5
|
||||
PROSPECTUS
SUMMARY
|
5
|
|||
RISK
FACTORS
|
9
|
|||
USE
OF PROCEEDS
|
17
|
|||
MARKET
FOR COMMON EQUITY AND RELATED SHAREHOLDER MATTERS
|
17
|
|||
BUSINESS
|
18
|
|||
LEGAL
PROCEEDINGS
|
24
|
|||
DESCRIPTION
OF PROPERTY
|
24
|
|||
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
|
25
|
|||
AND
RESULTS OF OPERATIONS
|
25
|
|||
CHANGES
IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
|
37
|
|||
AND
FINANCIAL DISCLOSURE
|
37
|
|||
MANAGEMENT
|
38
|
|||
EXECUTIVE
COMPENSATION
|
39
|
|||
CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS
|
41
|
|||
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
|
42
|
|||
DESCRIPTION
OF SECURITIES
|
43
|
|||
INDEMNIFICATION
FOR SECURITIES ACT LIABILITIES
|
43
|
|||
PLAN
OF DISTRIBUTION
|
44
|
|||
SELLING
SHAREHOLDERS
|
46
|
|||
LEGAL
MATTERS
|
50
|
|||
EXPERTS
|
50
|
|||
AVAILABLE
INFORMATION
|
50
|
· |
trends
affecting our financial condition or results of operations;
|
· |
our
business and growth strategies;
|
· |
our
technology; and
|
· |
our
financing plans.
|
· |
our
ability to obtain additional sources of capital to fund continuing
operations, in the event that we are unable to timely generate revenues;
|
· |
our
ability to retain existing or obtain additional licensees who will
act as
distributors of our products;
|
· |
our
ability to obtain additional patent protection for our technology;
and
|
· |
other
economic, competitive and governmental factors affecting our operations,
market, products and services.
|
None.
|
||
Common
stock offered by selling shareholders:
|
1,550,000
shares, issuable upon the conversion of a portion of the Convertible
Notes
and Convertible Debentures.
|
|
Common
stock outstanding:
|
As
of June 1, 2007, 10,064,867 shares of our common stock were issued
and
outstanding.
|
|
Proceeds
to bioMETRX:
|
We
will not receive proceeds from the resale of shares by the selling
shareholders.
|
|
Working
capital.
|
||
OCT
Bulletin Board Symbol:
|
BMRX.
|
|
·
|
national
or international events which may affect the need for or interest
in
biometric products or services;
|
|
||
|
·
|
the
cost, performance and reliability of our products and services and
those
of our competitors;
|
|
||
|
·
|
customers’
perception of the perceived benefit of biometric products and services
and
their satisfaction with our products and services;
|
|
·
|
public
perceptions of the intrusiveness of these products and services and
the
manner in which firms are using the information
collected;
|
|
||
|
·
|
public
perceptions regarding the confidentiality of private
information;
|
|
||
|
·
|
proposed
or enacted legislation related to privacy of
information; and
|
|
||
|
·
|
marketing
efforts and publicity regarding these products and
services.
|
|
·
|
unavailability
or delays in authorization of government funding or cancellations,
delays
or contract amendments by government agency customers;
|
|
||
|
·
|
reduced
demand for products and services caused, for example, by product
offerings
from new competitors;
|
|
||
|
·
|
the
inability to timely and successfully (i) complete development of
complex designs, components and products, (ii) complete new product
introductions that may result in improved gross margins,
(iii) manufacture in volume or
|
|
·
|
install
certain of our complex products or (iv) obtain relevant government
agency certifications for newly introduced products on a timely
basis;
|
|
||
|
·
|
changes
in the mix of products and services we or our distributors
sell;
|
|
·
|
the
readiness of customers to accept delivery of new products on a timely
basis;
|
|
||
|
·
|
protests
of federal, state or local government contract awards by
competitors;
|
|
||
|
·
|
unforeseen
legal expenses, including litigation and/or administrative protest
costs;
|
|
||
|
·
|
expenses
related to acquisitions or mergers;
|
|
||
|
·
|
impairment
charges arising out of our assessments of goodwill and
intangibles;
|
|
||
|
·
|
other
one-time financial charges;
|
|
||
|
·
|
the
lack of availability or increase in cost of key components and
subassemblies;
|
|
||
|
·
|
competitive
pricing pressures; and
|
|
||
|
·
|
unpredictable
product installation schedules
|
·
|
technological
innovations or new products and services by us or our
competitors;
|
·
|
government
regulation of our products and
services;
|
·
|
the
establishment of partnerships with other technology
companies;
|
·
|
intellectual
property disputes;
|
·
|
additions
or departures of key personnel;
|
·
|
sales
of our common stock
|
·
|
our
ability to integrate operations, technology, products and services;
|
·
|
our
ability to execute our business plan;
|
·
|
operating
results below expectations;
|
·
|
loss
of any strategic relationship;
|
·
|
industry
developments;
|
·
|
economic
and other external factors; and
|
·
|
period-to-period
fluctuations in our financial results.
|
2004
|
|
|
High
|
|
Low
|
|||
COMMON
STOCK
|
|||||||
First
quarter
|
$
|
12.00
|
$
|
3.36
|
|||
Second
quarter
|
$
|
9.60
|
$
|
1.49
|
|||
Third
quarter
|
$
|
2.64
|
$
|
1.20
|
|||
Fourth
quarter
|
$
|
1.39
|
$
|
0.06
|
2005
|
High
|
Low
|
||||||
COMMON
STOCK
|
|||||||
First
quarter
|
$
|
1.28
|
$
|
0.60
|
|||
Second
quarter
|
$
|
15.40
|
$
|
0.60
|
|||
Third
quarter
|
$
|
15.80
|
$
|
2.20
|
|||
Fourth
quarter
|
$
|
8.00
|
$
|
2.40
|
2006
|
High
|
Low
|
||||||
COMMON
STOCK
|
|||||||
First
quarter
|
$
|
6.80
|
$
|
2.40
|
|||
Second
quarter
|
$
|
3.75
|
$
|
1.35
|
|||
Third
quarter
|
$
|
1.80
|
$
|
0.60
|
|||
Fourth
quarter
|
$
|
2.95
|
$
|
1.05
|
2007
|
High
|
Low
|
||||||
COMMON
STOCK
|
|||||||
First
quarter
|
$
|
3.49
|
$
|
1.75
|
Name
|
Age
|
Position
|
Held
Position Since
|
|||
Mark
Basile
|
47
|
Chief
Executive Officer and Chairman
|
2002
|
|||
J.
Richard Iler
|
53
|
Chief
Financial Officer and Director
|
2006
|
|||
Lorraine
Yarde
|
36
|
Chief
Operating Officer and Director
|
2005
|
Annual
Compensation
|
Long
Term Compensation
|
||||||||||||||||||
Name
and
Principal
Position
|
Fiscal
Year
End
|
Salary
($)
|
Bonus
($)
|
All
other and annual Compensation and LTIP Payouts ($)
|
Securities
under Options/
SARS
Granted (#)
|
Restricted
Shares or Restricted Share Units
(#)
|
|||||||||||||
Mark
Basile
|
2006
|
$
|
370,384
|
$
|
80,000
|
$
|
18,000
|
1,250,000
|
—
|
||||||||||
President,
CEO and
|
2005
|
$
|
360,000
|
—
|
—
|
187,500
|
—
|
||||||||||||
Chairman
|
2004
|
$
|
360,000
|
—
|
—
|
—
|
—
|
||||||||||||
|
|||||||||||||||||||
Lorraine
Yarde
|
2006
|
$
|
150,577
|
$
|
7,500
|
850,000
|
150,000
|
||||||||||||
Chief
Operating Officer
|
2005
|
$
|
33,334
|
—
|
—
|
25,000
|
—
|
||||||||||||
|
2004
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
|
|||||||||||||||||||
J.
Richard Iler
|
2006
|
$
|
49,538
|
$
|
9,500
|
400,000
|
100,000
|
||||||||||||
Chief
Financial Officer
|
2005
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
|
2004
|
—
|
—
|
—
|
—
|
—
|
Number
of Shares
|
Exercise
Price
|
|||
*250,000
|
$
|
1.25
|
||
250,000
|
$
|
2.00
|
||
250,000
|
$
|
3.00
|
||
250,000
|
$
|
4.00
|
||
250,000
|
$
|
5.00
|
Exercise
Price
|
||||
200,000
|
$
|
1.00
|
||
200,000
|
$
|
1.25
|
||
200,000
|
$
|
1.50
|
Number
of Options
|
Exercise
Price
|
Vesting
|
|||||
200,000
|
$
|
1.05
|
Immediately
|
||||
100,000
|
$
|
1.10
|
1
year from date of agreement
|
||||
100,000
|
$
|
1.00
|
2
years form date of agreement
|
Name
and
Principal
Position
|
Number
of Securities Underlying
Options/SARs
Granted (#)
|
%
of Total Options/SARs Granted to Employees in Fiscal
Year
|
Exercise
or Base Price ($/Sh)
|
Expiration
Date
|
Market
Price on Date of Grant ($/Sh)
|
|||||||||||
Mark
Basile
|
1,250,000
|
50
|
%
|
$ | 3.50 |
01/31/2010
|
$
|
1.50
|
||||||||
President,
CEO, Chairman
|
||||||||||||||||
|
||||||||||||||||
Lorraine
Yarde
|
850,000
|
34
|
%
|
$ | 1.25 |
08/14/2011
|
$
|
1.25
|
||||||||
Chief
Operating Officer
|
||||||||||||||||
|
||||||||||||||||
J.
Richard Iler
|
400,000
|
16
|
%
|
$ | 1.05 |
08/14/2011
|
$
|
1.05
|
||||||||
Chief
Financial Officer
|
Name
and Address
|
Number
of Shares
|
Percentage
|
|||||
Mark
Basile
|
3,432,199
|
(1)(2)
|
30.9
|
%
|
|||
500
N. Broadway
|
|||||||
Jericho,
NY 11753
|
|||||||
J.
Richard Iler
|
198,000
|
2.0
|
%
|
||||
500
N. Broadway
|
|||||||
Jericho,
NY 11753
|
|||||||
Lorraine
Yarde
|
944,545
|
(3)
|
9.3
|
%
|
|||
500
N. Broadway
|
|||||||
Jericho,
NY 11753
|
|||||||
The
Naples Trust (4)
|
1,130,600
|
11.6
|
%
|
||||
736
Carlisle Road
|
|||||||
Jericho,
NY 11753
|
|||||||
Russell
Kuhn
|
1,184,094
|
(5)
|
12.1
|
%
|
|||
8680
Greenback Lane
|
|||||||
Orangevale,
CA 95662
|
|||||||
BridgePointe
Master Fund Ltd.
|
2,000,000
|
(6)
|
17.0
|
%
|
|||
c/o
Roswell Capital Partners, LLC
|
|||||||
1125
Sanctuary Parkway, Suite 725
|
|||||||
Alpharetta,
GA 30004
|
|||||||
Linden
Growth Partners Master Fund, LP
|
1,746,000
|
(7)
|
15.2
|
%
|
|||
718
South State Street
|
|||||||
Clarks
Summit, PA 18411
|
|||||||
Whalehaven
Capital Fund
|
1,410,878
|
(8)
|
12.7
|
%
|
|||
3rd
Floor, 14 Par-La-Ville Road
|
|||||||
P.O.
Box HM1027
|
|||||||
Hamilton,
HMDX Bermuda
|
|||||||
Alpha
Capital Aktiengesellschaft
|
1,128,666
|
(9)
|
10.4
|
%
|
|||
Pradafaut
7
|
|||||||
Furstentums
1490
|
|||||||
Vaduz
Liechtenstein
|
|||||||
Officers
and directors as a group (3
persons) (1)(2)(3)(4)
|
4,574,744
|
39.7
|
%
|
(1)
|
Includes
1,130,600 shares held by The Naples Trust. Mr. Basile’s mother-in-law is
the trustee for The Naples Trust and Mr. Basile’s wife is the
beneficiary.
|
(2)
|
Includes
1,375,000 shares of common stock issuable upon the exercise of stock
options to purchase a like number of
shares.
|
(3)
|
Includes
400,000 shares of common stock issuable upon the exercise of stock
options
to purchase a like number of shares.
|
(4)
|
Mr.
Basile’s mother-in-law is the trustee for The Naples Trust and Mr.
Basile’s wife is the beneficiary. Mr. Basile disclaims any beneficial
ownership to these shares.
|
(5)
|
Includes
86,238 shares of common stock issuable upon the exercise of stock
options
to purchase a like number of shares.
|
(6)
|
Includes
(i) 1,000,000 shares issuable upon conversion of the 8% Senior Convertible
Debenture, and (ii) stock underlying a warrant to purchase 1,000,000
shares of common stock at an exercise price of $1.00 per share. Does
not
include a warrant to purchase 500,000 shares of common stock at an
exercise price of $.10 per share which are not exercisable within
60 days
of the date hereof. These shares would not be deemed beneficially
owned
within the meaning of Sections 13(d) and 13(g) of the Exchange Act
before
their acquisition by BridgePointe Master Fund Ltd. Eric Swartz, who
hold
voting and dispositive power with respect to the securities held
by
BridgePointe Master Fund Ltd., disclaims beneficial ownership of
such
securities. The debenture and warrant contain language restricting
the
shareholder from owning in excess of 4.99% of the Company’s common stock
at any given time.
|
(7)
|
Includes
securities owned by Linden Growth Partners LP and includes (i) 300,000
shares issuable upon conversion of the 8% Convertible Note , (ii)
450,000
shares issuable upon conversion of the 8% Senior Convertible Debenture,
(iii) 72,500 shares issuable upon conversion of the Forbearance Note,
(iv)
stock underlying warrants to purchase 750,000 shares at an exercise
price
of $1.00 per share, and (v) stock underlying warrants to purchase
150,000
shares at an exercise price of $.10 per share. Does not include a
warrant
to purchase 225,000 shares of common stock at exercise price of $.10
per
share which are not exercisable within 60 days of the date hereof.
Paul
Coviello, who holds voting and dispositive power with respect to
the
securities held by Linden
Growth Partners Master Fund, LP, disclaims beneficial ownership of
such
securities.
The debenture and warrant contain language restricting the shareholder
from owning in excess of 4.99% of the Company’s common stock at any given
time.
|
(8)
|
Includes
(i) 500,000 shares issuable upon conversion of the 8% Convertible
Note,
(ii) 120,855 shares issuable upon conversion of the Forbearance Note,
(iii) stock underlying warrants to purchase 500,000 shares at an
exercise
price of $1.00 per share and (iv) stock underlying warrants to purchase
250,000 shares at an exercise price of $.10 per share. Evan Schemenauer,
who holds
voting and dispositive power with respect to the securities held
by
Whalehaven
Capital Fund, disclaims beneficial ownership of such securities.
The
debenture and warrant contain language restricting the shareholder
from
owning in excess of 4.99% of the Company’s common stock at any given
time.
|
(9)
|
Includes
(i) 400,000 shares issuable upon conversion of the 8% Convertible
Note,
(ii) 96,666 shares issuable upon conversion of the Forbearance Note,
(iii)
stock underlying warrants to purchase 400,000 shares at an exercise
price
of $1.00 per share and (iv) stock underlying warrants to purchase
200,000
shares at an exercise price of $.10 per share. Konrad Ackerman, who
holds
voting and dispositive power with respect to the securities held
by Alpha
Capital Aktiengesellschaft,
disclaims beneficial ownership of such securities. The
debenture and warrant contain language restricting the shareholder
from
owning in excess of 4.99% of the Company’s common stock at any given
time.
|
·
|
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 shareholders to sell a specified number
of such
shares at a stipulated price per share;
|
·
|
a
combination of any such methods of sale; and
|
·
|
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 shareholders 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 shareholders, including details regarding
any
such transactions; and
|
·
|
in
the event any of the securities offered by the selling shareholders
are
sold, transferred, assigned or hypothecated by any selling shareholder
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.
|
Shares
Owned Prior
to
the Offering
|
Shares
Owned After
the
Offering
|
|||||||||||||||
Name
|
No.
of Shares Offered
|
Number
(including
stock underlying
warrants)
|
Percentage
(%)
|
Number
|
Percentage(%)
|
|||||||||||
Whalehaven
Capital Fund Limited
|
250,000
|
(1)
|
1,410,878
|
(10)
|
12.7
|
%
|
1,160,878
|
10.3
|
%
|
|||||||
Nite
Capital LP
|
75,000
|
(2)
|
423,976
|
(11)
|
4.2
|
%
|
348,976
|
3.6
|
%
|
|||||||
Lighthouse
Capital Insurance Company, Policy #03-046
|
62,500
|
(3)
|
352,708
|
(12)
|
3.5
|
%
|
290,208
|
2.8
|
%
|
|||||||
Peter
Thomson
|
62,500
|
(4)
|
352,708
|
(13)
|
3.5
|
%
|
290,208
|
2.8
|
%
|
|||||||
Alpha
Capital Aktiengesellschaft
|
200,000
|
(5)
|
1,128,666
|
(14)
|
10.4
|
%
|
928,666
|
8.4
|
%
|
|||||||
Linden
Growth Partners LP
|
150,000
|
(6)
|
846,500
|
(15)
|
8.0
|
%
|
696,500
|
6.5
|
%
|
|||||||
Linden
Growth Partners Master Fund L.P.
|
225,000
|
(7)
|
1,125,000
|
(16)
|
10.0
|
%
|
900,000
|
8.2
|
%
|
|||||||
BridgePointe
Master Fund Ltd.
|
500,000
|
(8)
|
2,500,000
|
(17)
|
19.9
|
%
|
2,000,000
|
16.6
|
%
|
|||||||
Osher
Capital Partners LLC
|
25,000
|
(9)
|
125,000
|
(18)
|
1.0
|
%
|
100,000
|
*
|
(1) |
These
shares represent a portion of the shares issuable upon conversion
of the
8% Convertible Note.
|
(2) |
These
shares represent a portion of the shares issuable upon conversion
of the
8% Convertible Note.
|
(3) |
These
shares represent a portion of the shares issuable upon conversion
of the
8% Convertible Note.
|
(4) |
These
shares represent a portion of the shares issuable upon conversion
of the
8% Convertible Note.
|
(5) |
These
shares represent a portion of the shares issuable upon conversion
of the
8% Convertible Note.
|
(6) |
These
shares represent a portion of the shares issuable upon conversion
of the
8% Convertible Note.
|
(7) |
These
shares represent a portion of the shares issuable upon conversion
of the
8% Convertible Debenture.
|
(8) |
These
shares represent a portion of the shares issuable upon conversion
of the
8% Convertible Debenture.
|
(9) |
These
shares represent a portion of the shares issuable upon conversion
of the
8% Convertible Debenture.
|
(10)
|
Includes
(i) 500,000 shares issuable upon conversion of the 8% Convertible
Note,
(ii) stock underlying a warrant to purchase 500,000 shares of common
stock
at an exercise price of $1.00 per share, (iii) shares underlying
a warrant
to purchase 250,000 shares of common stock at an exercise price of
$.10
per share, and (iv) 120,855 shares issuable upon conversion of the
Forbearance Note. Evan Schemenauer, who holds voting and dispositive
power
with respect to the securities held by Whalehaven Capital Fund Limited
disclaims beneficial ownership of such securities.
|
(11)
|
Includes
(i) 150,000 shares issuable upon conversion of the 8% Convertible
Note,
(ii) stock underlying a warrant to purchase 150,000 shares of common
stock
at an exercise price of $1.00 per share, (iii) shares underlying
a warrant
to purchase 75,000 shares of common stock at an exercise price of
$.10 per
share, and (iv) 36,999 shares issuable upon conversion of the Forbearance
Note. Keith Goodman, who holds voting and dispositive power with
respect
to the securities held by Nite Capital LP disclaims beneficial ownership
of such securities.
|
(12) |
Includes
(i) 125,000 shares issuable upon conversion of the 8% Convertible
Note,
(ii) stock underlying a warrant to purchase 125,000 shares of common
stock
at an exercise price of $1.00 per share, (iii) shares underlying
a warrant
to purchase 62,500 shares of common stock at an exercise price of
$.10 per
share, and (iv) 30,208 shares issuable upon conversion of the Forbearance
Note. Janet Sairsingh, who holds voting and dispositive power with
respect
to the securities held by Lighthouse Capital Insurance Company, Policy
#
03046, disclaims beneficial ownership of such
securities.
|
(13) |
Includes
(i) 125,000 shares issuable upon conversion of the 8% Convertible
Note,
(ii) stock underlying a warrant to purchase 125,000 shares of common
stock
at an exercise price of $1.00 per share, (iii) shares underlying
a warrant
to purchase 62,500 shares of common stock at an exercise price of
$.10 per
share, and (iv) 30,208 shares issuable upon conversion of the Forebearance
Note.
|
(14) |
Includes
(i) 400,000 shares issuable upon conversion of the 8% Convertible
Note,
(ii) stock underlying a warrant to purchase 400,000 shares of common
stock
at an exercise price of $1.00 per share, and (iii) shares underlying
a
warrant to purchase 200,000 shares of common stock at an exercise
price of
$.10 per share, and (iv) 96,666 shares issuable upon conversion of
the
Forbearance Note. Konrad Ackerman, who holds voting and dispositive
power
with respect to the securities held by Alpha Capital Aktiengesellschaft,
disclaims beneficial ownership of such
securities.
|
(15) |
Includes
(i) 300,000 shares issuable upon conversion of the 8% Convertible
Note,
(ii) stock underlying a warrant to purchase 300,000 shares of common
stock
at an exercise price of $1.00 per share, (iii) shares underlying
a warrant
to purchase 150,000 shares of common stock at an exercise price of
$.10
per share, and (iv) 72,500 shares issuable upon conversion of the
Forbearance Note. Paul Coviello, who holds voting and dispositive
power
with respect to the securities held by Linden Growth Partners L.P.,
disclaims beneficial ownership of such
securities.
|
(16)
|
Includes
(i) 450,000 shares issuable upon conversion of the 8% Convertible
Debenture, (ii) stock underlying a warrant to purchase 450,000 shares
of
common stock at an exercise price of $1.00 per share, and (iii) shares
underlying a warrant to purchase 225,000 shares of common stock at
an
exercise price of $.10 per share. Paul Coviello, who holds voting
and
dispositive power with respect to the securities held by Linden Growth
Partners Master Fund L.P., disclaims beneficial ownership of such
securities.
|
(17)
|
Includes
(i) 1,000,000 shares issuable upon conversion of the 8% Convertible
Debenture, (ii) stock underlying a warrant to purchase 1,000,000
shares of
common stock at an exercise price of $1.00 per share, and (iii) shares
underlying a warrant to purchase 500,000 shares of common stock at
an
exercise price of $.10 per share. Eric Swartz, who holds voting and
dispositive power with respect to the securities held by BridgePointe
Master Fund Ltd., disclaims beneficial ownership of such
securities.
|
(18)
|
Includes
(i) 50,000 shares issuable upon conversion of the 8% Convertible
Debenture, (ii) stock underlying a warrant to purchase 50,000 shares
of
common stock at an exercise price of $1.00 per share, and (iii) shares
underlying a warrant to purchase 25,000 shares of common stock at
an
exercise price of $.10 per share. Yisrael Kluger, who holds voting
and
dispositive power with respect to the securities held by Osher Capital
Partners LLC, disclaims beneficial ownership of such
securities.
|
Selling
Stockholder
|
|
Invested
June 2006
|
|
Cash
Payments(1)
|
|
Penalties
Converted into Shares (5)
|
|
Series
A Warrants
|
|
Series
B Warrants
|
|
Pre-Paid
Interest Shares
|
|
Stock
Price on Issuance
|
|
Stock
Value
|
|
Value
of A Warrants (2)
|
|
Value
of B Warrants (3)
|
|
Pre-paid
Interest (4)
|
|
Total
Value
|
|||||||||||||
Whalehaven
Capital Fund Limited
|
$
|
500,000
|
$
|
50,000
|
500,000
|
250,000
|
40,023
|
$
|
1.35
|
$
|
675,000
|
$
|
175,000
|
$
|
312,500
|
$
|
54,031
|
$
|
1,216,531
|
||||||||||||||||||
Nite
Capital LP
|
150,000
|
15,000
|
150,000
|
75,000
|
11,977
|
$
|
1.35
|
202,500
|
52,500
|
93,750
|
16,169
|
364,919
|
|||||||||||||||||||||||||
Lighthouse
Capital Insurance Company, Policy #03-046
|
125,000
|
12,500
|
125,000
|
62,500
|
10,000
|
$
|
1.35
|
168,750
|
43,750
|
78,125
|
13,500
|
304,125
|
|||||||||||||||||||||||||
Peter
Thomson
|
125,000
|
12,500
|
125,000
|
62,500
|
10,000
|
$
|
1.35
|
168,750
|
43,750
|
78,125
|
13,500
|
304,125
|
|||||||||||||||||||||||||
Alpha
Capital Aktiengesellschaft
|
400,000
|
40,000
|
400,000
|
200,000
|
32,000
|
$
|
1.35
|
540,000
|
140,000
|
250,000
|
43,200
|
973,200
|
|||||||||||||||||||||||||
Linden
Growth Partners LP
|
300,000
|
30,000
|
300,000
|
150,000
|
24,000
|
$
|
1.35
|
405,000
|
105,000
|
187,500
|
32,400
|
729,900
|
|||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||
First
Montauk Securities Corp.& Designees
(below):
|
-
|
-
|
-
|
160,000
|
-
|
-
|
$
|
1.35
|
-
|
56,000
|
-
|
-
|
56,000
|
||||||||||||||||||||||||
Ernest
Pellegrino
|
|||||||||||||||||||||||||||||||||||||
Victor
K. Kuylak
|
|||||||||||||||||||||||||||||||||||||
Max
Povolsky
|
|||||||||||||||||||||||||||||||||||||
Ed
Pitlake
|
|||||||||||||||||||||||||||||||||||||
Angela
Meteliska
|
|||||||||||||||||||||||||||||||||||||
Robert
Casolaro
|
|||||||||||||||||||||||||||||||||||||
Paul
Coviello
|
|||||||||||||||||||||||||||||||||||||
Forbearance
Note Allocation (5)
|
387,435
|
-
|
-
|
-
|
$
|
2.90
|
1,123,562
|
1,123,562
|
|||||||||||||||||||||||||||||
$
|
1,600,000
|
$
|
160,000
|
387,435
|
1,760,000
|
800,000
|
128,000
|
$
|
3,283,562
|
$
|
616,000
|
$
|
1,000,000
|
$
|
172,800
|
$
|
5,072,362
|
(1)
Represents commissions paid by the Company to First Montauk Securities
Corp. in connection with this
transaction
|
(2)
Value of A Warrants determined by subtracting strike price of
warrant
($1.00) from price of stock at time of issuance
|
(3)
Value of A Warrants determined by subtracting strike price of
warrant
($0.10) from price of stock at time of issuance
|
(4)
Determined by multiplying the number of prepaid interest shares
issued by
the value of common stock at time of
issuance
|
(5)
As a condition of closng the December 28, 2006 financing, the
Company was
required to obtain the consent and waiver from each investor
in the June
29, 2006 transaction.
|
Invested
January 2007
|
|
Cash
Payments (1)
|
|
Series
A Warrants
|
|
Series
B Warrants
|
|
Stock
Price on Issuance
|
|
Stock
Value
|
|
Value
of A Warrants (2)
|
|
Value
of B Warrants (3)
|
|
Total
Value
|
|
|||||||||||
Linden
Growth Partners Master Fund L.P.
|
$
|
450,000
|
$
|
45,000
|
450,000
|
225,000
|
$
|
3.05
|
1,372,500
|
922,500
|
663,750
|
$
|
2,958,750
|
|||||||||||||||
BridgePointe
Master Fund Ltd.
|
1,000,000
|
100,000
|
1,000,000
|
500,000
|
$
|
3.05
|
3,050,000
|
2,050,000
|
1,475,000
|
6,575,000
|
||||||||||||||||||
Osher
Capital Partners LLC
|
50,000
|
5,000
|
50,000
|
25,000
|
$
|
3.05
|
152,500
|
102,500
|
73,750
|
328,750
|
||||||||||||||||||
First
Montauk Securities Corp.& Designees
(below):
|
150,000
|
$
|
3.05
|
307,500
|
307,500
|
|||||||||||||||||||||||
Ernest
Pellegrino
|
||||||||||||||||||||||||||||
Victor
K. Kuylak
|
||||||||||||||||||||||||||||
Max
Povolsky
|
||||||||||||||||||||||||||||
Ed
Pitlake
|
||||||||||||||||||||||||||||
Angela
Meteliska
|
||||||||||||||||||||||||||||
Robert
Casolaro
|
||||||||||||||||||||||||||||
Paul
Coviello
|
||||||||||||||||||||||||||||
$
|
1,500,000
|
$
|
150,000
|
1,650,000
|
750,000
|
$
|
4,575,000
|
$
|
3,382,500
|
$
|
2,212,500
|
$
|
10,170,000
|
(1)
Represents commissions paid by the Company to First Montauk
Securities
Corp. in connection with this
transaction
|
(2)
Value of A Warrants determined by subtracting strike price
of warrant
($1.00) from price of stock at time of
issuance
|
(3)
Value of A Warrants determined by subtracting strike price
of warrant
($0.10) from price of stock at time of
issuance
|
Note
Holder
|
Closing
Dates
|
|
Shares
Underlying Convertible Note on Closing Date
|
|
Market
Price of Common Stock on Closing Date
|
|
Conversion
Price of Common Stock
|
|
Combined
Market Price of Shares Underlying Convertible
Note
|
|
Combined
Conversion Price of Shares Underlying Convertible
Note
|
|
Total
Possible Discount to Market Price
|
|||||||||
Whalehaven
Capital Fund Limited
|
06/29/06
|
660,878
|
$
|
1.35
|
$
|
1.00
|
$
|
892,185
|
$
|
660,878
|
$
|
231,307
|
||||||||||
Nite
Capital LP
|
06/29/06
|
198,976
|
$
|
1.35
|
$
|
1.00
|
268,618
|
198,976
|
69,642
|
|||||||||||||
Lighthouse
Capital Insurance, Policy #03-046
|
06/29/06
|
165,208
|
$
|
1.35
|
$
|
1.00
|
223,031
|
165,208
|
57,823
|
|||||||||||||
Peter
Thompson
|
06/29/06
|
165,208
|
$
|
1.35
|
$
|
1.00
|
223,031
|
165,208
|
57,823
|
|||||||||||||
Linden
Growth Partners, LP
|
06/29/06
|
396,500
|
$
|
1.35
|
$
|
1.00
|
535,275
|
396,500
|
138,775
|
|||||||||||||
Alpha
Capital
|
06/29/06
|
528,667
|
$
|
1.35
|
$
|
1.00
|
713,700
|
528,667
|
185,033
|
|||||||||||||
Linden
Growth Partners Master Fund LP
|
01/05/07
|
450,000
|
$
|
3.05
|
$
|
1.00
|
1,372,500
|
450,000
|
922,500
|
|||||||||||||
BridgePointe
Master Fund Ltd
|
01/05/07
|
1,000,000
|
$
|
3.05
|
$
|
1.00
|
3,050,000
|
1,000,000
|
2,050,000
|
|||||||||||||
Osher
Capital Fund Partners LLC
|
01/05/07
|
50,000
|
$
|
3.05
|
$
|
1.00
|
152,500
|
50,000
|
102,500
|
|||||||||||||
3,615,437
|
$
|
7,430,840
|
$
|
3,615,437
|
$
|
3,815,403
|
Selling
Shareholders
|
Date
of Sale
|
|
Shares
Underlying Warrants and Options
|
|
Market
Price of Common Stock on Date of Sale
|
|
Exercise
Price of Warrants
|
|
Combined
Market Price of Shares Underlying Warrants
|
|
Combined
Exercise Price of Shares Underlying Warrants
|
|
Total
Possible Discount to Market Price
|
|||||||||
Common
Stock "A" Warrants:
|
||||||||||||||||||||||
Whalehaven
Capital Fund Limited
|
06/29/06
|
500,000
|
$
|
1.35
|
$
|
1.00
|
$
|
675,000
|
$
|
500,000
|
$
|
175,000
|
||||||||||
Nite
Capital LP
|
06/29/06
|
150,000
|
$
|
1.35
|
$
|
1.00
|
202,500
|
150,000
|
52,500
|
|||||||||||||
Lighthouse
Capital Insurance, Policy #03-046
|
06/29/06
|
125,000
|
$
|
1.35
|
$
|
1.00
|
168,750
|
125,000
|
43,750
|
|||||||||||||
Peter
Thompson
|
06/29/06
|
125,000
|
$
|
1.35
|
$
|
1.00
|
168,750
|
125,000
|
43,750
|
|||||||||||||
Linden
Growth Partners, LP
|
06/29/06
|
300,000
|
$
|
1.35
|
$
|
1.00
|
405,000
|
300,000
|
105,000
|
|||||||||||||
Alpha
Capital
|
06/29/06
|
400,000
|
$
|
1.35
|
$
|
1.00
|
540,000
|
400,000
|
140,000
|
|||||||||||||
First
Montauk Securities Corp.
|
06/29/06
|
160,000
|
$
|
1.35
|
$
|
1.00
|
216,000
|
160,000
|
56,000
|
|||||||||||||
Linden
Growth Partners Master Fund LP
|
01/05/07
|
450,000
|
$
|
3.05
|
$
|
1.00
|
1,372,500
|
450,000
|
922,500
|
|||||||||||||
BridgePointe
Master Fund Ltd
|
01/05/07
|
1,000,000
|
$
|
3.05
|
$
|
1.00
|
3,050,000
|
1,000,000
|
2,050,000
|
|||||||||||||
Osher
Capital Fund Partners LLC
|
01/05/07
|
50,000
|
$
|
3.05
|
$
|
1.00
|
152,500
|
50,000
|
102,500
|
|||||||||||||
First
Montauk Securities Corp.
|
01/05/07
|
150,000
|
$
|
3.05
|
$
|
1.00
|
457,500
|
150,000
|
307,500
|
|||||||||||||
Subtotal
- Common Stock "A" Warrants
|
3,410,000
|
7,408,500
|
3,410,000
|
3,998,500
|
||||||||||||||||||
Common
Stock "B" Warrants:
|
||||||||||||||||||||||
Whalehaven
Capital Fund Limited
|
06/29/06
|
250,000
|
$
|
1.35
|
$
|
0.10
|
337,500
|
25,000
|
312,500
|
|||||||||||||
Nite
Capital LP
|
06/29/06
|
75,000
|
$
|
1.35
|
$
|
0.10
|
101,250
|
7,500
|
93,750
|
|||||||||||||
Lighthouse
Capital Insurance, Policy #03-046
|
06/29/06
|
62,500
|
$
|
1.35
|
$
|
0.10
|
84,375
|
6,250
|
78,125
|
|||||||||||||
Peter
Thompson
|
06/29/06
|
62,500
|
$
|
1.35
|
$
|
0.10
|
84,375
|
6,250
|
78,125
|
|||||||||||||
Linden
Growth Partners, LP
|
06/29/06
|
150,000
|
$
|
1.35
|
$
|
0.10
|
202,500
|
15,000
|
187,500
|
|||||||||||||
Alpha
Capital
|
06/29/06
|
200,000
|
$
|
1.35
|
$
|
0.10
|
270,000
|
20,000
|
250,000
|
|||||||||||||
|
-
|
|||||||||||||||||||||
Linden
Growth Partners Master Fund LP
|
01/05/07
|
225,000
|
$
|
3.05
|
$
|
0.10
|
686,250
|
22,500
|
663,750
|
|||||||||||||
BridgePointe
Master Fund Ltd
|
01/05/07
|
500,000
|
$
|
3.05
|
$
|
0.10
|
1,525,000
|
50,000
|
1,475,000
|
|||||||||||||
Osher
Capital Fund Partners LLC
|
01/05/07
|
25,000
|
$
|
3.05
|
$
|
0.10
|
76,250
|
2,500
|
73,750
|
|||||||||||||
Subtotal
- Common Stock "B" Warrants
|
1,550,000
|
3,367,500
|
155,000
|
3,212,500
|
||||||||||||||||||
Totals
|
4,960,000
|
$
|
10,776,000
|
$
|
3,565,000
|
$
|
7,211,000
|
Gross
Proceeds
|
Total
Payments Made by the Company Related to Issuance of the Notes
and
Debentures
|
Net
Proceeds (1)
|
Total
Possible Profit From Sale of Underlying Securities to Selling
Shareholders
|
||||
|
|
Amount
|
As
a Percentage of Proceeds of Notes
|
Monthly
Percentage
|
Amount
|
As
a Percentage of Proceeds of Notes
|
Monthly
Percentage
|
$
7,180,437
|
$
340,000 (2)
|
$
6,840,437
|
247.84%
|
11.14%
|
$
11,026,403
|
395.31%
|
19.39%
|
(1)
|
Includes
proceeds from the sale of the Notes/Debentures as well as the total
potential proceeds from the exercise of the A and B
Warrants.
|
(2)
|
Includes
10% commission paid to First Montauk Securities Corp. and other
expense
including legal fees paid by the Company related to the offerings
in the
aggregate amount of $30,000.
|
Selling
Shareholders
|
Date
of Transaction
|
|
Number
of Shares of Common Stock Outstanding prior to the convertible
Note
Transaction (excl. selling shareholders and
affiliates)
|
|
Number
of Shares of Common Stock Registered for Resale by Selling Shareholder
in
Prior Registration Statements
|
|
Number
of Shares of Common Stock Sold in Registered Resale Transactions
by the
Selling Stockholder
|
|
Number
of Shares Registered for Resale in Current
Transaction
|
|
||||||
Whalehaven
Capital Fund
|
June
29,2006
|
7,360,249
|
-
|
-
|
250,000
|
|||||||||||
Nite
Capital LP
|
June
29,2006
|
7,360,249
|
-
|
-
|
75,000
|
|||||||||||
Linden
Growth Partners L.P.
|
June
29,2006
|
7,360,249
|
-
|
-
|
150,000
|
|||||||||||
Peter
Thompson
|
June
29,2006
|
7,360,249
|
-
|
-
|
62,500
|
|||||||||||
Lighthouse
Capital Insurance Company Policy #03-046
|
June
29,2006
|
7,360,249
|
-
|
-
|
62,500
|
|||||||||||
Alpha
Capital
|
June
29,2006
|
7,360,249
|
-
|
-
|
200,000
|
|||||||||||
|
|
|||||||||||||||
Linden
Growth Partners Master Fund L.P.
|
January
5, 2007
|
8,579,404
|
-
|
-
|
225,000
|
|||||||||||
Osher
Capital
|
January
5, 2007
|
8,579,404
|
-
|
-
|
25,000
|
|||||||||||
BridgePointe
Master Fund L.P.
|
January
5, 2007
|
8,579,404
|
-
|
-
|
500,000
|
|||||||||||
Total
Shares to be Registered
|
1,550,000
|
Condensed
Consolidated Balance Sheet as of March 31, 2007 and December 31,
2006
|
3
|
|||
|
||||
Condensed
Consolidated Statements of Operations for the three months
ended
March
31, 2007 and March 31, 2006
|
4
|
|||
|
||||
Condensed
Consolidated Statements of Cash Flows for the three months
ended
March
31, 2007 and March 31, 2006
|
5-6
|
|||
|
||||
Notes
to the Condensed Consolidated Financial Statements
|
7-18
|
Current
Assets:
|
||||
Cash
|
$
|
351,170
|
||
Restricted
Cash
|
169,316
|
|||
Inventory
|
591,690
|
|||
Prepaid
Expenses
|
25,146
|
|||
Total
Current Assets
|
1,137,322
|
|||
Property
and Equipment, net
|
90,738
|
|||
Other
Assets:
|
||||
Patents
|
664,500
|
|||
Deferred
Finance Costs, net
|
224,375
|
|||
Security
Deposit
|
17,045
|
|||
Total
Other Assets
|
905,920
|
|||
TOTAL
ASSETS
|
$
|
2,133,980
|
Current
Liabilities:
|
||||
Notes
Payable
|
$
|
700,000
|
||
Accounts
Payable
|
561,236
|
|||
Accrued
Taxes
|
68,143
|
|||
Accrued
Interest
|
76,529
|
|||
Total
Current Liabilities
|
1,405,908
|
|||
Long-Term
Liabilities:
|
||||
8%
Convertible Notes, net of unamortized discounts of
$2,018,375
|
1,081,625
|
|||
Convertible
Forbearance Notes, net of unamortized discounts of
$322,864
|
64,573
|
|||
Total
Long-Term Liabilities
|
1,146,198
|
|||
TOTAL
LIABILITIES
|
2,552,106
|
|||
COMMITMENTS
AND CONTINGENCIES
|
||||
Stockholders'
Deficit:
|
||||
Preferred
Stock, $.01 par value; 10,000,000 shares
authorized
|
||||
no
shares issued and outstanding
|
-
|
|||
Common
Stock, $.001 par value; 25,000,000 shares
authorized
|
||||
9,759,120
shares issued and outstanding
|
9,759
|
|||
Additional
Paid-In-Capital
|
27,423,191
|
|||
Prepaid
Interest, 8% Convertible Notes
|
(43,200
|
)
|
||
Deferred
Finance Costs
|
(199,198
|
)
|
||
Deficit
Accumulated in the Development Stage
|
(27,608,678
|
)
|
||
Total
Stockholders' Deficit
|
(418,126
|
)
|
||
TOTAL
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
$
|
2,133,980
|
For
The Three
Months
Ended
March
31, 2007
|
For
The Three
Months
Ended
March
31, 2006
|
For
the Period
February
1, 2001
(Inception)
to
March
31, 2007
|
||||||||
|
|
|
|
|||||||
REVENUES
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
Costs
and Expenses:
|
||||||||||
General
and Administrative Expenses
|
1,378,823
|
6,867,845
|
25,654,392
|
|||||||
Research
and Development Expenses
|
58,238
|
142,755
|
1,236,283
|
|||||||
Contract
Buyouts Issued In Stock
|
-
|
-
|
356,000
|
|||||||
Settlement
of Threatened Litigation
|
-
|
-
|
368,750
|
|||||||
Total
Costs and Expenses
|
1,437,061
|
7,010,600
|
27,615,425
|
|||||||
Loss
before Other Income (Expense)
|
(1,437,061
|
)
|
(7,010,600
|
)
|
(27,615,425
|
)
|
||||
Other
Income (Expense)
|
||||||||||
Value
of Common Stock & Options Cancelled
|
-
|
-
|
2,600,000
|
|||||||
Interest
Income
|
1,718
|
-
|
1,718
|
|||||||
Interest
Expense
|
(1,575,803
|
)
|
(6,544
|
)
|
(2,579,449
|
)
|
||||
Unrealized
Loss on Marketable Securities
|
-
|
143
|
(6,547
|
)
|
||||||
Total
Other Income (Expense)
|
(1,574,085
|
)
|
(6,401
|
)
|
15,722
|
|||||
Net
Loss
|
(3,011,147
|
)
|
(7,017,001
|
)
|
(27,599,703
|
)
|
||||
Preferred
Stock Dividend
|
-
|
-
|
(8,975
|
)
|
||||||
Net
Loss Allocated to Common Shareholders
|
$
|
(3,011,147
|
)
|
$
|
(7,017,001
|
)
|
$
|
(27,608,678
|
)
|
|
Weighted
Average Common Shares - Outstanding
|
9,037,011
|
6,496,756
|
||||||||
Net
Loss per Common Share (Basic and Diluted)
|
$
|
(0.33
|
)
|
$
|
(1.08
|
)
|
FOR
THE THREE
MONTHS
ENDED
MARCH
31, 2007
|
FOR
THE THREE
MONTHS
ENDED
MARCH
31, 2006
|
FOR
THE PERIOD
FEBRUARY
1, 2001
(INCEPTION)
TO MARCH 31, 2007
|
||||||||
Cash
Flows from Operating Activities:
|
||||||||||
Net
Loss
|
$
|
(3,011,147
|
)
|
$
|
(7,017,001
|
)
|
$
|
(27,599,703
|
)
|
|
Adjustment
to reconcile net loss to net cash used in operating
activities:
|
||||||||||
Non-Cash
Item adjustments:
|
||||||||||
Compensatory
Element of Stock and Warrant Issuances
|
872,474
|
6,365,077
|
18,831,066
|
|||||||
Liquidated
Damages paid by Issuance of Forbearance Notes
|
-
|
-
|
387,437
|
|||||||
Amortization
of Deferred Finance Costs
|
1,387,732
|
5,938
|
2,390,153
|
|||||||
Depreciation
|
2,206
|
80
|
6,205
|
|||||||
Unrealized
(Gain) Loss on Marketable Securities
|
-
|
(142
|
)
|
6,547
|
||||||
Change
in Operating Assets and Liabilities:
|
||||||||||
(Increase)
Decrease in Prepaid Expenses
|
10,918
|
41,353
|
(6,243
|
)
|
||||||
(Increase)
in Inventories
|
(167,837
|
)
|
-
|
(591,690
|
)
|
|||||
Decrease
in Deposits on Inventory
|
57,197
|
-
|
-
|
|||||||
(Increase)
Decrease in Security Deposits
|
-
|
2,460
|
(17,045
|
)
|
||||||
Increase
(Decrease) in Accounts Payable
|
(6,053
|
)
|
-
|
279,353
|
||||||
Increase
in Accrued Liabilities
|
116,046
|
71,724
|
241,884
|
|||||||
Increase
in Accrued Payroll - Related Parties
|
-
|
-
|
960,000
|
|||||||
Net
Cash Used in Operating Activities
|
(738,464
|
)
|
(530,511
|
)
|
(5,112,036
|
)
|
||||
Cash
Flows from Investing Activities:
|
||||||||||
Capital
Expenditures
|
(1,131
|
)
|
(11,552
|
)
|
(96,944
|
)
|
||||
Net
Cash Used in Investing Activities
|
(1,131
|
)
|
(11,552
|
)
|
(96,944
|
)
|
||||
Cash
Flows from Financing Activities:
|
||||||||||
Restricted
Cash
|
(169,316
|
)
|
10,000
|
(199,316
|
)
|
|||||
Proceeds
of Loans
|
-
|
-
|
25,000
|
|||||||
Proceeds
from Issuance of 8% Convertible Notes
|
1,500,000
|
-
|
2,450,000
|
|||||||
Proceeds
from Issuance of Notes Payable
|
-
|
100,000
|
755,000
|
|||||||
Advances
to Stockholder/Officer
|
-
|
-
|
(381,598
|
)
|
||||||
Proceeds
from Issuance of Preferred Stock
|
-
|
-
|
650,000
|
|||||||
Repayment
of Related Party Loans
|
-
|
-
|
(109,736
|
)
|
||||||
Repayments
of Loans
|
-
|
-
|
(25,000
|
)
|
||||||
Deferred
Finance Costs
|
(255,000
|
)
|
-
|
(410,000
|
)
|
|||||
Proceeds
from Issuances of Common Stock
|
-
|
372,000
|
3,066,750
|
|||||||
Commissions
Paid on Sales of Common Stock
|
-
|
(37,200
|
)
|
(260,950
|
)
|
|||||
Net
Cash Provided by Financing Activities
|
1,075,684
|
444,800
|
5,560,150
|
|||||||
Net
Increase (Decrease) in Cash
|
336,089
|
(97,263
|
)
|
351,170
|
||||||
Cash,
Beginning
|
15,081
|
184,116
|
-
|
|||||||
Cash,
Ending
|
$
|
351,170
|
$
|
86,853
|
$
|
351,170
|
||||
Supplemental
Cash Flow Information:
|
||||||||||
Cash
Paid During the Period for:
|
||||||||||
Interest
|
$
|
30,388
|
$
|
-
|
$
|
37,400
|
||||
Income
Taxes
|
$
|
-
|
$
|
-
|
$
|
-
|
FOR
THE THREE
MONTHS
ENDED
MARCH
31, 2007
|
FOR
THE THREE
MONTHS
ENDED
MARCH
31, 2006
|
FOR
THE PERIOD
FEBRUARY
1, 2001
(INCEPTION)
TO
MARCH
31, 2007
|
||||||||
Supplemental
Disclosures of Cash Flow Information:
|
||||||||||
Non
Cash Financing Activities:
|
||||||||||
Common
Stock Issued as Commissions on
|
||||||||||
Sale
of Common Stock
|
$
|
-
|
$
|
-
|
$
|
1,600,624
|
||||
Accrued
Commissions on Sales of
|
||||||||||
Common
Stock
|
$
|
-
|
$
|
431,706
|
$
|
224,783
|
||||
Common
Stock Issued as payment of
|
||||||||||
Accrued
Commissions Payable
|
$
|
-
|
$
|
-
|
$
|
224,783
|
||||
Common
Stock Issued for Patents
|
$
|
664,500
|
$
|
-
|
$
|
664,500
|
||||
Issuance
of Common Stock as Payment of Accrued
|
||||||||||
Officers'
Salaries
|
$
|
-
|
$
|
-
|
$
|
160,000
|
||||
Issuance
of Common Stock - Deferred Finance Costs
|
$
|
-
|
$
|
71,250
|
$
|
2,248,354
|
||||
Issuance
of Common Stock - Deferred Compensation
|
$
|
-
|
$
|
-
|
$
|
390,000
|
||||
Application
of Loans Receivable - Officer Against
|
||||||||||
Accrued
Compensation
|
$
|
-
|
$
|
-
|
$
|
851,598
|
||||
Common
Stock Issued as Penalty Shares for
|
||||||||||
Non-Registration
|
$
|
-
|
$
|
-
|
$
|
1,303,175
|
||||
Common
Stock Issued as Prepaid Interest
|
||||||||||
on
8% Convertible Notes
|
$
|
-
|
$
|
-
|
$
|
172,800
|
||||
Issuance
of Convertible Forbearance Notes
|
||||||||||
in
connection with Liquidated Damages
|
$
|
-
|
$
|
-
|
$
|
387,439
|
||||
Beneficial
Conversion Feature of Convertible Forbearance
Notes
|
$
|
-
|
$
|
-
|
$
|
387,439
|
||||
Beneficial
Conversion Feature of Convertible Notes
|
$
|
1,500,000
|
$
|
-
|
$
|
2,715,200
|
||||
Cashless
Exercise of Stock Options - Related Party
|
$
|
100,000
|
$
|
250,000
|
$
|
350,000
|
||||
Accrued
Deferred Finance Costs
|
$
|
-
|
$
|
-
|
$
|
67,948
|
||||
Deferred
Finance Costs on the Issuance of Warrants
|
$
|
-
|
$
|
-
|
||||||
Preferred
Stock Dividend
|
$
|
-
|
$
|
-
|
$
|
8,975
|
||||
Issuance
of Common Stock as Payment of Accrued
|
||||||||||
Expenses
|
$
|
-
|
$
|
-
|
$
|
1,825,000
|
||||
Issuance
of Common Stock as Payment of Accrued
|
||||||||||
Settlement
of Threatened Litigation
|
$
|
-
|
$
|
-
|
$
|
368,750
|
||||
Issuance
of Common Stock to pay Notes Payable
|
$
|
55,000
|
$
|
-
|
$
|
55,000
|
||||
Insurance
of Common Stock to pay Accrued Interest Payable on Notes
Payable
|
$
|
32,500
|
$
|
-
|
$
|
32,500
|
||||
Issuance
of Warrants to pay Accrued Intetrest Payable on Notes
Payable
|
$
|
29,060
|
$
|
-
|
$
|
29,060
|
||||
Issuance
of Common Stock for Prepaid Expenses
|
$
|
18,900
|
$
|
-
|
$
|
18,900
|
Property
and equipment at March 31, 2007 consist of the following:
|
|||||
Office
Equipment
|
$
|
33,690
|
|||
Tooling
and Dies
|
63,255
|
||||
|
96,945
|
||||
Less:
Accumulated Depreciation
|
6,207
|
||||
$
|
90,738
|
Notes
payable at March 31, 2007 consist of the following:
|
|||||
Notes
payable to private investors; bearing interest at 10%
|
|||||
per
annum and due March 15, 2007. The Company is
|
|||||
currently
in default of these Notes.
|
$
|
700,000
|
2007
|
2006
|
||||||||||||
2005
Equity Incentive Plan
|
|
Number
of
Options
|
Weighted Average
Exercise
Price
|
Number
of Options |
Weighted Average
Exercise
Price
|
||||||||
Balance
- January 1,
|
287,500
|
$
|
1.65
|
375,000
|
$
|
2.00
|
|||||||
Options
Granted
|
-
|
-
|
250,000
|
$
|
1.00
|
||||||||
Options
Exercised
|
-
|
-
|
(250,000
|
)
|
$
|
1.00
|
|||||||
Balance
- March 31, 2007
|
287,500
|
$
|
1.65
|
375,000
|
$
|
2.00
|
2007
|
2006
|
||||||||||||
Other
Options
|
Number
of Options
|
Weighted Average
Exercise
Price
|
Number
of Options
|
Weighted Average
Exercise
Price
|
|||||||||
Balance
- January 1,
|
2,150,000
|
$
|
2.66
|
25,000
|
$
|
.40
|
|||||||
Options
Granted in 2007
|
-
|
-
|
1,000,000
|
.3.50
|
|||||||||
Options
Exercised in 2007
|
(
250,000
|
)
|
0.40
|
(6,250
|
) |
.40
|
|||||||
Balance
- March 31,
|
1,900,000
|
$
|
2.69
|
1,018,750
|
$
|
2.52
|
The
following table summarized information about stock options at March
31,
2007:
|
||||||||||||||||
Options
Outstanding
|
Options
Exercisable
|
|||||||||||||||
Range
of Exercise Prices
|
Number
Outstanding
|
Weighted
Average
Remaining
Contractual
Life
(Years)
|
Weighted
Average
Exercise
Price
|
Number
Exercisable
|
Weighted
Average
Price
|
|||||||||||
$1.00
- $1.99
|
900,000
|
4.45
|
$
|
1.20
|
700,000
|
$
|
1.23
|
|||||||||
$2.00
|
250,000
|
3.25
|
$
|
2.00
|
250,000
|
$
|
2.00
|
|||||||||
$3.00
|
250,000
|
3.25
|
$
|
3.00
|
250,000
|
$
|
3.00
|
|||||||||
$4.00
|
250,000
|
3.25
|
$
|
4.00
|
250,000
|
$
|
4.00
|
|||||||||
$5.00
|
250,000
|
3.25
|
$
|
5.00
|
250,000
|
$
|
5.00
|
|||||||||
$1.00
- $5.00
|
1,900,000
|
3.82
|
$
|
2.69
|
1,700,000
|
$
|
2.56
|
|
2007
|
2006
|
|||||||||||
Number
of Warrants |
Weighted Average
Exercise
Price
|
Number
of Warrants |
Weighted Average
Exercise
Price
|
||||||||||
Balance
- January 1,
|
3,626,495-
|
$
|
1.17-
|
194,245
|
$
|
2.81
|
|||||||
Warrants
Granted
|
2,270,000
|
$
|
0.71
|
-
|
-
|
||||||||
Warrants
Exercised
|
(
25,000
|
)
|
$
|
1.00
|
-
|
-
|
|||||||
Balance
- March 31,
|
5,871,495
|
$
|
0.90
|
194,245
|
$
|
2.81
|
Warrants Outstanding | Warrants Exercisable | |||||||||
Range
of
Exercise
Price
|
Number
Outstanding
|
Weighted
Average Remaining Contracted
Life
(Years)
|
Weighted
Average
Exercise
Price
|
Number
Exercisable
|
Weighted Average
Exercise
Price
|
|||||
$
.01-.99
|
|
1,568,250
|
|
5.00
|
|
$.10
|
|
1,568,250
|
|
$
.10
|
$1.00-1.99
|
|
3,889,000
|
|
4.53
|
|
$1.02
|
|
3,889,000
|
|
$
1.02
|
$2.00-2.99
|
|
235,198
|
|
4.26
|
|
$2.13
|
|
235,198
|
|
$
2.13
|
$3.00-3.99
|
|
52,698
|
|
3.00
|
|
$3.40
|
|
52,698
|
|
$
3.40
|
$4.00
|
|
126,349
|
|
3.49
|
|
$4.00
|
|
126,349
|
|
$
4.00
|
|
|
5,871,495
|
|
4.56
|
|
$0.90
|
|
5,871,495
|
|
$
0.90
|
April
1, 2007 - December 31, 2007
|
$
|
79,390
|
||
January
1, 2008 - December 31, 2008
|
109,249
|
|||
January
1, 2009 - December 31, 2009
|
113,073
|
|||
January
1, 2010 - January 31, 2010
|
9,449
|
|||
|
$
|
311,161
|
Report
of Independent Registered Public Accounting Firm
|
F-2
|
|||
|
||||
Balance
Sheet as of the Year Ended December 31, 2006
|
F-3
|
|||
|
||||
Statement
of Operations for the Years Ended December 31, 2006 and 2005, and
for the
Period February 1, 2001 (inception) to December 31, 2006
|
F-4
|
|||
|
||||
Statements
of Cash Flows for the Years Ended December 31, 2006 and 2005, and
for the
Period February 1, 2001 (inception) to December 31, 2006
|
F-5
|
|||
|
||||
Statements of
Stockholders’ Equity for the Years Ended December 31, 2006 and
2005 and for the Period February 1, 2001 (inception) to December 31,
2006
|
F-7
|
|||
|
||||
Notes
to Financial Statements
|
F-13
|
BIOMETRX,
INC. AND SUBSIDIARIES
|
||||
(A
Development Stage Company)
|
||||
CONSOLIDATED
BALANCE SHEET
|
||||
December
31, 2006
|
ASSETS
|
||||
Current
Assets:
|
||||
Cash
|
$
|
15,081
|
||
Prepaid
Expenses
|
17,164
|
|||
Inventories
|
423,853
|
|||
Deposits
on Inventory
|
57,197
|
|||
Total
Current Assets
|
513,295
|
|||
Property
and Equipment, net
|
91,814
|
|||
Other
Assets:
|
||||
Deferred
Finance Costs, net
|
14,250
|
|||
Security
Deposit
|
17,045
|
|||
Total
Other Assets
|
31,295
|
|||
TOTAL
ASSETS
|
$
|
636,404
|
||
LIABILITIES
AND STOCKHOLDERS' DEFICIT
|
||||
Current
Liabilities:
|
||||
Accounts
Payable
|
$
|
507,289
|
||
Notes
Payable
|
755,000
|
|||
Convertible
Forbearance Notes, net of unamortized discounts of
$387,437
|
-
|
|||
Accrued
Taxes Payable
|
39,436
|
|||
Accrued
Payroll
|
26,720
|
|||
Accrued
Interest
|
23,606
|
|||
Total
Current Liabilities
|
1,352,051
|
|||
Long-Term
Liabilities:
|
||||
8%
Convertible Notes, net of unamortized discounts of
$905,997
|
694,003
|
|||
TOTAL
LIABILITIES
|
2,046,054
|
|||
COMMITMENTS
AND CONTINGENCIES
|
||||
Stockholders'
Deficit:
|
||||
Preferred
Stock, $.01 par value; 10,000,000 shares
authorized;
|
||||
no
shares issued and outstanding
|
-
|
|||
Common
Stock, $.001 par value; 25,000,000 shares
authorized;
|
||||
8,915,907
shares issued and outstanding
|
8,916
|
|||
Additional
Paid-In-Capital
|
24,355,224
|
|||
Prepaid
Interest - 8% Convertible Notes
|
(86,400
|
)
|
||
Deferred
Finance Costs
|
(1,089,859
|
)
|
||
Deficit
Accumulated in the Development Stage
|
(24,597,531
|
)
|
||
Total
Stockholders' Deficit
|
(1,409,650
|
)
|
||
TOTAL
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
$
|
636,404
|
The
accompanying notes are an integral part of these financial
statements.
|
|
BIOMETRX,
INC. AND SUBSIDIARIES
|
||||||
(A
Development Stage Company)
|
||||||
CONSOLIDATED
STATEMENT OF
OPERATIONS
|
|
|
For
the Year Ended
December
31, 2006
|
|
For
the Year Ended December
31, 2005
|
For
the Period
February
1, 2001
(Inception)
to
December
31, 2006
|
|||||
REVENUES
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
Costs
and Expenses:
|
||||||||||
General
and Administrative Expenses
|
12,673,521
|
11,074,632
|
25,167,846
|
|||||||
Research
and Development Expenses
|
658,879
|
361,490
|
1,178,045
|
|||||||
Contract
Buyouts Issued In Stock
|
-
|
356,000
|
356,000
|
|||||||
Settlement
of Threatened Litigation
|
-
|
368,750
|
368,750
|
|||||||
Total
Costs and Expenses
|
13,332,400
|
12,160,872
|
27,070,641
|
|||||||
Loss
before Other Income (Expense)
|
(13,332,400
|
)
|
(12,160,872
|
)
|
(27,070,641
|
)
|
||||
Other
Income (Expense)
|
||||||||||
Value
of Common Stock and Options Cancelled
|
2,600,000
|
-
|
2,600,000
|
|||||||
Interest
Expense
|
(104,356
|
)
|
(7,012
|
)
|
(111,368
|
)
|
||||
Unrealized
Loss on Marketable Securities
|
(461
|
)
|
(6,085
|
)
|
(6,547
|
)
|
||||
Total
Other Income (Expense)
|
2,495,183
|
(13,097
|
)
|
2,482,085
|
||||||
Net
Loss
|
(10,837,218
|
)
|
(12,173,969
|
)
|
(24,588,556
|
)
|
||||
Preferred
Stock Dividend
|
(8,975
|
)
|
-
|
(8,975
|
)
|
|||||
Net
Loss Attributable to Common Shareholders
|
$
|
(10,846,193
|
)
|
$
|
(12,173,969
|
)
|
$
|
(24,597,531
|
)
|
|
Weighted
Average Common Shares - Outstanding
|
7,605,851
|
4,026,446
|
||||||||
Net
Loss per Common Share (Basic and Diluted)
|
$
|
(1.43
|
)
|
$
|
(3.02
|
)
|
The
accompanying notes are an integral part of these financial
statements.
|
BIOMETRX
INC. AND SUBSIDIARIES
|
|||||||
(A
Development Stage Company)
|
|||||||
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
FOR
THE YEAR ENDED
DECEMBER
31, 2006
|
FOR
THE YEAR ENDED
DECEMBER
31, 2005
|
FOR
THE PERIOD
FEBRUARY
1, 2001
(INCEPTION)
TO DECEMBER 31, 2006
|
||||||||
Cash
Flows from Operating Activities:
|
||||||||||
Net
Loss
|
$
|
(10,837,218
|
)
|
$
|
(12,173,969
|
)
|
$
|
(24,588,556
|
)
|
|
Adjustment
to reconcile net loss to net cash used in operating
activities:
|
||||||||||
Non-Cash
Item adjustments:
|
||||||||||
Compensatory
Element of Stock and Warrant Issuances
|
7,573,591
|
10,072,501
|
17,958,592
|
|||||||
Liquidated
Damages paid by Issuance of Forbearance Notes
|
387,437
|
-
|
387,437
|
|||||||
Amortization
of Deferred Finance Costs
|
694,436
|
201,736
|
1,002,421
|
|||||||
Depreciation
|
3,999
|
-
|
3,999
|
|||||||
Unrealized
Loss on Marketable Securities
|
461
|
6,085
|
6,547
|
|||||||
Change
in Operating Assets and Liabilities:
|
||||||||||
(Increase)
Decrease in Prepaid Expenses
|
41,989
|
(59,150
|
)
|
(17,161
|
)
|
|||||
(Increase)
in Inventories
|
(423,853
|
)
|
-
|
(423,853
|
)
|
|||||
(Increase)
in Deposits on Inventory
|
(57,197
|
)
|
-
|
(57,197
|
)
|
|||||
(Increase)
in Security Deposits
|
(509
|
)
|
(16,536
|
)
|
(17,045
|
)
|
||||
Increase
in Accounts Payable
|
285,406
|
-
|
285,406
|
|||||||
Increase
(Decrease) in Accrued Liabilities
|
52,759
|
(38,929
|
)
|
125,838
|
||||||
Increase
(Decrease) in Accrued Settlement of Threatened
Litigation
|
(368,750
|
)
|
368,750
|
-
|
||||||
Increase
in Accrued Payroll - Related Parties
|
-
|
180,000
|
960,000
|
|||||||
Net
Cash Used in Operating Activities
|
(2,647,449
|
)
|
(1,459,512
|
)
|
(4,373,572
|
)
|
||||
Cash
Flows from Investing Activities:
|
||||||||||
Capital
Expenditures
|
(95,813
|
)
|
-
|
(95,813
|
)
|
|||||
Net
Cash Used in Investing Activities
|
(95,813
|
)
|
-
|
(95,813
|
)
|
|||||
Cash
Flows from Financing Activities:
|
||||||||||
Restricted
Cash
|
66,427
|
(96,427
|
)
|
(30,000
|
)
|
|||||
Proceeds
of Loans
|
-
|
-
|
25,000
|
|||||||
Proceeds
from Issuance of 8% Convertible Notes
|
950,000
|
-
|
950,000
|
|||||||
Proceeds
from Issuance of Notes Payable
|
755,000
|
755,000
|
||||||||
Advances
to Stockholder/Officer
|
-
|
(79,570
|
)
|
(381,598
|
)
|
|||||
Proceeds
from Issuance of Preferred Stock
|
650,000
|
-
|
650,000
|
|||||||
Repayment
of Related Party Loans
|
-
|
(109,736
|
)
|
(109,736
|
)
|
|||||
Advances
to Employee
|
3,000
|
(3,000
|
)
|
-
|
||||||
Repayments
of Loans
|
-
|
-
|
(25,000
|
)
|
||||||
Deferred
Finance Costs
|
(155,000
|
)
|
-
|
(155,000
|
)
|
|||||
Proceeds
from Issuances of Common Stock
|
342,000
|
2,125,000
|
3,066,750
|
|||||||
Commissions
Paid on Sales of Common Stock
|
(37,200
|
)
|
(223,750
|
)
|
(260,950
|
)
|
||||
Net
Cash Provided by Financing Activities
|
2,574,227
|
1,612,517
|
4,484,466
|
|||||||
Net
Increase (Decrease) in Cash
|
(169,035
|
)
|
153,005
|
15,081
|
||||||
Cash,
Beginning
|
184,116
|
31,111
|
-
|
|||||||
Cash,
Ending
|
$
|
15,081
|
$
|
184,116
|
$
|
15,081
|
||||
Supplemental
Cash Flow Information:
|
||||||||||
Cash
Paid During the Period for:
|
||||||||||
Interest
|
$
|
-
|
$
|
-
|
$
|
7,012
|
||||
Income
Taxes
|
$
|
-
|
$
|
-
|
$
|
-
|
The
accompanying notes are an integral part of these financial
statements.
|
Supplemental
Disclosures of Cash Flow Information:
|
||||||||||
Non
Cash Financing Activities:
|
||||||||||
Common
Stock Issued as Commissions on
|
||||||||||
Sale
of Common Stock
|
$
|
431,706
|
$
|
725,668
|
$
|
1,600,624
|
||||
Accrued
Commissions on Sales of
|
||||||||||
Common
Stock
|
$
|
-
|
$
|
224,783
|
$
|
224,783
|
||||
Common
Stock Issued as payment of
|
||||||||||
Accrued
Commissions Payable
|
$
|
224,783
|
$
|
-
|
$
|
224,783
|
||||
Issuance
of Common Stock as Payment of Accrued
|
||||||||||
Officers'
Salaries
|
$
|
310,000
|
$
|
470,000
|
$
|
160,000
|
||||
Issuance
of Common Stock - Deferred Finance Costs
|
$
|
2,248,354
|
$
|
-
|
$
|
2,248,354
|
||||
|
||||||||||
Issuance
of Common Stock - Deferred Compensation
|
$
|
390,000
|
$
|
390,000
|
||||||
Application
of Loans Receivable - Officer Against
|
||||||||||
Accrued
Compensation
|
$
|
201,598
|
$
|
-
|
$
|
851,598
|
||||
Common
Stock Issued as Penalty Shares for
|
||||||||||
Non-Registration
|
$
|
674,175
|
$
|
629,000
|
$
|
1,303,175
|
||||
Common
Stock Issued as Prepaid Interest
|
||||||||||
on
8% Convertible Notes
|
$
|
172,800
|
$
|
-
|
$
|
172,800
|
||||
Issuance
of Convertible Forbearance Notes
|
||||||||||
in
connection with Liquidated Damages
|
$
|
387,439
|
$
|
-
|
$
|
387,439
|
||||
Beneficial
Conversion Feature of Convertible Forbearance
Notes
|
$
|
387,439
|
$
|
-
|
$
|
387,439
|
||||
Cashless
Exercise of Stock Options - Related Party
|
$
|
250,000
|
$
|
-
|
$
|
250,000
|
||||
Accrued
Deferred Finance Costs
|
$
|
67,948
|
$
|
-
|
$
|
67,948
|
||||
Deferred
Finance Costs on the Issuance of Warrants
|
$
|
-
|
$
|
-
|
||||||
Preferred
Stock Dividend
|
$
|
8,975
|
$
|
-
|
$
|
8,975
|
||||
Issuance
of Common Stock as Payment of Accrued
|
||||||||||
Expenses
|
$
|
1,825,000
|
$
|
1,825,000.00
|
||||||
Issuance
of Common Stock as Payment of Accrued
|
||||||||||
Settlement
of Threatened Litigation
|
$
|
368,750
|
$
|
-
|
$
|
-
|
The
accompanying notes are an integral part of these financial
statements.
|
BIOMETRX,
INC. AND SUBSIDIARIES
|
|||||||||||
(A
Development Stage Company)
|
|||||||||||
CONSOLIDATED
STATEMENT OF STOCKHOLDERS' EQUITY
(DEFICIT)
|
|||||||||||
FOR
THE PERIOD FEBRUARY 1, 2001 (INCEPTION) TO DECEMBER 31,
2006
|
|
Preferred
Stock
|
Common
Stock
|
Additional
Paid
In
|
Deferred
|
Prepaid
Interest 8% Convertible
|
Deferred
Finance
|
Deficit
Accumulated
During
the
Development
|
||||||||||||||||||||||||
|
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Compensation
|
Notes
|
Costs
|
Stage
|
Total
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
BALANCE,
FEBRUARY 1, 2001
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||||
|
|||||||||||||||||||||||||||||||
Shares
issued at December 31, 2001 pursuant
to
initial capitalization
|
1,500,000
|
1,500
|
-
|
-
|
-
|
1,500
|
|||||||||||||||||||||||||
Common
Stock issued for services
valued
at $1.00 per share.
|
275,000
|
275
|
274,725
|
-
|
-
|
275,000
|
|||||||||||||||||||||||||
Net
loss for the period ended December 31, 2002
|
-
|
-
|
-
|
-
|
(275,046
|
)
|
(275,046
|
)
|
|||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
BALANCE,
December 31, 2001
|
1,775,000
|
1,775
|
274,725
|
-
|
-
|
-
|
(275,046
|
)
|
1,454
|
||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Common
Stock issued at $1.00 per share.
|
5,000
|
5
|
4,995
|
-
|
-
|
5,000
|
|||||||||||||||||||||||||
Net
loss for the period ended December 31, 2003
|
|
|
-
|
-
|
-
|
-
|
|
|
(7,573
|
)
|
(7,573
|
)
|
|||||||||||||||||||
|
|||||||||||||||||||||||||||||||
BALANCE,
December 31, 2002
|
1,780,000
|
1,780
|
279,720
|
-
|
-
|
-
|
(282,619
|
)
|
(1,119
|
)
|
|||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Common
Stock issued at $1.00 per share.
|
231,250
|
231
|
231,019
|
-
|
-
|
231,250
|
|||||||||||||||||||||||||
Common
Stock issued for services.
|
75,000
|
75
|
149,925
|
(112,500
|
)
|
-
|
37,500
|
||||||||||||||||||||||||
Common
Stock issued as commissions
on
sales of common stock.
|
129,500
|
130
|
129,370
|
-
|
-
|
129,500
|
|||||||||||||||||||||||||
|
(129,500
|
)
|
(129,500
|
)
|
|||||||||||||||||||||||||||
Amortization
of deferred compensation.
|
-
|
-
|
-
|
47,917
|
-
|
47,917
|
|||||||||||||||||||||||||
Net
loss for the period ended December 31, 2003
|
|
|
-
|
-
|
-
|
-
|
|
|
(526,536
|
)
|
(526,536
|
)
|
|||||||||||||||||||
|
|||||||||||||||||||||||||||||||
BALANCE,
December 31, 2003
|
2,215,750
|
2,216
|
660,534
|
(64,583
|
)
|
-
|
-
|
(809,155
|
)
|
(210,988
|
)
|
BIOMETRX
TECHNOLOGIES, INC.
|
|||||||||||
(A
Development Stage Company)
|
|||||||||||
STATEMENT
OF STOCKHOLDERS' EQUITY (DEFICIT) -
(continued)
|
|||||||||||
FOR
THE PERIOD FEBRUARY 1, 2001 (INCEPTION) TO DECEMBER 31,
2006
|
Preferred
Stock
|
Common
Stock
|
Additional
Paid
In
|
Deferred
|
Prepaid
Interest 8% Convertible
|
Deferred
Finance
|
Deficit
Accumulated
During
the
Development
|
|||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Compensation
|
Notes
|
Costs
|
Stage
|
Total
|
||||||||||||||||||||||
Common
Stock issued $1.00 per share.
|
27,000
|
$
|
27
|
$
|
26,974
|
$
|
-
|
$
|
-
|
$
|
27,001
|
||||||||||||||||||||
Common
Stock issued $4.00 per share.
|
83,750
|
84
|
334,916
|
-
|
-
|
335,000
|
|||||||||||||||||||||||||
Common
Stock issued as commissions on sales of common stock valued
at $1.00 per
share
|
8,750
|
9
|
8,741
|
8,750
|
|||||||||||||||||||||||||||
|
(8,750
|
)
|
(8,750
|
)
|
|||||||||||||||||||||||||||
Common
Stock issued as commissions on sales of common stock valued
at $4.00 per
share
|
50,000
|
50
|
199,950
|
-
|
-
|
200,000
|
|||||||||||||||||||||||||
|
(200,000
|
)
|
(200,000
|
)
|
|||||||||||||||||||||||||||
Amortization
of deferred compensation.
|
-
|
-
|
-
|
58,333
|
-
|
58,333
|
|||||||||||||||||||||||||
Net
loss for the period ended December 31, 2004
|
|
|
-
|
-
|
-
|
|
|
|
(768,214
|
)
|
(768,214
|
)
|
|||||||||||||||||||
|
|||||||||||||||||||||||||||||||
BALANCE,
December 31, 2004
|
2,385,250
|
2,386
|
1,022,365
|
(6,250
|
)
|
-
|
-
|
(1,577,369
|
)
|
(558,868
|
)
|
||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Common
Stock issued $.40 per share upon exercise of stock
options.
|
18,750
|
19
|
7,481
|
7,500
|
|||||||||||||||||||||||||||
Common
Stock issued $1.60 per share.
|
125,000
|
125
|
199,875
|
-
|
-
|
200,000
|
|||||||||||||||||||||||||
Common
Stock issued $2.00 per share.
|
37,500
|
37
|
74,963
|
-
|
-
|
75,000
|
|||||||||||||||||||||||||
Common
Stock issued $4.00 per share.
|
26,250
|
26
|
104,974
|
-
|
-
|
105,000
|
|||||||||||||||||||||||||
Common
Stock issued for Services valued at $4.00 per
share
|
25,000
|
25
|
99,975
|
100,000
|
|||||||||||||||||||||||||||
Common
Stock issued for Services valued at $4.00 per
share
|
125,000
|
125
|
499,875
|
500,000
|
|||||||||||||||||||||||||||
Common
Stock issued for Services valued at $4.00 per
share
|
17,500
|
18
|
69,982
|
70,000
|
|||||||||||||||||||||||||||
Common
Stock issued for Services valued at $4.00 per
share
|
28,125
|
28
|
112,472
|
112,500
|
|||||||||||||||||||||||||||
Common
Stock issued for Services valued at $1.00 per
share
|
10,000
|
10
|
9,990
|
10,000
|
|||||||||||||||||||||||||||
Common
Stock issued for Services valued at $3.56 per
share
|
100,000
|
100
|
355,900
|
356,000
|
|||||||||||||||||||||||||||
Common
Stock issued for Services valued at $5.20 per
share
|
62,500
|
63
|
324,937
|
325,000
|
|||||||||||||||||||||||||||
Issuance
of Common Stock purchase options for services - Related
Party
|
-
|
-
|
4,725,000
|
4,725,000
|
|||||||||||||||||||||||||||
Common
Stock issued $.40 per share upon exercise of stock options
- Related
Party
|
31,250
|
31
|
12,469
|
-
|
-
|
12,500
|
|||||||||||||||||||||||||
Common
Stock issued $.80 per share - Related Party
|
562,500
|
563
|
449,437
|
-
|
-
|
450,000
|
|||||||||||||||||||||||||
Common
Stock issued $.80 per share upon exercise of stock warrants
- Related
Party
|
281,250
|
281
|
224,719
|
225,000
|
|||||||||||||||||||||||||||
Common
Stock issued $2.00 per share - Related Party
|
175,000
|
175
|
349,825
|
-
|
-
|
350,000
|
|||||||||||||||||||||||||
Common
Stock issued $3.00 per share - Related Party
|
233,334
|
233
|
699,767
|
-
|
-
|
700,000
|
|||||||||||||||||||||||||
Common
Stock issued for Services valued at $11.00 per share - Related
Party
|
187,500
|
187
|
2,062,313
|
-
|
2,062,500
|
||||||||||||||||||||||||||
Common
Stock issued for Services valued at $4.00 per share - Related
Party
|
181,250
|
181
|
724,819
|
725,000
|
|||||||||||||||||||||||||||
Common
Stock issued as consideration for Accrued Salaries valued at
$2.00 per
share - Related Party
|
235,000
|
235
|
469,765
|
470,000
|
BIOMETRX
TECHNOLOGIES, INC.
|
|||||||||||
(A
Development Stage Company)
|
|||||||||||
STATEMENT
OF STOCKHOLDERS' EQUITY (DEFICIT) -
(continued)
|
|||||||||||
FOR
THE PERIOD FEBRUARY 1, 2001 (INCEPTION) TO DECEMBER 31,
2006
|
Preferred
Stock
|
Common
Stock
|
Additional
Paid
In
|
Deferred
|
Prepaid
Interest 8% Convertible
|
Deferred
Finance
|
Deficit
Accumulated
During
the
Development
|
||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Compensation
|
Notes
|
Costs
|
Stage
|
Total
|
|||||||||||||||||||||||||
Common
Stock issued as commissions
on
sales of common stock valued at $4.40 per share
|
164,924
|
165
|
725,500
|
-
|
-
|
725,665
|
||||||||||||||||||||||||||||
|
(725,665
|
)
|
-
|
-
|
(725,665
|
)
|
||||||||||||||||||||||||||||
Effect
of recapitalization due to reverse merger
|
810,031
|
810
|
(319,804
|
)
|
(318,994
|
)
|
||||||||||||||||||||||||||||
Penalty
shares issued to Related Party in connection
with
non-registration valued at $4.80 per share
|
25,000
|
25
|
119,975
|
120,000
|
||||||||||||||||||||||||||||||
Penalty
shares issued to Related Party in connection
with
non-registration valued at $4.80 per share
|
25,000
|
25
|
119,975
|
120,000
|
||||||||||||||||||||||||||||||
Penalty
shares issued to Related Party in connection
with
non-registration valued at $3.20 per share
|
25,000
|
25
|
79,975
|
80,000
|
||||||||||||||||||||||||||||||
Penalty
shares issued to Related Party in connection
with
non-registration valued at $7.96 per share
|
25,000
|
25
|
198,975
|
199,000
|
||||||||||||||||||||||||||||||
Penalty
shares issued to Related Party in connection
with
non-registration valued at $4.40 per share
|
25,000
|
25
|
109,975
|
110,000
|
||||||||||||||||||||||||||||||
Issuance
of 25,000 Common Stock purchase options for services - Related
Party
|
180,000
|
(180,000
|
)
|
-
|
||||||||||||||||||||||||||||||
Issuance
of 18,750 Common Stock purchase options for services - Related
Party
|
157,500
|
(105,000
|
)
|
52,500
|
||||||||||||||||||||||||||||||
Issuance
of 18,750 Common Stock purchase options for services - Related
Party
|
157,500
|
(105,000
|
)
|
52,500
|
||||||||||||||||||||||||||||||
Issuance
of 62,500 Common Stock purchase options for
services
|
252,500
|
252,500
|
||||||||||||||||||||||||||||||||
Issuance
of 25,000 Common Stock purchase options for services - Related
Party
|
100,000
|
100,000
|
||||||||||||||||||||||||||||||||
Amortization
of deferred compensation.
|
-
|
-
|
-
|
201,736
|
-
|
201,736
|
||||||||||||||||||||||||||||
Commissions
paid on sales of common stock.
|
-
|
-
|
(223,750
|
)
|
-
|
-
|
(223,750
|
)
|
||||||||||||||||||||||||||
Commissions
accrued on sale of Common Stock
|
(224,783
|
)
|
(224,783
|
)
|
||||||||||||||||||||||||||||||
Net
loss for the period ended December 31, 2005
|
|
|
|
-
|
-
|
-
|
-
|
|
|
(12,173,969
|
)
|
(12,173,969
|
)
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||
BALANCE,
December 31, 2005
|
-
|
-
|
5,947,914
|
5,948
|
13,308,776
|
(194,514
|
)
|
-
|
-
|
(13,751,338
|
)
|
(631,128
|
)
|
BIOMETRX
TECHNOLOGIES, INC.
|
|||||||||||
(A
Development Stage Company)
|
|||||||||||
STATEMENT
OF STOCKHOLDERS' EQUITY (DEFICIT) -
(continued)
|
|||||||||||
FOR
THE PERIOD FEBRUARY 1, 2001 (INCEPTION) TO DECEMBER 31,
2006
|
|
Preferred
Stock
|
Common
Stock
|
Additional
Paid
In
|
Deferred
|
Prepaid
Interest 8% Convertible
|
Deferred
Finance
|
Deficit
Accumulated
During
the
Development
|
||||||||||||||||||||||||
|
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Compensation
|
Notes
|
Costs
|
Stage
|
Total
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Cashless
Exercise of 250,000 common stock options @ $.72 per share -
Related
Party
|
179,578
|
180
|
(180
|
)
|
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Issuance
of Common Stock pursuant to the 2005 Equity Incentive Plan
- 44,250 shares
@ $2.90 per share - Related Parties.
|
44,250
|
44
|
128,281
|
128,325
|
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Common
Stock issued $.80 per share upon exercise of stock warrants
- Related
Party
|
281,250
|
281
|
224,719
|
225,000
|
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Effect
of return of Shares of Common Stock and cancellation of Common
Stock
Options pursuant to a Termination Agreement - Related
Party.
|
(62,500
|
)
|
(63
|
)
|
(2,359,342
|
)
|
(2,359,405
|
)
|
|||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Issuance
of Common Stock for Cash @ $1.25 per share - Related
Party
|
183,750
|
184
|
146,816
|
147,000
|
|||||||||||||||||||||||||||
Issuance
of Common Stock for Cash @ $3.54 per share.
|
2,827
|
2
|
9,998
|
10,000
|
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Issuance
of 100,000 Common Stock Purchase Options for Services @
$.48.
|
47,500
|
47,500
|
|||||||||||||||||||||||||||||
Issuance
of 100,000 Common Stock Purchase Options for Services @
$.37.
|
37,200
|
37,200
|
|||||||||||||||||||||||||||||
Issuance
of 100,000 Common Stock Purchase Options for Services @
$.17.
|
17,100
|
17,100
|
|||||||||||||||||||||||||||||
Issuance
of 18,250 Common Stock Purchase Options for Services @
$1.37.
|
25,003
|
25,003
|
|||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Common
Stock issued for Services valued at $3.50 per share - Related
Party
|
250,000
|
250
|
874,750
|
875,000
|
|||||||||||||||||||||||||||
Common
Stock issued for Services valued at $.85 per share - Related
Party
|
100,000
|
100
|
84,900
|
85,000
|
|||||||||||||||||||||||||||
Common
Stock issued for Services valued at $.80 per share - Related
Party
|
150,000
|
150
|
119,850
|
120,000
|
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Common
Stock issued in connection with financing Notes Payable @ $2.85
per
share
|
25,000
|
25
|
71,225
|
(71,250
|
)
|
-
|
|||||||||||||||||||||||||
Common
Stock issued in connection with financing Notes Payable @ $1.90
per
share
|
320,000
|
320
|
607,680
|
(608,000
|
)
|
-
|
|||||||||||||||||||||||||
Common
Stock issued in connection with financing Notes Payable @ $1.09
per
share
|
160,000
|
160
|
174,240
|
(174,400
|
)
|
-
|
|||||||||||||||||||||||||
Common
Stock issued in connection with financing Notes Payable @ $1.60
per
share
|
22,000
|
22
|
35,178
|
(35,200
|
)
|
-
|
|||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Common
Stock issued for Services valued at $6.00 per
share
|
25,000
|
25
|
149,975
|
150,000
|
BIOMETRX
TECHNOLOGIES, INC.
|
|||||||||||
(A
Development Stage Company)
|
|||||||||||
STATEMENT
OF STOCKHOLDERS' EQUITY (DEFICIT) -
(continued)
|
|||||||||||
FOR
THE PERIOD FEBRUARY 1, 2001 (INCEPTION) TO DECEMBER 31,
2006
|
|
Preferred
Stock
|
Common
Stock
|
Additional
Paid
In
|
Deferred
|
Prepaid
Interest 8% Convertible
|
Deferred
Finance
|
Deficit
Accumulated
During
the
Development
|
|
|||||||||||||||||||||||
|
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Compensation
|
Notes
|
Costs
|
Stage
|
Total
|
|||||||||||||||||||||
Common
Stock issued for Services valued at $3.55 per
share
|
20,000
|
20
|
70,980
|
71,000
|
|||||||||||||||||||||||||||
Common
Stock issued for Services valued at $3.50 per
share
|
180,000
|
180
|
629,820
|
630,000
|
|||||||||||||||||||||||||||
Common
Stock issued for Services valued at $1.15 per
share
|
25,000
|
25
|
28,725
|
28,750
|
|||||||||||||||||||||||||||
Common
Stock issued for Services valued at $1.70 per
share
|
25,000
|
25
|
42,475
|
42,500
|
|||||||||||||||||||||||||||
Common
Stock issued for Services valued at $1.94 per
share
|
25,000
|
25
|
48,475
|
48,500
|
|||||||||||||||||||||||||||
Common
Stock issued for Services valued at $1.50 per
share
|
115,000
|
115
|
172,385
|
172,500
|
|||||||||||||||||||||||||||
Common
Stock issued for Services valued at $2.95 per
share
|
75,000
|
75
|
221,175
|
221,250
|
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Commissions
paid on sales of common stock.
|
(37,200
|
)
|
(37,200
|
)
|
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Commissions
accrued on sale of Common Stock
|
(431,706
|
)
|
(431,706
|
)
|
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Common
Stock issued as commissions
on
sales of common stock valued at $3.99 per share
|
164,637
|
165
|
656,324
|
656,489
|
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Issuance
of Common Stock purchase options valued @ $3.83 for services
- Related
Party
|
4,788,813
|
4,788,813
|
|||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Penalty
shares issued to Related Party in connection
with
non-registration valued at $4.03 per share
|
25,000
|
25
|
100,725
|
100,750
|
|||||||||||||||||||||||||||
Penalty
shares issued to Related Party in connection
with
non-registration valued at $3.80 per share
|
25,000
|
25
|
94,975
|
95,000
|
|||||||||||||||||||||||||||
Penalty
shares issued to Related Party in connection
with
non-registration valued at $3.60 per share
|
25,000
|
25
|
89,975
|
90,000
|
|||||||||||||||||||||||||||
Penalty
shares issued to Related Party in connection
with
non-registration valued at $3.00 per share
|
25,000
|
25
|
74,975
|
75,000
|
|||||||||||||||||||||||||||
Penalty
shares issued to Related Party in connection
with
non-registration valued at $2.75 per share
|
25,000
|
25
|
68,725
|
68,750
|
|||||||||||||||||||||||||||
Penalty
shares issued to Related Party in connection
with
non-registration valued at $1.90 per share
|
25,000
|
25
|
47,475
|
47,500
|
|||||||||||||||||||||||||||
Penalty
shares issued to Related Party in connection
with
non-registration valued at $1.75 per share
|
25,000
|
25
|
43,725
|
43,750
|
|||||||||||||||||||||||||||
Penalty
shares issued to Related Party in connection
with
non-registration valued at $1.50 per share
|
25,000
|
25
|
37,475
|
37,500
|
|||||||||||||||||||||||||||
Penalty
shares issued to Related Party in connection
with
non-registration valued at $1.40 per share
|
25,000
|
25
|
34,975
|
35,000
|
|||||||||||||||||||||||||||
Penalty
shares issued to Related Party in connection
with
non-registration valued at $1.35 per share
|
25,000
|
25
|
33,725
|
33,750
|
|||||||||||||||||||||||||||
Penalty
shares issued to Related Party in connection
with
non-registration valued at $1.05 per share
|
25,000
|
25
|
27,225
|
27,250
|
|||||||||||||||||||||||||||
Penalty
shares issued to Related Party in connection
with
non-registration valued at $0.80 per share
|
25,000
|
25
|
19,975
|
20,000
|
BIOMETRX
TECHNOLOGIES, INC.
|
|||||||||||
(A
Development Stage Company)
|
|||||||||||
STATEMENT
OF STOCKHOLDERS' EQUITY (DEFICIT) -
(continued)
|
|||||||||||
FOR
THE PERIOD FEBRUARY 1, 2001 (INCEPTION) TO DECEMBER 31,
2006
|
|
Preferred
Stock
|
Common
Stock
|
Additional
Paid
In
|
Deferred
|
Prepaid
Interest 8% Convertible
|
Deferred
Finance
|
Deficit
Accumulated
During
the
Development
|
||||||||||||||||||||||||
|
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Compensation
|
Notes
|
Costs
|
Stage
|
Total
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Issuance
of Shares from Escrow to settle dispute of accrued expenses
with
pre-merger vendor.
|
67,948
|
67,948
|
|||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Common
Stock issued in Settlement of Threatened Litigation @ $2.95
per
share.
|
125,000
|
125
|
368,625
|
368,750
|
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Common
Stock issued as consideration for Accrued Salaries valued at
$2.00 per
share - Related Party
|
54,201
|
54
|
108,348
|
108,402
|
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Common
Stock issued as Prepaid Interest on 8% Convertible Notes @
$1.35 per
share.
|
128,000
|
128
|
172,672
|
(172,800
|
)
|
-
|
|||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Finder's
Fees paid on sale of Preferred Stock
|
(147,500
|
)
|
(28,500
|
)
|
(176,000
|
)
|
|||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Common
Stock issued as Finder's Fees on the sale of Preferred Stock
valued at
$1.30 per share.
|
50,000
|
50
|
64,950
|
65,000
|
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Common
Stock purchase warrants issued as payment of placement
fees.
|
182,716
|
(182,716
|
)
|
-
|
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Beneficial
Conversion Feature of common stock purchase warrants issued
relative to 8%
Convertible Notes.
|
1,217,392
|
1,217,392
|
|||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Beneficial
Conversion Feature of Convertible Forbearance
Notes.
|
387,437
|
387,437
|
|||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Issuance
of Preferred Stock in conjunction with a Private
Placement.
|
650,000
|
6,500
|
643,500
|
650,000
|
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Conversion
of Preferred Stock to 8% Convertible Notes in conjunction with
an Exchange
Agreement.
|
(650,000
|
)
|
(6,500
|
)
|
(643,500
|
)
|
(650,000
|
)
|
|||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Preferred
Dividend accrued
|
8,975
|
(8,975
|
)
|
-
|
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Issuance
of Common Stock purchase options for services @ $3.53 per share
- Related
Party
|
882,051
|
882,051
|
|||||||||||||||||||||||||||||
Issuance
of Common Stock purchase options for services @ $.192 per share
- Related
Party
|
19,200
|
19,200
|
|||||||||||||||||||||||||||||
Issuance
of Common Stock purchase options for services @ $.178 per share
- Related
Party
|
35,600
|
35,600
|
|||||||||||||||||||||||||||||
Issuance
of Common Stock purchase options for services @ $.122 per share
- Related
Party
|
24,400
|
24,400
|
|||||||||||||||||||||||||||||
Issuance
of Common Stock purchase options for services @ $.085 per share
- Related
Party
|
17,000
|
17,000
|
|||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Issuance
of Common Stock purchase options related to deferred financing
costs @
$.367 per share.
|
146,800
|
(146,800
|
)
|
||||||||||||||||||||||||||||
Issuance
of Common Stock purchase options related to deferred financing
costs @
$.784 per share.
|
43,120
|
(43,120
|
)
|
||||||||||||||||||||||||||||
Issuance
of Common Stock purchase warrants related to deferred financing
costs @
$1.895 per share.
|
187,606
|
(187,606
|
)
|
||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Financing
Costs Related to Issuance of 8% Convertible Notes
|
(107,500
|
)
|
(107,500
|
)
|
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Amortization
of deferred compensation.
|
194,514
|
194,514
|
|||||||||||||||||||||||||||||
Amortization
of deferred finance costs.
|
495,233
|
495,233
|
|||||||||||||||||||||||||||||
Amortization
of prepaid interest - 8% convertible debentures
|
86,400
|
86,400
|
|||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
CURRENT
PERIOD LOSS
|
(10,837,218
|
)
|
(10,837,218
|
)
|
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
BALANCE,
December 31, 2006
|
-
|
$
|
-
|
8,915,907
|
$
|
8,916
|
$
|
24,355,224
|
$
|
-
|
$
|
(86,400
|
)
|
$
|
(1,089,859
|
)
|
$
|
(24,597,531
|
)
|
$
|
(1,409,650
|
)
|
1.
|
Change
the Company’s name to bioMETRX Technologies, Inc.
|
|
2.
|
Increase
the total number of shares that the corporation is authorized
to issue to
10,000,000 common shares, each with a par value of
$0.01.
|
3.
|
Authorize
a 4000 to 1 split of the then outstanding common
shares.
|
Office
Equipment
|
|
$
|
32,558
|
|
Tooling
and Dies
|
|
|
63,255
|
|
|
|
|
95,813
|
|
Less:
Accumulated Depreciation
|
|
|
3,999
|
|
|
|
$
|
91,814
|
|
|
||||
Notes
payable to private investors; bearing interest at
10%
per annum and due March 15, 2007 (see Note 7)
|
$
|
700,000
|
||
|
||||
Notes
payable
to private investors; bearing interest at
10%
per annum and due March 30, 2007 (see Note 7)
|
55,000
|
|||
$
|
755,000
|
1)
|
Change
the corporation’s name to “Biometrx Technologies, Inc.”
|
|
2)
|
Increase
the total number of shares that the corporation is authorized
to issue to
10,000,000 common shares, each with a par value of
$.001.
|
3)
|
Authorize
a 4000 to 1 split of then outstanding common
shares.
|
·
|
125,000
shares of common stock to an officer valued at
$1,825,000.
|
|
·
|
187,500
common stock purchase options, exercise price $2.00 per share,
to an
officer valued at $2,362,500.
|
·
|
187,500
common stock purchase options, exercise price $2.00 per share,
to the
Company’s CEO valued at $2,362,500.
|
2006
|
2005
|
||||||||||||
2005
Equity Incentive Plan
|
Number
of Options
|
Weighted Average
Exercise
Price
|
Number
of Options
|
Weighted Average
Exercise
Price
|
|||||||||
Balance
- January 1,
|
375,000-
|
$
|
2.00-
|
-
|
$
|
-
|
|||||||
Options
Granted
|
350,000
|
$
|
1.00
|
375,000-
|
$
|
2.00-
|
|||||||
Options
Cancelled
|
(187,500
|
)
|
$
|
2.00
|
-
|
-
|
|||||||
Cashless
Exercise
|
(250,000
|
)
|
$
|
1.00-
|
-
|
-
|
|||||||
Outstanding
- December 31,
|
287,500
|
$
|
1.65
|
375,000-
|
$$
|
2.00
|
|||||||
Exercisable
|
287,500
|
$
|
1.65
|
375,000
|
$$
|
2.00
|
|
|
Warrants
Outstanding
|
Warrants
Exercisable
|
|||||||||||||
|
|
Weighted
|
|
|
|
|||||||||||
|
|
Average
|
|
|
|
|||||||||||
|
|
Remaining
|
Weighted
|
|
Weighted
|
|||||||||||
|
Number
|
Contracted
|
Average
|
Number
|
Average
|
|||||||||||
Range
of Exercise
Price
|
Outstanding
|
Life
(Years)
|
Exercise
Price
|
Exercisable
|
Exercise
Price
|
|||||||||||
$
.01-.99
|
818,250
|
5.00
|
$
|
.10
|
818,250
|
$
|
.10
|
|||||||||
|
||||||||||||||||
$1.00-1.99
|
2,414,000
|
4.53
|
$
|
1.58
|
2,769,000
|
$
|
1.49
|
|||||||||
|
||||||||||||||||
$2.00-2.99
|
215,198
|
4.26
|
$
|
2.15
|
115,198
|
$
|
2.27
|
|||||||||
|
||||||||||||||||
$3.00-3.99
|
52,698
|
3.50
|
$
|
3.40
|
52,698
|
$
|
3.40
|
|||||||||
|
||||||||||||||||
$4.00
|
126,349
|
3.74
|
$
|
4.00
|
26,349
|
$
|
4.00
|
|||||||||
|
||||||||||||||||
|
3,626,495
|
4.58
|
$
|
1.17
|
3,326,498
|
$
|
1.09
|
|
2006
|
2005
|
|||||||||||
Other
Options
|
Number
of Options
|
Weighted Average
Exercise
Price
|
Number
of Options
|
Weighted Average
Exercise
Price
|
|||||||||
|
|
|
|
|
|||||||||
Balance
- January 1,
|
25,000-
|
$
|
.40
|
-
|
$
|
-
|
|||||||
Options
Granted
|
2,150,000
|
2.18
|
75,000-
|
.40-
|
|||||||||
Options
Expired (1)
|
(25,000)-
|
$
|
.40
|
-
|
.40
|
||||||||
Options
Exercised
|
(-
|
)
|
-
|
50,000-
|
.40.
|
||||||||
Outstanding
- December 31,
|
2,150,000
|
$
|
2.35
|
25,000-
|
$
|
.40
|
|||||||
Exercisable
- December 31,
|
1,850,000
|
$
|
2.35
|
-
|
-
|
The
following table summarized information about stock options at
December 31,
2006:
|
||||||||||||||||
Options
Outstanding
|
Options
Exercisable
|
|||||||||||||||
Range
of Exercise Prices
|
Number
Outstanding
|
Weighted
Average Remaining Contractual Life (Years)
|
Weighted
Average Exercise Price
|
Number
Exercisable
|
Weighted
Average Price
|
|||||||||||
$0.40
|
250,000
|
4.08
|
$
|
0.40
|
250,000
|
$
|
0.40
|
|||||||||
$1.00
- $1.99
|
900,000
|
4.70
|
$
|
1.20
|
600,000
|
$
|
1.09
|
|||||||||
$2.00
|
250,000
|
3.50
|
$
|
2.00
|
250,000
|
$
|
2.00
|
|||||||||
$3.00
|
250,000
|
3.50
|
$
|
3.00
|
250,000
|
$
|
3.00
|
|||||||||
$4.00
|
250,000
|
3.50
|
$
|
4.00
|
250,000
|
$
|
4.00
|
|||||||||
$5.00
|
250,000
|
3.50
|
$
|
5.00
|
250,000
|
$
|
5.00
|
|||||||||
$0.40
- $5.00
|
2,150,000
|
4.07
|
$
|
2.18
|
1,850,000
|
$
|
2.35
|
|
2006
|
2005
|
|||||||||||
|
Number
of Warrants
|
Weighted Average
Exercise
Price
|
Number
of
Warrants
|
Weighted Average
Exercise
Price
|
|||||||||
Balance
- January 1,
|
475,495-
|
$
|
1.62-
|
-
|
$
|
-
|
|||||||
Warrants
Granted *
|
3,432,250
|
$
|
1.27
|
475,495-
|
$
|
1.62-
|
|||||||
Warrants
Exercised
|
(281,250
|
)
|
$
|
.80-
|
-
|
-
|
|||||||
Balance
- December 31,
|
3,626,495
|
$
|
1.17
|
475,495-
|
$$
|
1.62-
|
Number
of Shares
|
Exercise
Price
|
|
*250,000
|
$1.25
|
|
250,000
|
$2.00
|
|
250,000
|
$3.00
|
|
250,000
|
$4.00
|
|
250,000
|
$5.00
|
Number
of Options
|
Exercise
Price
|
|
200,000
|
$1.00
|
|
200,000
|
$1.25
|
|
200,000
|
$1.50
|
Number
of Options
|
Exercise
Price
|
Vesting
|
||
200,000
|
$1.05
|
Immediately
|
||
100,000
|
$1.10
|
1
year from date of agreement
|
||
100,000
|
$1.00
|
2
years form date of agreement
|
January
1, 2007 - December 31, 2007
|
$
|
105,555
|
||
January
1, 2008 - December 31, 2008
|
109,249
|
|||
January
1, 2009 - December 31, 2009
|
113,073
|
|||
January
1, 2010 - January 31, 2010
|
9,449
|
|||
$
|
337,326
|