þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the year ended September 30, | ||
or | ||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the transition period from to | ||
Nevada | 81-0438093 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | Accelerated filer | Non-accelerated filer ¨ | Smaller reporting company þ | |||
(Do not check if a smaller reporting company) |
Documents | Form 10-K Reference | |
None | Not Applicable |
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Item 1. | Business |
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Item 1A. | Risk Factors |
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• | local political or economic instability; | |
• | changes in governmental regulation; | |
• | changes in import/export duties; | |
• | trade restrictions; | |
• | lack of experience in foreign markets; | |
• | difficulties and costs of staffing and managing operations in certain foreign countries; | |
• | work stoppages or other changes in labor conditions; | |
• | difficulties in collecting accounts receivables on a timely basis or at all; and | |
• | adverse tax consequences or overlapping tax structures. |
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• | variations in operating results; | |
• | announcements of technological innovations, new products or product enhancements, strategic alliances or significant agreements by Beacon or by competitors; | |
• | recruitment or departure of key personnel; | |
• | litigation, legislation, regulation or technological developments that adversely affect Beacon’s business; and | |
• | market conditions in Beacon’s industry, the industries of their customers and the economy as a whole. |
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Item 2. | |
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases |
Quarter Ended | High | Low | ||||||
Fiscal 2009 | ||||||||
December 31, 2008 | $ | 1.52 | $ | 0.55 | ||||
March 31, 2009 | $ | 1.10 | $ | 0.30 | ||||
June 30, 2009 | $ | 1.65 | $ | 0.69 | ||||
September 30, 2009 | $ | 1.73 | $ | 0.92 | ||||
Fiscal 2008 | ||||||||
December 31, 2007 | $ | — | $ | — | ||||
March 31, 2008 | $ | 1.90 | $ | 1.04 | ||||
June 30, 2008 | $ | 1.20 | $ | 0.95 | ||||
September 30, 2008 | $ | 1.50 | $ | 0.51 |
Quarter Ended | High | Low | ||||||
Fiscal 2009 | ||||||||
December 31, 2008 | $ | 1.52 | $ | 0.55 | ||||
March 31, 2009 | $ | 1.10 | $ | 0.30 | ||||
June 30, 2009 | $ | 1.65 | $ | 0.69 | ||||
September 30, 2009 | $ | 1.73 | $ | 0.92 | ||||
�� | ||||||||
Fiscal 2010 | ||||||||
December 31, 2009 | $ | 1.01 | $ | 0.81 | ||||
March 31, 2010 | $ | 1.50 | $ | 1.02 | ||||
June 30, 2010 | $ | 1.53 | $ | 1.01 | ||||
September 30, 2010 | $ | 1.10 | $ | 0.35 |
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(a) | (b) | (c) | ||||||||||
Number of Securities to | Weighted-Average | Number of Securities Remaining | ||||||||||
be Issued Upon Exercise | Exercise Price of | Available for Future Issuance Under | ||||||||||
of Outstanding Options, | Outstanding Options, | Equity Compensation Plans (Excluding | ||||||||||
As of September 30, 2009 | Warrants and Rights | Warrants and Rights | Securities Reflected in Column (a)) | |||||||||
Plan Category | ||||||||||||
Equity compensation plans approved by security holders | 300,000 | $ | 1.57 | 700,000 | ||||||||
As of September 30, 2010 | (a) | (b) | (c) | |||||||||
Number of securities to | Weighted-average | Number of securities remaining | ||||||||||
be issued upon exercise | exercise price of | available for future issuance under | ||||||||||
of outstanding options, | outstanding options, | equity compensation plans (excluding | ||||||||||
warrants and rights | warrants and rights | securities reflected in column (a)) | ||||||||||
Equity compensation plans approved by security holders | 370,200 | $ | 1.22 | 629,800 |
• | Our business may be materially adversely affected by the current economic environment. The recent disruptions in both domestic and global financial and credit markets have significantly impacted domestic and global economic activity and |
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• | effects of competition in the markets in which we operate; | |
• | liability and other claims asserted against us; | |
• | ability to attract and retain qualified personnel; | |
• | availability and terms of capital; | |
• | loss of significant contracts or reduction in | |
• | ability of customers to pay for services; | |
• | business disruption due to natural disasters or terrorist acts; | |
• | ability to successfully integrate the operations of acquired businesses and achieve expected synergies and operating efficiencies from the acquisitions, in each case within expected time-frames or at all; | |
• | changes in, or failure to comply with, existing governmental regulations; and | |
• | changes in estimates and judgments associated with critical accounting policies and estimates. |
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2010 | 2009 | |||||||||||||||||||
North America | North America | change | ||||||||||||||||||
Net Sales | $ | 10,273 | 100 | % | $ | 10,113 | 100 | % | $ | 160 | ||||||||||
Cost of goods sold | 1,405 | 14 | % | 4,393 | 43 | % | (2,988 | ) | ||||||||||||
Cost of services | 5,035 | 49 | % | 2,905 | 29 | % | 2,130 | |||||||||||||
Gross profit | 3,833 | 37 | % | 2,815 | 28 | % | 1,018 | |||||||||||||
Operating expense | ||||||||||||||||||||
Salaries and benefits | 5,139 | 50 | % | 4,373 | 43 | % | 766 | |||||||||||||
Selling, general and administrative | 3,715 | 36 | % | 4,242 | 42 | % | (527 | ) | ||||||||||||
Net loss from operations | (5,021 | ) | NM | (5,800 | ) | NM | 779 | |||||||||||||
Other expense | (244 | ) | (904 | ) | 660 | |||||||||||||||
Change in fair value of warrants | (4,373 | ) | - | (4,373 | ) | |||||||||||||||
Net loss before taxes | (9,638 | ) | (6,704 | ) | (2,934 | ) | ||||||||||||||
Income tax expense | (49 | ) | (58 | ) | 9 | |||||||||||||||
Net loss from continuing operations | (9,687 | ) | (6,762 | ) | (2,925 | ) | ||||||||||||||
Net loss from discontinued operations | - | - | - | |||||||||||||||||
Net loss | $ | (9,687 | ) | $ | (6,762 | ) | $ | (2,925 | ) |
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2010 | 2009 | |||||||||||
Europe | Europe | |||||||||||
Net Sales | $ | 3,723 | 100 | % | $ | - | ||||||
Cost of goods sold | 153 | 4 | % | |||||||||
Cost of services | 1,487 | 40 | % | |||||||||
Gross profit | 2,083 | 56 | % | |||||||||
Operating expense | ||||||||||||
Salaries and benefits | 897 | 24 | % | |||||||||
Selling, general and administrative | 1,844 | 50 | % | |||||||||
Net loss from operations | (658 | ) | NM | |||||||||
Other expense | (15 | ) | ||||||||||
Net loss before taxes | (673 | ) | ||||||||||
Income tax expense | (14 | ) | ||||||||||
Net loss from continuing operations | (687 | ) | ||||||||||
Net (loss) income from discontinued operations | (8,181 | ) | 492 | |||||||||
Net (loss) income | $ | (8,868 | ) | $ | 492 |
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Contractual Obligations | Total | 2011 | 2012 | 2013 | 2014 | 2015 | Thereafter | |||||||||||||||||||||
Long-term debt obligations | 1,512 | $ | 479 | $ | 941 | $ | 92 | $ | - | $ | - | $ | - | |||||||||||||||
Interest obligations (1) | 111 | 44 | 66 | 1 | - | - | - | |||||||||||||||||||||
Operating lease obligations (2) | 708 | 260 | 116 | 116 | 89 | 80 | 47 | |||||||||||||||||||||
$ | 2,331 | $ | 783 | $ | 1,123 | $ | 209 | $ | 89 | $ | 80 | $ | 47 |
Payment Due by Period | ||||||||||||||||||||
Year | Years | Years | ||||||||||||||||||
Contractual Obligations | Total | 1 | 2-3 | 4-5 | Thereafter | |||||||||||||||
Debt obligations | $ | 2,292,561 | $ | 1,490,226 | $ | 698,618 | $ | 103,717 | ||||||||||||
Interest obligations(1) | 162,109 | 95,875 | 64,525 | 1,709 | ||||||||||||||||
Operating lease obligations(2) | 142,823 | 123,423 | 19,400 | |||||||||||||||||
$ | 2,597,493 | $ | 1,709,524 | $ | 782,543 | $ | 105,426 | $ | — | |||||||||||
(1) | Interest obligations assume Prime Rate of 3.25% at September 30, | |
(2) | Operating lease obligations represent payment obligations under non-cancelable lease agreements classified as operating leases and disclosed pursuant to |
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September 30, | September 30, | |||||||
2008 | 2009 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 127,373 | $ | 264,338 | ||||
Accounts receivable, net | 1,505,162 | 3,980,715 | ||||||
Inventory, net | 597,794 | 604,622 | ||||||
Prepaid expenses and other current assets | 44,745 | 397,319 | ||||||
Total current assets | 2,275,074 | 5,246,994 | ||||||
Property and equipment, net | 310,703 | 394,571 | ||||||
Goodwill | 2,791,648 | 3,151,948 | ||||||
Other intangible assets, net | 3,802,717 | 3,903,124 | ||||||
Other assets | 176,249 | 117,111 | ||||||
Total assets | $ | 9,356,391 | $ | 12,813,748 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Short term credit obligations | $ | 200,000 | $ | 550,000 | ||||
Convertible Note Payable | 297,999 | |||||||
Bridge notes (net of $0 and $33,123 aggregate discounts) | — | 166,879 | ||||||
Current portion of long-term debt | 495,595 | 475,348 | ||||||
Accounts payable | 1,225,509 | 2,176,845 | ||||||
Contingent consideration payable | 145,189 | |||||||
Income tax payable | — | 97,581 | ||||||
Accrued expenses | 1,337,360 | 2,644,280 | ||||||
Customer Deposits | 95,767 | 160,368 | ||||||
Total current liabilities | 3,354,231 | 6,714,489 | ||||||
Long-term debt, less current portion | 1,316,477 | 802,335 | ||||||
Bridge notes (net of $128,840 discount at September 30, 2008) | 571,160 | |||||||
Deferred Tax Liability | 45,472 | 103,484 | ||||||
Total liabilities | 5,287,340 | 7,620,308 | ||||||
Stockholders’ equity | ||||||||
Stockholders’ equity | ||||||||
Preferred Stock: $0.01 par value, 5,000,000 shares authorized, 5,200 and 3,984 shares outstanding in the following classes: | ||||||||
Series A convertible preferred stock, $1,000 stated value, 4,500 authorized, 4,000 and 1,984 shares issued and outstanding, (liquidation preference $3,171,999) | 4,000,000 | $ | 1,984,074 | |||||
Series A-1 convertible preferred stock, $1,000 stated value, 1,000 shares authorized, 800 and 752 shares issued and outstanding, (liquidation preference $940,678) | 800,000 | 752,347 | ||||||
Series B convertible preferred stock, $1,000 stated value, 4,000 shares authorized, 400 and 700 shares issued and outstanding, (liquidation preference $914,818) | 400,000 | 700,000 | ||||||
Common stock, $0.001 par value 70,000,000 shares authorized, 12,093,021 and 24,655,990 shares issued and outstanding | 12,093 | 24,656 | ||||||
Additional paid in capital | 8,027,602 | $ | 17,977,046 | |||||
Accumulated deficit | (9,170,644 | ) | (16,254,545 | ) | ||||
Accumulated other comprehensive income | 9,862 | |||||||
Total stockholders’ equity | 4,069,051 | 5,193,440 | ||||||
Total liabilities and stockholders’ equity | 9,356,391 | 12,813,748 | ||||||
Beacon Enterprise Solutions Group, Inc. and Subsidiaries | ||||||||
Consolidated Balance Sheets | ||||||||
(all amounts in 000's except share and per share data) | ||||||||
September 30, | September 30, | |||||||
2010 | 2009 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 246 | $ | 227 | ||||
Accounts receivable, net | 4,535 | 3,069 | ||||||
Inventory, net | 557 | 605 | ||||||
Prepaid expenses and other current assets | 357 | 388 | ||||||
Current assets of discontinued operations | 133 | 958 | ||||||
Total current assets | 5,828 | 5,247 | ||||||
Property and equipment, net | 420 | 336 | ||||||
Goodwill | 2,792 | 2,792 | ||||||
Other intangible assets, net | 3,011 | 3,342 | ||||||
Other assets | 20 | 117 | ||||||
Assets of discontinued operations | - | 980 | ||||||
Total assets | $ | 12,071 | $ | 12,814 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY) | ||||||||
Current liabilities: | ||||||||
Short term credit obligations | $ | - | $ | 550 | ||||
Convertible notes payable | - | 298 | ||||||
Bridge notes (net of $0 and $33 discounts) | 100 | 167 | ||||||
Current portion of long-term debt | 379 | 475 | ||||||
Accounts payable | 2,971 | 2,074 | ||||||
Accrued expenses | 880 | 2,626 | ||||||
Current liabilities of discontinued operations | 8,558 | 525 | ||||||
Total current liabilities | 12,888 | 6,715 | ||||||
Non-current line of credit - related party | 630 | - | ||||||
Long-term debt, less current portion | 403 | 802 | ||||||
Deferred tax liability | 153 | 103 | ||||||
Total liabilities | 14,074 | 7,620 | ||||||
Stockholders' equity (deficiency) | ||||||||
Preferred Stock: $0.01 par value, 5,000,000 shares authorized, 1,041 and 3,436 shares outstanding in the following classes: | ||||||||
Series A convertible preferred stock, $1,000 stated value, 4,500 shares authorized, 30 and 1,984 shares issued and outstanding at September 30, 2010 and 2009, respectively, (liquidation preference $93). | 30 | 1,984 | ||||||
Series A-1 convertible preferred stock, $1,000 stated value, 1,000 shares authorized, 311 and 752 shares issued and outstanding, at September 30, 2010 and 2009, respectively (liquidation preference $432). | 311 | 752 | ||||||
Series B convertible preferred stock, $1,000 stated value, 4,000 shares authorized, 700 shares issued and outstanding at September 30, 2010 and 2009, respectively (liquidation preference $967). | 700 | 700 | ||||||
Common stock, $0.001 par value 70,000,000 shares authorized, 37,376,396 and 24,655,990 shares issued and outstanding at September 30, 2010 and 2009, respectively. | 37 | 25 | ||||||
Additional paid in capital | 37,137 | 17,977 | ||||||
Accumulated deficit | (39,711 | ) | (16,254 | ) | ||||
Accumulated other comprehensive (loss) income | (507 | ) | 10 | |||||
Total stockholders' equity (deficiency) | (2,003 | ) | 5,194 | |||||
Total liabilities and stockholders' equity (deficiency) | $ | 12,071 | $ | 12,814 |
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For the | For the | |||||||
Year Ended | Year Ended | |||||||
September 30, | September 30, | |||||||
2008 | 2009 | |||||||
Net sales | $ | 6,012,637 | $ | 11,070,496 | ||||
Cost of goods sold | 1,796,460 | 4,577,261 | ||||||
Cost of services | 1,500,390 | 2,915,803 | ||||||
Gross profit | 2,715,787 | 3,577,432 | ||||||
Operating expense | ||||||||
Salaries and Wages | 3,199,378 | 4,489,947 | ||||||
Selling, General and Administrative | 3,515,840 | 4,297,342 | ||||||
Total operating expense | 6,715,218 | 8,787,289 | ||||||
Loss from operations | (3,999,431 | ) | (5,209,857 | ) | ||||
Other (expenses) income | ||||||||
Interest expense | (610,051 | ) | (905,125 | ) | ||||
Interest income | 7,416 | 725 | ||||||
Total other (expenses) | (602,635 | ) | (904,400 | ) | ||||
Net (loss) before income taxes | (4,602,066 | ) | (6,114,257 | ) | ||||
Income taxes | 45,472 | 155,593 | ||||||
Net (loss) | (4,647,538 | ) | (6,269,850 | ) | ||||
Series A,A-1 and B Preferred Stock: | ||||||||
Contractual dividends | (220,354 | ) | (547,676 | ) | ||||
Deemed dividends related to beneficial conversion feature | (4,169,372 | ) | (266,375 | ) | ||||
Net (loss) available to common stockholders | (9,037,264 | ) | (7,083,901 | ) | ||||
Net loss per share to common stockholders — basic and diluted | $ | (0.95 | ) | $ | (0.43 | ) | ||
Weighted average shares outstanding — basic and diluted | 9,466,764 | 16,482,449 | ||||||
Other Comprehensive income, net of tax | ||||||||
Net Loss | $ | (9,037,264 | ) | $ | (7,083,901 | ) | ||
Foreign currency translations adjustment | * | 9,862 | ||||||
Comprehensive loss | $ | (9,037,264 | ) | $ | (7,074,039 | ) | ||
Beacon Enterprise Solutions Group, Inc. and Subsidiaries | ||||||||
Consolidated Statements of Operations | ||||||||
(all amounts in 000's except share and per share data) | ||||||||
For the | For the | |||||||
Year Ended | Year Ended | |||||||
September 30, | September 30, | |||||||
2010 | 2009 | |||||||
Net sales | $ | 13,996 | $ | 10,113 | ||||
Cost of goods sold | 1,558 | 4,393 | ||||||
Cost of services | 6,522 | 2,905 | ||||||
Gross profit | 5,916 | 2,815 | ||||||
Operating expenses | ||||||||
Salaries and benefits | 6,036 | 4,373 | ||||||
Selling, general and administrative | 5,559 | 4,242 | ||||||
Total operating expense | 11,595 | 8,615 | ||||||
Loss from operations | (5,679 | ) | (5,800 | ) | ||||
Other expenses | ||||||||
Other expenses | (259 | ) | (904 | ) | ||||
Change in fair value of warrants | (4,373 | ) | - | |||||
Total other expenses | (4,632 | ) | (904 | ) | ||||
Net loss before income taxes | (10,311 | ) | (6,704 | ) | ||||
Income tax expense | (63 | ) | (58 | ) | ||||
Loss from continuing operations | (10,374 | ) | (6,762 | ) | ||||
(Loss) income from discontinued operations | (8,181 | ) | 492 | |||||
Net loss | (18,555 | ) | (6,270 | ) | ||||
Series A, A-1 and B Preferred Stock: | ||||||||
Contractual dividends | (175 | ) | (548 | ) | ||||
Deemed dividends related to beneficial conversion feature | (99 | ) | (266 | ) | ||||
Net loss available to common stockholders | $ | (18,829 | ) | $ | (7,084 | ) | ||
Net loss per share to common stockholders - basic and diluted | ||||||||
Net loss per share from continuing operations | $ | (0.32 | ) | $ | (0.41 | ) | ||
Net (loss) income per share from discontinued operations | (0.25 | ) | 0.03 | |||||
$ | (0.57 | ) | $ | (0.38 | ) | |||
Weighted average shares outstanding basic and diluted | 32,254,769 | 16,482,449 | ||||||
Other comprehensive loss, net of tax | ||||||||
Net Loss | $ | (18,829 | ) | $ | (7,084 | ) | ||
Foreign currency translations adjustment | (28 | ) | - | |||||
Comprehensive loss | $ | (18,857 | ) | $ | (7,084 | ) |
25
Series A Convertible | Series A-1 Convertible | Series B Convertible | ||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Preferred Stock | Preferred Stock | Common Stock | Accumulated | ||||||||||||||||||||||||||||||||||||||||||||
$1,000 | $1,000 | $1,000 | $0.001 | Additional | Other | |||||||||||||||||||||||||||||||||||||||||||
Stated | Stated | Stated | Par | Paid-In | Accumulated | Comprehensive | ||||||||||||||||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | Capital | Deficit | Income | Total | |||||||||||||||||||||||||||||||||||||
Balance at October 1, 2007 | 5,187,650 | $ | 5,188 | $ | (812 | ) | $ | (133,380 | ) | $ | (129,004 | ) | ||||||||||||||||||||||||||||||||||||
Common stock granted to employee for services | 782,250 | 782 | (782 | ) | — | |||||||||||||||||||||||||||||||||||||||||||
Vested portion of common stock granted to employee for services | 266,693 | 266,693 | ||||||||||||||||||||||||||||||||||||||||||||||
Shares of Suncrest outstanding at time of share exchange | 1,273,121 | 1,273 | (1,273 | ) | — | |||||||||||||||||||||||||||||||||||||||||||
Common stock issued as purchase consideration in business combinations | 3,225,000 | 3,225 | 2,738,025 | 2,741,250 | ||||||||||||||||||||||||||||||||||||||||||||
Series A Preferred Stock issued in private placement | 4,000.0 | 4,000,000 | 4,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
Series A-1 Preferred Stock issued in private placement | 800.0 | 800,000 | 800,000 | |||||||||||||||||||||||||||||||||||||||||||||
Series B Preferred Stock issued in private placement | 400 | 400,000 | 400,000 | |||||||||||||||||||||||||||||||||||||||||||||
Common Stock issued in private placement | 1,625,000 | 1,625 | 1,298,375 | 1,300,000 | ||||||||||||||||||||||||||||||||||||||||||||
Private placement offering costs | (1,188,324 | ) | (1,188,324 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Beneficial conversion feature — deemed preferred stock dividend | 4,169,372 | (4,169,372 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||
Bridge note warrants | 72,000 | 72,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Beneficial conversion feature — bridge notes | 128,000 | 128,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Vested contingent bridge warrants | 77,980 | 77,980 | ||||||||||||||||||||||||||||||||||||||||||||||
Warrants issued for equity financing agreement | 235,699 | 235,699 | ||||||||||||||||||||||||||||||||||||||||||||||
Compensatory warrants | 219,000 | 219,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest on Put Options | — | |||||||||||||||||||||||||||||||||||||||||||||||
Series A Preferred Stock contractual dividends | (194,904 | ) | (194,904 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Series A-1 Preferred Stock contractual dividends | (25,450 | ) | (25,450 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of Stock Options | 13,649 | 13,649 | ||||||||||||||||||||||||||||||||||||||||||||||
Net loss | (4,647,538 | ) | (4,647,538 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2008 | 4,000 | $ | 4,000,000 | 800 | $ | 800,000 | 400 | $ | 400,000 | 12,093,021 | $ | 12,093 | $ | 8,027,602 | $ | (9,170,644 | ) | $ | — | $ | 4,069,051 | |||||||||||||||||||||||||||
Vested portion of share based payments to employee for services | 558,235 | 558,235 | ||||||||||||||||||||||||||||||||||||||||||||||
Coversion of debt to Preferred shares | 300 | 300,000 | 300,000 | |||||||||||||||||||||||||||||||||||||||||||||
Coversion of debt to common shares | 833,334 | 833 | 499,167 | 500,000 | ||||||||||||||||||||||||||||||||||||||||||||
Conversion of Preferred shares to common | (2,635 | ) | (2,635,049 | ) | (159 | ) | (158,598 | ) | — | — | 3,724,854 | 3,726 | 2,789,921 | — | — | |||||||||||||||||||||||||||||||||
Common Stock issued in private placement | 6,853,497 | 6,853 | 5,478,396 | 5,485,249 | ||||||||||||||||||||||||||||||||||||||||||||
Private placement offering costs | (1,138,574 | ) | (1,138,574 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Warrants exercised for common shares | 196,145 | 196 | (196 | ) | (0 | ) | ||||||||||||||||||||||||||||||||||||||||||
Shares issued for Symbio — Tec acquistion | 400,000 | 400 | 436,455 | 436,855 |
26
Beacon Enterprise Solutions Group, Inc. and Subsidiaries | Beacon Enterprise Solutions Group, Inc. and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Statement of Stockholders' Equity (Deficiency) | Consolidated Statement of Stockholders' Equity (Deficiency) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(all amounts in 000's except share data) | (all amounts in 000's except share data) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series A Convertible | Series A-1 Convertible | Series B Convertible | Series A Convertible | Series A-1 Convertible | Series B Convertible | Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Preferred Stock | Preferred Stock | Common Stock | Accumulated | Preferred Stock | Preferred Stock | Preferred Stock | Common Stock | Additional | Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$1,000 | $1,000 | $1,000 | $0.001 | Additional | Other | $1,000 Stated | $1,000 Stated | $1,000 Stated | $0.001 Par | Paid-In | Accumulated | Comprehensive | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stated | Stated | Stated | Par | Paid-In | Accumulated | Comprehensive | Shares | Value | Shares | Value | Shares | Value | Shares | Value | Capital | Deficit | Income | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | Capital | Deficit | Income | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2008 | 4,000 | $ | 4,000 | 800 | $ | 800 | 400 | $ | 400 | 12,093,021 | $ | 12 | $ | 8,028 | $ | (9,171 | ) | $ | - | $ | 4,069 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of contingent shares related to Symbio-Tec acquistion | 476,000 | 476,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vested portion of share based payments to employee for services | 558 | 558 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of debt to Preferred shares | 300 | 300 | 300 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of debt to common shares | 833,334 | 1 | 499 | 500 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Preferred shares to common | (2,635 | ) | (2,635 | ) | (159 | ) | (159 | ) | 3,724,854 | 4 | 2,790 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock issued in private placement | 6,853,497 | 7 | 5,478 | 5,485 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private placement offering costs | (1,139 | ) | (1,139 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrants exercised for common shares | 196,145 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for Symbio - Tec acquistion | 400,000 | 1 | 436 | 437 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of contingent shares related to Symbio - Tec acquistion | 476 | 476 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares committed to Anti-dilution adjustment | 285,139 | 285 | (285 | ) | 0 | 285,139 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock issued for investor relations agreements | 270,000 | 270 | 163,830 | 164,100 | 270,000 | 164 | 164 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beneficial conversion feature — deemed preferred stock dividend | 200,676 | (200,676 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beneficial conversion feature - deemed preferred stock dividend | 201 | (201 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discount on Convertible Notes Payable | 74,334 | 74,334 | 74 | 74 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vested contingent bridge warrants | 56,840 | 56,840 | 57 | 57 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrants issued for equity financing agreement | 288,946 | 288,946 | 289 | 289 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series A Preferred Stock contractual dividends | (429,834 | ) | (429,834 | ) | (429 | ) | (429 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series A Preferred Stock contractual dividends paid in kind | 619 | 619,123 | 619,123 | 619 | 619 | 619 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series A-1 Preferred Stock contractual dividends | (85,689 | ) | (85,689 | ) | (85 | ) | (85 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series A-1 Preferred Stock contractual dividends paid in kind | 111 | 110,945 | 110,945 | 111 | 111 | 111 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series B Preferred Stock contractual dividends | (32,153 | ) | (32,153 | ) | (32 | ) | (32 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beneficial conversion feature — deemed Investor Warrant dividend | 65,699 | (65,699 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beneficial conversion feature - deemed Investor Warrant dividend | 66 | (66 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | (6,269,850 | ) | (6,269,850 | ) | (6,270 | ) | (6,270 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in accumulated other comprehensive income | 9,862 | 9,862 | 10 | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income | �� | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2009 | 1,984 | $ | 1,984,074 | 752 | $ | 752,347 | 700 | $ | 700,000 | 24,655,990 | $ | 24,656 | $ | 17,977,046 | $ | (16,254,545 | ) | $ | 9,862 | $ | 5,193,440 | 1,984 | $ | 1,984 | 752 | $ | 752 | 700 | $ | 700 | 24,655,990 | $ | 25 | $ | 17,977 | $ | (16,254 | ) | $ | 10 | $ | 5,194 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of change in accounting principle - fair value of warrants with anti dilutive rights | (4,628 | ) | (4,628 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Relcassification of derivative financial instruments | 10,095 | 10,095 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vested portion of share based payments to employee for services | 1,082 | 1,082 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock issued in private placement | 3,795,295 | 4 | 1,884 | 1,888 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private placement offering costs | (584 | ) | (584 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrants issued for extension of non-interest bearing note | 64 | 64 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrants issued under consulting agreements | 199 | 199 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock issued for contingent earnout | 175,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock issued for investor relations agreements | 100,000 | 66 | 66 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of non-employee stock options | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
issued for performance of services | 34 | 34 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of preferred shares to common stock | (1,993 | ) | (1,993 | ) | (462 | ) | (462 | ) | 3,286,372 | 3 | 2,452 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock issued upon exercise of warrants | 4,738,966 | 5 | 3,659 | 3,664 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued in conversion of bridge note to common | 183,620 | 110 | 110 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cashless warrant exercises | 441,153 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series A Preferred Stock contractual dividends | (77 | ) | (77 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series A Preferred Stock contractual dividends paid in in kind | 39 | 39 | 39 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series A-1 Preferred Stock contractual dividends | (56 | ) | (56 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series A-1 Preferred Stock contractual dividends paid in in kind | 21 | 21 | 21 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series B Preferred Stock contractual dividends | (42 | ) | (42 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beneficial conversion feature - deemed preferred stock dividend | 99 | (99 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | (517 | ) | (517 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | (18,555 | ) | (18,555 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2010 | 30 | $ | 30 | 311 | $ | 311 | 700 | $ | 700 | 37,376,396 | $ | 37 | $ | 37,137 | $ | (39,711 | ) | $ | (507 | ) | $ | (2,003 | ) |
27
For the | For the | |||||||
Year Ended | Year Ended | |||||||
September 30, | September 30, | |||||||
2008 | 2009 | |||||||
(Unaudited) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net loss | $ | (4,647,538 | ) | $ | (6,269,850 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Change in reserve for obsolete inventory | 35,058 | 125,441 | ||||||
Change in reserve for doubtful accounts | 50,000 | 107,771 | ||||||
Depreciation and Amortization | 571,467 | 613,080 | ||||||
Non-cash interest | 384,839 | 590,837 | ||||||
Share based payments | 499,342 | 722,336 | ||||||
Deferred income tax liability | 45,472 | 58,012 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (866,161 | ) | (2,444,628 | ) | ||||
Inventory | (174,861 | ) | (132,269 | ) | ||||
Prepaid expenses and other current assets | 32,691 | (325,092 | ) | |||||
Other assets | 131,227 | 59,137 | ||||||
Accounts payable | 403,365 | 903,973 | ||||||
Income taxes payable | 97,581 | |||||||
Customer deposits | (241,866 | ) | 64,601 | |||||
Accrued expenses | 935,132 | 1,501,244 | ||||||
NET CASH USED IN OPERATING ACTIVITIES | (2,841,833 | ) | (4,327,826 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Capital expenditures | (154,070 | ) | (220,438 | ) | ||||
Acquisition of businesses, net of acquired cash | (2,223,535 | ) | 46,202 | |||||
NET CASH USED IN INVESTING ACTIVITIES | (2,377,605 | ) | (174,236 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Proceeds from issuances of convertible notes | 500,000 | |||||||
Proceeds from issuances of bridge notes and other short term notes | 422,000 | 700,000 | ||||||
Proceeds from sale of preferred stock, net of offering costs | 4,276,460 | — | ||||||
Proceeds from sale of common stock, net of offering costs | 1,035,216 | 4,346,672 | ||||||
Proceeds from lines of credit | 400,000 | 343,000 | ||||||
Proceeds from note payable | 600,000 | — | ||||||
Payment of note offering costs | (75,000 | ) | ||||||
Repayment of line of credit | (450,000 | ) | (393,000 | ) | ||||
Repayment of convertible notes | (202,001 | ) | ||||||
Payments of notes payable | (985,514 | ) | (534,389 | ) | ||||
Payments of capital lease obligations | (13,562 | ) | (11,928 | ) | ||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 5,284,600 | 4,673,354 | ||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 65,162 | 171,292 | ||||||
CASH AND CASH EQUIVALENTS — BEGINNING OF YEAR | 62,211 | 127,373 | ||||||
Effect of exchange rates on chase and cash equivalents | (34,327 | ) | ||||||
CASH AND CASH EQUIVALENTS — END OF YEAR | $ | 127,373 | $ | 264,338 | ||||
Cash paid for: | ||||||||
Interest | 115,587 | $ | 104,715 | |||||
Income taxes | — | $ | 105,266 | |||||
Acquisition of businesses | ||||||||
Accounts receivable | 689,001 | $ | 133,516 | |||||
Inventory | 618,601 | — | ||||||
Prepaid expenses and other current assets | 55,283 | 26,567 | ||||||
Property and equipment | 226,743 | 15,000 | ||||||
Goodwill | 2,791,649 | 360,300 | ||||||
Customer relationships | 3,874,074 | 349,100 | ||||||
Non-compete agreements | 430,000 | 212,300 | ||||||
Security deposits | 27,591 | — | ||||||
Line of credit | (250,000 | ) | — | |||||
Accounts payable and accrued expenses | (932,276 | ) | (84,941 | ) | ||||
Customer deposits | (292,692 | ) | — | |||||
Long-term debt assumed | (354,199 | ) | — | |||||
Capital lease obligations | (25,490 | ) | — | |||||
Other acquisition liabilities | (50,000 | ) | (145,189 | ) | ||||
Less: share based purchase consideration | (2,741,250 | ) | (912,855 | ) | ||||
Less: acquisition notes issued to sellers of acquired businesses | (1,843,500 | ) | — | |||||
Cash used in acquisition of businesses (net of $148,283 and $46,202 of cash acquired) | 2,223,535 | $ | (46,202 | ) | ||||
Beacon Enterprise Solutions Group, Inc. and Subsidiaries | ||||||||
Consolidated Statements of Cash Flows | ||||||||
(all amounts in 000's) | ||||||||
For the | For the | |||||||
Year Ended | Year Ended | |||||||
September, 30 | September, 30 | |||||||
2010 | 2009 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net loss | $ | (18,555 | ) | $ | (6,270 | ) | ||
Add: Net loss (income) from discontinued operations | 8,181 | (492 | ) | |||||
Net loss from continuing operations | (10,374 | ) | (6,762 | ) | ||||
Adjustments to reconcile net loss to net cash used in continuing operating activities: | ||||||||
Change in reserve for obsolete inventory | (10 | ) | 125 | |||||
Change in reserve for doubtful accounts | 710 | 91 | ||||||
Depreciation and amortization | 589 | 613 | ||||||
Non-cash interest | 136 | 591 | ||||||
Share based payments | 1,381 | 722 | ||||||
Change in fair value of warrants with anti-dilution rights | 4,373 | - | ||||||
Change in deferred tax liability | 50 | - | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (2,176 | ) | (1,655 | ) | ||||
Inventory | 58 | (132 | ) | |||||
Prepaid expenses and other assets | 128 | (284 | ) | |||||
Accounts payable | 897 | 847 | ||||||
Accrued expenses | (1,900 | ) | 1,301 | |||||
CASH USED FOR CONTINUING OPERATING ACTIVITIES | (6,138 | ) | (4,543 | ) | ||||
CASH PROVIDED BY DISCONTINUED OPERATIONS | 1,298 | 177 | ||||||
NET CASH USED FOR OPERATING ACTIVITIES | (4,840 | ) | (4,366 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Capital expenditures | (342 | ) | (133 | ) | ||||
Capital expenditures of discontinued operations | (183 | ) | (41 | ) | ||||
NET CASH USED IN INVESTING ACTIVITIES | (525 | ) | (174 | ) | ||||
CASH FLOWS FROM CONTINUING FINANCING ACTIVITIES | ||||||||
Proceeds from sale of common stock, net of offering costs | 2,398 | 4,347 | ||||||
Proceeds from warrant exercises, net of offering costs | 3,631 | - | ||||||
Procceds from issuances of bridge and other short term notes | 765 | 700 | ||||||
Proceeds from issuance of convertible notes | - | 500 | ||||||
Procceds from lines of credit | 630 | 343 | ||||||
Payment of note offering costs | - | (75 | ) | |||||
Payments under lines of credit | (50 | ) | (393 | ) | ||||
Payments of other short term notes | (1,265 | ) | - | |||||
Repayment of convertible notes | (298 | ) | (202 | ) | ||||
Payments of notes payable | (496 | ) | (534 | ) | ||||
Payments of capital lease obligation | - | (12 | ) | |||||
NET CASH PROVIDED BY CONTINUING FINANCING ACTIVITIES | 5,315 | 4,674 | ||||||
Effect of exchange rate changes on cash and cash equivalents | 69 | (34 | ) | |||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 19 | 100 | ||||||
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 227 | 127 | ||||||
CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 246 | $ | 227 | ||||
Supplemental disclosures | ||||||||
Cash paid for: | ||||||||
Interest | $ | 105 | $ | 105 | ||||
Income taxes | $ | - | $ | 105 | ||||
Non-cash investing and financing activities: | ||||||||
Conversion of debt to common stock | $ | 110 | $ | 499 | ||||
Settlement of account payable with common stock | $ | 235 | $ | 38 | ||||
Accrued dividends | $ | 154 | $ | - |
28
NOTE 2 — | LIQUIDITY AND FINANCIAL CONDITION |
30
NOTE 3 — | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
31
32
33
34
35
36
Total | ||||||||||||
Stock | Common | Common | ||||||||||
Options and | Stock | Stock | ||||||||||
Warrants | Equivalents | Equivalents | ||||||||||
Series A Convertible Preferred Stock | 2,666,666 | 2,645,437 | 5,312,103 | |||||||||
Series A-1 Convertible Preferred Stock | 533,333 | 1,003,129 | 1,536,462 | |||||||||
Series B Convertible Preferred Stock | 350,000 | 875,000 | 1,225,000 | |||||||||
Common Stock Offering Warrants | 4,237,214 | 4,237,214 | ||||||||||
Placement Agent Warrants | 2,519,156 | 2,519,156 | ||||||||||
Affiliate Warrants | 55,583 | 55,583 | ||||||||||
Bridge Financings | 1,236,000 | 333,333 | 1,569,333 | |||||||||
Convertible Notes Payable | 50,000 | 397,332 | 447,332 | |||||||||
Compensatory Warrants | 300,000 | 300,000 | ||||||||||
Equity Financing Arrangements | 766,662 | 766,662 | ||||||||||
Employee Stock Options | 3,200,900 | 3,200,900 | ||||||||||
15,915,514 | 5,254,231 | 21,169,745 | ||||||||||
Total | ||||||||||||
Stock | Common | Common | ||||||||||
Options and | Stock | Stock | ||||||||||
Warrants | Equivalents | Equivalents | ||||||||||
Series A Convertible Preferred Stock with Warrants | 20,131 | 40,263 | 60,394 | |||||||||
Series A-1 Convertible Preferred Stock with Warrants | 207,260 | 414,518 | 621,778 | |||||||||
Series B Convertible Preferred Stock with Warrants | 350,000 | 875,000 | 1,225,000 | |||||||||
Common Stock Offering Warrants | 2,807,322 | - | 2,807,322 | |||||||||
Placement Agent Warrants | 2,847,497 | - | 2,847,497 | |||||||||
Affiliate Warrants | 55,583 | - | 55,583 | |||||||||
Bridge Financings | 285,500 | 166,667 | 452,167 | |||||||||
Convertible Notes Payable Warrants | 50,000 | - | 50,000 | |||||||||
Compensatory Warrants | 300,000 | - | 300,000 | |||||||||
Equity Financing Arrangements Warrants | 716,662 | - | 716,662 | |||||||||
Consulting Warrants | 2,500,000 | - | 2,500,000 | |||||||||
Employee Stock Options | 3,468,533 | - | 3,468,533 | |||||||||
Non-Employee Stock Options | 250,000 | - | 250,000 | |||||||||
13,858,488 | 1,496,448 | 15,354,936 |
38
NOTE 4 — | DISCONTINUED OPERATIONS |
39
40
41
42
43
44
Bell-Haun | Strategic | Total | ||||||||||||||||||
ADSnetcurve | Systems | CETCON | Communications | Consideration | ||||||||||||||||
Cash paid | $ | 666,079 | $ | 155,048 | $ | 700,000 | $ | 220,500 | $ | 1,741,627 | ||||||||||
Direct acquisition costs | 172,345 | 95,052 | 235,518 | 127,276 | 630,191 | |||||||||||||||
Net of cash acquired | (5,876 | ) | — | (142,407 | ) | — | (148,283 | ) | ||||||||||||
Cash used in acquisitions | $ | 832,548 | $ | 250,100 | $ | 793,111 | $ | 347,776 | $ | 2,223,535 | ||||||||||
Notes payable | 220,000 | 119,000 | 600,000 | 904,500 | 1,843,500 | |||||||||||||||
Common stock issued | 595,000 | 425,000 | 765,000 | 956,250 | 2,741,250 | |||||||||||||||
$ | 1,647,548 | $ | 794,100 | $ | 2,158,111 | $ | 2,208,526 | $ | 6,808,285 | |||||||||||
45
Bell-Haun | Strategic | Total | ||||||||||||||||||||||
ADSnetcurve | Systems | CETCON | Communications | Consideration | ||||||||||||||||||||
Accounts receivable | $ | 151,208 | $ | 71,335 | $ | 466,458 | $ | — | $ | 689,001 | ||||||||||||||
Inventory | — | 168,065 | — | 450,536 | 618,601 | |||||||||||||||||||
Prepaid expenses and other current assets | 13,430 | 34,522 | 5,516 | 1,815 | 55,283 | |||||||||||||||||||
Property and equipment | 47,500 | 19,243 | 20,000 | 140,000 | 226,743 | |||||||||||||||||||
Goodwill | 524,396 | 451,252 | 994,007 | 821,994 | 2,791,649 | |||||||||||||||||||
Customer relationships | 862,027 | 843,760 | 927,887 | 1,240,400 | 3,874,074 | |||||||||||||||||||
Covenants not to compete | 100,000 | 30,000 | 200,000 | 100,000 | 430,000 | |||||||||||||||||||
Security deposits | 21,541 | — | — | 6,050 | 27,591 | |||||||||||||||||||
Line of credit obligation | — | (250,000 | ) | — | — | (250,000 | ) | |||||||||||||||||
Accounts payable and accrued liabilities | (40,103 | ) | (319,911 | ) | (55,278 | ) | (516,984 | ) | (932,276 | ) | ||||||||||||||
Customer deposits | (32,451 | ) | (44,914 | ) | (205,532 | ) | (9,795 | ) | (292,692 | ) | ||||||||||||||
Capital lease obligations | — | — | — | (25,490 | ) | (25,490 | ) | |||||||||||||||||
Long-term debt | — | (159,252 | ) | (194,947 | ) | — | (354,199 | ) | ||||||||||||||||
Other acquisition liability | — | (50,000 | ) | — | — | (50,000 | ) | |||||||||||||||||
$ | 1,647,548 | $ | 794,100 | $ | 2,158,111 | $ | 2,208,526 | $ | 6,808,285 | |||||||||||||||
Net tangible asset acquired (liabilities assumed) | $ | 161,125 | $ | (530,912 | ) | $ | 36,217 | $ | 46,132 | $ | (287,438 | ) | ||||||||||||
46
Amount | ||||
Shares issued at acquistion | $ | 436,855 | ||
Contingent shares pursuant to earnout | 476,000 | |||
Profit sharing earnout | 145,189 | |||
$ | 1,058,044 | |||
Less cash acquired | (46,202 | ) | ||
Total purchase price consideration, net of cash received | $ | 1,011,842 | ||
Amount | ||||
Shares issued at acquisition | $ | 437 | ||
Contingent shares pursuant to earn out | 476 | |||
Profit sharing earn out | 145 | |||
$ | 1,058 | |||
Net cash acquired | (46 | ) | ||
Total purchase price consideration, net of cash received | $ | 1,012 |
Amount | ||||
Accounts receivable | $ | 133,516 | ||
Prepaid expenses and other current assets | 26,567 | |||
Property and equipment | 15,000 | |||
Goodwill | 360,300 | |||
Customer relationships | 349,100 | |||
Covenants not to compete | 212,300 | |||
Accounts payable and accrued liabilities | (84,941 | ) | ||
$ | 1,011,842 | |||
Net tangible asset acquired | $ | 136,344 | ||
Amount | ||||
Accounts receivable | $ | 134 | ||
Prepaid expenses and other current assets | 27 | |||
Property and equipment | 15 | |||
Goodwill | 360 | |||
Customer relationships | 349 | |||
Covenants not to compete | 212 | |||
Accounts payable and accrued liabilities | (39 | ) | ||
$ | 1,058 | |||
Net tangible asset acquired (liabilities assumed) | $ | 137 |
As of | As of | |||||||
September 30, | September 30, | |||||||
2010 | 2009 | |||||||
ASSETS | ||||||||
Cash | $ | 46 | $ | 37 | ||||
Accounts receviable | 87 | 911 | ||||||
Other current assets | - | 10 | ||||||
Total current assets | 133 | 958 | ||||||
Property and equipment, net | 59 | |||||||
Goodwill | - | 360 | ||||||
Other intangible assets, net | - | 561 | ||||||
Total assets | $ | 133 | $ | 1,938 | ||||
LIABILITIES | ||||||||
Accounts payable | $ | 7,554 | $ | 104 | ||||
Accrued expenses | 1,004 | 421 | ||||||
Total liabilities | $ | 8,558 | $ | 525 |
For the Year | For the Year | |||||||
Ended | Ended | |||||||
September 30, | September 30, | |||||||
2010 | 2009 | |||||||
Net Sales | $ | 16,948 | $ | 958 | ||||
Net loss before taxes | (8,181 | ) | 394 | |||||
Income taxes | - | 98 | ||||||
Net (loss) income from discontinued operations | $ | (8,181 | ) | $ | 492 |
47
For the | For the | |||||||
Year Ended | Year Ended | |||||||
September 30, | September 30, | |||||||
2008 | 2009 | |||||||
(Unaudited) | (Unaudited) | |||||||
Net sales | $ | 8,390,073 | $ | 11,231,496 | ||||
Loss from operations | (4,713,761 | ) | (5,154,657 | ) | ||||
Net loss available to common stockholders — (including the effects of contractual and deemd dividends) | (10,673,847 | ) | (7,045,261 | ) | ||||
Net loss per share — basic and diluted | $ | (0.98 | ) | $ | (0.42 | ) | ||
Pro-forma weighted average shares outstanding | 10,865,250 | 16,882,449 |
NOTE 5 — | ACCOUNTS RECEIVABLE |
September 30, | September 30, | |||||||
2008 | 2009 | |||||||
Accounts receivable | $ | 1,555,162 | $ | 4,138,486 | ||||
Less: Allowance for doubtful accounts | (50,000 | ) | (157,771 | ) | ||||
Accounts receivable, net | $ | 1,505,162 | $ | 3,980,715 | ||||
As of | As of | |||||||
September 30, | September 30, | |||||||
2010 | 2009 | |||||||
Accounts receivable | $ | 5,401 | $ | 3,225 | ||||
Less: Allowance for doubtful accounts | (866 | ) | (156 | ) | ||||
Accounts receivable, net | $ | 4,535 | $ | 3,069 |
September 30, | September 30, | |||||||
2008 | 2009 | |||||||
Opening balance | $ | — | $ | (50,000 | ) | |||
Add: Additions to reserve | $ | (50,000 | ) | $ | (151,888 | ) | ||
Less: charges | 44,117 | |||||||
Ending balance | $ | (50,000 | ) | $ | (157,771 | ) | ||
48
As of | As of | |||||||
September 30, | September 30, | |||||||
2010 | 2009 | |||||||
Opening balance | (156 | ) | $ | (50 | ) | |||
Add: Additions to reserve | (752 | ) | (136 | ) | ||||
Less: charges | 42 | 30 | ||||||
Ending balance | $ | (866 | ) | $ | (156 | ) |
NOTE 6 — | INVENTORY, NET |
September 30, | September 30, | |||||||
2008 | 2009 | |||||||
Inventory | $ | 632,852 | $ | 765,121 | ||||
Less: reserve for obsolete inventory | (35,058 | ) | (160,499 | ) | ||||
Inventory | $ | 597,794 | $ | 604,622 | ||||
As of | As of | |||||||
September 30, | September 30, | |||||||
2010 | 2009 | |||||||
Inventory (principally parts and system components) | $ | 707 | $ | 765 | ||||
Less: reserve for obsolete inventory | (150 | ) | (160 | ) | ||||
Inventory | $ | 557 | $ | 605 |
As of | As of | |||||||
September 30, | September 30, | |||||||
2008 | 2009 | |||||||
Opening balance | $ | — | $ | (35,058 | ) | |||
Add: additions to reserve | (35,058 | ) | (144,659 | ) | ||||
Less: charges | 19,218 | |||||||
Ending balance | $ | (35,058 | ) | $ | (160,499 | ) | ||
As of | As of | |||||||
September 30, | September 30, | |||||||
2010 | 2009 | |||||||
Opening balance | $ | (160 | ) | $ | (35 | ) | ||
Add: additions to reserve | (56 | ) | (144 | ) | ||||
Less: charges | 66 | 19 | ||||||
Ending balance | $ | (150 | ) | $ | (160 | ) |
NOTE 7 — | PROPERTY AND EQUIPMENT, NET |
September 30, | September 30, | |||||||
2008 | 2009 | |||||||
Equipment | $ | 213,315 | $ | 290,386 | ||||
Vehicles | 80,934 | 80,934 | ||||||
Furniture and Fixtures | 45,000 | 118,358 | ||||||
Software | 27,225 | 110,992 | ||||||
Leasehold Improvements | 14,339 | 16,852 | ||||||
$ | 380,813 | $ | 617,522 | |||||
Less: Accumulated Depreciation | (70,110 | ) | (222,951 | ) | ||||
Net Book Vaule Fixed Assets | $ | 310,703 | $ | 394,571 | ||||
September 30, | September 30, | |||||||
2010 | 2009 | |||||||
Equipment | $ | 500 | $ | 290 | ||||
Vehicles | 82 | 81 | ||||||
Furniture and Fixtures | 58 | 58 | ||||||
Software | 240 | 111 | ||||||
Leasehold Improvements | 19 | 17 | ||||||
$ | 899 | $ | 557 | |||||
Less: Accumulated Depreciation | (479 | ) | (221 | ) | ||||
Net Book Value Fixed Assets | $ | 420 | $ | 336 |
49
NOTE 8 — | INTANGIBLE ASSETS, NET |
Bell-Haun | Strategic | Total | ||||||||||||||||||||||
ADSnetcurve | Systems | CETCON | Communications | Symbio Tec | Consideration | |||||||||||||||||||
Goodwill | $ | 524,396 | $ | 451,252 | $ | 994,007 | $ | 821,993 | $ | 360,300 | $ | 3,151,948 | ||||||||||||
Customer relationships | 862,027 | 843,760 | 927,887 | 1,240,400 | 349,100 | 4,223,174 | ||||||||||||||||||
Contracts not to compete | 100,000 | 30,000 | 200,000 | 100,000 | 212,300 | 642,300 | ||||||||||||||||||
962,027 | 873,760 | 1,127,887 | 1,340,400 | 561,400 | 4,865,474 | |||||||||||||||||||
Less: Accumulated amortization | (213,584 | ) | (193,308 | ) | (271,727 | ) | (283,731 | ) | — | (962,350 | ) | |||||||||||||
Intangibles, net | 748,443 | 680,452 | 856,160 | 1,056,669 | 561,400 | 3,903,124 | ||||||||||||||||||
As of | As of | |||||||
September 30, | September 30, | |||||||
2010 | 2009 | |||||||
Total | Total | |||||||
Consideration | Consideration | |||||||
Goodwill | $ | 2,792 | $ | 2,792 | ||||
Customer relationships | $ | 3,804 | $ | 3,662 | ||||
Covenants not to compete | 500 | 642 | ||||||
4,304 | 4,304 | |||||||
Less: Accumulated amortization | (1,293 | ) | (962 | ) | ||||
Intangibles, net | $ | 3,011 | $ | 3,342 |
Fiscal Year | ||||
Ended | ||||
September 30, | ||||
2010 | $ | 462,246 | ||
2011 | 462,246 | |||
2012 | 462,246 | |||
2013 | 462,246 | |||
2014 | 462,246 | |||
Thereafter | 1,591,894 | |||
$ | 3,903,124 | |||
Fiscal Year ended | ||||
September 30, | ||||
2011 | $ | 258 | ||
2012 | 258 | |||
2013 | 258 | |||
2014 | 258 | |||
2015 | 258 | |||
Thereafter | 1,721 | |||
$ | 3,011 |
NOTE 9 — | ACCRUED EXPENSES |
September 30, | September 30, | |||||||
2008 | 2009 | |||||||
Goods received not invoiced | $ | 121,517 | $ | 1,092,042 | ||||
Compensation related | 371,511 | 559,782 | ||||||
Severance and related | 133,161 | 156,248 | ||||||
Interest | 76,852 | 122,660 | ||||||
Sales taxes payable | 80,147 | 66,798 | ||||||
Warranty reserve | 58,178 | 65,072 | ||||||
Preferred stock dividends | 220,354 | 37,962 | ||||||
Other | 275,640 | 543,716 | ||||||
$ | 1,337,360 | $ | 2,644,280 | |||||
50
As of | As of | |||||||
September 30, | September 30, | |||||||
2010 | 2009 | |||||||
Compensation related | $ | 483 | $ | 541 | ||||
Dividends | 153 | 38 | ||||||
Interest | 50 | 123 | ||||||
Goods received not invoiced | - | 1,092 | ||||||
Other | 194 | 832 | ||||||
$ | 880 | $ | 2,626 |
NOTE 10 — | NOTES PAYABLE AND LONG TERM DEBT |
September 30, | September 30, | |||||||
2008 | 2009 | |||||||
Lines of Credit and Short-Term Notes | $ | 200,000 | $ | 550,000 | ||||
Convertible Notes Payable | $ | — | $ | 297,999 | ||||
Bridge Note | $ | 571,160 | 166,879 | |||||
Integra Bank | 548,541 | 439,367 | ||||||
Acquistion notes (payable to the sellers of the acquired businesses) | ||||||||
ADSnetcurve | 156,617 | 80,922 | ||||||
Bell-Haun | 119,000 | 43,985 | ||||||
CETCON | 515,627 | 416,404 | ||||||
Strategic Secured Note | 472,287 | 297,005 | ||||||
1,812,072 | 1,277,683 | |||||||
Less: current portion | (495,595 | ) | (475,348 | ) | ||||
Non-current portion | $ | 1,316,477 | $ | 802,335 | ||||
As of | As of | |||||||
September 30, | September 30, | |||||||
2010 | 2009 | |||||||
Short-Term Lines of Credit and Notes Payable | $ | - | $ | 550 | ||||
Convertible Notes Payable | $ | - | $ | 298 | ||||
Bridge Note | $ | 100 | $ | 167 | ||||
Integra Bank | $ | 323 | $ | 439 | ||||
Acquistion notes (payable to the sellers of the acquired businesses) | ||||||||
ADSnetcurve | - | 81 | ||||||
Bell-Haun | - | 44 | ||||||
CETCON | 290 | 416 | ||||||
Strategic Secured Note | 169 | 297 | ||||||
782 | 1,277 | |||||||
Less: current portion | (379 | ) | (475 | ) | ||||
Non-current portion | $ | 403 | $ | 802 | ||||
Long term Line of Credit - related party | $ | 630 | $ | - |
51
52
53
Expected | Fair Value | Risk-Free | Value | Charge to | ||||||||||||||||||||||||||||||||
Quantity | Life | Strike | of Common | Volatility | Dividend | Interese | per | Interest | ||||||||||||||||||||||||||||
Vesting Date | Vested | (Days) | Price | Stock | Rate | Yield | Rate | Warrant | Expense | |||||||||||||||||||||||||||
2/15/2008 | 10,000 | 1,825 | $ | 1.00 | $ | 1.35 | 66.34 | % | 0 | % | 2.76 | % | $ | 0.86 | $ | 8,600.00 | ||||||||||||||||||||
3/15/2008 | 10,000 | 1,796 | $ | 1.00 | $ | 1.04 | 66.34 | % | 0 | % | 2.37 | % | $ | 0.60 | $ | 6,000.00 | ||||||||||||||||||||
4/15/2008 | 10,000 | 1,765 | $ | 1.00 | $ | 1.15 | 66.34 | % | 0 | % | 2.68 | % | $ | 0.69 | $ | 6,900.00 | ||||||||||||||||||||
5/15/2008 | 10,000 | 1,735 | $ | 1.00 | $ | 0.95 | 66.34 | % | 0 | % | 3.10 | % | $ | 0.53 | $ | 5,300.00 | ||||||||||||||||||||
6/15/2008 | 10,000 | 1,704 | $ | 1.00 | $ | 1.01 | 66.34 | % | 0 | % | 3.73 | % | $ | 0.58 | $ | 5,800.00 | ||||||||||||||||||||
7/15/2008 | 10,000 | 1,674 | $ | 1.00 | $ | 1.25 | 66.34 | % | 0 | % | 3.12 | % | $ | 0.76 | $ | 7,600.00 | ||||||||||||||||||||
8/15/2008 | 10,000 | 1,643 | $ | 1.00 | $ | 1.50 | 66.34 | % | 0 | % | 3.11 | % | $ | 0.97 | $ | 9,700.00 | ||||||||||||||||||||
9/15/2008 | 10,000 | 1,612 | $ | 1.00 | $ | 1.05 | 66.34 | % | 0 | % | 2.59 | % | $ | 0.58 | $ | 5,800.00 | ||||||||||||||||||||
For the year ended September 30, 2008 | $ | 55,700.00 | ||||||||||||||||||||||||||||||||||
10/15/2008 | 10,000 | 1,582 | $ | 1.00 | $ | 1.20 | 66.34 | % | 0 | % | 2.90 | % | $ | 0.70 | $ | 7,000.00 | ||||||||||||||||||||
11/15/2008 | 10,000 | 1,551 | $ | 1.00 | $ | 0.85 | 66.34 | % | 0 | % | 2.33 | % | $ | 0.42 | $ | 4,200.00 | ||||||||||||||||||||
11/20/2008 | 140,000 | 1,546 | $ | 1.00 | $ | 0.55 | 66.34 | % | 0 | % | 1.94 | % | $ | 0.21 | $ | 29,400.00 | ||||||||||||||||||||
For the year ended September 30, 2009 | $ | 40,600.00 | ||||||||||||||||||||||||||||||||||
54
55
Expected | Fair Value | Risk-Free | Value | Charge to | ||||||||||||||||||||||||||||||||
Quantity | Life | Strike | of Common | Volatility | Dividend | Interese | per | Interest | ||||||||||||||||||||||||||||
Vesting Date | Vested | (Days) | Price | Stock | Rate | Yield | Rate | Warrant | Expense | |||||||||||||||||||||||||||
2/15/2008 | 4,000 | 1,825 | $ | 1.00 | $ | 1.35 | 66.34 | % | 0 | % | 2.76 | % | $ | 0.86 | $ | 3,440.00 | ||||||||||||||||||||
3/15/2008 | 4,000 | 1,796 | $ | 1.00 | $ | 1.04 | 66.34 | % | 0 | % | 2.37 | % | $ | 0.60 | $ | 2,400.00 | ||||||||||||||||||||
4/15/2008 | 4,000 | 1,765 | $ | 1.00 | $ | 1.15 | 66.34 | % | 0 | % | 2.68 | % | $ | 0.69 | $ | 2,760.00 | ||||||||||||||||||||
5/15/2008 | 4,000 | 1,735 | $ | 1.00 | $ | 0.95 | 66.34 | % | 0 | % | 3.10 | % | $ | 0.53 | $ | 2,120.00 | ||||||||||||||||||||
6/15/2008 | 4,000 | 1,704 | $ | 1.00 | $ | 1.01 | 66.34 | % | 0 | % | 3.73 | % | $ | 0.58 | $ | 2,320.00 | ||||||||||||||||||||
7/15/2008 | 4,000 | 1,674 | $ | 1.00 | $ | 1.25 | 66.34 | % | 0 | % | 3.12 | % | $ | 0.76 | $ | 3,040.00 | ||||||||||||||||||||
8/15/2008 | 4,000 | 1,643 | $ | 1.00 | $ | 1.50 | 66.34 | % | 0 | % | 3.11 | % | $ | 0.97 | $ | 3,880.00 | ||||||||||||||||||||
9/15/2008 | 4,000 | 1,612 | $ | 1.00 | $ | 1.05 | 66.34 | % | 0 | % | 2.59 | % | $ | 0.58 | $ | 2,320.00 | ||||||||||||||||||||
For the year ended September 30, 2008 | $ | 22,280.00 | ||||||||||||||||||||||||||||||||||
10/15/2008 | 4,000 | 1,582 | $ | 1.00 | $ | 1.20 | 66.34 | % | 0 | % | 2.90 | % | $ | 0.70 | $ | 2,800.00 | ||||||||||||||||||||
11/15/2008 | 4,000 | 1,551 | $ | 1.00 | $ | 0.85 | 66.34 | % | 0 | % | 2.33 | % | $ | 0.42 | $ | 1,680.00 | ||||||||||||||||||||
11/20/2008 | 56,000 | 1,546 | $ | 1.00 | $ | 0.55 | 66.34 | % | 0 | % | 1.94 | % | $ | 0.21 | $ | 11,760.00 | ||||||||||||||||||||
For the year ended September 30, 2009 | $ | 16,240.00 | ||||||||||||||||||||||||||||||||||
56
Fiscal Year | ||||
Ended | ||||
September 30, | ||||
2010 | $ | 475,348 | ||
2011 | 377,358 | |||
2012 | 321,260 | |||
2013 | 103,717 | |||
$ | 1,277,683 | |||
2011 | $ | 379 | ||
2012 | 311 | |||
2013 | 92 | |||
2014 | - | |||
2015 | - | |||
$ | 782 |
NOTE 11 — | |
RELATED PARTY TRANSACTIONS |
Expected | Fair Value | Risk-Free | Value | Charge to | ||||||||||||||||||||||||||||||||
Quantity | Life | Strike | of Common | Volatility | Dividend | Interese | per | Interest | ||||||||||||||||||||||||||||
Date Earned | Earned | (Days) | Price | Stock | Rate | Yield | Rate | Warrant | Expense | |||||||||||||||||||||||||||
1/28/2008 | 20,000 | 1,825 | $ | 1.00 | $ | 1.90 | 66.34 | % | 0 | % | 2.80 | % | $ | 1.34 | $ | 26,800 | ||||||||||||||||||||
2/28/2008 | 20,000 | 1,825 | $ | 1.00 | $ | 1.50 | 66.34 | % | 0 | % | 2.73 | % | $ | 0.99 | $ | 19,800 | ||||||||||||||||||||
3/7/2008 | 10,000 | 1,825 | $ | 1.00 | $ | 1.75 | 66.34 | % | 0 | % | 2.45 | % | $ | 1.21 | $ | 12,100 |
57
Expected | Fair Value | Risk-Free | Value | Charge to | ||||||||||||||||||||||||||||||||
Quantity | Life | Strike | of Common | Volatility | Dividend | Interese | per | Interest | ||||||||||||||||||||||||||||
Date Earned | Earned | (Days) | Price | Stock | Rate | Yield | Rate | Warrant | Expense | |||||||||||||||||||||||||||
6/15/2008 | 33,333 | 1,825 | $ | 1.00 | $ | 1.01 | 66.34 | % | 0 | % | 3.73 | % | $ | 0.58 | $ | 19,333 | ||||||||||||||||||||
7/15/2008 | 33,333 | 1,825 | $ | 1.00 | $ | 1.25 | 66.34 | % | 0 | % | 3.12 | % | $ | 0.78 | $ | 26,000 | ||||||||||||||||||||
8/15/2008 | 33,333 | 1,825 | $ | 1.00 | $ | 1.50 | 66.34 | % | 0 | % | 3.41 | % | $ | 1.00 | $ | 33,333 | ||||||||||||||||||||
8/19/2008 | 100,000 | 1,825 | $ | 1.00 | $ | 1.25 | 66.34 | % | 0 | % | 3.07 | % | $ | 0.78 | $ | 78,000 | ||||||||||||||||||||
9/15/2008 | 33,333 | 1,825 | $ | 1.00 | $ | 1.05 | 66.34 | % | 0 | % | 2.59 | % | $ | 3.61 | $ | 20,333 | ||||||||||||||||||||
For year ended September 30, 2008 | $ | 176,999 | ||||||||||||||||||||||||||||||||||
10/15/2008 | 33,333 | 1,825 | $ | 1.00 | $ | 1.20 | 66.34 | % | 0 | % | 2.90 | % | $ | 0.74 | $ | 24,666 | ||||||||||||||||||||
11/15/2008 | 33,333 | 1,825 | $ | 1.00 | $ | 0.85 | 66.34 | % | 0 | % | 2.33 | % | $ | 0.45 | $ | 15,000 | ||||||||||||||||||||
12/15/2008 | 33,333 | 1,825 | $ | 1.00 | $ | 1.52 | 66.34 | % | 0 | % | 1.50 | % | $ | 0.99 | $ | 33,000 | ||||||||||||||||||||
12/31/2008 | 16,667 | 1,825 | $ | 1.00 | $ | 1.01 | 66.34 | % | 0 | % | 1.55 | % | $ | 0.57 | $ | 9,500 | ||||||||||||||||||||
1/9/2009 | 100,000 | 1,825 | $ | 1.00 | $ | 0.80 | 66.34 | % | 0 | % | 1.51 | % | $ | 0.41 | $ | 41,000 | ||||||||||||||||||||
2/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 0.80 | 66.34 | % | 0 | % | 1.99 | % | $ | 0.41 | $ | 13,667 | ||||||||||||||||||||
3/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 0.54 | 66.34 | % | 0 | % | 1.90 | % | $ | 0.23 | $ | 7,667 | ||||||||||||||||||||
4/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 0.75 | 66.34 | % | 0 | % | 1.90 | % | $ | 0.37 | $ | 12,333 | ||||||||||||||||||||
5/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 1.19 | 66.34 | % | 0 | % | 2.09 | % | $ | 0.72 | $ | 23,970 | ||||||||||||||||||||
6/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 1.35 | 66.34 | % | 0 | % | 2.73 | % | $ | 0.86 | $ | 28,666 | ||||||||||||||||||||
7/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 1.61 | 66.34 | % | 0 | % | 2.31 | % | $ | 1.08 | $ | 35,983 | ||||||||||||||||||||
8/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 1.20 | 66.34 | % | 0 | % | 2.75 | % | $ | 0.74 | $ | 24,533 | ||||||||||||||||||||
9/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 1.00 | 66.34 | % | 0 | % | 2.38 | % | $ | 0.57 | $ | 18,960 | ||||||||||||||||||||
For year ended September 30, 2009 | $ | 288,945 | ||||||||||||||||||||||||||||||||||
Expected | Fair Value | Risk-Free | Value | Charge to | ||||||||||||||||||||||||||||||||
Date | Quantity | Life | Strike | of Common | Volatility | Dividend | Interese | per | Interest | |||||||||||||||||||||||||||
Earned | Earned | (days) | Price | Stock | Rate | Yield | Rate | Warrant | Expense | |||||||||||||||||||||||||||
10/15/2008 | 33,333 | 1,825 | $ | 1.00 | $ | 1.20 | 66.34 | % | 0 | % | 2.90 | % | $ | 0.74 | $ | 25 | ||||||||||||||||||||
11/15/2008 | 33,333 | 1,825 | $ | 1.00 | $ | 0.85 | 66.34 | % | 0 | % | 2.33 | % | $ | 0.45 | $ | 15 | ||||||||||||||||||||
12/15/2008 | 33,333 | 1,825 | $ | 1.00 | $ | 1.52 | 66.34 | % | 0 | % | 1.50 | % | $ | 0.99 | $ | 33 | ||||||||||||||||||||
12/31/2008 | 16,667 | 1,825 | $ | 1.00 | $ | 1.01 | 66.34 | % | 0 | % | 1.55 | % | $ | 0.57 | $ | 10 | ||||||||||||||||||||
1/9/2009 | 100,000 | 1,825 | $ | 1.00 | $ | 0.80 | 66.34 | % | 0 | % | 1.51 | % | $ | 0.41 | $ | 41 | ||||||||||||||||||||
2/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 0.80 | 66.34 | % | 0 | % | 1.99 | % | $ | 0.41 | $ | 14 | ||||||||||||||||||||
3/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 0.54 | 66.34 | % | 0 | % | 1.90 | % | $ | 0.23 | $ | 8 | ||||||||||||||||||||
4/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 0.75 | 66.34 | % | 0 | % | 1.90 | % | $ | 0.37 | $ | 12 | ||||||||||||||||||||
5/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 1.19 | 66.34 | % | 0 | % | 2.09 | % | $ | 0.72 | $ | 24 | ||||||||||||||||||||
6/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 1.35 | 66.34 | % | 0 | % | 2.73 | % | $ | 0.86 | $ | 29 | ||||||||||||||||||||
7/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 1.61 | 66.34 | % | 0 | % | 2.31 | % | $ | 1.08 | $ | 36 | ||||||||||||||||||||
8/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 1.20 | 66.34 | % | 0 | % | 2.75 | % | $ | 0.74 | $ | 24 | ||||||||||||||||||||
9/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 1.00 | 66.34 | % | 0 | % | 2.38 | % | $ | 0.57 | $ | 18 | ||||||||||||||||||||
For year ended September 30, 2009 | $ | 289 |
58
NOTE | COMMITMENTS AND CONTINGENCIES |
Fiscal Year | ||||
Ending | ||||
September 30, 2009 | ||||
2010 | $ | 123,423 | ||
2011 | 19,400 | |||
$ | 142,823 | |||
2011 | $ | 260 | ||
2012 | 116 | |||
2013 | 116 | |||
2014 | 89 | |||
2015 | 80 | |||
Thereafter | 47 | |||
$ | 708 |
Expected | Fair Value | Risk-Free | Value | Amount to | ||||||||||||||||||||||||||||||||
Issuance | Quantity | Life | Strike | of Common | Volatility | Dividend | Interese | per | be charged | |||||||||||||||||||||||||||
Date | Vested | (days) | Price | Stock | Rate | Yield | Rate | Warrant | to compensation | |||||||||||||||||||||||||||
12/1/2009 | 1,500,000 | 1,825 | $ | 1.00 | $ | 0.81 | 66.34 | % | 0 | % | 2.03 | % | $ | 0.42 | $ | 628 | ||||||||||||||||||||
12/1/2009 | 250,000 | 1,825 | $ | 1.50 | $ | 0.81 | 66.34 | % | 0 | % | 2.03 | % | $ | 0.34 | 86 | |||||||||||||||||||||
12/1/2009 | 250,000 | 1,825 | $ | 2.00 | $ | 0.81 | 66.34 | % | 0 | % | 2.03 | % | $ | 0.29 | 72 | |||||||||||||||||||||
12/1/2009 | 250,000 | 1,825 | $ | 2.25 | $ | 0.81 | 66.34 | % | 0 | % | 2.03 | % | $ | 0.27 | 67 | |||||||||||||||||||||
12/1/2009 | 250,000 | 1,825 | $ | 2.50 | $ | 0.81 | 66.34 | % | 0 | % | 2.03 | % | $ | 0.25 | 62 | |||||||||||||||||||||
2,500,000 | $ | 915 |
NOTE 13 — | STOCKHOLDERS’ EQUITY |
61
Fair Value of | ||||||||||||||||||||||||||||||||
Quantity of | Estimated | Estimated | Undelying | Risk-Free | Expected | |||||||||||||||||||||||||||
Date | Warrants | Fair Value | Fair Value of | Common | Interest | Dividend | Life | Current | ||||||||||||||||||||||||
Issued | Issued | per Warrant | Warrants | Stock | Rate | Yield | (Years) | Volatility | ||||||||||||||||||||||||
12/20/2007 | 1,622,600 | $ | 0.46 | $ | 746,396 | $ | 0.85 | 3.45 | % | 0 | % | 5 | 66.34 | % | ||||||||||||||||||
1/15/2008 | 480,333 | $ | 0.78 | $ | 374,660 | $ | 1.25 | 3.00 | % | 0 | % | 5 | 66.34 | % | ||||||||||||||||||
2/12/2008 | 563,733 | $ | 0.78 | $ | 439,712 | $ | 1.25 | 2.71 | % | 0 | % | 5 | 66.34 | % |
Fair Value of | Intrinsic | Common | ||||||||||||||||||
Common | Value of | Shares | ||||||||||||||||||
Date of Issue/ | Stock on | Effective | Beneficial | Issuable | ||||||||||||||||
Commitment | Commitment | Conversion | Conversion | upon | Deemed | |||||||||||||||
Date | Date | Price | Feature | Conversion | Dividend | |||||||||||||||
12/20/2007 | $ | 0.85 | $ | 0.57 | $ | 0.28 | 3,245,200 | $ | 903,878 | |||||||||||
1/15/2008 | $ | 1.25 | $ | 0.49 | $ | 0.76 | 960,667 | $ | 726,820 | |||||||||||
2/12/2008 | $ | 1.25 | $ | 0.49 | $ | 0.76 | 1,127,466 | $ | 853,017 |
62
Fair Value of | ||||||||||||||||||||||||||||||||
Quantity of | Estimated | Estimated | Undelying | Risk-Free | Expected | |||||||||||||||||||||||||||
Date | Warrants | Fair Value | Fair Value of | Common | Interest | Dividend | Life | Current | ||||||||||||||||||||||||
Issued | Issued | per Warrant | Warrants | Stock | Rate | Yield | (Years) | Volatility | ||||||||||||||||||||||||
3/7/2008 | 515,200 | $ | 1.20 | $ | 618,240 | $ | 1.75 | 2.45 | % | 0 | % | 5 | 66.34 | % | ||||||||||||||||||
3/11/2008 | 18,133 | $ | 0.99 | $ | 17,952 | $ | 1.50 | 2.61 | % | 0 | % | 5 | 66.34 | % |
63
Fair Value of | Intrinsic | Common | ||||||||||||||||||
Common | Value of | Shares | ||||||||||||||||||
Date of Issue/ | Stock on | Effective | Beneficial | Issuable | ||||||||||||||||
Commitment | Commitment | Conversion | Conversion | upon | Deemed | |||||||||||||||
Date | Date | Price | Feature | Conversion | Dividend | |||||||||||||||
3/7/2008 | $ | 1.75 | $ | 0.42 | $ | 1.33 | 1,030,400 | $ | 1,373,867 | |||||||||||
3/11/2008 | $ | 1.50 | $ | 0.45 | $ | 1.05 | 36,267 | $ | 38,015 |
64
Fair Value of | ||||||||||||||||||||||||||||||||
Quantity of | Estimated | Estimated | Undelying | Risk-Free | Expected | |||||||||||||||||||||||||||
Date | Warrants | Fair Value | Fair Value of | Common | Interest | Dividend | Life | Current | ||||||||||||||||||||||||
Issued | Issued | per Warrant | Warrants | Stock | Rate | Yield | (Years) | Volatility | ||||||||||||||||||||||||
7/10/2008 | 200,000 | $ | 0.55 | $ | 110,000 | $ | 1.01 | 3.10 | % | 0 | % | 5 | 66.34 | % |
Fair Value of | Intrinsic | Common | ||||||||||||||||||
Common | Value of | Shares | ||||||||||||||||||
Date of Issue/ | Stock on | Effective | Beneficial | Issuable | ||||||||||||||||
Commitment | Commitment | Conversion | Conversion | upon | Deemed | |||||||||||||||
Date | Date | Price | Feature | Conversion | Dividend | |||||||||||||||
7/10/2008 | $ | 1.01 | $ | 0.71 | $ | 0.30 | 444,444 | $ | 135,163 |
65
Deemed | ||||||||||||||||||||||||||||||||||||
Fair Value of | Dividend | |||||||||||||||||||||||||||||||||||
Date of | Contractual | Conversion | Common | Closing | Fair Value | Contractual | Related to | |||||||||||||||||||||||||||||
Preferred | Date of | Election | Preferred | Price per | Shares | Price on | of Underlying | Preferred | Beneficial | |||||||||||||||||||||||||||
Stock | Contractual | (Commitment | Stock | Common | Underlying | Date of | Common | Stock | Conversion | |||||||||||||||||||||||||||
Series | Dividend | Date) | Dividend | Share | Dividend | Election | Stock | Dividend | Feature | |||||||||||||||||||||||||||
A | 1/1/2008 | 3/26/2008 | $ | 7,335 | $ | 0.75 | 9,780 | $ | 1.20 | $ | 11,736 | $ | 7,335 | $ | 4,401 | |||||||||||||||||||||
A | 4/1/2008 | 3/26/2008 | $ | 87,569 | $ | 0.75 | 116,759 | $ | 1.20 | $ | 140,111 | $ | 87,569 | $ | 52,542 | |||||||||||||||||||||
A | 7/1/2008 | 10/7/2008 | $ | 100,000 | $ | 0.75 | 133,333 | $ | 1.24 | $ | 165,333 | $ | 100,000 | $ | 65,333 | |||||||||||||||||||||
A-1 | 4/1/2008 | 3/26/2008 | $ | 5,450 | $ | 0.75 | 7,267 | $ | 1.20 | $ | 8,720 | $ | 5,450 | $ | 3,270 | |||||||||||||||||||||
A-1 | 7/1/2008 | 10/7/2008 | $ | 20,000 | $ | 0.75 | 26,667 | $ | 1.24 | $ | 33,067 | $ | 20,000 | $ | 13,067 | |||||||||||||||||||||
Total For year end September 30, 2008 | $ | 220,354 | 293,806 | $ | 358,967 | $ | 138,613 | |||||||||||||||||||||||||||||
A | 10/1/2008 | 10/7/2008 | $ | 100,000 | $ | 0.75 | 133,333 | $ | 1.24 | $ | 165,333 | $ | 100,000 | $ | 65,332 | |||||||||||||||||||||
A | 1/1/2009 | 1/9/2009 | $ | 100,000 | $ | 0.75 | 133,333 | $ | 0.80 | $ | 106,666 | $ | 100,000 | $ | 6,666 | |||||||||||||||||||||
A | 4/1/2009 | 2/17/2009 | $ | 126,213 | $ | 0.75 | 168,284 | $ | 0.55 | $ | 92,556 | $ | 126,213 | $ | — | |||||||||||||||||||||
A | 7/1/2009 | 6/5/2009 | $ | 103,618 | $ | 0.75 | 138,157 | $ | 1.37 | $ | 189,275 | $ | 103,618 | $ | 85,657 | |||||||||||||||||||||
A-1 | 10/1/2008 | 10/7/2008 | $ | 20,000 | $ | 0.75 | 26,667 | $ | 1.24 | $ | 33,067 | $ | 20,000 | $ | 13,067 | |||||||||||||||||||||
A-1 | 1/1/2009 | 1/9/2009 | $ | 20,000 | $ | 0.75 | 26,667 | $ | 0.80 | $ | 21,334 | $ | 20,000 | $ | 1,334 | |||||||||||||||||||||
A-1 | 4/1/2009 | 2/17/2009 | $ | 23,549 | $ | 0.75 | 31,399 | $ | 0.55 | $ | 17,269 | $ | 23,549 | $ | — | |||||||||||||||||||||
A-1 | 7/1/2009 | 6/5/2009 | $ | 22,142 | $ | 0.75 | 29,523 | $ | 1.37 | $ | 40,447 | $ | 22,142 | $ | 18,305 | |||||||||||||||||||||
B | 10/1/2008 | 10/7/2008 | $ | 5,152 | $ | 0.80 | 6,440 | $ | 1.24 | $ | 7,986 | $ | 5,152 | $ | 2,834 | |||||||||||||||||||||
B | 1/1/2009 | 1/9/2009 | $ | 6,000 | $ | 0.80 | 7,500 | $ | 0.80 | $ | 6,000 | $ | 6,000 | $ | — | |||||||||||||||||||||
B | 4/1/2009 | 2/17/2009 | $ | 10,502 | $ | 0.80 | 13,128 | $ | 0.55 | $ | 7,220 | $ | 10,502 | $ | — | |||||||||||||||||||||
B | 7/1/2009 | 6/5/2009 | $ | 10,500 | $ | 0.80 | 13,125 | $ | 1.37 | $ | 17,981 | $ | 10,500 | $ | 7,481 | |||||||||||||||||||||
Total For year end September 30, 2009 | $ | 547,676 | 727,556 | $ | 705,134 | $ | 200,676 | |||||||||||||||||||||||||||||
Fair Value of | Dividend | |||||||||||||||||||||||||||||||
Date of | Contractual | Conversion | Common | Closing | Fair Value | Contractual | Related to | |||||||||||||||||||||||||
Preferred | Date of | Election | Preferred | Price Per | Shares | Price on | of Underlying | Preferred | Beneficial | |||||||||||||||||||||||
Stock | Contractual | (Commitment | Stock | Common | Underlying | Date of | Common | Stock | Conversion | |||||||||||||||||||||||
Series | Dividend | Date) | Dividend | Share | Dividend | Election | Stock | Dividend | Feature | |||||||||||||||||||||||
A | 10/1/2008 | 10/7/2008 | $ | 100 | $ | 0.75 | 133 | $ | 1.24 | $ | 165 | $ | 100 | $ | 65 | |||||||||||||||||
A | 1/1/2009 | 1/9/2009 | $ | 100 | $ | 0.75 | 133 | $ | 0.80 | $ | 106 | $ | 100 | $ | 7 | |||||||||||||||||
A | 4/1/2009 | 2/17/2009 | $ | 126 | $ | 0.75 | 168 | $ | 0.55 | $ | 92 | $ | 126 | $ | - | |||||||||||||||||
A | 7/1/2009 | 6/5/2009 | $ | 104 | $ | 0.75 | 139 | $ | 1.37 | $ | 190 | $ | 104 | $ | 86 | |||||||||||||||||
A-1 | 10/1/2008 | 10/7/2008 | $ | 20 | $ | 0.75 | 27 | $ | 1.24 | $ | 33 | $ | 20 | $ | 13 | |||||||||||||||||
A-1 | 1/1/2009 | 1/9/2009 | $ | 20 | $ | 0.75 | 27 | $ | 0.80 | $ | 22 | $ | 20 | $ | 1 | |||||||||||||||||
A-1 | 4/1/2009 | 2/17/2009 | $ | 23 | $ | 0.75 | 31 | $ | 0.55 | $ | 17 | $ | 23 | $ | - | |||||||||||||||||
A-1 | 7/1/2009 | 6/5/2009 | $ | 22 | $ | 0.75 | 29 | $ | 1.37 | $ | 40 | $ | 22 | $ | 18 | |||||||||||||||||
B | 10/1/2008 | 10/7/2008 | $ | 5 | $ | 0.80 | 6 | $ | 1.24 | $ | 7 | $ | 5 | $ | 3 | |||||||||||||||||
B | 1/1/2009 | 1/9/2009 | $ | 6 | $ | 0.80 | 8 | $ | 0.80 | $ | 6 | $ | 6 | $ | 0 | |||||||||||||||||
B | 4/1/2009 | 2/17/2009 | $ | 11 | $ | 0.80 | 14 | $ | 0.55 | $ | 8 | $ | 11 | $ | - | |||||||||||||||||
B | 7/1/2009 | 6/5/2009 | $ | 11 | $ | 0.80 | 14 | $ | 1.37 | $ | 19 | $ | 11 | $ | 7 | |||||||||||||||||
Total For year end September 30, 2009 | $ | 548 | 729 | $ | 705 | $ | 200 | |||||||||||||||||||||||||
A | 10/1/2009 | 9/9/2009 | $ | 19 | $ | 0.75 | 25 | $ | 1.00 | $ | 66 | $ | 19 | $ | 17 | |||||||||||||||||
A | 1/1/2010 | 2/4/2010 | $ | 50 | $ | 0.75 | 67 | $ | 1.07 | $ | 71 | $ | 50 | $ | 32 | |||||||||||||||||
A | 4/1/2010 | 2/4/2010 | $ | 7 | $ | 0.75 | 9 | $ | 1.38 | $ | 15 | $ | 7 | $ | 7 | |||||||||||||||||
A | 7/1/2010 | 6/3/2010 | $ | 1 | $ | 0.75 | 1 | $ | 1.03 | $ | 1 | $ | 1 | $ | - | |||||||||||||||||
A-1 | 10/1/2009 | 9/9/2009 | $ | 19 | $ | 0.75 | 25 | $ | 1.00 | $ | 25 | $ | 19 | $ | 6 | |||||||||||||||||
A-1 | 1/1/2010 | 2/4/2010 | $ | 19 | $ | 0.75 | 25 | $ | 1.07 | $ | 27 | $ | 19 | $ | 9 | |||||||||||||||||
A-1 | 4/1/2010 | 2/4/2010 | $ | 10 | $ | 0.75 | 13 | $ | 1.38 | $ | 19 | $ | 10 | $ | 9 | |||||||||||||||||
A-1 | 7/1/2010 | 6/3/2010 | $ | 8 | $ | 0.75 | 11 | $ | 1.03 | $ | 10 | $ | 8 | $ | 3 | |||||||||||||||||
B | 10/1/2009 | 9/9/2009 | $ | 11 | $ | 0.80 | 14 | $ | 1.00 | $ | 13 | $ | 11 | $ | 3 | |||||||||||||||||
B | 1/1/2010 | 2/4/2010 | $ | 11 | $ | 0.80 | 14 | $ | 1.07 | $ | 14 | $ | 11 | $ | 3 | |||||||||||||||||
B | 4/1/2010 | 2/4/2010 | $ | 10 | $ | 0.80 | 13 | $ | 1.38 | $ | 18 | $ | 10 | $ | 7 | |||||||||||||||||
B | 7/1/2010 | 6/3/2010 | $ | 10 | $ | 0.80 | 13 | $ | 1.03 | $ | 13 | $ | 10 | $ | 3 | |||||||||||||||||
Total For year end September 30, 2010 | $ | 175 | $ | 230 | $ | 292 | $ | 99 |
66
Expected | Risk-Free | Value | Charge to | |||||||||||||||||||||||||||||||||
Grant | Quantity | Life | Strike | Underlying | Dividend | Interese | per | Interest | ||||||||||||||||||||||||||||
Date | Granted | (Days) | Price | Price | Volatility | Yield | Rate | Warrant | Expense | |||||||||||||||||||||||||||
3/26/2008 | 300,000 | 1,825 | $ | 1.00 | $ | 1.20 | 66.34 | % | 0 | % | 2.55 | % | $ | 0.73 | $ | 219,000 |
67
68
October 1 | ||||
2009 | ||||
Expected Life | 3.72 | |||
Risk-free interest rate | 2.20 | % | ||
Dividend Yield | 0 | % | ||
Volatility | 66.34 | % | ||
Warrants issued with private placements | 9,979,577 | |||
Fair value of warrants | $ | 4,628 |
Expected Life | 5 | |||
Risk-free interest rate | 2.69 | % | ||
Dividend Yield | 0 | % | ||
Volatility | 66.34 | % | ||
Weighted average unit fair value | $ | 0.47 | ||
Warrants issued | 2,312,250 | |||
Fair Value | $ | 1,094 |
March 30, | ||||
2010 | ||||
Expected Life | 3.88 | |||
Risk-free interest rate | 2.55 | % | ||
Dividend Yield | 0 | % | ||
Volatility | 65.40 | % | ||
Warrants issued with private placements (including 3,375,375 with a discounted exercise price of $0.10 per share) | 12,291,827 | |||
Fair value of warrants | $ | 10,095 |
NOTE 14 — | |
INCOME TAXES |
2008 | 2009 | |||||||
Federal: | ||||||||
Current | ||||||||
Deferred | 1,451,792 | 2,216,449 | ||||||
Total federal | 1,451,792 | 2,216,449 | ||||||
State: | ||||||||
Current | ||||||||
Deferred | 166,530 | 254,240 | ||||||
Total state | 166,530 | 254,240 | ||||||
Foreign: | ||||||||
Current | (97,581 | ) | ||||||
Deferred | ||||||||
— | (97,581 | ) | ||||||
1,618,322 | 2,373,108 | |||||||
Change in valuation allowance | (1,663,794 | ) | (2,528,701 | ) | ||||
Total provision | $ | (45,472 | ) | $ | (155,593 | ) | ||
2010 | 2009 | |||||||
Federal: | ||||||||
Current | $ | - | $ | - | ||||
Deferred | 1,780 | 2,217 | ||||||
Total federal | 1,780 | 2,217 | ||||||
State: | ||||||||
Current | - | - | ||||||
Deferred | 204 | 254 | ||||||
Total state | 204 | 254 | ||||||
Foreign: | ||||||||
Current | (18 | ) | - | |||||
Deferred | 171 | - | ||||||
153 | - | |||||||
2,137 | 2,471 | |||||||
Change in valuation allowance | (2,200 | ) | (2,529 | ) | ||||
Total provision | $ | (63 | ) | $ | (58 | ) |
For the Twlelve | For the Twlelve | |||||||
Months Ended | Months Ended | |||||||
September 30, | September 30, | |||||||
2008 | 2009 | |||||||
Tax benefit at statutory rate | 34.0 | % | 34.0 | % | ||||
State income taxes, net of federal benefit | 3.9 | 3.9 | ||||||
Foreign income taxes | 1.6 | |||||||
Non-deductible expenses | (2.8 | ) | (.6 | ) | ||||
Increase in valuation allowance | (36.1 | ) | (41.4 | ) | ||||
Effective income tax rate | (1.0 | ) | (2.5 | ) | ||||
69
For the | For the | |||||||
year ended | year ended | |||||||
September 30, | September 30, | |||||||
2010 | 2009 | |||||||
Tax benefit at statutory rate | 34.0 | % | 34.0 | % | ||||
State income taxes, net of federal benefit | 3.9 | 3.9 | ||||||
Foreign income taxes | (0.1 | ) | 0 | |||||
Non-deductible meals & entertainment | (17.1 | ) | (0.5 | ) | ||||
Increase in valuation allowance | (21.3 | ) | (38.2 | ) | ||||
Effective income tax rate | (0.6 | )% | (0.8 | )% |
As of | As of | |||||||
September 30, | September 30, | |||||||
2008 | 2009 | |||||||
Deferred tax assets | ||||||||
Capitalized start up and organization costs | $ | 46,257 | $ | 42,953 | ||||
Depreciation and amortization | 81,265 | 135,039 | ||||||
Accrued expenses | 36,557 | 79,875 | ||||||
Bad debt reserve | 18,950 | 59,125 | ||||||
Inventory obsolescence reserve | 13,287 | 67,758 | ||||||
Share based payments | 189,624 | 400,891 | ||||||
Net operating loss carryforwards | 1,872,812 | 4,001,813 | ||||||
Total deferred tax assets | 2,258,752 | 4,787,454 | ||||||
Less valuation allowance | (2,258,752 | ) | (4,787,454 | ) | ||||
Net deferred tax assets | — | — | ||||||
Deferred tax liabilities | ||||||||
Tax deductible goodwill | (45,472 | ) | (103,484 | ) | ||||
Total deferred tax liabilities | $ | (45,472 | ) | $ | (103,484 | ) | ||
As of | As of | |||||||
September 30, | September 30, | |||||||
2010 | 2009 | |||||||
Deferred tax assets | ||||||||
Capitalized start up and organization costs | $ | 41 | $ | 43 | ||||
Other intangibles amortization | 176 | 135 | ||||||
Accrued expenses | 67 | 80 | ||||||
Bad debt reserve | 99 | 59 | ||||||
Inventory obsolescence reserve | 57 | 67 | ||||||
Share based payments | 824 | 401 | ||||||
Net operating loss carryforwards | 5,723 | 4,002 | ||||||
Total deferred tax assets | 6,987 | 4,787 | ||||||
Less valuation allowance | (6,987 | ) | (4,787 | ) | ||||
Net deferred tax assets | - | - | ||||||
Deferred tax liabilities | ||||||||
Intangible assets | (153 | ) | (103 | ) | ||||
Total deferred tax liabilities | (153 | ) | (103 | ) | ||||
Total net deferred tax liability | $ | (153 | ) | $ | (103 | ) |
70
NOTE 15 — | |
EMPLOYEE |
Expected | Risk-Free | Value | Share Based | |||||||||||||||||||||||||||||
Date | Quantity | Life | Strike | Dividend | Interese | per | Compensation | |||||||||||||||||||||||||
Earned | Issued | (Days) | Price | Volatility | Yield | Rate | Option | Expense | ||||||||||||||||||||||||
3/26/2008 | 90,000 | 2,373 | $ | 1.20 | 66.34 | % | 0 | % | 2.55 | % | $ | 0.72 | $ | 64,980 | ||||||||||||||||||
5/8/2008 | 30,900 | 2,373 | $ | 1.00 | 66.34 | % | 0 | % | 2.99 | % | $ | 0.64 | $ | 19,776 | ||||||||||||||||||
10/7/2008 | 25,000 | 2,373 | $ | 1.24 | 66.34 | % | 0 | % | 2.45 | % | $ | 0.79 | $ | 19,750 | ||||||||||||||||||
1/9/2009 | 285,000 | 2,373 | $ | 0.80 | 66.34 | % | 0 | % | 1.99 | % | $ | 0.50 | $ | 142,500 | ||||||||||||||||||
5/8/2009 | 2,500,000 | 2,373 | $ | 1.19 | 66.34 | % | 0 | % | 2.09 | % | $ | 0.75 | $ | 1,875,000 | ||||||||||||||||||
6/5/2009 | 50,000 | 2,373 | $ | 1.37 | 66.34 | % | 0 | % | 2.85 | % | $ | 0.87 | $ | 43,500 | ||||||||||||||||||
7/9/2009 | 250,000 | 2,373 | $ | 1.61 | 66.34 | % | 0 | % | 2.33 | % | $ | 1.02 | $ | 254,400 |
Expected | Risk-Free | Value | ||||||||||||||||||||||||||||||
Date | Quantity | Life | Strike | Dividend | Interest | Per | Share Based | |||||||||||||||||||||||||
Earned | Issued | (days) | Price | Volatility | Yield | Rate | Option | Compensation | ||||||||||||||||||||||||
10/7/2008 | 25,000 | 2,373 | $ | 1.24 | 66.34 | % | 0 | % | 2.45 | % | $ | 0.79 | $ | 20 | ||||||||||||||||||
1/9/2009 | 285,000 | 2,373 | $ | 0.80 | 66.34 | % | 0 | % | 1.99 | % | $ | 0.50 | $ | 143 | ||||||||||||||||||
5/8/2009 | 2,500,000 | 2,373 | $ | 1.19 | 66.34 | % | 0 | % | 2.09 | % | $ | 0.75 | $ | 1,875 | ||||||||||||||||||
6/5/2009 | 50,000 | 2,373 | $ | 1.37 | 66.34 | % | 0 | % | 2.85 | % | $ | 0.87 | $ | 44 | ||||||||||||||||||
7/9/2009 | 250,000 | 2,373 | $ | 1.61 | 66.34 | % | 0 | % | 2.33 | % | $ | 1.02 | $ | 254 | ||||||||||||||||||
11/12/2009 | 100,000 | 3,650 | $ | 0.90 | 66.34 | % | 0 | % | 2.28 | % | $ | 0.30 | $ | 30 | ||||||||||||||||||
1/22/2010 | 60,000 | 2,373 | $ | 1.07 | 65.40 | % | 0 | % | 2.23 | % | $ | 0.67 | $ | 40 | ||||||||||||||||||
2/5/2010 | 200,000 | 2,373 | $ | 1.07 | 65.40 | % | 0 | % | 2.65 | % | $ | 0.67 | $ | 134 | ||||||||||||||||||
3/8/2010 | 25,000 | 2,373 | $ | 1.38 | 65.40 | % | 0 | % | 2.36 | % | $ | 0.86 | $ | 22 | ||||||||||||||||||
5/27/2010 | 450,000 | 2,628 | $ | 1.40 | 65.40 | % | 0 | % | 2.18 | % | $ | 0.91 | $ | 410 | ||||||||||||||||||
6/1/2010 | 400,000 | 2,738 | $ | 1.36 | 65.40 | % | 0 | % | 2.09 | % | $ | 0.90 | $ | 360 | ||||||||||||||||||
6/6/2010 | 100,000 | 2,008 | $ | 1.60 | 65.40 | % | 0 | % | 1.95 | % | $ | 0.75 | $ | 75 |
71
For the | For the | |||||||
year ended | year ended | |||||||
September 30, | September 30, | |||||||
2010 | 2009 | |||||||
Non-Cash Share-Based Compensation Expense | ||||||||
Restricted Stock | $ | 221 | $ | 179 | ||||
Stock Options | 861 | 379 | ||||||
Total Stock Compensation Expense | $ | 1,082 | $ | 558 |
Weighted | ||||||||||||||||||||
Average | ||||||||||||||||||||
Weighted | Remaining | |||||||||||||||||||
Number | Average | Intrinsic | Contractual | |||||||||||||||||
of Options | Exercise Price | Value | Term | |||||||||||||||||
Options Outstanding at October 1, 2007 | — | $ | — | |||||||||||||||||
Granted | 120,900 | $ | 1.15 | |||||||||||||||||
Forfeited | (30,000 | ) | $ | 1.20 | ||||||||||||||||
Options Outstanding at September 30, 2008 | 90,900 | $ | 1.13 | |||||||||||||||||
Granted | 3,110,000 | $ | 1.19 | |||||||||||||||||
Forfeited | — | |||||||||||||||||||
Options Outstanding at September 30, 2009 | 3,200,900 | $ | 1.19 | 0.10 | 9.56 | |||||||||||||||
Exercisable, September 30, 2009 | 105,300 | $ | 1.13 | 0.39 | 8.53 | |||||||||||||||
Weighted | ||||||||||||||||
Average | ||||||||||||||||
Weighted | Remaining | Aggregate | ||||||||||||||
Number | Average | Contractual | Intrinsic | |||||||||||||
Of Options | Exercise Price | Life | Value | |||||||||||||
Options Outstanding at October 1, 2008 | 90,900 | $ | 1.13 | |||||||||||||
Granted | 3,110,000 | $ | 1.19 | |||||||||||||
Forfeited | - | $ | - | |||||||||||||
Options Outstanding at October 1, 2009 | 3,200,900 | $ | 1.19 | |||||||||||||
Granted | 1,335,000 | $ | 1.31 | |||||||||||||
Forfeited | (817,367 | ) | $ | (1.03 | ) | |||||||||||
Options Outstanding at September 30, 2010 | 3,718,533 | $ | 1.47 | 4.05 | $ | 0 | ||||||||||
Options Exercisable, September 30, 2010 | 1,293,465 | $ | 1.18 | 8.52 | $ | 0 |
NOTE 16 — | Segment Reporting |
72
United States | Europe | Total | ||||||||||
Net sales | $ | 10,273 | $ | 3,723 | $ | 13,996 | ||||||
Loss from operations | (5,021 | ) | (658 | ) | (5,679 | ) | ||||||
Other expense | (244 | ) | (15 | ) | (259 | ) | ||||||
Change if fair value of warrants | (4,373 | ) | - | (4,373 | ) | |||||||
Depreciation and amortization | (551 | ) | (73 | ) | (624 | ) | ||||||
Net loss from continuing operations | (9,687 | ) | (687 | ) | (10,374 | ) | ||||||
Net loss from discontinued operations | - | (8,181 | ) | (8,181 | ) | |||||||
Assets | 9,374 | 2,697 | 12,071 | |||||||||
Capital expenditures | 223 | 119 | 342 | |||||||||
Capital expenditures of discontinued operations | - | 183 | 183 | |||||||||
Goodwill | 2,792 | - | 2,792 | |||||||||
Intangible Assets | 3,011 | - | 3,011 |
United States | Europe | Total | ||||||||||
Revenue | $ | 10,112,912 | $ | 957,584 | $ | 11,070,496 | ||||||
(Loss) income from operations | (5,704,605 | ) | 494,748 | (5,209,857 | ) | |||||||
Interest expense | (905,125 | ) | (905,125 | ) | ||||||||
Interest income | 686 | 39 | 725 | |||||||||
Depreciation and amortization | (613,171 | ) | (950 | ) | (614,121 | ) | ||||||
Assets | 10,874,908 | 1,938,840 | 12,813,748 | |||||||||
Goodwill | 2,791,648 | 360,300 | 3,151,948 | |||||||||
Intangible assets | 3,341,724 | 561,400 | 3,903,124 |
NOTE 17 — | SUBSEQUENT EVENTS |
74
75
Name | Age | Title | ||||
Bruce Widener | 49 | Director, Chairman, Chief Executive Officer | ||||
J. Sherman Henderson III | 67 | Director | ||||
John D. Rhodes III | 56 | Director | ||||
Gerald Bowman | 52 | Chief Operating Officer | ||||
Michael Grendi | 44 | Chief Financial Officer, Treasurer and Secretary | ||||
Victor Agruso | 50 | Chief Human Resource Officer | ||||
Mark Gervasoni | 51 |
76
77
Bruce Widener, Chairman, Chief Executive Officer and Director | ||
· | Victor Agruso, Chief Human Resource Officer |
· | Mark Gervasoni, Chief Marketing and Sales Officer |
79
Matching | Matching | |||||||
Contributions | Contributions | |||||||
for the Twelve | for the Twelve | |||||||
Named | Months Ended | Months Ended | ||||||
Executive | September 30, | September 30, | ||||||
Officer | 2008 | 2009 | ||||||
Bruce Widener | $ | 4,274 | $ | 773 | ||||
Richard C. Mills | $ | 3,433 | $ | 577 | ||||
Kenneth Kerr | $ | 3,433 | $ | — | ||||
Robert Mohr | $ | 3,607 | $ | 606 |
82
Retain Excellent Team | Mr. Widener continued to attract and retain a strong management team with expertise at all levels of the organization. | |
Launched Foreign Operations | Mr. Widener successfully launched foreign operations through the acquisition of Symbiotec Solution AG. |
83
Change in | |||||||||||||||||||||||||||||||
Pension | |||||||||||||||||||||||||||||||
Value and | |||||||||||||||||||||||||||||||
Nonquali- | |||||||||||||||||||||||||||||||
Non- | fied | ||||||||||||||||||||||||||||||
Equity | Deferred | All | |||||||||||||||||||||||||||||
Name | Incentive | Compen- | Other | ||||||||||||||||||||||||||||
and | Stock | Option | Plan | sation | Compen- | ||||||||||||||||||||||||||
Principal | Bonus ($) | Awards ($) | Awards ($) | Compensation | Earnings | sation | Total | ||||||||||||||||||||||||
Position | Year | Salary ($) | (1) | (2) | (3) | ($) | ($) | ($) | ($) | ||||||||||||||||||||||
(A) | (B) | (C) | (D) | (E) | (F) | (G) | (H) | (I) | (J) | ||||||||||||||||||||||
Bruce Widener | 2010 | 281 | (4) | 255 | (5) | 12 | (6) | 548 | |||||||||||||||||||||||
Chairman, Chief Executive | 2009 | 203 | (7) | 105 | (8) | 13 | (9) | 321 | |||||||||||||||||||||||
Gerald Bowman | |||||||||||||||||||||||||||||||
Chief Operating Officer | 2010 | 160 | (10) | 67 | (11) | 12 | (12) | 239 | |||||||||||||||||||||||
Senior Vice President of | 2009 | 6 | (13) | - | - | - | - | - | 6 | ||||||||||||||||||||||
Global Services | |||||||||||||||||||||||||||||||
Michael Grendi | 2010 | 105 | (14) | 39 | (15) | 5 | (16) | 149 | |||||||||||||||||||||||
Chief Financial Officer | 2009 | - | - | - | - | - | - | - | |||||||||||||||||||||||
Treasurer and Secretary | |||||||||||||||||||||||||||||||
Victor Agruso | 2010 | 31 | (17) | 35 | (18) | 6 | (19) | 72 | |||||||||||||||||||||||
Chief Human Resource Officer | 2009 | - | - | - | - | - | - | - | |||||||||||||||||||||||
Mark Gervasoni | 2010 | 43 | (20) | 18 | (21) | - | 61 | ||||||||||||||||||||||||
Chief Marketing and Sales Officer | 2009 | - | - | - | - | - | - | - | |||||||||||||||||||||||
Richard C. Mills | 2010 | 105 | (22) | 40 | (23) | 221 | (24) | 244 | (25) | 6 | (26) | 616 | |||||||||||||||||||
Former President | 2009 | 156 | (27) | 179 | (28) | 105 | (29) | 13 | (30) | 453 | |||||||||||||||||||||
Robert Mohr | 2010 | 159 | (31) | 63 | (32) | 12 | (33) | 234 | |||||||||||||||||||||||
Former Chief Accounting Officer, | 2009 | 150 | (34) | 64 | (35) | 4 | (36) | 218 | |||||||||||||||||||||||
Treasurer and Secretary |
Change | ||||||||||||||||||||||||||||||||||||
in | ||||||||||||||||||||||||||||||||||||
Pension | ||||||||||||||||||||||||||||||||||||
Value | ||||||||||||||||||||||||||||||||||||
and | ||||||||||||||||||||||||||||||||||||
Nonquali- | ||||||||||||||||||||||||||||||||||||
Non- | fied | |||||||||||||||||||||||||||||||||||
Equity | Deferred | All | ||||||||||||||||||||||||||||||||||
Incentive | Compen- | Other | ||||||||||||||||||||||||||||||||||
Stock | Option | Plan | sation | Compen- | ||||||||||||||||||||||||||||||||
Bonus ($) | Awards ($) | Awards ($) | Compen- | Earnings | sation | Total | ||||||||||||||||||||||||||||||
Name and Principal | Year | Salary ($) | (1) | (2) | (3) | sation ($) | ($) | ($) | ($) | |||||||||||||||||||||||||||
Position (A) | (B) | (C) | (D) | (E) | (F) | (G) | (H) | (I) | (J) | |||||||||||||||||||||||||||
Bruce Widener | 2009 | 203,035 | (4) | 104,795 | (5) | 12,893 | (6) | 215,928 | ||||||||||||||||||||||||||||
Chairman, Chief Executive | 2008 | 190,378 | (7) | 11,912 | (8) | 307,085 | ||||||||||||||||||||||||||||||
Richard C. Mills | 2009 | 156,086 | (9) | 90,202 | (10) | 104,795 | (11) | 12,696 | (12) | 363,779 | ||||||||||||||||||||||||||
President | 2008 | 110,494 | (13) | 266,694 | (14) | 10,578 | (15) | 387,766 | ||||||||||||||||||||||||||||
Kenneth Kerr | 2009 | 150,000 | (16) | 112,120 | (17) | 262,119 | ||||||||||||||||||||||||||||||
Chief Operating Officer | 2008 | 109,615 | (18) | 10,306 | (19) | 119,921 | ||||||||||||||||||||||||||||||
Robert Mohr | 2009 | 150,000 | (20) | 63,699 | (21) | 4,382 | (22) | 218,081 | ||||||||||||||||||||||||||||
Chief Accounting Officer, | 2008 | 126,923 | (23) | 5,000 | (24) | 7,358 | (25) | 2,743 | (26) | 142,024 | ||||||||||||||||||||||||||
Treasurer and Secretary | ||||||||||||||||||||||||||||||||||||
Gerald Bowman | 2009 | 5,769 | (27) | 5,769 | ||||||||||||||||||||||||||||||||
Senior Vice President of Global Services |
1. | For purposes of this Summary Compensation Table, the cash incentive awards to the named executive officers, which are discussed in further detail under the heading “Compensation Discussion and Analysis — Compensation for Named Executive Officers for Fiscal Year |
2. | The amounts in Column (E) represent the proportionate amount of the total fair value of restricted stock recognized by us as an expense in fiscal years |
3. | The amounts in column (F) represent the proportionate amount of the total fair value of stock options recognized by us as an expense in fiscal years |
4. | Amount includes $240,000 annual salary under the terms of Mr. Widener’s employment agreement and amounts agreed upon with |
5. | Amount relates to unrestricted stock option grant which is discussed in further detail in Note 16 to our consolidated |
6. | Amount paid for |
7. | Amount includes |
8. | Amount relates to unrestricted stock option grant which is discussed in further detail in Note 16 to our consolidated financial statements included elsewhere in this annual report on Form 10-K. See ‘Grants of Awards’ table for aggregate grant date fair value of options awarded. |
9. | Amount paid for medical, dental and vision insurance. |
10. | Amount includes |
11. | Amount relates to |
12. | Amount paid for |
13. | Amount includes $150,000 annual salary under the terms of Mr. |
14. | Amount includes $180,000 annual salary under the terms of Mr. Grendi’ s employment |
15. | Amount relates to |
16. | Amount paid for medical, dental and vision insurance. |
17. | Amount includes $90,000 annual salary under the terms of Mr. Agruso’s employment agreement and amounts agreed upon with the Board prior to execution of the employment agreement for partial year since execution of the agreement. |
18. | Amount relates to unrestricted stock grant which is discussed in further detail in Note 16 to our consolidated financial statements included elsewhere in this annual report on Form 10-K. See ‘Grants of Awards’ table for aggregate grant date fair value of options awarded. |
19. | Amount paid for medical, dental and vision insurance. |
20. | Amount includes $150,000 annual salary under the terms of Mr. |
21. | Amount |
22. | Amount includes $150,000 annual salary under the terms of Mr. |
23. | Amount represents a bonus paid during the year. |
24. | Amount relates to restricted stock grant which is discussed in further detail in Note 14 to our consolidated financial statements included elsewhere in this annual report on Form 10-K. |
25. | Amount relates to unrestricted stock grant which is discussed in further detail in Note 16 to our consolidated financial statements included elsewhere in this annual report on Form 10-K. See ‘Grants of Awards’ table for aggregate grant date fair value of options awarded. |
26. | Amount paid for medical, dental and vision insurance. |
27. | Amount includes $150,000 annual salary under the terms of Mr. Mill’s employment agreement for partial year since execution of the employment agreement. |
28. | Amount relates to restricted stock grant which is discussed in further detail in Note 14 to our consolidated financial statements included elsewhere in this annual report on Form 10-K. |
29. | Amount relates to unrestricted stock grant which is discussed in further detail in Note 16 to our consolidated financial statements included elsewhere in this annual report on Form 10-K. See ‘Grants of Awards’ table for aggregate grant date fair value of options awarded. |
30. | Amount paid for medical, dental and vision |
31. | Amount includes $150,000 annual salary under the terms of Mr. Mohr’s employment agreement and amounts agreed upon with |
32. | Amount relates to unrestricted stock grant which is discussed in further detail in Note 16 to our consolidated |
33. | Amount paid for |
34. | Amount includes $150,000 annual salary under the terms of Mr. Mohr’s employment agreement |
35. | Amount |
36. | Amount paid for medical, dental and vision insurance. |
85
All Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All Other | Grant | All | Option | Grant | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All | Option | Date | Other | Awards: | Date | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Awards: | Exercise | Fair | Stock | Number | Exercise | Fair | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock | Number of | or Base | Value of | Awards: | of | or Base | Value of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Future Payouts | Awards: | Securities | Price of | Stock | Estimated Future Payouts | Number | Securities | Price of | Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Under Non-Equity Incentive | Estimated Future Payouts Under Equity Incentive | Number | Under- | Option | and | Under Non-Equity Incentive | Estimated Future Payouts Under | of Shares | Under- | Option | and | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan Awards | Plan Awards | of Shares | lying | Awards | Option | Plan Awards | Equity Incentive Plan Awards | of Stock | lying | Awards | Option | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Grant | Threshold | Target | Maximum | Threshold | Target | Maximum | of Stock | Options | ($/Sh) | Awards ($) | Grant | Threshold | Target | Maximum | Threshold | Target | Maximum | Or Units (#) | Options | ($/Sh) | Awards ($) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | Date | ($) | ($) | ($) | (#) | (#) | (#) | or Units (#) | (1) | (2) | (3) | Date | ($) | ($) | ($) | (#) | (#) | (#) | (1) | (2) | (3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(A) | (B) | (C) | (D) | (E) | (F) | (G) | (H) | (I) | (J) | (K) | �� | (L) | (B) | (C) | (D) | (E) | (F) | (G) | (H) | (I) | (J) | (K) | (L) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bruce Widener | 5/8/2009 | 1,000,000 | $ | 1.19 | 750,000 | 5/8/2009 | 1,000,000 | $ | 1.19 | $ | 750 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gerald Bowman | 7/9/2009 | 150,000 | $ | 1.61 | $ | 153 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gerald Bowman | 5/27/2010 | 250,000 | $ | 1.40 | $ | 227 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Michael Grendi | 2/5/2010 | 200,000 | $ | 1.07 | $ | 134 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Michael Grendi | 5/27/2010 | 200,000 | $ | 1.40 | $ | 183 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Victor Agruso | 11/12/2009 | 100,000 | $ | 1.07 | $ | 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Victor Agruso | 6/7/2010 | 100,000 | $ | 1.60 | $ | 75 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mark Gervasoni | 6/1/2010 | 400,000 | $ | 1.36 | $ | 358 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Richard C. Mills | 12/20/2007 | 782,250 | (4) | 663,863 | 12/20/2007 | 782,250 | (4) | $ | 664 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Richard C. Mills | 5/8/2009 | 1,000,000 | $ | 1.19 | 750,000 | 5/8/2009 | 1,000,000 | $ | 1.19 | $ | 750 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Robert Mohr | 3/26/2008 | 60,000 | $ | 1.20 | 43,200 | 3/26/2008 | 60,000 | $ | 1.20 | $ | 43 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Robert Mohr | 1/9/2009 | 75,000 | $ | 0.80 | 37,500 | 1/9/2009 | 75,000 | $ | 0.80 | $ | 38 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Robert Mohr | 5/8/2009 | 250,000 | $ | 1.19 | 187,500 | 5/8/2009 | 250,000 | $ | 1.19 | $ | 188 |
86
Option Awards | Stock Awards | |||||||||||||||||||||||||||||||||||
Equity | ||||||||||||||||||||||||||||||||||||
Incentive | ||||||||||||||||||||||||||||||||||||
Equity | Plan | |||||||||||||||||||||||||||||||||||
Incentive | Awards: | |||||||||||||||||||||||||||||||||||
Equity | Plan | Market or | ||||||||||||||||||||||||||||||||||
Incentive | Awards: | Payout | ||||||||||||||||||||||||||||||||||
Plan | Number of | Value of | ||||||||||||||||||||||||||||||||||
Awards: | Market | Unearned | Unearned | |||||||||||||||||||||||||||||||||
Number of | Number | Value of | Shares, | Shares, | ||||||||||||||||||||||||||||||||
Number of | Number of | Unearned | of Shares | Shares or | Units or | Units or | ||||||||||||||||||||||||||||||
Securities | Securities | Securities | or Units | Units of | Other | Other | ||||||||||||||||||||||||||||||
Underlying | Underlying | Underlying | of Stock | Stock | Rights | Rights | ||||||||||||||||||||||||||||||
Unexercised | Unexercised | Unexercised | That Have | That Have | That Have | That Have | ||||||||||||||||||||||||||||||
Options | Options | Options | Option | Option | Not | Not | Not | Not | ||||||||||||||||||||||||||||
(#) | (#) | (#) | Exercise | Expiration | Vested | Vested | Vested | Vested | ||||||||||||||||||||||||||||
Name | Exercisable | Unexercisable | Unexercisable | Price | Date | (#) | ($) | (#) | ($) | |||||||||||||||||||||||||||
(A) | (B) | (C) | (D) | (E) | (F) | (G) | (H) | (I) | (J) | |||||||||||||||||||||||||||
Bruce Widener | 1,000,000 | $ | 1.19 | 5/8/2019 | — | |||||||||||||||||||||||||||||||
Richard C. Mills | 421,500 | 442,575 | ||||||||||||||||||||||||||||||||||
Richard C. Mills | 1,000,000 | $ | 1.19 | 5/8/2019 | ||||||||||||||||||||||||||||||||
Robert Mohr | 20,000 | 40,000 | $ | 1.20 | 3/26/2018 | |||||||||||||||||||||||||||||||
Robert Mohr | 75,000 | $ | 0.80 | 1/9/2019 | ||||||||||||||||||||||||||||||||
Robert Mohr | 250,000 | $ | 1.19 | 5/8/2019 |
Option Awards | Stock Awards | |||||||||||||||||||||||
Equity | ||||||||||||||||||||||||
Incentive | ||||||||||||||||||||||||
Equity | Plan | |||||||||||||||||||||||
Incentive | Awards: | |||||||||||||||||||||||
Equity | Plan | Market or | ||||||||||||||||||||||
Incentive | Awards: | Payout | ||||||||||||||||||||||
Plan | Number of | Value of | ||||||||||||||||||||||
Awards: | Market | Unearned | Unearned | |||||||||||||||||||||
Number of | Number | Value of | Shares, | Shares, | ||||||||||||||||||||
Number of | Number of | Unearned | of Shares | Shares or | Units or | Units or | ||||||||||||||||||
Securities | Securities | Securities | or Units | Units of | Other | Other | ||||||||||||||||||
Underlying | Underlying | Underlying | of Stock | Stock | Rights | Rights | ||||||||||||||||||
Unexercised | Unexercised | Unexercised | That Have | That Have | That Have | That Have | ||||||||||||||||||
Options | Options | Options | Option | Option | Not | Not | Not | Not | ||||||||||||||||
(#) | (#) | (#) | Exercise | Expiration | Vested | Vested | Vested | Vested | ||||||||||||||||
Name | Exercisable | Unexercisable | Unexercisable | Price | Date | (#) | ($) | (#) | ($) | |||||||||||||||
(A) | (B) | (C) | (D) | (E) | (F) | (G) | (H) | (I) | (J) | |||||||||||||||
Bruce Widener | 333,333 | 666,667 | $ | 1.19 | 5/8/2019 | - | ||||||||||||||||||
Gerald Bowman | 50,000 | 100,000 | $ | 1.61 | 7/9/2019 | |||||||||||||||||||
Gerald Bowman | 250,000 | $ | 1.40 | 5/27/2020 | ||||||||||||||||||||
Michael Grendi | 200,000 | $ | 1.07 | 2/5/2020 | ||||||||||||||||||||
Michael Grendi | 200,000 | $ | 1.40 | 5/27/2020 | ||||||||||||||||||||
Victor Agruso | 25,000 | 75,000 | $ | 1.07 | 11/12/2019 | |||||||||||||||||||
Victor Agruso | 100,000 | $ | 1.60 | 6/7/2020 | ||||||||||||||||||||
Mark Gervasoni | 400,000 | $ | 1.36 | 6/1/2020 | ||||||||||||||||||||
Richard C. Mills | 500,000 | $ | 1.19 | 5/8/2019 | ||||||||||||||||||||
Robert Mohr | 40,000 | 20,000 | $ | 1.20 | 3/26/2018 | |||||||||||||||||||
Robert Mohr | 75,000 | $ | 0.80 | 1/9/2019 | ||||||||||||||||||||
Robert Mohr | 83,333 | $ | 1.19 | 5/8/2019 |
Option Awards | Stock Awards | |||||||||||||||
Number | Number | |||||||||||||||
of Shares | Value | of Shares | Value | |||||||||||||
Acquired | Realized | Acquired | Realized | |||||||||||||
on | on | on | on | |||||||||||||
Exercise | Exercise | Vesting | Vesting | |||||||||||||
Name | (#) | ($) | (#) | ($) | ||||||||||||
(A) | (B) | (C) | (D) | (E) | ||||||||||||
Richard C. Mills | 150,000 | $ | 127,500 | |||||||||||||
210,750 | $ | 252,900 |
87
Termination | ||||||||||||||||||||
by Company | Termination | |||||||||||||||||||
without Cause | Following or | |||||||||||||||||||
or Executive | Prior to a | |||||||||||||||||||
with Good | Change in | |||||||||||||||||||
Retirement | Death | Disability | Reason | Control | ||||||||||||||||
Benefit | ($) | ($) | ($) | ($) | ($) | |||||||||||||||
Cash Severance | — | $ | 240,000 | (1) | $ | 240,000 | (1) | $ | 720,000 | (1) | — | (2) | ||||||||
Acceleration of Restricted Stock | — | — | — | — | — | (2) | ||||||||||||||
Acceleration of Stock Options | — | — | — | — | — | (2) | ||||||||||||||
Health & Welfare Benefits | — | (3) | — | (3) | 3,121 | (3) | 3,121 | (3) | — | (2) |
Termination | ||||||||||||||||||||
by Company | Termination | |||||||||||||||||||
without Cause | following or | |||||||||||||||||||
or Executive | prior to a | |||||||||||||||||||
with Good | Change in | |||||||||||||||||||
Retirement | Death | Disability | Reason | Control | ||||||||||||||||
Benefit | ($) | ($) | ($) | ($) | ($) | |||||||||||||||
Cash Severance | - | $ | 240 | (1) | $ | 240 | (1) | $ | 720 | (1) | - | (2) | ||||||||
Acceleration of | ||||||||||||||||||||
Restricted Stock | - | - | - | - | - | (2) | ||||||||||||||
Acceleration of | ||||||||||||||||||||
Stock Options | - | - | - | - | - | (2) | ||||||||||||||
Health & Welfare | ||||||||||||||||||||
Benefits | - | (3) | - | (3) | 12 | (3) | 12 | (3) | - | (2) |
Termination | ||||||||||||||||||||
by Company | Termination | |||||||||||||||||||
without Cause | following or | |||||||||||||||||||
or Executive | prior to a | |||||||||||||||||||
with Good | Change in | |||||||||||||||||||
Retirement | Death | Disability | Reason | Control | ||||||||||||||||
Benefit | ($) | ($) | ($) | ($) | ($) | |||||||||||||||
Cash Severance | - | $ | 180 | (1) | $ | 180 | (1) | $ | 180 | (1) | - | (2) | ||||||||
Acceleration of | ||||||||||||||||||||
Restricted Stock | - | - | - | - | - | (2) | ||||||||||||||
Acceleration of | ||||||||||||||||||||
Stock Options | - | - | - | - | - | (2) | ||||||||||||||
Health & Welfare | ||||||||||||||||||||
Benefits | - | (3) | - | (3) | 12 | (3) | 12 | (3) | - | (2) |
Termination | ||||||||||||||||||||
by Company | Termination | |||||||||||||||||||
without Cause | following or | |||||||||||||||||||
or Executive | prior to a | |||||||||||||||||||
with Good | Change in | |||||||||||||||||||
Retirement | Death | Disability | Reason | Control | ||||||||||||||||
Benefit | ($) | ($) | ($) | ($) | ($) | |||||||||||||||
Cash Severance | - | $ | 180 | (1) | $ | 180 | (1) | $ | 180 | (1) | - | (2) | ||||||||
Acceleration of | ||||||||||||||||||||
Restricted Stock | - | - | - | - | - | (2) | ||||||||||||||
Acceleration of | ||||||||||||||||||||
Stock Options | - | - | - | - | - | (2) | ||||||||||||||
Health & Welfare | ||||||||||||||||||||
Benefits | - | (3) | - | (3) | 12 | (3) | 12 | (3) | - | (2) |
Termination | ||||||||||||||||||||
by Company | Termination | |||||||||||||||||||
without Cause | following or | |||||||||||||||||||
or Executive | prior to a | |||||||||||||||||||
with Good | Change in | |||||||||||||||||||
Retirement | Death | Disability | Reason | Control | ||||||||||||||||
Benefit | ($) | ($) | ($) | ($) | ($) | |||||||||||||||
Cash Severance | - | $ | 150 | (1) | $ | 150 | (1) | $ | 150 | (1) | - | (2) | ||||||||
Acceleration of | ||||||||||||||||||||
Restricted Stock | - | - | - | - | - | (2) | ||||||||||||||
Acceleration of | ||||||||||||||||||||
Stock Options | - | - | - | - | - | (2) | ||||||||||||||
Health & Welfare | ||||||||||||||||||||
Benefits | - | (3) | - | (3) | (3 | ) | (3 | ) | - | (2) |
Termination | ||||||||||||||||||||
by Company | Termination | |||||||||||||||||||
without Cause | following or | |||||||||||||||||||
or Executive | prior to a | |||||||||||||||||||
with Good | Change in | |||||||||||||||||||
Retirement | Death | Disability | Reason | Control | ||||||||||||||||
Benefit | ($) | ($) | ($) | ($) | ($) | |||||||||||||||
Cash Severance | - | $ | 90 | (1) | $ | 90 | (1) | $ | 90 | (1) | - | (2) | ||||||||
Acceleration of | ||||||||||||||||||||
Restricted Stock | - | - | - | - | - | (2) | ||||||||||||||
Acceleration of | ||||||||||||||||||||
Stock Options | - | - | - | - | - | (2) | ||||||||||||||
Health & Welfare | ||||||||||||||||||||
Benefits | - | (3) | - | (3) | 12 | (3) | 12 | (3) | - | (2) |
(1) | Excluding accrued, but unpaid, base salary, annual bonus, accrued vacation | |
(2) | Executive is not entitled to any specific payments upon a change in control, other than such payment that Executive would otherwise be entitled to if termination upon a change in control is by reason of death or disability or by the Company without Cause or the Executive for Good Reason, as provided in the related columns. | |
(3) | Executive is entitled to continued participation in our group health plan, assuming he makes a timely election of continuation coverage under COBRA, at the Company’s expense. |
Termination | ||||||||||||||||||||
by Company | Termination | |||||||||||||||||||
without Cause | Following or | |||||||||||||||||||
or Executive | Prior to a | |||||||||||||||||||
with Good | Change in | |||||||||||||||||||
Retirement | Death | Disability | Reason | Control | ||||||||||||||||
Benefit | ($) | ($) | ($) | ($) | ($) | |||||||||||||||
Cash Severance | — | $ | 37,500 | (1) | $ | 37,500 | (1) | $ | 150,000 | (1) | $ | — | (2) | |||||||
Acceleration of Restricted Stock | — | — | — | 445,124 | (3) | $ | — | (2) | ||||||||||||
Acceleration of Stock Options | — | — | — | — | $ | — | (2) | |||||||||||||
Health & Welfare Benefits | — | (4) | — | (4) | 3,001 | (4) | 3,001 | (4) | $ | — | (2) |
88
Termination | ||||||||||||||||||||
by Company | Termination | |||||||||||||||||||
without Cause | Following or | |||||||||||||||||||
or Executive | Prior to a | |||||||||||||||||||
with Good | Change in | |||||||||||||||||||
Retirement | Death | Disability | Reason | Control | ||||||||||||||||
Benefit | ($) | ($) | ($) | ($) | ($) | |||||||||||||||
Cash Severance | — | $ | 37,500 | (1) | $ | 37,500 | (1) | $ | 150,000 | (1) | — | (2) | ||||||||
Acceleration of Restricted Stock | — | — | — | — | — | (2) | ||||||||||||||
Acceleration of Stock Options | — | — | — | — | — | (2) | ||||||||||||||
Health & Welfare Benefits | — | (3) | — | (3) | 977 | (3) | 977 | (3) | — | (2) |
Termination | ||||||||||||||||||||
by Company | Termination | |||||||||||||||||||
without Cause | Following or | |||||||||||||||||||
or Executive | Prior to a | |||||||||||||||||||
with Good | Change in | |||||||||||||||||||
Retirement | Death | Disability | Reason | Control | ||||||||||||||||
Benefit | ($) | ($) | ($) | ($) | ($) | |||||||||||||||
Cash Severance | — | $ | 37,500 | (1) | $ | 37,500 | (1) | $ | 150,000 | (1) | — | (2) | ||||||||
Acceleration of Restricted Stock | — | — | — | — | — | (2) | ||||||||||||||
Acceleration of Stock Options | — | — | — | — | — | (2) | ||||||||||||||
Health & Welfare Benefits | — | (3) | — | (3) | 977 | (3) | 977 | (3) | — | (2) |
89
Change in | ||||||||||||||||||||||||||||
Pension | ||||||||||||||||||||||||||||
Value and | ||||||||||||||||||||||||||||
Fees | Non- | Non- | ||||||||||||||||||||||||||
Earned | Equity | Qualified | ||||||||||||||||||||||||||
or | Stock | Incentive | Deferred | All | ||||||||||||||||||||||||
Paid in | Awards | Options | Plan | Compensation | Other | |||||||||||||||||||||||
Cash | ($) | Awards | Compensation | Earnings | Compensation | Total | ||||||||||||||||||||||
Name and Principal Position | ($) | (1) | ($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||
(A) | (B) | (C) | (D) | (E) | (F) | (G) | (H) | |||||||||||||||||||||
— | — |
Beneficial | ||||||||
Name | Ownership | % of Class | ||||||
Bruce Widener | 2,580,000 | 5.8 | % | |||||
J. Sherman Henderson III(1) | 1,150,000 | 2.6 | % | |||||
John D. Rhodes III(2) | 2,965,766 | 4.2 | % | |||||
Richard C. Mills(3) | 1,577,250 | 3.6 | % | |||||
Robert R. Mohr | 95,000 | 0.0 | % | |||||
Directors and Named Executives Officers (as a group) | 8,368,016 | 16.2 | % |
Beneficial | ||||||||
Common Share | % of | |||||||
Name | Ownership | Class | ||||||
Bruce Widener | 3,000,833 | 6 | % | |||||
John D. Rhodes III (1) | 3,006,606 | 6 | % | |||||
Richard C. Mills (2) | 2,769,500 | 5 | % | |||||
J. Sherman Henderson III (3) | 1,035,000 | 2 | % | |||||
Michael Grendi | 68,167 | 0 | % | |||||
Gerry Bowman | 50,000 | 0 | % | |||||
Directors and Named Executives | ||||||||
Officers (as a group) | 9,930,106 | 19 | % |
1. | Includes the 166,666 shares into which the Exchange Bridge Note held by Dr. Rhodes is convertible, |
2. | ||
Expected | Fair Value | Risk-Free | Value | Charge to | ||||||||||||||||||||||||||||||||
Quantity | Life | Strike | of Common | Volatility | Dividend | Interese | per | Interest | ||||||||||||||||||||||||||||
Date Earned | Earned | (Days) | Price | Stock | Rate | Yield | Rate | Warrant | Expense | |||||||||||||||||||||||||||
1/28/2008 | 20,000 | 1,825 | $ | 1.00 | $ | 1.90 | 66.34 | % | 0 | % | 2.80 | % | $ | 1.34 | $ | 26,800 | ||||||||||||||||||||
2/28/2008 | 20,000 | 1,825 | $ | 1.00 | $ | 1.50 | 66.34 | % | 0 | % | 2.73 | % | $ | 0.99 | $ | 19,800 | ||||||||||||||||||||
3/7/2008 | 10,000 | 1,825 | $ | 1.00 | $ | 1.75 | 66.34 | % | 0 | % | 2.45 | % | $ | 1.21 | $ | 12,100 |
91
Expected | Fair Value | Risk-Free | Value | Charge to | ||||||||||||||||||||||||||||||||
Quantity | Life | Strike | of Common | Volatility | Dividend | Interese | per | Interest | ||||||||||||||||||||||||||||
Date Earned | Earned | (Days) | Price | Stock | Rate | Yield | Rate | Warrant | Expense | |||||||||||||||||||||||||||
6/15/2008 | 33,333 | 1,825 | $ | 1.00 | $ | 1.01 | 66.34 | % | 0 | % | 3.73 | % | $ | 0.58 | $ | 19,333 | ||||||||||||||||||||
7/15/2008 | 33,333 | 1,825 | $ | 1.00 | $ | 1.25 | 66.34 | % | 0 | % | 3.12 | % | $ | 0.78 | $ | 26,000 | ||||||||||||||||||||
8/15/2008 | 33,333 | 1,825 | $ | 1.00 | $ | 1.50 | 66.34 | % | 0 | % | 3.41 | % | $ | 1.00 | $ | 33,333 | ||||||||||||||||||||
8/19/2008 | 100,000 | 1,825 | $ | 1.00 | $ | 1.25 | 66.34 | % | 0 | % | 3.07 | % | $ | 0.78 | $ | 78,000 | ||||||||||||||||||||
9/15/2008 | 33,333 | 1,825 | $ | 1.00 | $ | 1.05 | 66.34 | % | 0 | % | 2.59 | % | $ | 3.61 | $ | 20,333 | ||||||||||||||||||||
For year ended September 30, 2008 | $ | 176,999 | ||||||||||||||||||||||||||||||||||
10/15/2008 | 33,333 | 1,825 | $ | 1.00 | $ | 1.20 | 66.34 | % | 0 | % | 2.90 | % | $ | 0.74 | $ | 24,666 | ||||||||||||||||||||
11/15/2008 | 33,333 | 1,825 | $ | 1.00 | $ | 0.85 | 66.34 | % | 0 | % | 2.33 | % | $ | 0.45 | $ | 15,000 | ||||||||||||||||||||
12/15/2008 | 33,333 | 1,825 | $ | 1.00 | $ | 1.52 | 66.34 | % | 0 | % | 1.50 | % | $ | 0.99 | $ | 33,000 | ||||||||||||||||||||
12/31/2008 | 16,667 | 1,825 | $ | 1.00 | $ | 1.01 | 66.34 | % | 0 | % | 1.55 | % | $ | 0.57 | $ | 9,500 | ||||||||||||||||||||
1/9/2009 | 100,000 | 1,825 | $ | 1.00 | $ | 0.80 | 66.34 | % | 0 | % | 1.51 | % | $ | 0.41 | $ | 41,000 | ||||||||||||||||||||
2/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 0.80 | 66.34 | % | 0 | % | 1.99 | % | $ | 0.41 | $ | 13,667 | ||||||||||||||||||||
3/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 0.54 | 66.34 | % | 0 | % | 1.90 | % | $ | 0.23 | $ | 7,667 | ||||||||||||||||||||
4/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 0.75 | 66.34 | % | 0 | % | 1.90 | % | $ | 0.37 | $ | 12,333 | ||||||||||||||||||||
5/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 1.19 | 66.34 | % | 0 | % | 2.09 | % | $ | 0.72 | $ | 23,970 | ||||||||||||||||||||
6/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 1.35 | 66.34 | % | 0 | % | 2.73 | % | $ | 0.86 | $ | 28,666 | ||||||||||||||||||||
7/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 1.61 | 66.34 | % | 0 | % | 2.31 | % | $ | 1.08 | $ | 35,983 | ||||||||||||||||||||
8/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 1.20 | 66.34 | % | 0 | % | 2.75 | % | $ | 0.74 | $ | 24,533 | ||||||||||||||||||||
9/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 1.00 | 66.34 | % | 0 | % | 2.38 | % | $ | 0.57 | $ | 18,960 | ||||||||||||||||||||
For year ended September 30, 2009 | $ | 288,945 | ||||||||||||||||||||||||||||||||||
Expected | Fair Value | Risk-Free | Value | Charge to | ||||||||||||||||||||||||||||||||
Date | Quantity | Life | Strike | of Common | Volatility | Dividend | Interese | per | Interest | |||||||||||||||||||||||||||
Earned | Earned | (days) | Price | Stock | Rate | Yield | Rate | Warrant | Expense | |||||||||||||||||||||||||||
10/15/2008 | 33,333 | 1,825 | $ | 1.00 | $ | 1.20 | 66.34 | % | 0 | % | 2.90 | % | $ | 0.74 | $ | 25 | ||||||||||||||||||||
11/15/2008 | 33,333 | 1,825 | $ | 1.00 | $ | 0.85 | 66.34 | % | 0 | % | 2.33 | % | $ | 0.45 | $ | 15 | ||||||||||||||||||||
12/15/2008 | 33,333 | 1,825 | $ | 1.00 | $ | 1.52 | 66.34 | % | 0 | % | 1.50 | % | $ | 0.99 | $ | 33 | ||||||||||||||||||||
12/31/2008 | 16,667 | 1,825 | $ | 1.00 | $ | 1.01 | 66.34 | % | 0 | % | 1.55 | % | $ | 0.57 | $ | 10 | ||||||||||||||||||||
1/9/2009 | 100,000 | 1,825 | $ | 1.00 | $ | 0.80 | 66.34 | % | 0 | % | 1.51 | % | $ | 0.41 | $ | 41 | ||||||||||||||||||||
2/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 0.80 | 66.34 | % | 0 | % | 1.99 | % | $ | 0.41 | $ | 14 | ||||||||||||||||||||
3/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 0.54 | 66.34 | % | 0 | % | 1.90 | % | $ | 0.23 | $ | 8 | ||||||||||||||||||||
4/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 0.75 | 66.34 | % | 0 | % | 1.90 | % | $ | 0.37 | $ | 12 | ||||||||||||||||||||
5/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 1.19 | 66.34 | % | 0 | % | 2.09 | % | $ | 0.72 | $ | 24 | ||||||||||||||||||||
6/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 1.35 | 66.34 | % | 0 | % | 2.73 | % | $ | 0.86 | $ | 29 | ||||||||||||||||||||
7/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 1.61 | 66.34 | % | 0 | % | 2.31 | % | $ | 1.08 | $ | 36 | ||||||||||||||||||||
8/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 1.20 | 66.34 | % | 0 | % | 2.75 | % | $ | 0.74 | $ | 24 | ||||||||||||||||||||
9/9/2009 | 33,333 | 1,825 | $ | 1.00 | $ | 1.00 | 66.34 | % | 0 | % | 2.38 | % | $ | 0.57 | $ | 18 | ||||||||||||||||||||
For year ended September 30, 2009 | $ | 289 |
For the Year | For the Year | |||||||
Ended | Ended | |||||||
September 30, | September 30, | |||||||
2008 | 2009 | |||||||
Audit fees | $ | 146,700 | $ | 203,085 | ||||
Audit related fees | — | — | ||||||
Tax fees | — | — | ||||||
Other fees | — | — | ||||||
$ | 146,700 | $ | 203,085 | |||||
For the year | For the year | |||||||
ended | ended | |||||||
September 30, | September 30, | |||||||
2009 | 2010 | |||||||
Audit fees | $ | 203 | $ | 297 | ||||
Tax fees | - | - | ||||||
Other fees | - | - | ||||||
$ | 203 | $ | 297 |
3 | .1 | Amended and Restated Articles of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the Company’s Annual Report onForm 10-K dated January 13, 2009). | ||
3 | .2 | Certificate of Designation of the Series B Preferred Stock (incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report onForm 10-Q dated August 19, 2008). |
4.13 | Form of warrant to purchase common stock granted to the investors in connection with the June 2009 offering of Common Stock (incorporated by reference to Exhibit 4.1 to the Company’s Quarterly Report on Form 10-Q filed August 12, 2009). | |
4.14 | Form of warrant to purchase common stock granted to the investors in connection with the September 2009 Private Placement (incorporated by reference to Exhibit 4.1 to the Company’s Annual Report on Form 10-Kfiled December 29, 2010). | |
10.1 | Placement Agency Agreement dated July 25, 2008 by and between the Company and the Placement Agent (incorporated by reference to Exhibit 10.1 to the Company’s Annual Report on Form 10-K filed January 13, 2009). | |
10.2 | Letter Agreement dated July 25, 2008 by and between the Company and the Placement Agent (incorporated by reference to Exhibit 10.2 to the Company’s Annual Report on Form 10-K filed January 13, 2009). | |
10.3 | Letter Agreement dated August 19, 2008 by and between the Company and one of its directors (incorporated by reference to Exhibit 10.3 to the Company’s Annual Report on Form 10-K filed January 13, 2009). | |
10.4 | Loan Agreement dated September 4, 2008 by and between the Company and First Savings Bank (incorporated by reference to Exhibit 10.4 to the Company’s Annual Report on Form 10-K filed January 13, 2009). | |
10.5 | Letter Agreement dated January 9, 2009, by and between the Company and John Rhodes, relating to an equity financing agreement (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed February 23, 2009). | |
10.6 | Form of the Note Purchase Agreement, dated January 22, 2009, by and between the Company and various investors (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q filed February 23, 2009). | |
10.7 | Work Order dated December 19, 2008, by and between the Company and Johnson & Johnson Services, Inc. (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q filed February 23, 2009). | |
10.8 | Promissory Note, dated January 7, 2009, made and issued by the Company to John Rhodes (incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q filed February 23, 2009). | |
10.9 | Beacon Solutions 2008 Long Term Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed May 13, 2009.) | |
10.10 | Letter Agreement dated August 10, 2009 by and between the Company and John Rhodes (incorporated by reference to Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q filed August 12, 2009). | |
10.11 | Promissory Note dated August 10, 2009 made and issued by the Company to John Rhodes Family Limited Partnership (incorporated by reference to Exhibit 10.6 to the Company’s Quarterly Report on Form 10-Q filed August 12, 2009). | |
10.12 | Selling Agency Agreement dated June 12, 2009 by and between the Company and the selling agent named therein (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed August 12, 2009). | |
10.13 | Secured Promissory Note, dated December 20, 2007, issued by Beacon to ADSnetcurve (incorporated by reference to Exhibit 10.6 to the Company’s Current Report on Form 8-K dated December 28, 2007). | |
10.14 | Asset Purchase Agreement, dated October 15, 2007, by and between Beacon and CETCON, Incorporated (“CETCON”) (incorporated by reference to Exhibit 10.7 to the Company’s Current Report on Form 8-K dated December 28, 2007). | |
10.15 | Secured Promissory Note, dated December 20, 2007, issued by Beacon to CETCON (incorporated by reference to Exhibit 10.8 to the Company’s Current Report on Form 8-K dated December 28, 2007). |
3 | .3 | Restated Bylaws (Incorporated by reference to Exhibit 3.2 toForm 10-KSB dated October 16, 2003). | ||
4 | .1 | Form of warrant to purchase common stock granted in connection with August 19, 2008 financing arrangement between the Company and one of its directors (incorporated by reference to Exhibit 4.1 to the Company’s Annual Report onForm 10-K dated January 13, 2009). | ||
4 | .2 | Registration Rights Agreement dated November 12, 2008 by and between the Company and the placement agent for the November 2008 offering of Common Stock (incorporated by reference to Exhibit 4.2 to the Company’s Annual Report onForm 10-K dated January 13, 2009). | ||
4 | .3 | Form of warrant to purchase common stock granted in connection with November 2008 offering of Common Stock (incorporated by reference to Exhibit 4.3 to the Company’s Annual Report onForm 10-K dated January 13, 2009). | ||
4 | .4 | Form of convertible promissory notes and warrants granted in connection with the 2007 convertible debt financing (incorporated by reference to Exhibit 10.1 to the Company’s Current Report onForm 8-K dated December 28, 2007). | ||
4 | .5 | Form of warrant to purchase common stock granted in connection with the offering of Series A andSeries A-1 Preferred Stock, as amended and recirculated July 30, 2008 (incorporated by reference to Exhibit 4.5 to the Company’s Annual Report onForm 10-K dated January 13, 2009). | ||
4 | .6 | Form of warrant to purchase common stock granted to the placement agent retained in connection with the offering of Series A andSeries A-1 Preferred Stock (incorporated by reference to Exhibit 10.3 to the Company’s Current Report onForm 8-K dated December 28, 2007). | ||
4 | .7 | Form of warrant to purchase common stock granted to affiliates of placement agent retained in connection with the offering of Series A andSeries A-1 Preferred Stock (incorporated by reference to Exhibit 10.4 to the Company’s Current Report onForm 8-K dated December 28, 2007). | ||
4 | .8 | Form of warrant to purchase common stock granted in connection with the offering of Series B Preferred Stock (incorporated by reference to Exhibit 4.1 to the Company’s Quarterly Report onForm��10-Q dated August 19, 2008). | ||
4 | .9 | Form of warrant to purchase common stock granted in connection with the July 2008 offering of Common Stock (incorporated by reference to Exhibit 4.2 to the Company’s Quarterly Report onForm 10-Q dated August 19, 2008). | ||
4 | .10 | Form of warrant to purchase common stock issued to J. Sherman Henderson and Robert A. Clarkson on July 10, 2008 (incorporated by reference to Exhibit 4.3 to the Company’s Quarterly Report onForm 10-Q dated August 19, 2008). | ||
4 | .11 | Form of the Convertible Promissory Notes, dated January 22, 2009, made and issued by the Company to various investors, in the aggregate principal amount of $500,000 (incorporated by reference to Exhibit 4.1 to the Company’s Quarterly Report onForm 10-Q dated February 23, 2009). | ||
4 | .12 | Form of the Warrants, dated January 22, 2009, made and issued by the Company to various investors (incorporated by reference to Exhibit 4.2 to the Company’s Quarterly Report onForm 10-Q dated February 23, 2009). | ||
4 | .13 | Form of warrant to purchase common stock granted to the investors in connection with the June 2009 offering of Common Stock (incorporated by reference to Exhibit 4.1 to the Company’s Quarterly Report onForm 10-Q dated August 12, 2009). | ||
4 | .14* | Form of warrant to purchase common stock granted to the investors in connection with the September 2009 Private Placement. | ||
10 | .1 | Placement Agency Agreement dated July 25, 2008 by and between the Company and the Placement Agent (incorporated by reference to Exhibit 10.1 to the Company’s Annual Report onForm 10-K dated January 13, 2009). | ||
10 | .2 | Letter Agreement dated July 25, 2008 by and between the Company and the Placement Agent (incorporated by reference to Exhibit 10.2 to the Company’s Annual Report onForm 10-K dated January 13, 2009). | ||
10 | .3 | Letter agreement dated August 19, 2008 by and between the Company and one of its directors (incorporated by reference to Exhibit 10.3 to the Company’s Annual Report onForm 10-K dated January 13, 2009). |
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10.16 | Asset Purchase Agreement, dated October 15, 2007, by and between Beacon and Strategic Communications, LLC (incorporated by reference Exhibit 10.9 to the Company’s Current Report on Form 8-K dated December 28, 2007). | |
10.17 | Promissory Note, dated December 20, 2007, issued by Beacon to Strategic (incorporated by reference to Exhibit 10.10 to the Company’s Current Report on Form 8-K dated December 28, 2007). | |
10.18 | Asset Purchase Agreement, dated October 15, 2007, by and between Beacon and RFK Communications, LLC (“RFK”) (incorporated by reference to Exhibit 10.11 to the Company’s Current Report on Form 8-K dated December 28, 2007). | |
10.19 | Secured Promissory Note, dated December 20, 2007, issued by Beacon to RFK (incorporated by reference to Exhibit 10.12 to the Company’s Current Report on Form 8-K dated December 28, 2007). | |
10.20 | Agreement and Plan of Merger, dated October 15, 2007, by and among Beacon, BH Acquisition Sub, Inc., Bell Haun Systems, Inc. (“BHS”) and BHS shareholders (incorporated by reference to Exhibit 10.13 to the Company’s Current Report on Form 8-K dated December 28, 2007). | |
10.21 | Promissory Note, dated December 20, 2007, issued by Beacon to the BHS shareholders (incorporated by reference to Exhibit 10.14 to the Company’s Current Report on Form 8-K dated December 28, 2007). | |
10.22 | Promissory Notes, dated December 20, 2007, issued by Beacon to Thomas O. Bell and Michael T. Haun (incorporated by reference to Exhibit 10.15 to the Company’s Current Report on Form 8-K dated December 28, 2007). | |
10.23 | Registration Rights Agreement, dated December 20, 2007, between Beacon, the placement agent for the Preferred Stock offerings and certain investors (incorporated by reference to Exhibit 10.16 to the Company’s Current Report on Form 8-K dated December 28, 2007). | |
10.24** | Employment Agreement , dated December 2007, between the Company and Bruce Widener (incorporated by reference to Exhibit 99.8 to the Company’s Quarterly Report on Form 10-Q filed February 19, 2008). | |
10.25** | Employment Agreement, dated December 2007, between the Company and Richard C. Mills (incorporated by reference to Exhibit 99.6 to the Company’s Quarterly Report on Form 10-Q filed February 19, 2008). | |
10.26** | Employment Agreement, dated December 2007, between the Company and Robert R. Mohr (incorporated by reference to Exhibit 99.5 to the Company’s Quarterly Report on Form 10-Q filed February 19, 2008). | |
10.27** | Employment Agreement dated May 12, 2009 by and between the Company and Bruce Widener (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q filed August 12, 2009). | |
10.28** | Employment Agreement dated May 22, 2009 by and between the Company and Richard C. Mills (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q filed August 12, 2009). | |
10.29** | Employment Agreement dated May 22, 2009 by and between the Company and Robert Mohr (incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q filed August 12, 2009). | |
10.30** | Executive Employment Agreement dated as of June 1, 2010 by and between the Company and Mark A. Gervasoni (incorporated by reference to Exhibit 99.1 to the Company’s Current Report on Form 8-K filed June 2, 2010). | |
10.31 | Documents related to the Integra Bank Credit Facility (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-QSB dated May 15, 2008). | |
10.32 | Registration Rights Agreement dated July 25, 2008 by and between the Company and the placement agent retained in the July 2008 offering of Common Stock (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed August 19, 2008). | |
10.33 | Project Management Services Agreement dated November 6, 2009 by and between Beacon Solutions AG, a wholly owned subsidiary of the Company, and Interxion (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed February 16, 2010). |
10 | .4 | Loan Agreement dated September 4, 2008 by and between the Company and First Savings Bank (incorporated by reference to Exhibit 10.4 to the Company’s Annual Report onForm 10-K dated January 13, 2009). | ||
10 | .5 | Letter Agreement dated January 9, 2009, by and between the Company and John Rhodes, relating to an equity financing agreement (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report onForm 10-Q dated February 23, 2009). | ||
10 | .6 | Form of the Note Purchase Agreement, dated January 22, 2009, by and between the Company and various investors (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report onForm 10-Q dated February 23, 2009). | ||
10 | .7 | Work Order dated December 19, 2008, by and between the Company and Johnson & Johnson Services, Inc. (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report onForm 10-Q dated February 23, 2009). | ||
10 | .8 | Promissory Note, dated January 7, 2009, made and issued by the Company to John Rhodes (incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report onForm 10-Q dated February 23, 2009). | ||
10 | .9 | Beacon Solutions 2008 Long Term Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report onForm 10-Q dated May 13, 2009.) | ||
10 | .10 | Letter Agreement dated August 10, 2009 by and between the Company and John Rhodes (incorporated by reference to Exhibit 10.5 to the Company’s Quarterly Report onForm 10-Q dated August 12, 2009). | ||
10 | .11 | Promissory Note dated August 10, 2009 made and issued by the Company to John Rhodes Family Limited Partnership (incorporated by reference to Exhibit 10.6 to the Company’s Quarterly Report onForm 10-Q dated August 12, 2009). | ||
10 | .12 | Selling Agency Agreement dated June 12, 2009 by and between the Company and the selling agent named therein (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report onForm 10-Q dated August 12, 2009) | ||
10 | .13 | Secured Promissory Note, dated December 20, 2007, issued by Beacon to ADSnetcurve (incorporated by reference to Exhibit 10.6 to the Company’s Current Report onForm 8-K dated December 28, 2007). | ||
10 | .14 | Asset Purchase Agreement, dated October 15, 2007, by and between Beacon and CETCON, Incorporated (“CETCON”)(incorporated by reference to Exhibit 10.7 to the Company’s Current Report onForm 8-K dated December 28, 2007). | ||
10 | .15 | Secured Promissory Note, dated December 20, 2007, issued by Beacon to CETCON (incorporated by reference to Exhibit 10.8 to the Company’s Current Report onForm 8-K dated December 28, 2007). | ||
10 | .16 | Asset Purchase Agreement, dated October 15, 2007, by and between Beacon and Strategic Communications, LLC (incorporated by reference Exhibit 10.9 to the Company’s Current Report onForm 8-K dated December 28, 2007). | ||
10 | .17 | Promissory Note, dated December 20, 2007, issued by Beacon to Strategic (incorporated by reference to Exhibit 10.10 to the Company’s Current Report onForm 8-K dated December 28, 2007). | ||
10 | .18 | Asset Purchase Agreement, dated October 15, 2007, by and between Beacon and RFK Communications, LLC (“RFK”) (incorporated by reference to Exhibit 10.11 to the Company’s Current Report onForm 8-K dated December 28, 2007). | ||
10 | .19 | Secured Promissory Note, dated December 20, 2007, issued by Beacon to RFK (incorporated by reference to Exhibit 10.12 to the Company’s Current Report onForm 8-K dated December 28, 2007). | ||
10 | .20 | Agreement and Plan of Merger, dated October 15, 2007, by and among Beacon, BH Acquisition Sub, Inc., Bell Haun Systems, Inc. (“BHS”) and BHS shareholders (incorporated by reference to Exhibit 10.13 to the Company’s Current Report onForm 8-K dated December 28, 2007). | ||
10 | .21 | Promissory Note, dated December 20, 2007, issued by Beacon to the BHS shareholders (incorporated by reference to Exhibit 10.14 to the Company’s Current Report onForm 8-K dated December 28, 2007). |
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10 | .22 | Promissory Notes, dated December 20, 2007, issued by Beacon to Thomas O. Bell and Michael T. Haun (incorporated by reference to Exhibit 10.15 to the Company’s Current Report onForm 8-K dated December 28, 2007). | ||
10 | .23 | Registration Rights Agreement, dated December 20, 2007, between Beacon, the placement agent for the Preferred Stock offerings and certain investors (incorporated by reference to Exhibit 10.16 to the Company’s Current Report onForm 8-K dated December 28, 2007). | ||
10 | .24** | Employment Agreement , dated December 2007, between the Company and Bruce Widener (incorporated by reference to Exhibit 99.8 to the Company’s Quarterly Report onForm 10-Q dated February 19, 2008). | ||
10 | .25** | Employment Agreement, dated December 2007, between the Company and Richard C. Mills (incorporated by reference to Exhibit 99.6 to the Company’s Quarterly Report onForm 10-Q dated February 19, 2008). | ||
10 | .26** | Employment Agreement, dated December 2007, between the Company and Robert R. Mohr (incorporated by reference to Exhibit 99.5 to the Company’s Quarterly Report onForm 10-Q dated February 19, 2008). | ||
10 | .27** | Employment Agreement dated May 12, 2009 by and between the Company and Bruce Widener (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report onForm 10-Q dated August 12, 2009). | ||
10 | .28** | Employment Agreement dated May 22, 2009 by and between the Company and Richard C. Mills (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report onForm 10-Q dated August 12, 2009). | ||
10 | .29** | Employment Agreement dated May 22, 2009 by and between the Company and Robert Mohr (incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report onForm 10-Q dated August 12, 2009). | ||
10 | .30 | Documents related to the Integra Bank Credit Facility (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report onForm 10-QSB dated May 15, 2008). | ||
10 | .31 | Registration Rights Agreement dated July 25, 2008 by and between the Company and the placement agent retained in the July 2008 offering of Common Stock (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report onForm 10-Q dated August 19, 2008). | ||
10 | .33* | Placement Agency Agreement dated September 28, 2009 by and between the Company and the Placement Agent. | ||
14 | .1 | Code of Ethics (incorporated by reference to Exhibit 14.1 to the Company’s Annual Report onForm 10-K dated January 13, 2009). | ||
21 | .1 | Subsidiaries of the Registrant (incorporated by reference to Exhibit 21 to the Company’s Annual Report onForm 10-K dated January 13, 2009). | ||
31 | .1* | Certification of Principal Executive Officer, pursuant toRules 13a-14(a) of the Sarbanes-Oxley Act of 2002. | ||
31 | .2* | Certification of Principal Executive Officer, pursuant toRules 13a-14(a) of the Sarbanes-Oxley Act of 2002. | ||
32 | .1* | Certification of Principal Executive Officer, pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* | ||
32 | .2* | Certification of Principal Executive Officer, pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* |
10.34 | Placement Agency Agreement dated September 28, 2009 by and between the Company and the Placement Agent (incorporated by reference to Exhibit 10.33 to the Company’s Annual Report on Form 10-Kfiled December 29, 2009). | |
14.1 | Code of Ethics (incorporated by reference to Exhibit 14.1 to the Company’s Annual Report on Form 10-K filed January 13, 2009). | |
21.1* | Subsidiaries of the Registrant. | |
31.1* | Certification of Principal Executive Officer, pursuant to Rule 13a-14(a) of the Sarbanes-Oxley Act of 2002. | |
31.2* | Certification of Principal Executive Officer, pursuant to Rule 13a-14(a) of the Sarbanes-Oxley Act of 2002. | |
32.1* | Certification of Principal Executive Officer, pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* | |
32.2* | Certification of Principal Executive Officer, pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* |
* | Denotes filed herein. | |
** | Denotes compensatory plan or management contract. |
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