||||||||
Proceeds
from issuance of equity securities, net of costs
|
248,846 | 8,347,369 | ||||||
Payments
on notes payable
|
- | (2,011,111 | ) | |||||
Net
Cash Provided by Financing Activities
|
248,846 | 6,336,258 | ||||||
(DECREASE)
INCREASE IN CASH
|
(2,986,365 | ) | 3,392,794 | |||||
CASH
|
||||||||
Beginning
of year
|
5,086,378 | 1,693,584 | ||||||
End
of year
|
$ | 2,100,013 | $ | 5,086,378 |
2008
|
2007
|
|||||||
Raw
materials
|
$ | 178,698 | $ | 131,762 | ||||
Finished
Goods
|
67,322 | - | ||||||
Inventories
|
$ | 246,020 | $ | 131,762 |
2008
|
2007
|
|||||||
Prepaid
insurance
|
$ | 10,192 | $ | 19,705 | ||||
Prepaid
expenses
|
36,973 | 21,591 | ||||||
Prepaid
expenses and other current assets
|
$ | 47,165 | $ | 41,296 |
2008
|
2007
|
|||||||
Machinery
and equipment
|
$ | 253,976 | $ | 151,497 | ||||
Office
furniture and equipment
|
20,113 | 26,326 | ||||||
274,089 | 177,923 | |||||||
Less:
Accumulated depreciation
|
129,122 | 65,717 | ||||||
Property
and Equipment, Net
|
$ | 144,967 | $ | 112,106 |
2008
|
2007
|
|||||||
Patents
|
$ | 77,109 | $ | 49,602 | ||||
Less:
Accumulated amortization
|
12,398 | 9,856 | ||||||
Intangible
Assets, Net
|
$ | 64,711 | $ | 39,746 |
2009
|
$ | 2,542 | ||
2010
|
2,542 | |||
2011
|
2,542 | |||
2012
|
2,542 | |||
2013
|
2,542 | |||
Thereafter
|
52,001 | |||
$ | 64,711 |
Country
|
2008
|
2007
|
||||||
Sweden
|
1 | % | 2 | % |
Balance,
January 1, 2007
|
$ | - | ||
Additions
|
4,151 | |||
Deductions
|
(742 | ) | ||
Balance,
December 31, 2007
|
3,409 | |||
Additions
|
6,758 | |||
Deductions
|
(5,735 | ) | ||
Balance,
December 31, 2008
|
$ | 4,432 |
2008
|
2007
|
|||||||
Statutory
rate
|
(34 | )% | (34 | )% | ||||
State
income tax – all states
|
(6 | )% | (6 | )% | ||||
(40 | )% | (40 | )% | |||||
Current
year valuation allowance
|
40 | % | 40 | % | ||||
Benefit
for income taxes
|
0 | % | 0 | % |
Warrants
|
Average
Exercise Price
|
|||||||
Warrants
outstanding at January 1, 2007
|
22,372,730 | $ | 0.42 | |||||
Issued
during 2007
|
9,528,338 | 0.52 | ||||||
Exercised
during 2007
|
(2,143,659 | ) | 0.40 | |||||
Cancelled
and expired during 2007
|
(743,441 | ) | 0.40 | |||||
Warrants
outstanding at December 31, 2007
|
29,013,968 | 0.45 | ||||||
Issued
during 2008
|
1,280,000 | 0.44 | ||||||
Exercised
during 2008
|
(299,188 | ) | 0.20 | |||||
Warrants
outstanding at December 31, 2008
|
29,994,780 | $ | 0.45 |
Years ended December 31,
|
||||||||
2008
|
2007
|
|||||||
Weighted
average risk-free rate
|
4.06 | % | 4.5 | % | ||||
Average
expected life in years
|
3.5 | 3.6 | ||||||
Expected
dividends
|
None
|
None
|
||||||
Volatility
|
275 | % | 166 | % | ||||
Forfeiture
rate
|
43 | % | 40 | % |
Shares
|
Average
Exercise Price
|
|||||||
Options
outstanding and exercisable at January 1, 2007
|
14,734,896 | $ | 0.33 | |||||
Granted
during 2007
|
3,725,000 | 0.35 | ||||||
Cancelled
during 2007
|
(4,050,000 | ) | 0.23 | |||||
Exercised
during 2007
|
(100,000 | ) | 0.20 | |||||
Options
outstanding and exercisable at December 31, 2007
|
14,309,896 | $ | 0.36 | |||||
Granted
during 2008
|
1,095,000 | 0.50 | ||||||
Cancelled
during 2008
|
(1,825,000 | ) | 0.37 | |||||
Options
outstanding and exercisable at December 31, 2008
|
13,579,896 | $ | 0.37 |
Year
|
||||
2009
|
190,664 | |||
2010
|
177,091 | |||
2011
|
12,688 | |||
$ | 380,443 |
2008
|
2007
|
|||||||
Interest
|
$ | - | $ | 248,218 | ||||
Income/Franchise
Taxes
|
$ | 12,271 | $ | 6,906 |
2008
|
2007
|
|||||||
Common
Stock Dividends
|
$ | 545,800 | $ | - |