New York | 3990 | 14-1760865 | ||
(State or other jurisdiction of incorporation or organization) | (Primary Standard Industrial Classification Code Number) | (I.R.S. Employer Identification Number) |
11552 Prosperous Drive Odessa, FL 33556 Telephone: (727) 375-8484 Facsimile: (727) 375-8485 | State of New York – Secretary of State Department of State One Commerce Plaza 99 Washington Avenue, 6th Floor Albany, New York 12231 Telephone: (518) 473-2492 Facsimile: (518) 474-1418 | |
(Address, Including Zip Code, and Telephone Number, Including Area Code, of Principal Executive Offices) | (Name, Address, Including Zip Code and Telephone Number, Including Area Code, of Agent for Service) |
Large accelerated filer | o | Accelerated filer | o | |||
Non-accelerated filer | o (Do not check if a smaller reporting company) | Smaller reporting company | x |
Title of Each Class of Securities to be Registered | Amount to be Registered | Proposed Maximum Aggregate Offering Price(1) | Amount of Registration Fee(6) | |||||||||
Common stock, $0.01 par value per share(2) | 4,312,500 | $ | 21,562,500 | $ | 2,503.41 | |||||||
Underwriter Warrant(3)(4)(5) | 1 warrant | $ | 100 | — | ||||||||
Shares of Common Stock underlying Underwriter’s Warrant | 431,250 | $ | 2,587,500 | $ | 300.41 | |||||||
Amount Paid | $ | 2,753.75 | ||||||||||
Balance Due | $ | 50.07 |
Title of Each Class of Securities to be Registered | Amount to be Registered | Proposed Maximum Offering Price Per Security | Proposed Maximum Aggregate Offering Price(1) | Amount of Registration Fee( 2 ) | ||||||||||||
Common stock, $0.01 par value per share | 33,000,000 | $ | 0.3 4 | $ | 11,220,000 | $ | 1,28 5.81 | |||||||||
Amount Due ( 2 ) | $ | 0 |
(1) | Estimated solely for the purpose of calculating the amount of the registration fee pursuant to Rule 457(o) under the Securities Act of 1933, as amended. The Proposed Maximum Aggregate Offering Price is determined by the shares of common stock to be registered multiplied by the Proposed Maximum Offering Price Per Security. For purposes of the registration fee, we used the highest price of our estimated range of the offering price. |
Previously paid |
Per Share | Total | |||||||
Public Offering Price | $ | 0.3 2 | $ | 10, 560 ,000 | ||||
$ | 0.0 192 | $ | 6 33,600 | |||||
Offering Proceeds to Dais, before expenses(2) | $ | 0.3 008 | $ | 9, 926,400 |
(1) | |
(2) | We estimate |
Page No. | ||||
88 | ||||
89 | ||||
89 | ||||
90 | ||||
PROSPECTUS SUMMARY This summary highlights selected information contained elsewhere in this prospectus and does not contain all the information that you need to consider in making your investment decision. You should carefully read this entire prospectus before deciding whether to invest in the common stock. You should pay special attention to the “Risk Factors” section of this prospectus to determine whether an investment in the common stock is appropriate for you. This registration statement, including the exhibits and schedules thereto, contains additional relevant information about us and our capital stock. We file annual, quarterly, and current reports, proxy statements, and other information with the SEC. You may read and copy any document we file at the SEC’s public reference room at 100 F Street, N.E., Washington, D.C. 20549. You can also request copies of the documents, upon payment of a duplicating fee, by writing the Public Reference Section of the SEC. Please call the SEC at 1-800-SEC-0330 for further information on the public reference room. These SEC filings are also available to the public from the SEC’s web site at www.sec.gov. About Dais Analytic Corporation We have developed and are commercializing specialty nano-structured polymer materials (Aqualyte™). Using Aqualyte ™ materials we are creating value added products which are designed to: (i) improve the energy efficiency in Heating, Ventilation and Air Conditioning (HVAC) equipment, (ii) replace the chemical refrigerants used in today’s HVAC systems as well as most all forms of refrigeration systems; (iii) remove impurities in contaminated water (such as waste water and seawater); and (iv) allow the storage of electrical energy in a device called an “ultracapacitor.” Several applications that use the Aqualyte™ platform are under development. These potential applications include: | |
● | NanoAir™, a water based packaged HVAC system that is potentially capable of achieving improvements in energy efficiency over traditional AC and refrigeration systems, |
● | NanoClear™, a water clean-up process that has been demonstrated to provide parts per billion potable water from most forms of contaminated water, including salt, brackish or wastewater1, and |
● | NanoCap™, an energy storage device (ultracapacitor) we are currently researching and developing that uses the attributes of the Aqualyte™ material to potentially provide significantly greater energy density and power than conventional capacitors or batteries. |
We are a New York corporation established on April 8, 1993 as Dais Corporation. We subsequently changed our name to Dais Analytic Corporation on December 13, 1999. Our principal executive offices are located at 11552 Prosperous Drive, Odessa, FL 33556. Our telephone number is (727) 375-8484. Our website can be accessed at www.daisanalytic.com and www.conserv.com. Information contained in our website is not a part of this prospectus and the inclusion of our website address in this prospectus is an inactive textual reference only. Our Proprietary Technologies We have multiple pending and issued patents in the U.S., China, Hong Kong and Europe, and under the Patent Cooperation Treaty (PCT). In addition, we co-own two PCT applications with Aegis Biosciences LLC, a biomaterials drug delivery technology company. These patents relate to, or are applications of, our nano-structured polymer materials that perform functions such as ion exchange and modification of surface properties. The polymers are selectively permeable to polar materials, such as water, in molecular form. Selective permeability allows these materials to function as a nano-filter in various transfer applications. These materials are made from base polymer resins available from commercial firms worldwide and possess what we believe to be some unique and controllable properties, such as: | |
● | Selectivity: Based on our research, we believe that when the polymer is made there are small channels created that are 5 to 30 nanometers in diameter. There are two types of these channels: hydrophilic (water permeable), and hydrophobic (water impermeable). The channels can be chemically tuned to be selective for the ions or molecules they transfer. The selectivity of the polymer can be adjusted to efficiently transfer water molecules from one face to the other using these channels. |
● | High transfer rate: Based on in-house testing protocols and related results, we have found that the channels created when casting the materials into a nano-structured membrane have a transfer rate of water molecules, or flux, greater than 90% of an equivalent area of an open tube. This feature is fundamental to the material’s ability to transfer moisture at the molecular level while substantially allowing or disallowing the transfer of certain other substances at a molecular level. |
● | Unique surface characteristics: The materials offer a surface characteristics that we believe inhibit the growth of bacteria, fungus and algae and prevent adhesives from attaching. |
The molecular selectivity, transfer rate and surface coating properties, coupled with our ability to produce the nano-structured materials at what we believe is an affordable price, distinguishes our technology and value-added products. By incorporating our nano-structured materials into our products, we strive to address current real-world market needs by offering what we believe to be higher efficiencies and improved price performance, compared to, for example, other energy recovery mechanisms available for HVAC that use coated paper or desiccant materials instead of our nano-structured polymer materials. For further details about our technology, please refer to our “Description of Business” in this prospectus. Our Target Markets We are currently focusing our efforts on applications of our nano-structure polymer technology materials in the following areas: Energy Recovery Ventilators ConsERV™ is a heating, ventilation and air conditioning (HVAC) energy conservation product which after reviewing the results of various third party tests, we believe will save an average of up to 30% on HVAC ventilation air operating costs and allow HVAC equipment to be up to 30% smaller, reducing peak energy usage by up to 20% while simultaneously improving indoor air quality by increasing the level of fresh air ventilation. This product makes HVAC systems operate more efficiently, and in many cases results in energy and cost savings. ConsERV™ may be added to most existing HVAC systems, typically in commercial buildings, to provide ventilation within the structure. It pre-conditions the incoming air by passing the air through our nano-technology polymer which has been formed into a filter, known in the market as a fixed plate core. The nano-technology core uses the stale building air that is simultaneously exhausted to transfer heat and moisture into or out of the incoming air. For summer air conditioning, the core removes some of the heat and humidity from the incoming air, transferring it to the exhaust air stream thereby, under certain conditions, saving energy. For winter heating, the core transfers a portion of the heat and humidity into the incoming air from the exhaust air stream thereby often saving energy. |
We believe that there is significant demand for energy recovery ventilators in the U.S. and international markets. As reported by Frost and Sullivan in 2007, the North American market for energy recovery ventilators (ERVs) was estimated to be approximately $1.1 billion. Projections made at that time were for 200% growth from that level by 2012. Market drivers behind this growth include higher ventilation standards, greater end user awareness, LEED (Leadership in Energy Efficiency and Design) certification points or incentives, Our ConsERV™ product is the primary focus of our resources and commercialization efforts. When compared to similar competitive products and based on test results conducted by the Air-Conditioning, Heating and Refrigeration Institute (AHRI), a leading industry association in 2008, we believe ConsERV™ is twice as effective in managing a combination of latent and sensible heat as other fixed plate cores. This study is publicly available and was not prepared for our benefit or funded by us. Residential and Commercial Heating, Air-Conditioning and Refrigeration Our water-based packaged HVAC system, NanoAir™, which is in the early beta stage of development, dehumidifies and cools air in warm weather, or humidifies and heats air in cold weather. NanoAir™ may be capable of replacing a traditional refrigerant loop-based heating, cooling, and refrigeration system. We have a number of small prototype units showing fundamental heating, cooling, humidification, and dehumidification operations of this evolving application. Based on our lab results to date, NanoAir™ may have the potential to reduce energy consumption by up to 50%, and is projected to be up to 3 times more energy efficient than current refrigerant gas-based technologies on the market today. Since heating and cooling costs account for approximately 19% of all energy consumed in the U.S. (second only to transportation), as stated by Dr. Steven Chu of the U.S. Department of Energy in 2010, we believe NanoAir™ may have the ability to provide significant energy |
![]() ![]() |
*projected Projected NanoAir™ is being partially funded by a $681,322 grant from the U.S. Department of Energy’s Advanced Research Projects Agency – Energy (ARPA-E) awarded to us in September of 2010, and a $254,500 grant from Pasco County, Florida in December of 2010. The grant from Pasco County requires us to pay the county 2% of the gross sales of products using a certain unique pump assembly for 5 years, |
Water Clean-Up According to water quality evaluated by the Pasco County Technical Services in March 2010, and the China Academy of Environmental Science in December 2010, our NanoClear™ prototype system has demonstrated the ability to remove salt and other impurities from water to produce potable water using what we believe is an environmentally friendly design projected to be more energy efficient, reduce capital costs, and lower operating expenditures up to 50% over the market leading technology in use today (Reverse Osmosis). We have developed a number of functional demonstration units of various sizes, which highlight the basics of how this system works to produce potable water. These demonstration units are being used as the basis for the application’s next planned inflection point: the construction and operation of a 10 cubic meter (approximately 26,500 gallons per day) pilot plant to be located near our office outside of Tampa, Florida at a Pasco County off-line waste water treatment facility where the local municipal government has granted Dais permission to construct and operate the pilot NanoClear™ facility. The NanoClear™ application is currently in the early stages of beta development. We believe significant market opportunities for the Further, based on our projections, we believe certain facility and mechanical layouts of the NanoClear™ process for water clean-up may be able to accomplish 90-95% water capture vs. 40-60% for traditional Reverse Osmosis (RO) systems clean water using NanoClear™ has a projected energy/water cost of $0.25 to $0.33 per cubic meters, (desalination) vs. $0.50-$1 per cubic meters for Reverse Osmosis.2 Energy Storage Based on initial material tests conducted by General Electric’s Global Research and Development Center in 2008, and the University of Florida in 2010 and 2011, we believe that by applying a combination of our nano-material in a process which exercises key attributes of the material’s properties, we may be able to construct an energy storage device akin to an ultracapacitor. An ultracapacitor is a device which stores energy similar to a battery but in this case with projected increases in energy density and lifetimes. We call this application NanoCap™. We believe the key application for NanoCap™ would be in transportation. We signed a research agreement with the University of Florida to conduct materials testing for the time period from July 2010 through September 2011. Although very early in the development path, preliminary results obtained in research by both GE and the University of Florida suggest that a NanoCap™ ultracapacitor, if fully developed, may possess an energy density comparable to that of gasoline. |
The market size for ultracapacitors, worldwide, is projected to be $500 million by 2012 as estimated by Greentech Media in January 2010 and includes electric vehicles, various electronics, smart grid and other applications. Other We have identified other potential products for our nano-materials and processes. Some have basic data to support additional functionality and market differentiation of a product based on our nano-technology inventions. These other products are based, in part, upon the known functionality of our materials and processes. Management anticipates that many of these other applications will be developed in the future with partners already in a given sales channel or line of business with us, as we grow and are able to internally fund such activities, development, manufacturing, and sales. We expect ConsERV™ to continue to be the focus of our commercial product sales through Proposed We have entered into an agreement with our CEO, Tim Tangredi, that provides that upon closing of the offering and receipt by us of gross proceeds of $6 million or more, Mr. Tangredi’s accrued compensation through the closing date in the approximate amount of $1.05 million shall be paid with a combination of (a) cash, which we estimate at this time to be approximately $380,000, which is intended to cover payment of income and other taxes due from the payment of such accrued compensation, and (b) shares of restricted common stock at a price equal to the price per share paid by investors in the public offering, for the remainder (which is assumed for purposes of this calculation to be For additional details regarding the above, see “Use of Proceeds” below in this prospectus. Risk Factors An investment in our common stock involves a high degree of risk. You should carefully consider the risks described under “Risk Factors” beginning on page |
The Offering The following summary contains basic information about the offering and our common stock and is not intended to be complete. It does not contain all the information that is important to you. For a more complete understanding of our common stock, please refer to the section of this prospectus entitled “Description of Capital Stock.” | ||
Issuer | Dais Analytic Corporation, a New York corporation. | |
Common stock offered by us | 33,000,000 shares of common stock, par value $0.01 per share. | |
Common stock outstanding before this offering | 37,517,604 shares of common stock, par value $0.01 per share. (1) (2) | |
Common stock outstanding after this offering | ||
Use of Proceeds | We intend to use the net proceeds from the sale of our common stock in this offering for working capital, to pay certain outstanding note obligations, to pay accrued salaries, and for general corporate purposes. For additional details concerning the use of proceeds see the section below in the prospectus titled “Use of Proceeds.” | |
Market and trading symbol for the common stock | Our common stock is quoted on the Over-the-Counter Bulletin Board under the symbol | |
Placement agent common stock purchase | We will grant the agent, pursuant to |
(1) | ||||
The number of shares of our common stock outstanding before and after this offering is based on the number of shares outstanding as of | ||||
• | 17,402,757 shares of our common stock issuable upon exercise of stock options under our stock plans, | |||
• | 26,390,778 shares of our common stock reserved for issuance under various outstanding warrant | |||
• | Shares of our common stock issuable upon conversion of our convertible promissory notes in the aggregate principal amount of $2,500,000 plus accrued interest as of the closing date of the offering, which (as of | |||
• | 9,348,000 shares of our common stock reserved for future issuance under our stock plans; and, | |||
• | Shares of our common stock issuable upon conversion of a portion of the accrued salary of our CEO to common stock; as of | |||
Unless otherwise specifically stated, information throughout this prospectus assumes that none of our outstanding options or warrants to purchase shares of our common stock have been exercised, and that none of our convertible securities have been converted. | ||||
Unless otherwise indicated, the number of shares of common stock presented in this prospectus excludes shares issuable pursuant to any warrant granted to the |
For the Years Ended December 31, | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2010 | 2009 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
as restated | as restated | |||||||||||||||||||||||
STATEMENT OF OPERATIONS: | ||||||||||||||||||||||||
Revenues | $ | 3,342,468 | $ | 1,531,215 | $ | 1,124,079 | $ | 1,010,142 | $ | 1,982,773 | $ | 1,417,454 | ||||||||||||
Cost of goods sold | (2,290,041 | ) | (1,071,098 | ) | (806,674 | ) | (550,196 | ) | (1,507,564 | ) | (871,522 | ) | ||||||||||||
Operating expenses | (2,931,274 | ) | (3,224,592 | ) | (803,725 | ) | (1,029,394 | ) | (1,728,058 | ) | (1,588,914 | ) | ||||||||||||
Loss from operations | (1,878,847 | ) | (2,764,475 | ) | (486,320 | ) | (569,448 | ) | (1,252,849 | ) | (1,042,982 | ) | ||||||||||||
Change in fair value of warrant liability | 618,801 | (3,731,694 | ) | 1,694,170 | 1,835,094 | (657,937 | ) | 327,066 | ||||||||||||||||
Interest and other expense | (173,547 | ) | (620,907 | ) | (416,265 | ) | (55,233 | ) | (579,774 | ) | (101,736 | ) | ||||||||||||
Net loss | $ | (1,433,593 | ) | $ | (7,117,076 | ) | $ | 791,585 | $ | 1,210,413 | $ | (2,490,560 | ) | $ | (817,652 | ) | ||||||||
Net loss per common share, basic | $ | (0.05 | ) | $ | (0.36 | ) | $ | 0.02 | $ | 0.04 | $ | (0.07 | ) | $ | (0.03 | ) | ||||||||
Net loss per common share, diluted | $ | (0.05 | ) | $ | (0.36 | ) | $ | 0.02 | $ | 0.03 | $ | (0.07 | ) | $ | (0.03 | ) | ||||||||
Weighted average common shares | ||||||||||||||||||||||||
outstanding, basic | 29,985,632 | 19,960,150 | 35,089,169 | 29,800,194 | 34,335,348 | 29,577,797 | ||||||||||||||||||
Weighted average common shares | ||||||||||||||||||||||||
outstanding, diluted | 29,985,632 | 19,960,150 | 56,239,845 | 40,245,491 | 34,335,348 | 29,577,797 | ||||||||||||||||||
PROFORMA: * | ||||||||||||||||||||||||
Proforma net loss per common share, basic | $ | (0.19 | ) | $ | (1.10 | ) | $ | 0.10 | $ | 0.16 | $ | (0.32 | ) | $ | (0.11 | ) | ||||||||
Proforma net loss per common share, diluted | $ | (0.19 | ) | $ | (1.10 | ) | $ | 0.08 | $ | 0.14 | $ | (0.32 | ) | $ | (0.11 | ) | ||||||||
Proforma weighted average common shares outstanding, basic | 7,463,702 | 6,461,154 | 7,974,056 | 7,445,158 | 7,898,674 | 7,422,919 | ||||||||||||||||||
Proforma weighted average common shares outstanding, diluted | 7,463,702 | 6,461,154 | 10,089,124 | 8,489,688 | 7,898,674 | 7,422,919 |
For the Years Ended December 31, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2010 | 2009 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
as restated | as restated | as restated | ||||||||||||||||||||||
STATEMENT OF OPERATIONS: | ||||||||||||||||||||||||
Revenues | $ | 3,342,468 | $ | 1,531,215 | $ | 625,949 | $ | 952,374 | $ | 2,608,722 | $ | 2,369,828 | ||||||||||||
Cost of goods sold | (2,290,041 | ) | (1,071,098 | ) | (466,271 | ) | (755,034 | ) | (1,973,835 | ) | (1,626,556 | ) | ||||||||||||
Operating expenses | (2,931,274 | ) | (3,224,592 | ) | (484,123 | ) | (697,099 | ) | (2,212,088 | ) | (2,286,013 | ) | ||||||||||||
Loss from operations | (1,878,847 | ) | (2,764,475 | ) | (324,445 | ) | (499,759 | ) | (1,577,201 | ) | (1,542,741 | ) | ||||||||||||
Change in fair value of warrant liability | 618,801 | (3,731,694 | ) | (126,008 | ) | (611,231 | ) | (783,944 | ) | (284,165 | ) | |||||||||||||
Interest and other expense | (173,547 | ) | (620,907 | ) | (446,131 | ) | (55,933 | ) | (1,025,907 | ) | (157,669 | ) | ||||||||||||
Net loss | $ | (1,433,593 | ) | $ | (7,117,076 | ) | $ | (895,384 | ) | $ | (1,166,923 | ) | $ | (3,385,852 | ) | $ | (1,948,575 | ) | ||||||
Net loss per common share, basic | $ | (0.05 | ) | $ | (0.36 | ) | $ | (0.02 | ) | $ | (0.04 | ) | $ | (0.10 | ) | $ | (0.03 | ) | ||||||
Net loss per common share, diluted | $ | (0.05 | ) | $ | (0.36 | ) | $ | (0.02 | ) | $ | (0.04 | ) | $ | (0.10 | ) | $ | (0.03 | ) | ||||||
Weighted average common shares outstanding, basic | 29,985,632 | 19,960,150 | 36,682,582 | 19,872,184 | 35,126,357 | 29,696,897 | ||||||||||||||||||
Weighted average common shares outstanding, diluted | 29,985,632 | 19,960,150 | 36,682,582 | 19,872,184 | 35,126,357 | 29,696,897 |
STATEMENT OF FINANCIAL CONDITION: | ||||||||||||||||
December 31 | June 30 | |||||||||||||||
2010 | 2009 | 2011 | 2010 | |||||||||||||
as restated | as restated | |||||||||||||||
Working capital | (2,861,488 | ) | (2,265,370 | ) | (1,846,593 | ) | (3,028,616 | ) | ||||||||
Total assets | 1,970,573 | 1,620,746 | 2,972,862 | 2,070,061 | ||||||||||||
Total long-term notes payable, related party, less current installments | — | 300,000 | — | — | ||||||||||||
Total shareholders’ deficit | (6,722,092 | ) | (7,256,058 | ) | (6,323,185 | ) | (3,094,998 | ) |
December 31 | September 30 | |||||||||||||||
2010 | 2009 | 2011 | 2010 | |||||||||||||
as restated | as restated | |||||||||||||||
Working capital | $ | (2,861,488 | ) | $ | (2,265,370 | ) | $ | (2,532,426 | ) | $ | (3,390,029 | ) | ||||
Total assets | $ | 1,970,573 | $ | 1,620,746 | $ | 2,699,838 | $ | 1,719,517 | ||||||||
Total long-term notes payable, related party, less current installments | $ | — | $ | 300,000 | $ | — | $ | — | ||||||||
Total shareholders’ deficit | $ | (6,722,092 | ) | $ | (7,256,058 | ) | $ | (6,097,657 | ) | $ | (8,289,424 | ) |
· | ability to obtain funding from third parties; |
· | progress on research and development programs; |
· | time and cost required to gain third party approvals; |
· | cost of manufacturing, marketing and distributing our products; |
· | cost of filing, prosecuting and enforcing patents, patent applications, patent claims and trademarks; |
· | status of competing products; and |
· | market acceptance and third-party reimbursement of our products, if successfully developed. |
· | 17,402,757 shares under options; |
· | 26,390,778 shares under warrants; and |
· | 10,9 45,732 shares under convertible securities. |
Application of Net Proceeds | Application of Net Proceeds | |||||||
Working Capital and General Corporate Purposes | $ | 3,805,000 | 29.0 | % | ||||
Marketing, Research and Development (1) | $ | 7,045,000 | 53.8 | % | ||||
Repayment of Convertible Notes (2) | $ | 1,512,000 | 11.6 | % | ||||
Payment of Employee Accrued Salaries (3) | $ | 358,000 | 2.7 | % | ||||
Payment of CEO Accrued Salary (4) | $ | 380,000 | 2.9 | % | ||||
Total | 13,100,000 | 100 | % |
IF 25% OF SHARES SOLD | IF 50% OF SHARES SOLD | IF 75% OF SHARES SOLD | IF 100% OF SHARES SOLD | |||||||||||||
GROSS PROCEEDS FROM THIS OFFERING | $ | 2, 204,600 | $ | 4, 686,2 00 | $ | 7,167,8 00 | $ | 9,649,4 00 | ||||||||
LESS: OFFERING EXPENSES | ||||||||||||||||
Working Capital and General Corporate Purposes (1) | 572,6 00 | 790,2 00 | 1, 538,8 00 | 1,915,400 | ||||||||||||
Marketing, Research and Development ( 2 ) | 1,050 ,000 | 2, 045 ,000 | 4,150,000 | |||||||||||||
Repayment of Secured Convertible Note ( 3 ) | 1,6 32 ,000 | 1,6 32 ,000 | 1,6 32 ,000 | 1,6 32 ,000 | ||||||||||||
Repayment of Unsecured Convertible Note ( 3 ) | 1,21 4 ,000 | 1,21 4 ,000 | 1,21 4 ,000 | |||||||||||||
Payment of Employee Accrued Salaries ( 4 ) | 358,000 | 358,000 | ||||||||||||||
Payment of CEO Accrued Salary (5) | 380,000 | 380,000 | ||||||||||||||
TOTALS | $ | 2, 204,6 00 | $ | 4,686,2 00 | $ | 7,167,8 00 | $ | 9,649,4 00 |
(1) | Among other expenses, we will use proceeds to conduct a national search to identify and hire a Chief Operating Officer with experience within our industry by the end of the second quarter of 2012 if we are able to identify an appropriate candidate with the requisite qualifications. |
Includes proceeds to be applied to a portion of the estimated marketing, research and development costs relating to the commercialization of our ConsERV™, NanoClear™, NanoAir™ and ultracapacitor applications as discussed in the section of the prospectus titled “Description of Business”. This amount represents a current estimate, and is subject to change depending on various factors discussed below. |
Assumes |
Includes payment in the amount of approximately $348,000 to repay the outstanding accrued salary and expenses of our general counsel, Ms. Patricia Tangredi and approximately $10,000 to repay the outstanding |
We have entered into an agreement with our CEO, Tim Tangredi, that provides that upon |
1 | Air-Conditioning, Heating, and Refrigeration Institute (AHRI) – May 2008 test results. This study is publicly available and was not prepared for our benefit or funded by us. |
1 | Air-Conditioning, Heating, and Refrigeration Institute (AHRI) – May 2008 test results. This study is publicly available and was not prepared for our benefit or funded by us. |
Application | Current Stage | Estimated Funding Required Commercialize | Estimated Time to Market (post funding)(1) | Current Stage | Estimated Funding Required Commercialize | Estimated Time to Market (post funding)(1) | ||||||||||
Energy Recovery Ventilation (ConsERV TM ) – An energy efficient process that exchanges heat and humidity between incoming and outgoing airstreams to increase fresh air within commercial and residential facilities | Varied - Additional components to meet market demand are necessary | $ | 1.5 Million | Commercial | Varied - Additional components to meet market demand are necessary | $ | 1.5 Million | Commercial | ||||||||
Water Clean – up (NanoClear TM ) – A process using a low temperature, low pressure approach to process brackish, salt, and waste water into potable water. | 1st Stage Beta | $ | 3.8 Million | 12 – 36 months | 1st Stage Beta | $ | 3.8 Million | 12 – 36 months | ||||||||
Advanced Heating, Ventilating, and Air Conditioning (NanoAir) – A process using the nano – technology materials to create an advanced heating, ventilating, and air – conditioning system. | 1st Stage Beta | $ | 3.8 Million | 12 – 36 months | 1st Stage Beta | $ | 3.8 Million | 12 – 36 months | ||||||||
Ultracapacitor – if fully developed, may have a greater energy density and power per pound than traditional capacitors or the batteries on the market today. | Base materials testing underway by third party to confirm the effectiveness of the Company’s materials in the application. Current activities are moving us closer to the optimization of materials. | $ | 500,000 | — | Base materials testing underway by third party to confirm the effectiveness of the Company’s materials in the application. Current activities are moving us closer to the optimization of materials. | $ | 500,000 | — |
1 | Estimated time to market (post funding) for the Ultracapacitor cannot be determined at this time because it is subject to completion of materials testing. |
Products | Current and Future Competitors | |
ConsERV™ | Semco, Greenheck, Venmar, Bry-Air, dPoint, Renewaire and AirXchange. | |
NanoClear™ | Dow, Siemens, GE | |
NanoAir™ | AAON, Trane, Carrier, York, Hier, Mitsubishi, LG | |
Ultracapacitor | Maxwell, Ioxus, B&D |
1. | Patent No. 6,841,601– Cross-linked polymer electrolyte membranes for heat and moisture exchange devices. This patent was issued on January 11, 2005 and expires on or about March 12, 2022. |
2. | Patent No. 6,413,298 – Water and ion-conducting membranes and uses thereof. This patent was issued on July 2, 2002 and expires on or about July 27, 2020. |
3. | Patent No. 6,383,391 – Water and ion-conducting membranes and uses thereof. This patent was issued on May 7, 2002 and expires on or about July 27, 2020. |
4. | Patent No. 6,110,616 – Ion-conducting membrane for fuel cell. This patent was issued on August 29, 2000 and expires on or about January 29, 2018. |
5. | Patent No. 5,679,482 – Fuel Cell incorporating novel ion-conducting membrane. This patent was issued on October 21, 1997 and expires on or about October 20, 2014. |
6. | Patent No. 5,468,574 – Fuel Cell incorporating novel ion-conducting membrane. This patent was issued on October 21, 1995 and expires on or about May 22, 2014. |
7. | Patent No. 7,179,860 – Cross-linked polymer electrolyte membranes for heat, ion and moisture exchange devices. This patent was issued on February 20, 2007 and expires on or about March 11, 2022. |
8. | Patent No. 7,990,679 – Nanoparticle Ultra Capacitor. This patent was issued on August 2, 2011 and expires on or about December 10, 2028. |
WO/2008/039779 – Enhanced HVAC System and Method |
WO/2008/089484 – Multiphase selective Transport Through a Membrane |
WO/2008/141179 – Molecule Sulphonation Process * |
WO/2009/002984 – Stable and Compatible Polymer Blends* |
WO2009/002984 – Novel Coblock Polymers and Methods for Making Same |
Name | Age | Position | |||
Timothy N. Tangredi | 56 | President, Chief Executive Officer and Chairman of the Board of Directors | |||
Scott G. Ehrenberg | 57 | Chief Technology Officer and Secretary | |||
Judith C. Norstrud | 43 | Chief Financial Officer and Treasurer | |||
David Longacre | 53 | Vice President – Sales and Marketing | |||
Robert W. Schwartz | 67 | Director | |||
Raymond Kazyaka, Sr. | 76 | Director |
Fees Earned or Paid in Cash | Stock Awards | Option Awards | Non-Equity Incentive Plan Compensation | Change in Pension Value and Non-qualified Deferred Compensation Earnings | All Other Compensation | |||||||||||||||||||||||
($) | ($) | ($) | ($) | ($) | ($) | Total ($) | ||||||||||||||||||||||
Name (a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | |||||||||||||||||||||
Raymond Kazyaka Sr., Director(1) | 2011 | — | — | $ | 79,583 | — | — | — | $ | 79,583 | ||||||||||||||||||
2010 | — | — | $ | 95,869 | — | — | — | $ | 95,869 | |||||||||||||||||||
2009 | — | — | $ | 31,165 | — | — | — | $ | 31,165 | |||||||||||||||||||
Robert W. Schwartz, Director(2) | 2011 | — | — | $ | 79,583 | — | — | — | $ | 79,583 | ||||||||||||||||||
2010 | — | — | $ | 95,869 | — | — | — | $ | 95,869 | |||||||||||||||||||
2009 | — | — | $ | 31,165 | — | — | — | $ | 31,165 |
Fees Earned or Paid in Cash | Stock Awards | Option Awards | Non-Equity Incentive Plan Compensation | Change in Pension Value and Non-qualified Deferred Compensation Earnings | All Other Compensation | |||||||||||||||||||||
($) | ($) | ($) | ($) | ($) | ($) | Total ($) | ||||||||||||||||||||
Name (a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | |||||||||||||||||||
Raymond Kazyaka Sr., Director(1) | 2010 | — | — | $ | 95,869 | — | — | — | $ | 95,869 | ||||||||||||||||
2009 | — | — | 31,165 | — | — | — | 31,165 | |||||||||||||||||||
Robert W. Schwartz, Director(2) | 2010 | — | — | $ | 95,869 | — | — | — | $ | 95,869 | ||||||||||||||||
2009 | — | — | 31,165 | — | — | — | 31,165 |
(1) | At December 31, |
(2) | At December 31, |
Name and principal position (a) | Year (b) | Salary ($) (c) | Bonus ($) (d) | Stock Awards ($)(2) (e) | Option Awards ($)(2) (f) | Non-Equity Incentive Plan (g) | Non-qualified Deferred Compensation Earnings ($) (h) | All other compensation ($) (i) | Total ($) (j) | ||||||||||||||||||||||
Timothy N. Tangredi Chief Executive Officer, President, and Chairman of the Board of Directors(1) | 2010 2009 | | $ $ | 170,000 170,000 | | | — — | | | — — | | $ $ | 95,869 1,134,425 | | | — — | | | — — | | | — — | $ $ | 265,869 1,304,425 | | ||||||
Robert W. Brown Vice President of Marketing (3) | 2009 | $ | 57,187 | — | — | — | — | — | — | $ | 57,187 | ||||||||||||||||||||
David E. Longacre Vice President of Sales and Marketing | 2010 | $ | 125,000 | $ | 10,000 | — | $ | 73,386 | — | — | — | $ | 208,386 | ||||||||||||||||||
Scott G. Ehrenberg Chief Technology Officer and Secretary | 2010 2009 | | $ $ | 74,808 67,100 | | | — | | | — — | | $ | 89,877 — | | | — — | | | — — | | | — — | $ $ | 164,685 67,100 | | ||||||
Judith C. Norstrud Chief Financial Officer and Treasurer | 2010 2009 | | $ $ | 50,000 13,447 | | | — — | | | — — | | $ $ | 35,951 82,930 | | | — — | | | — — | | | — — | $ $ | 85,951 96,377 | |
Name and principal position (a) | Year (b) | Salary ($) (c) | Bonus ($) (d) | Stock Awards ($)(2) (e) | Option Awards ($)(2) (f) | Non-Equity Incentive Plan (g) | Non-qualified Deferred Compensation Earnings ($) (h) | All other compensation ($) (i) | Total ($) (j) | ||||||||||||||||||||||
Timothy N. Tangredi Chief Executive Officer, President, and Chairman of the Board of Directors(1) | 2011 2010 2009 | $ $ $ | 170,000 170,000 170,000 | — — — | — — — | $ $ $ | 79,583 95,869 1,134,425 | — — — | — — — | — — — | $ $ $ | 249,583 265,869 1,304,425 | |||||||||||||||||||
Robert W. Brown Vice President of Marketing (3) | 2009 | $ | 57,187 | — | — | — | — | — | — | $ | 57,187 | ||||||||||||||||||||
David E. Longacre Vice President of Sales and Marketing | 2011 2010 | $ $ | 125,000 125,000 | $ | — 10,000 | — — | $ $ | 24,565 80,186 | — — | — — | — — | $ $ | 149,565 215,186 | ||||||||||||||||||
Scott G. Ehrenberg Chief Technology Officer and Secretary | 2011 2010 2009 | $ $ $ | 105,000 74,808 67,100 | — — — | — — — | $ $ | 178,380 89,877 — | — — — | — — — | — — — | $ $ $ | 283,380 164,685 67,100 | |||||||||||||||||||
Judith C. Norstrud Chief Financial Officer and Treasurer | 2011 2010 2009 | $ $ $ | 68,333 50,000 13,447 | — — — | — — — | $ $ $ | 82,365 82,930 | — — — | — — — | — — — | $ $ $ | 150,698 96,377 |
(1) | Mr. Tangredi |
(2) | The amounts included in these columns are the aggregate dollar amounts of |
(3) | Mr. Brown’s employment with us terminated on July 6, 2010. |
OPTION AWARDS | STOCK AWARDS | |||||||||||||||||||||||||||||||||||
Name (a) | Number of securities underlying unexercised options (#) Exercisable (b) | Number of securities underlying unexercised options (#) Unexercisable (c) | Equity Incentive Plan Awards: Number of Securities underlying unexercised unearned options (#) (d) | Option exercise price ($) (e) | Option expiration date (f) | Number of shares or units of stock that have not vested (#) (g) | Market value of shares or units of stock that have not vested ($) (h) | Equity incentive plan awards: number of unearned shares, units or other rights that have not vested (#) (i) | Equity incentive plan awards: Market or payout value of unearned shares, units or other rights that have not vested ($) (j) | |||||||||||||||||||||||||||
Timothy N. Tangredi (1) | 825,000 | — | — | $ | 0.26 | 9/23/2014 | — | — | — | — | ||||||||||||||||||||||||||
150,000 | — | — | $ | 0.10 | 5/10/2015 | — | — | — | — | |||||||||||||||||||||||||||
120,000 | — | — | $ | 0.10 | 10/1/2015 | — | — | — | — | |||||||||||||||||||||||||||
40,000 | — | — | $ | 0.30 | 5/2/2016 | — | — | — | — | |||||||||||||||||||||||||||
110,000 | — | — | $ | 0.55 | 11/1/2016 | — | — | — | — | |||||||||||||||||||||||||||
140,000 | — | — | $ | 0.55 | 2/20/2017 | — | — | — | — | |||||||||||||||||||||||||||
300,000 | — | — | $ | 0.21 | 8/18/2017 | — | — | — | — | |||||||||||||||||||||||||||
350,000 | — | — | $ | 0.21 | 1/30/2018 | — | — | — | — | |||||||||||||||||||||||||||
3,000,000 | * | — | — | $ | 0.36 | 8/4/2013 | — | — | — | — | ||||||||||||||||||||||||||
75,000 | — | — | $ | 0.30 | 8/4/2018 | — | — | — | — | |||||||||||||||||||||||||||
100,000 | — | — | $ | 0.42 | 11/12/2019 | — | — | — | — | |||||||||||||||||||||||||||
3,540,058 | — | — | $ | 0.42 | 11/12/2019 | — | — | — | — | |||||||||||||||||||||||||||
400,000 | — | — | $ | 0.30 | 6/25/2020 | — | — | — | — | |||||||||||||||||||||||||||
* Warrant | ||||||||||||||||||||||||||||||||||||
Scott G. Ehrenberg (2) | 140,000 | — | — | $ | 0.26 | 9/23/2014 | — | — | — | — | ||||||||||||||||||||||||||
110,000 | — | — | $ | 0.10 | 5/10/2015 | — | — | — | — | |||||||||||||||||||||||||||
80,000 | — | — | $ | 0.10 | 10/1/2015 | — | — | — | — | |||||||||||||||||||||||||||
40,000 | — | — | $ | 0.55 | 11/1/2016 | — | — | — | — | |||||||||||||||||||||||||||
120,000 | — | — | $ | 0.55 | 2/20/2017 | — | — | — | — | |||||||||||||||||||||||||||
50,000 | — | — | $ | 0.21 | 8/18/2017 | — | — | — | — | |||||||||||||||||||||||||||
250,000 | — | — | $ | 0.30 | 8/4/2018 | — | — | — | — | |||||||||||||||||||||||||||
*250,000 | — | — | $ | 0.30 | 8/4/2013 | — | — | — | — | |||||||||||||||||||||||||||
125,000 | 250,000 | 250,000 | $ | 0.30 | 6/25/2020 | — | — | — | — | |||||||||||||||||||||||||||
________ | ||||||||||||||||||||||||||||||||||||
* Warrant | ||||||||||||||||||||||||||||||||||||
Judith C. Norstrud (3) | 200,000 | — | — | $ | 0.45 | 10/15/2019 | — | — | — | — | ||||||||||||||||||||||||||
50,000 | 100,000 | 100,000 | $ | 0.30 | 6/25/2020 | — | — | — | — | |||||||||||||||||||||||||||
David E. Longacre (4) | — | 200,000 | — | $ | 0.28 | 1/20/2020 | — | — | — | — | ||||||||||||||||||||||||||
— | 100,000 | — | $ | 0.30 | 7/6/2020 | — | — | — | — |
OPTION AWARDS | STOCK AWARDS | |||||||||||||||||||||||||||||||||||
Name (a) | Number of securities underlying unexercised options (#) Exercisable (b) | Number of securities underlying unexercised options (#) Unexercisable (c) | Equity Incentive Plan Awards: Number of Securities underlying unexercised unearned options (#) (d) | Option exercise price ($) (e) | Option expiration date (f) | Number of shares or units of stock that have not vested (#) (g) | Market value of shares or units of stock that have not vested ($) (h) | Equity incentive plan awards: number of unearned shares, units or other rights that have not vested (#) (i) | Equity incentive plan awards: Market or payout value of unearned shares, units or other rights that have not vested ($) (j) | |||||||||||||||||||||||||||
Timothy N. Tangredi (1) | 825,000 | — | — | $ | 0.26 | 9/23/2014 | — | — | — | — | ||||||||||||||||||||||||||
150,000 | — | — | $ | 0.10 | 5/10/2015 | — | — | — | — | |||||||||||||||||||||||||||
120,000 | — | — | $ | 0.10 | 10/1/2015 | — | — | — | — | |||||||||||||||||||||||||||
40,000 | — | — | $ | 0.30 | 5/2/2016 | — | — | — | — | |||||||||||||||||||||||||||
110,000 | — | — | $ | 0.55 | 11/1/2016 | — | — | — | — | |||||||||||||||||||||||||||
140,000 | — | — | $ | 0.55 | 2/20/2017 | — | — | — | — | |||||||||||||||||||||||||||
300,000 | — | — | $ | 0.21 | 8/18/2017 | — | — | — | — | |||||||||||||||||||||||||||
350,000 | — | — | $ | 0.21 | 1/30/2018 | — | — | — | — | |||||||||||||||||||||||||||
3,000,000 | * | — | — | $ | 0.36 | 8/4/2013 | — | — | — | — | ||||||||||||||||||||||||||
75,000 | — | — | $ | 0.30 | 8/4/2018 | — | — | — | — | |||||||||||||||||||||||||||
100,000 | — | — | $ | 0.42 | 11/12/2019 | — | — | — | — | |||||||||||||||||||||||||||
3,540,058 | — | — | $ | 0.42 | 11/12/2019 | — | — | — | — | |||||||||||||||||||||||||||
400,000 | — | — | $ | 0.30 | 6/25/2020 | — | — | — | — | |||||||||||||||||||||||||||
125,000 | — | — | $ | 0.30 | 1/18/2021 | — | — | — | — | |||||||||||||||||||||||||||
100,000 | — | — | $ | 0.40 | 4/5/2021 | — | — | — | — | |||||||||||||||||||||||||||
45,000 | — | — | $ | 0.35 | 10/7/2021 | — | — | — | — |
* Warrant |
Scott G. Ehrenberg (2) | 140,000 | — | — | $ | 0.26 | 9/23/2014 | — | — | — | — | ||||||||||||||||||||||||||
110,000 | — | — | $ | 0.10 | 5/10/2015 | — | — | — | — | |||||||||||||||||||||||||||
80,000 | — | — | $ | 0.10 | 10/1/2015 | ��� | — | — | — | |||||||||||||||||||||||||||
40,000 | — | — | $ | 0.55 | 11/1/2016 | — | — | — | — | |||||||||||||||||||||||||||
120,000 | — | — | $ | 0.55 | 2/20/2017 | — | — | — | — | |||||||||||||||||||||||||||
50,000 | — | — | $ | 0.21 | 8/18/2017 | — | — | — | — | |||||||||||||||||||||||||||
250,000 | — | — | $ | 0.30 | 8/4/2018 | — | — | — | — | |||||||||||||||||||||||||||
*250,000 | — | — | $ | 0.30 | 8/4/2013 | — | — | — | — | |||||||||||||||||||||||||||
125,000 | 250,000 | 250,000 | $ | 0.30 | 6/25/2020 | — | — | — | — | |||||||||||||||||||||||||||
625,000 | — | — | $ | 0.30 | 1/18/2021 | — | — | — | — | |||||||||||||||||||||||||||
75,000 | — | — | $ | 0.40 | 4/5/2021 | — | — | — | — | |||||||||||||||||||||||||||
________ | ||||||||||||||||||||||||||||||||||||
* Warrant | ||||||||||||||||||||||||||||||||||||
Judith C. Norstrud (3) | 200,000 | — | — | $ | 0.45 | 10/15/2019 | — | — | — | — | ||||||||||||||||||||||||||
50,000 | 100,000 | 100,000 | $ | 0.30 | 6/25/2020 | — | — | — | — | |||||||||||||||||||||||||||
100,000 | — | — | $ | 0.30 | 1/18/2021 | — | — | — | — | |||||||||||||||||||||||||||
137,500 | — | — | $ | 0.40 | 4/5/2021 | — | — | — | — | |||||||||||||||||||||||||||
35,000 | — | — | $ | 0.35 | 10/7/2021 | — | — | — | — | |||||||||||||||||||||||||||
David E. Longacre (4) | — | 200,000 | — | $ | 0.28 | 1/20/2020 | — | — | — | — | ||||||||||||||||||||||||||
— | 100,000 | — | $ | 0.30 | 7/06/2020 | — | — | — | — | |||||||||||||||||||||||||||
— | 100,000 | — | $ | 0.30 | 1/18/2021 | — | — | — | — |
OPTION AWARDS | STOCK AWARDS | |||||||||||||||||||||||||||||||||||
Name (a) | Number of securities underlying unexercised options (#) Exercisable (b) | Number of securities underlying unexercised options (#) Unexercisable (c) | Equity Incentive Plan Awards: Number of Securities underlying unexercised unearned options (#) (d) | Option exercise price ($) (e) | Option expiration date (f) | Number of shares or units of stock that have not vested (#) (g) | Market value of shares or units of stock that have not vested ($) (h) | Equity incentive plan awards: number of unearned shares, units or other rights that have not vested (#) (i) | Equity incentive plan awards: Market or payout value of unearned shares, units or other rights that have not vested ($) (j) | |||||||||||||||||||||||||||
Timothy N. Tangredi (1) | 82,500 | — | — | $ | 2.60 | 9/23/2014 | — | — | — | — | ||||||||||||||||||||||||||
15,000 | — | — | $ | 1.00 | 5/10/2015 | — | — | — | — | |||||||||||||||||||||||||||
12,000 | — | — | $ | 1.00 | 10/1/2015 | — | — | — | — | |||||||||||||||||||||||||||
4,000 | — | — | $ | 3.00 | 5/2/2016 | — | — | — | — | |||||||||||||||||||||||||||
11,000 | — | — | $ | 5.50 | 11/1/2016 | — | — | — | — | |||||||||||||||||||||||||||
14,000 | — | — | $ | 5.50 | 2/20/2017 | — | — | — | — | |||||||||||||||||||||||||||
30,000 | — | — | $ | 2.10 | 8/18/2017 | — | — | — | — | |||||||||||||||||||||||||||
35,000 | — | — | $ | 2.10 | 1/30/2018 | — | — | — | — | |||||||||||||||||||||||||||
300,000 | * | — | — | $ | 3.60 | 8/4/2013 | — | — | — | — | ||||||||||||||||||||||||||
7,500 | — | — | $ | 3.00 | 8/4/2018 | — | — | — | — | |||||||||||||||||||||||||||
10,000 | — | — | $ | 4.20 | 11/12/2019 | — | — | — | — | |||||||||||||||||||||||||||
354,006 | — | — | $ | 4.20 | 11/12/2019 | — | — | — | — | |||||||||||||||||||||||||||
40,000 | — | — | $ | 3.00 | 6/25/2020 | — | — | — | — | |||||||||||||||||||||||||||
* Warrant | ||||||||||||||||||||||||||||||||||||
Scott G. Ehrenberg (2) | 14,000 | — | — | $ | 2.60 | 9/23/2014 | — | — | — | — | ||||||||||||||||||||||||||
11,000 | — | — | $ | 1.00 | 5/10/2015 | — | — | — | — | |||||||||||||||||||||||||||
8,000 | — | — | $ | 1.00 | 10/1/2015 | — | — | — | — | |||||||||||||||||||||||||||
4,000 | — | — | $ | 5.50 | 11/1/2016 | — | — | — | — | |||||||||||||||||||||||||||
12,000 | — | — | $ | 5.50 | 2/20/2017 | — | — | — | — | |||||||||||||||||||||||||||
5,000 | — | — | $ | 2.10 | 8/18/2017 | — | — | — | — | |||||||||||||||||||||||||||
25,000 | — | — | $ | 3.00 | 8/4/2018 | — | — | — | — | |||||||||||||||||||||||||||
*25,000 | — | — | $ | 3.00 | 8/4/2013 | — | — | — | — | |||||||||||||||||||||||||||
12,500 | 25,000 | 25,000 | $ | 3.00 | 6/25/2020 | — | — | — | — | |||||||||||||||||||||||||||
* Warrant | ||||||||||||||||||||||||||||||||||||
Judith C. Norstrud (3) | 20,000 | — | — | $ | 4.50 | 10/15/2019 | — | — | — | — | ||||||||||||||||||||||||||
5,000 | 10,000 | 10,000 | $ | 3.00 | 6/25/2020 | — | — | — | — | |||||||||||||||||||||||||||
David E. Longacre (4) | — | 20,000 | — | $ | 2.80 | 1/20/2020 | — | — | — | — | ||||||||||||||||||||||||||
— | 10,000 | — | $ | 3.00 | 7/6/2020 | — | — | — | — |
(1) | The April 2008 warrant grant to Mr. Tangredi for 3,000,000 shares |
(2) | All stock options issued to Mr. Ehrenberg prior to December 31, 2009 were issued under the 2000 Plan. The remaining options issued under the 2009 Plan. |
(3) | All stock options issued to Ms. Norstrud prior to December 31, 2009 were issued under the 2000 Plan. The remaining options were issued under the 2009 Plan. |
(4) | All stock options issued to Mr. Longacre were issued under the 2009 Plan. |
Name of Beneficial Owner | Common Stock Beneficially Owned Number of Shares of Common Stock | Percentage of Class | Common Stock Beneficially Owned Number of Shares of Common Stock after giving effect to the anticipated reverse stock | |||||||||
Timothy N. Tangredi | ||||||||||||
(Officer and Chairman) (1) | 12,230,477 | 25.0 | % | 1,223,048 | ||||||||
David Longacre (Officer) (2) | 100,001 | .3 | % | 10,000 | ||||||||
Scott G. Ehrenberg (3) (Officer) | 2,077,800 | 5.4 | % | 207,780 | ||||||||
Judith Norstrud (Officer) (4) | 537,500 | 1.4 | % | 53,750 | ||||||||
Raymond Kazyaka Sr. (Director) (5) | 1,129,600 | 3.0 | % | 112,960 | ||||||||
Robert W. Schwartz (Director) (6) | 1,099,600 | 2.9 | % | 109,960 | ||||||||
Richard Rutkowski (Director Nominee) | 0 | 0.0 | % | 0 | ||||||||
Lon Bell (Director Nominee) | 0 | 0.0 | % | 0 | ||||||||
Peter Termyn (Director Nominee) | 0 | 0.0 | % | 0 | ||||||||
Executive officers, directors and nominees, as a group (9 persons) | 17,174,978 | 31.9 | % | 1,717,498 | ||||||||
Brian A. Kelly | ||||||||||||
181C Hague Blvd. Glenmont, N.Y. 12077 | 2,254,085 | 6.1 | % | 225,409 | ||||||||
Michael Gostomski (7) | ||||||||||||
1666 Valley View Dr. Winnona, MN 55987 | 3,355,535 | 8.9 | % | 335,554 | ||||||||
Louis M. Jaffe (8) | ||||||||||||
1500 S. Ocean Blvd #5201 Boca Raton, FL 33432 | 3,684,300 | 9.7 | % | 368,430 | ||||||||
Mark Nordlich (9) | ||||||||||||
152 West 575th St. 4th Floor New York, NY 10019 | 3,680,436 | 9.99 | % | 368,044 | ||||||||
Leonard Samuels ( 10 ) | ||||||||||||
1011 Centennial Road Penn Valley, PA 19072 | 13,478,165 | 32.3 | % | 1,347,817 | ||||||||
Leah Kaplan Samuels ( 11 ) | ||||||||||||
1011 Centennial Road Penn Valley, PA 19072 | 3,629,696 | 9.6 | % | 362,970 |
Name of Beneficial Owner | Common StockBeneficially OwnedNumber of Sharesof CommonStock | Percentage ofClass | ||||||
Timothy N. Tangredi | ||||||||
(Officer and Chairman) (1) | 12,310,477 | 25.0 | % | |||||
David Longacre (Officer) (2) | 100,001 | .3 | % | |||||
Scott G. Ehrenberg (3) (Officer) | 2,077,800 | 5.3 | % | |||||
Judith Norstrud (Officer) (4) | 572,500 | 1.5 | % | |||||
Raymond Kazyaka Sr. (Director) (5) | 1,174,600 | 3.0 | % | |||||
Robert W. Schwartz (Director) (6) | 1,144,600 | 3.0 | % | |||||
Peter Termyn (Director Nominee) | 0 | 0.0 | % | |||||
Executive officers, directors and nominees, as a group (9 persons) | 17,379,978 | 31.8 | % | |||||
Brian A. Kelly | ||||||||
181C Hague Blvd. Glenmont, N.Y. 12077 | 2,254,085 | 6.0 | % | |||||
Michael Gostomski (7) | ||||||||
1666 Valley View Dr. Winnona, MN 55987 | 3,355,535 | 8.8 | % | |||||
Louis M. Jaffe (8) | ||||||||
1500 S. Ocean Blvd #5201 Boca Raton, FL 33432 | 3,684,300 | 9.5 | % | |||||
Mark Nordlicht (9) | ||||||||
152 West 575th St. 4th Floor New York, NY 10019 | 3,793,240 | 9.99 | % | |||||
Leonard Samuels (10) | ||||||||
1011 Centennial Road Penn Valley, PA 19072 | 13,478,165 | 31.8 | % | |||||
Leah Kaplan Samuels (11) | ||||||||
1011 Centennial Road Penn Valley, PA 19072 | 3,629,696 | 9.4 | % |
(1) | Includes |
(2) | Includes 100,001 shares of common stock |
(3) | Includes |
(4) | Includes |
(5) | Includes |
(6) | Includes |
(7) | Includes 807,087 common shares issuable |
(8) | Includes 666,500 shares of common stock |
(9) | Includes 3,324,740 shares of common stock, |
Includes 905,000 shares of common stock |
Includes 905,000 shares of common stock |
Common Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | |||||||||||||||||||||||||||||
Common Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | |||||||||||||||||||||||||||||
Outstanding at December 31, 2008 | 8,606,556 | $ | 0.26 | 7.58 | $ | 38,294 | 8,606,556 | $ | 0.26 | 7.58 | $ | 38,294 | ||||||||||||||||||||
Granted | 4,190,058 | $ | 0.21 | — | — | 4,240,058 | $ | 0.21 | — | — | ||||||||||||||||||||||
Exercised | (25,000 | ) | $ | 0.17 | — | $ | 3,250 | (25,000 | ) | $ | 0.17 | — | $ | 3,250 | ||||||||||||||||||
Forfeited or expired | (472,732 | ) | $ | 0.58 | — | — | (472,732 | ) | $ | 0.58 | — | — | ||||||||||||||||||||
Outstanding at December 31, 2009 | 12,298,882 | $ | 0.26 | 7.64 | $ | 1,052,839 | 12,348,882 | $ | 0.26 | 7.64 | $ | 1,052,839 | ||||||||||||||||||||
Granted | 2,970,000 | $ | 0.30 | — | — | 2,970,000 | $ | 0.30 | — | — | ||||||||||||||||||||||
Forfeited or expired | (371,125 | ) | $ | 0.32 | — | — | (371,125 | ) | $ | 0.32 | — | — | ||||||||||||||||||||
Outstanding at December 31, 2010 | 14,897,757 | $ | 0.25 | 7.19 | $ | 946,754 | 14,947,757 | $ | 0.25 | 7.19 | $ | 946,754 | ||||||||||||||||||||
Granted | 2,510,000 | $ | 0.3 3 | — | — | 2,535,000 | $ | 0.33 | — | — | ||||||||||||||||||||||
Forfeited or expired | (136,667 | ) | $ | 0.11 | — | — | (136,667 | ) | $ | 0.11 | — | — | ||||||||||||||||||||
Outstanding at June 30 , 2011 | 1 7,271,090 | $ | 0. 32 | 7. 04 | $ | 1,406,643 | ||||||||||||||||||||||||||
Outstanding at September 30, 2011 | 17,296,090 | $ | 0.32 | 6.79 | $ | 1,516,086 | ||||||||||||||||||||||||||
Exercisable at June 3 0 , 2011 | 15 ,958,937 | $ | 0. 32 | 6. 86 | $ | 1,326,355 | ||||||||||||||||||||||||||
Exercisable at September 30, 2011 | 16,061,854 | $ | 0.32 | 6.62 | $ | 1,433,926 |
Common Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | |||||||||||||
Outstanding at December 31, 2008 | 860,656 | $ | 2.60 | 7.58 | $ | 38,294 | ||||||||||
Granted | 419,006 | $ | 2.10 | — | — | |||||||||||
Exercised | (2,500 | ) | $ | 1.70 | — | $ | 3,250 | |||||||||
Forfeited or expired | (47,273 | ) | $ | 5.80 | — | — | ||||||||||
Outstanding at December 31, 2009 | 1,229,889 | $ | 2.60 | 7.64 | $ | 1,052,839 | ||||||||||
Granted | 297,000 | $ | 3.00 | — | — | |||||||||||
Forfeited or expired | (37,113 | ) | $ | 3.20 | — | – | ||||||||||
Outstanding at December 31, 2010 | 1,489,776 | $ | 2.50 | 7.19 | $ | 946,754 | ||||||||||
Granted | 251 ,000 | $ | 3. 30 | — | — | |||||||||||
Forfeited or expired | (13,667 | ) | $ | 1.10 | — | — | ||||||||||
Outstanding at June 30 , 2011 | 1, 727,109 | $ | 3.20 | 7. 04 | $ | 1,406,643 | ||||||||||
Exercisable at June 30 , 2011 | 1,5 95,894 | $ | 3.20 | 6. 86 | $ | 1,326,355 |
(i) | an amount equal to the sum of (A) the greater of 150% of the base salary then in effect or $320,000 plus (B) the cash bonus and/or merit bonus, if any, awarded for the most recent year; |
(ii) | health and life insurance, a car allowance and other benefits set forth in the agreement until two years following termination of employment, and thereafter to the extent required by COBRA or similar statute; and |
(iii) | all stock options, to the extent they were not exercisable at the time of termination of employment, shall become exercisable in full. |
(i) | an amount equal to the greater of the base salary then in effect or $175,000; |
(ii) | continuation of medical benefits set forth in the agreement until one year following termination of employment or resignation, and beyond such one year period to the extent required by COBRA or similar statute; and |
(iii) | all stock options, to the extent they were not exercisable at the time of termination of employment, shall become exercisable in full, and shall remain exercisable for a period of three years following the date of termination or resignation. |
(i) | an amount equal to the greater of the base salary then in effect or $150,000; |
(ii) | continuation of the health and other insurance coverage and other benefits set forth in the agreement until one year following termination of employment or resignation, and beyond such one year period to the extent required by COBRA or similar statute; and |
(iii) | all stock options, to the extent they were not exercisable at the time of termination of employment, shall become exercisable in full and shall remain exercisable for a period of three years following the date of termination or resignation. |
Year Ended December 31, | ||||||||||||||||
Year Ended December 31, | 2010 | 2009 | ||||||||||||||
2010 | 2009 | as restated | ||||||||||||||
Revenues | $ | 3,342,468 | $ | 1,531,215 | $ | 3,342,468 | $ | 1,531,215 | ||||||||
Percentage of revenues | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Cost of goods sold | $ | 2,290,041 | $ | 1,071,098 | $ | 2,290,041 | $ | 1,071,098 | ||||||||
Percentage of revenues | 68.5 | % | 70.0 | % | 68.5 | % | 70.0 | % | ||||||||
Research and development expenses, net grant revenue | $ | 238,182 | 6,600 | $ | 238,182 | 6,600 | ||||||||||
Percentage of revenues | 7.1 | % | .4 | % | 7.1 | % | .4 | % | ||||||||
Selling, general and administrative expenses | $ | 2,693,092 | $ | 3,217,992 | $ | 2,693,092 | $ | 3,217,992 | ||||||||
Percentage of revenues | 80.6 | % | 210.2 | % | 80.6 | % | 210.2 | % | ||||||||
Interest expense | $ | 209,550 | $ | 621,574 | $ | 209,550 | $ | 621,574 | ||||||||
Percentage of revenues | 6.3 | % | 40.6 | % | 6.3 | % | 40.6 | % | ||||||||
Change in fair value of warrant liability | $ | (618,801 | ) | $ | 3,731,694 | $ | (618,801 | ) | $ | 3,731,694 | ||||||
Percentage of revenues | 18.5 | % | 243.7 | % | 18.5 | % | 243.7 | % | ||||||||
Net loss | $ | (1,433,593 | ) | $ | (7,117,076 | ) | $ | (1,433,593 | ) | $ | (7,117,076 | ) | ||||
Percentage of revenues | (42.9 | )% | (464.8 | )% | (42.9 | )% | (464.8 | )% |
Three Months Ended June 30, | Three Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
restated | as restated | |||||||||||||||
Revenues | $ | 1,124,079 | $ | 1,010,142 | $ | 625,949 | $ | 952,374 | ||||||||
Percentage of revenues | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Cost of goods sold | $ | 806,674 | $ | 550,196 | $ | 466,271 | $ | 755,034 | ||||||||
Percentage of revenues | 71.8 | % | 54.5 | % | 74.5 | % | 79.3 | % | ||||||||
Research and development expenses, net grant revenue | $ | 11,119 | $ | - | ||||||||||||
Research and development expenses, net of grant proceeds | $ | (3,838 | ) | $ | - | |||||||||||
Percentage of revenues | 1.0 | % | 0.0 | % | 0.6 | % | 0.0 | % | ||||||||
Selling, general and administrative expenses | $ | 792,606 | $ | 1,029,394 | $ | 487,961 | $ | 697,099 | ||||||||
Percentage of revenues | 70.5 | % | 101.9 | % | 78.0 | % | 73.2 | % | ||||||||
Interest expense | $ | 416,899 | $ | 55,233 | $ | 446,505 | $ | 55,933 | ||||||||
Percentage of revenues | 37.1 | % | 5.5 | % | 71.3 | % | 5.9 | % | ||||||||
Change in fair value of warrant liability (gain) | $ | (1,694,170 | ) | $ | (1,835,094 | ) | ||||||||||
Change in fair value of warrant liability | $ | 126,008 | $ | 611,231 | ||||||||||||
Percentage of revenues | 150.7 | % | 181.7 | % | 20.1 | % | 64.2 | % | ||||||||
Net income | $ | 791,585 | $ | 1,210,413 | ||||||||||||
Net loss | $ | 895,384 | $ | 1,166,923 | ||||||||||||
Percentage of revenues | 70.4 | % | 119.8 | % | 143.0 | % | 122.5 | % |
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
restated | as restated | |||||||||||||||
Revenues | $ | 1,982,773 | $ | 1,417,454 | $ | 2,608,722 | $ | 2,369,828 | ||||||||
Percentage of revenues | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Cost of goods sold | $ | 1,507,564 | $ | 871,522 | $ | 1,973,835 | $ | 1,626,556 | ||||||||
Percentage of revenues | 76.0 | % | 61.5 | % | 75.7 | % | 68.6 | % | ||||||||
Research and development expenses, net grant revenue | $ | 13,155 | $ | - | ||||||||||||
Research and development expenses, net of grant proceeds | $ | 9,317 | $ | - | ||||||||||||
Percentage of revenues | 0.7 | % | 0.0 | % | 0.4 | % | 0.0 | % | ||||||||
Selling, general and administrative expenses | $ | 1,714,903 | $ | 1,588,914 | $ | 2,202,771 | $ | 2,286,013 | ||||||||
Percentage of revenues | 86.5 | % | 112.1 | % | 84.4 | % | 96.5 | % | ||||||||
Interest expense | $ | 580,438 | $ | 101,736 | $ | 1,026,945 | $ | 157,669 | ||||||||
Percentage of revenues | 29.3 | % | 7.2 | % | 39.4 | % | 6.7 | % | ||||||||
Change in fair value of warrant liability loss/(gain) | $ | 657,937 | $ | (327,066 | ) | |||||||||||
Change in fair value of warrant liability | $ | 783,944 | $ | 284,165 | ||||||||||||
Percentage of revenues | 33.2 | % | 23.1 | % | 30.1 | % | 12.0 | % | ||||||||
Net loss | $ | 2,490,560 | $ | 817,652 | $ | 3,385,852 | $ | 1,948,575 | ||||||||
Percentage of revenues | 125.6 | % | 57.7 | % | 129.8 | % | 82.2 | % |
1. | We are currently holding preliminary discussions with parties who are interested in licensing, purchasing the rights to, or establishing a joint venture to commercialize, certain applications of our technology. |
2. | We are seeking growth capital from certain strategic and/or government (grant) related sources. In addition to said capital, these sources may, pursuant to any agreements that may be developed in conjunction with such funding, assist in the product definition and design, roll-out, and channel penetration of our products. As part of this step we will attempt to take advantage of key programs associated with the recently enacted American Recovery and Reinvestment Act of 2009. |
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
restated | as restated | |||||||||||||||
Cash flows used in operating activities | $ | (463,334 | ) | $ | (1,183,705 | ) | $ | (787,910 | ) | $ | (1,332,591 | ) | ||||
Cash flows used in investing activities | (27,342 | ) | (10,484 | ) | (92,442 | ) | (23,981 | ) | ||||||||
Cash flows provided by financing activities | 1,027,817 | 520,000 | 999,604 | 520,000 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | 537,141 | $ | (674,189 | ) | $ | 119,252 | $ | (836,572 | ) |
Contractual Obligations | Total | Less than 1 Year | 1-3 Years | 3-5 Years | ||||||||||||
Long – term debt | $ | 2,500,000 | $ | 2,500,000 | $ | 0 | $ | 0 | ||||||||
Purchase Obligations | 97,150 | 97,150 | $ | 0 | $ | 0 | ||||||||||
Total | $ | 2, 597,150 | $ | 2 ,597,150 | $ | 0 | $ | 0 |
Contractual Obligations | Total | Less than 1 Year | 1-3 Years | 3-5 Years | ||||||||||||
Long – term debt | $ | 2,500,000 | $ | 2,500,000 | $ | 0 | $ | 0 | ||||||||
Purchase Obligations | $ | 2 30,125 | $ | 2 30,125 | $ | 0 | $ | 0 | ||||||||
Total | $ | 2,7 30,125 | $ | 2,7 30,125 | $ | 0 | $ | 0 |
After giving effect to the anticipated 10-for-1 reverse stock split | High | Low | ||||||||||||||||||||||
High | Low | High | Low | |||||||||||||||||||||
For the year ending December 31, 2011: | ||||||||||||||||||||||||
First Quarter | $ | 0.50 | $ | 0.27 | $ | 5.00 | $ | 2.70 | $ | 0.50 | $ | 0.27 | ||||||||||||
Second Quarter | $ | 0.44 | $ | 0.35 | $ | 4.40 | $ | 3.50 | $ | 0.44 | $ | 0.35 | ||||||||||||
Third Quarter | $ | 0.60 | $ | 0.22 | ||||||||||||||||||||
Fourth Quarter | $ | 0.48 | $ | 0.25 | ||||||||||||||||||||
For the year ending December 31, 2010: | ||||||||||||||||||||||||
First Quarter | $ | 0.44 | $ | 0.22 | $ | 4.40 | $ | 2.20 | $ | 0.44 | $ | 0.22 | ||||||||||||
Second Quarter | $ | 0.50 | $ | 0.23 | $ | 5.00 | $ | 2.30 | $ | 0.50 | $ | 0.23 | ||||||||||||
Third Quarter | $ | 0.40 | $ | 0.27 | $ | 4.00 | $ | 2.70 | $ | 0.40 | $ | 0.27 | ||||||||||||
Fourth Quarter | $ | 0.37 | $ | 0.24 | $ | 3.70 | $ | 2.40 | $ | 0.37 | $ | 0.24 | ||||||||||||
For the year ending December 31, 2009: | ||||||||||||||||||||||||
First Quarter | $ | 0.20 | $ | 0.08 | $ | 2.00 | $ | 0.80 | $ | 0.20 | $ | 0.08 | ||||||||||||
Second Quarter | $ | 0.19 | $ | 0.13 | $ | 1.90 | $ | 1.30 | $ | 0.19 | $ | 0.13 | ||||||||||||
Third Quarter | $ | 0.26 | $ | 0.10 | $ | 2.60 | $ | 1.00 | $ | 0.26 | $ | 0.10 | ||||||||||||
Fourth Quarter | $ | 0.95 | $ | 0.22 | $ | 9.50 | $ | 2.20 | $ | 0.95 | $ | 0.22 | ||||||||||||
For the year ending December 31, 2008: | ||||||||||||||||||||||||
First Quarter | $ | 0.51 | $ | 0.15 | $ | 5.10 | $ | 1.50 | $ | 0.51 | $ | 0.15 | ||||||||||||
Second Quarter | $ | 0.51 | $ | 0.24 | $ | 5.10 | $ | 2.40 | $ | 0.51 | $ | 0.24 | ||||||||||||
Third Quarter | $ | 0.45 | $ | 0.16 | $ | 4.50 | $ | 1.60 | $ | 0.45 | $ | 0.16 | ||||||||||||
Fourth Quarter | $ | 0.20 | $ | 0.07 | $ | 2.00 | $ | 0.70 | $ | 0.20 | $ | 0.07 |
Plan Category | (a) Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights | (b) Weighted Average Exercise Price of Outstanding Options, Warrants and Rights | (c) Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans Excluding Securities Reflected in Column (a) | (a) Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights | (b) Weighted Average Exercise Price of Outstanding Options, Warrants and Rights | (c) Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans Excluding Securities Reflected in Column (a) | ||||||||||||||||||
Equity compensation plans approved by security holders: | 17, 321,090 | $ | 0.3 2 | 9,530,000 | 17,346,090 | $ | 0.32 | 9,505,000 | ||||||||||||||||
Equity compensation plans approved by security holders (after giving effect to the anticipated 10-for-1 reverse stock split) | 1,732,109 | $ | 3.20 | 953,000 | ||||||||||||||||||||
Public offering price per share | $ | 4.00 | ||||||
Net tangible book deficit per share available to common shareholders as of June 30, 2011 | $ | (0.05 | ) | |||||
Increase attributable to pro forma adjustments before the offering | $ | 0.53 | ||||||
Pro forma net tangible book value per share before the offering | $ | 0.48 | ||||||
Increase per share attributable to new investors in the offering | $ | 1.22 | ||||||
Pro forma net tangible book value per share after the offering | $ | 1.70 | ||||||
Dilution per share to new investors in the offering | $ | 2.30 |
Public offering price per share | $ | 0.3 2 | ||||||
Net tangible book deficit per share available to common shareholders as of September 30, 2011 | $ | (0.16 | ) | |||||
Increase attributable to pro forma adjustments before the offering | $ | 0. 08 | ||||||
Pro forma net tangible book value per share before the offering | $ | (0.0 8 | ) | |||||
Increase per share attributable to new investors in the offering | $ | 0. 13 | ||||||
Pro forma net tangible book value per share after the offering | $ | 0.0 5 | ||||||
Dilution per share to new investors in the offering | $ | 0. 27 |
25% | 50% | 75% | ||||||||||
Public offering price per share | $ | 0.3 2 | $ | 0.3 2 | $ | 0.3 2 | ||||||
Net tangible book deficit per share available to common shareholders as of September 30, 2011 | $ | (0.16 | ) | $ | (0.16 | ) | $ | (0.16 | ) | |||
Increase attributable to pro forma adjustments before the offering | $ | 0.0 4 | $ | 0.0 5 | $ | 0.0 8 | ||||||
Pro forma net tangible book value per share before the offering | $ | (0.1 2 | ) | $ | (0. 11 | ) | $ | (0.0 8 | ) | |||
Increase per share attributable to new investors in the offering | $ | 0.0 4 | $ | 0.0 7 | $ | 0.0 9 | ||||||
Pro forma net tangible book value per share after the offering | $ | (0.08 | ) | $ | (0.04 | ) | $ | 0.01 | ||||
Dilution per share to new investors in the offering | $ | 0.4 0 | $ | 0. 28 | $ | 0.3 1 |
June 30 , 2011 Actual * | After giving effect to the anticipated 10- for -1 reverse stock split June 30 , 2011 | Conversion and Repayment of Convertible Notes | Issuance of Shares for Accrued Unpaid Compensation | Issuance of Shares for Services and Cashless Exercise of Warrants | The Offering | June 30 , 2011 Proforma ** | ||||||||||||||||||||||
Common stock issued and outstanding | 36,095,064 | 3, 609,506 | 474,200 | 166, 971 | 73,968 | 3,750,000 | 8,074,645 | |||||||||||||||||||||
Common stock underlying warrants | 2 8,717,641 | 2,871,764 | (89,231 | ) | 375,000 | 3,157,533 | ||||||||||||||||||||||
Common stock underlying convertible promissory notes | 9,615,385 | 961,538 | (961,538 | ) | 0 | |||||||||||||||||||||||
Options authorized and issued | 17,321,090 | 1,732,109 | 1,727,109 | |||||||||||||||||||||||||
91,749,180 | 9,174,917 | 12,963,287 |
As of September 30, 2011 | ||||
Common stock issued and outstanding | 37,517,604 |
Common stock underlying warrants | 26,575,332 | |||
Common stock underlying convertible promissory notes | 10,605,900 | |||
Options authorized and issued | 17 ,346,090 | |||
Per Share | Total | |||||||
Public Offering Price | $ | 0.32 | $ | 10,560,000 | ||||
Placement agent commission (1) | $ | 0.0192 | $ | 633,600 | ||||
Offering Proceeds to Dais, before expenses(2) | $ | 0.3008 | $ | 9,926,400 |
• | our history and our prospects; | ||
• | the industry in which we operate including industry comparable information; | ||
• | our past and present operating results; | ||
• | our outstanding debt, and the value of the various option grants and warrants at the time of pricing; | ||
• | the previous experience of our executive officers; and | ||
• | the general condition of the securities markets at the time of this offering. |
1. | The application of accounting principles to specified transactions, either completed or proposed or the type of audit opinion that might be rendered on our financial statements, and neither was a written report provided to us nor was oral advice provided that Cross, Fernandez and Riley, LLP concluded was an important factor considered by us in reaching a decision as to an accounting, auditing or financial reporting issue; or |
2. | Any matter that was either the subject of a disagreement or a reportable event, as each term is defined in Items 304(a)(1)(iv) or (v) of Regulation S-K, respectively. |
Page No. | ||||
ANNUAL FINANCIAL INFORMATION | ||||
Report of Independent Registered Public Accounting Firm for the years ended 2010 and 2009 | F-1 | |||
Balance Sheets for the years ended December 31, 2010 and 2009 | F-2 | |||
Statements of Operations for the years ended December 31, 2010 and 2009 | F-3 | |||
Statements of Stockholders’ Deficit for the years ended December 31, 2010 and 2009 | F-4 | |||
Statements of Cash Flows for the years ended December 31, 2010 and 2009 | F-5 | |||
Notes to Financial Statements | F-7 | |||
INTERIM FINANCIAL INFORMATION | ||||
Balance Sheets | F-26 | |||
Statements of Operations for the three and nine months periods ended | F-27 | |||
Statement of Stockholders’ Deficit | F-28 | |||
Statements of Cash Flows | F-29 | |||
Notes to Financial Statements (Unaudited) | F-30 |
![]() ![]() |
Cross, Fernandez & Riley LLP |
Orlando, Florida March 31, 2011 |
December 31, | ||||||||
2010 | 2009 | |||||||
Restated | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 304,656 | $ | 1,085,628 | ||||
Accounts receivable | 828,632 | 187,434 | ||||||
Other receivables | 59,526 | |||||||
Inventory | 294,069 | 149,986 | ||||||
Prepaid expenses and other current assets | 258,136 | 103,571 | ||||||
Total current assets | 1,745,019 | 1,526,619 | ||||||
Property and equipment, net | 147,911 | 19,383 | ||||||
Other assets: | ||||||||
Deposits | 3,280 | 2,280 | ||||||
Patents, net of accumulated amortization of $112,240 and $107,319 at December 31, 2010 and 2009, respectively | 74,363 | 72,464 | ||||||
Total other assets | 77,643 | 74,744 | ||||||
$ | 1,970,573 | $ | 1,620,746 | |||||
Liabilities and Stockholders’ Deficit | ||||||||
Current liabilities: | ||||||||
Accounts payable, including related party payables of $151,440 and $150,740 at December 31, 2010 and 2009, respectively | $ | 620,196 | $ | 385,955 | ||||
Accrued compensation and related benefits | 1,426,022 | 1,314,356 | ||||||
Accrued expenses, other | 241,861 | 223,597 | ||||||
Current portion of deferred revenue | 647,804 | 292,457 | ||||||
Current portion of notes payable | 50,000 | 150,000 | ||||||
Current portion of notes payable, related party | 1,620,624 | 1,425,624 | ||||||
Total current liabilities | 4,606,507 | 3,791,989 | ||||||
Long-term liabilities: | ||||||||
Long-term portion of notes payable, related party | — | 300,000 | ||||||
Warrant liability | 3,958,318 | 4,577,119 | ||||||
Deferred revenue, net of current portion | 127,840 | 207,696 | ||||||
Total long-term liabilities | 4,086,158 | 5,084,815 | ||||||
Stockholders’ deficit: | ||||||||
Preferred stock; $0.01 par value; 10,000,000 shares authorized; 0 shares issued and outstanding | — | — | ||||||
Common stock; $0.01 par value; 200,000,000 shares authorized; 33,563,428 and 29,352,930 shares issued and 33,306,215 and 29,095,717 shares outstanding at December 31, 2010 and 2009, respectively | 335,635 | 293,530 | ||||||
Capital in excess of par value | 29,852,347 | 27,926,893 | ||||||
Accumulated deficit | (35,637,962 | ) | (34,204,369 | ) | ||||
(5,449,980 | ) | (5,983,946 | ) | |||||
Treasury stock at cost, 257,213 shares | (1,272,112 | ) | (1,272,112 | ) | ||||
Total stockholders’ deficit | (6,722,092 | ) | (7,256,058 | ) | ||||
$ | 1,970,573 | $ | 1,620,746 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Restated | Restated | |||||||||||||||
Revenue: | ||||||||||||||||
Sales | $ | 3,260,468 | $ | 1,447,071 | $ | 3,260,468 | $ | 1,447,071 | ||||||||
License fees | 82,000 | 84,144 | 82,000 | 84,144 | ||||||||||||
3,342,468 | 1,531,215 | 3,342,468 | 1,531,215 | |||||||||||||
Cost of goods sold | 2,290,041 | 1,071,098 | 2,290,041 | 1,071,098 | ||||||||||||
Gross profit | 1,052,427 | 460,117 | 1,052,427 | 460,117 | ||||||||||||
Expenses: | ||||||||||||||||
Research and development expenses, net of government grant proceeds of $99,732 and $0 | 238,182 | 6,600 | 238,182 | 6,600 | ||||||||||||
Selling, general and administrative | 2,693,092 | 3,217,992 | 2,693,092 | 3,217,992 | ||||||||||||
5,221,315 | 4,295,690 | |||||||||||||||
2,931,274 | 3,224,592 | |||||||||||||||
Loss from operations | (1,878,847 | ) | (2,764,475 | ) | (1,878,847 | ) | (2,764,475 | ) | ||||||||
Other expense (income): | ||||||||||||||||
Other (income) | (36,003 | ) | — | (36,003 | ) | — | ||||||||||
Change in fair value of warrant liability | (618,801 | ) | 3,731,694 | (618,801 | ) | 3,731,694 | ||||||||||
Interest expense | 209,550 | 621,574 | 209,550 | 621,574 | ||||||||||||
Interest income | — | (667 | ) | — | (667 | ) | ||||||||||
(445,254 | ) | 4,352,601 | (445,254 | ) | 4,352,601 | |||||||||||
Net loss | $ | (1,433,593 | ) | $ | (7,117,076 | ) | $ | (1,433,593 | ) | $ | (7,117,076 | ) | ||||
Net loss per common share, basic and diluted | $ | (0.05 | ) | $ | (0.36 | ) | $ | (0.05 | ) | $ | (0.36 | ) | ||||
Weighted average number of common shares, basic and diluted | 29,985,632 | 19,960,150 | 29,985,632 | 19,960,150 |
Common Stock | Capital in Excess of Par Value | Accumulated Deficit | Prepaid Services Paid for with Common Stock | Treasury Stock | Total Stockholders’ Deficit | Common Stock | Capital in Excess of Par Value | Accumulated Deficit | Prepaid Services Paid for with Common Stock | Treasury Stock | Total Stockholders’ Deficit | |||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2008 | 12,162,398 | 121,624 | 25,253,196 | (28,776,769 | ) | (23,375 | ) | (1,272,112 | ) | (4,697,436 | ) | 12,162,398 | 121,624 | 25,253,196 | (28,776,769 | ) | (23,375 | ) | (1,272,112 | ) | (4,697,436 | ) | ||||||||||||||||||||||||||||
Issuance of common stock for conversion of notes payable and related accrued interest | 13,553,822 | 135,538 | 2,576,062 | — | — | — | 2,711,600 | 13,553,822 | 135,538 | 2,576,062 | — | — | — | 2,711,600 | ||||||||||||||||||||||||||||||||||||
Issuance of common stock and warrant for services | 344,692 | 3,448 | 105,029 | — | 23,375 | — | 131,852 | 344,692 | 3,448 | 105,029 | — | 23,375 | — | 131,852 | ||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 1,504,669 | — | — | — | 1,504,669 | — | — | 1,504,669 | — | — | — | 1,504,669 | ||||||||||||||||||||||||||||||||||||
Issuance of warrants for debt conversion | — | — | 413,008 | — | — | — | 413,008 | — | — | 413,008 | — | — | — | 413,008 | ||||||||||||||||||||||||||||||||||||
Issuance of common stock and warrants for cash | 2,490,385 | 24,904 | 613,596 | — | — | — | 638,500 | 2,490,385 | 24,904 | 613,596 | — | — | — | 638,500 | ||||||||||||||||||||||||||||||||||||
Cumulative effect of change in accounting principle for warrant classification | — | — | (3,623,448 | ) | 1,689,476 | — | — | (1,933,972 | ) | — | — | (3,623,448 | ) | 1,689,476 | — | — | (1,933,972 | ) | ||||||||||||||||||||||||||||||||
Exercise of warrants and options | 801,633 | 8,016 | 1,084,781 | — | — | — | 1,092,797 | 801,633 | 8,016 | 1,084,781 | — | — | — | 1,092,797 | ||||||||||||||||||||||||||||||||||||
Net loss, restated | — | — | — | (7,117,076 | ) | — | — | (7,117,076 | ) | — | — | — | (7,117,076 | ) | — | — | (7,117,076 | ) | ||||||||||||||||||||||||||||||||
Balance, December 31, 2009, restated | 29,352,930 | $ | 293,530 | $ | 27,926,893 | $ | (34,204,369 | ) | $ | — | $ | (1,272,112 | ) | $ | (7,256,058 | ) | 29,352,930 | $ | 293,530 | $ | 27,926,893 | $ | (34,204,369 | ) | $ | — | $ | (1,272,112 | ) | $ | (7,256,058 | ) | ||||||||||||||||||
Issuance of common stock and warrants for services | 888,692 | 8,887 | 503,993 | — | — | — | 512,880 | 888,692 | 8,887 | 503,993 | — | — | — | 512,880 | ||||||||||||||||||||||||||||||||||||
Issuance of common stock for conversion of notes payable | 1,000,384 | 10,004 | 190,073 | — | — | — | 200,077 | 1,000,384 | 10,004 | 190,073 | — | — | — | 200,077 | ||||||||||||||||||||||||||||||||||||
Stock based compensation | — | — | 651,032 | — | — | — | 651,032 | — | — | 651,032 | — | — | — | 651,032 | ||||||||||||||||||||||||||||||||||||
Issuance of common stock in exchange for debt settlement | 2,321,422 | 23,214 | 580,356 | — | — | — | 603,570 | 2,321,422 | 23,214 | 580,356 | — | — | — | 603,570 | ||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (1,433,593 | ) | — | — | (1,433,593 | ) | — | — | — | (1,433,593 | ) | — | — | (1,433,593 | ) | ||||||||||||||||||||||||||||||||
Balance, December 31, 2010 | 33,563,428 | $ | 335,635 | $ | 29,852,347 | $ | (35,637,962 | ) | $ | — | $ | (1,272,112 | ) | $ | (6,722,092 | ) | 33,563,428 | $ | 335,635 | $ | 29,852,347 | $ | (35,637,962 | ) | $ | — | $ | (1,272,112 | ) | $ | (6,722,092 | ) |
Years Ended December 31, | ||||||||
2010 | 2009 | |||||||
(restated) | ||||||||
Operating activities | ||||||||
Net loss | $ | (1,433,593 | ) | $ | (7,117,076 | ) | ||
Adjustments to reconcile net loss to net cash used by operating activities: | ||||||||
Depreciation and amortization | 15,276 | 19,826 | ||||||
Amortization of deferred loan costs | — | 1,004 | ||||||
Amortization of discount on convertible notes | — | 144 | ||||||
Amortization of the beneficial conversion feature on convertible notes | — | 29,992 | ||||||
Issuance of common stock, stock options and stock warrants for services and amortization of common stock issued for services | 287,035 | 110,316 | ||||||
Stock based compensation expense | 651,034 | 1,504,669 | ||||||
Issuance of common stock warrants to induce conversion of notes payable | — | 413,008 | ||||||
Change in fair value of warrant liability | (618,801 | ) | 3,731,694 | |||||
(Increase) decrease in: | ||||||||
Accounts receivable | (641,198 | ) | 1,536 | |||||
Other receivables | (59,526 | ) | — | |||||
Inventory | (144,083 | ) | (2,858 | ) | ||||
Prepaid expenses and other current assets | (4,984 | ) | (50,853 | ) | ||||
Increase (decrease) in: | ||||||||
Accounts payable and accrued expenses | 380,835 | 251,014 | ||||||
Accrued compensation and related benefits | 111,666 | 166,967 | ||||||
Deferred revenue | 275,491 | 122,239 | ||||||
Net cash used by operating activities | (1,180,848 | ) | (818,378 | ) | ||||
Investing activities | ||||||||
Increase in patent costs | (6,819 | ) | (39,265 | ) | ||||
Purchase of property and equipment | (113,305 | ) | (1,346 | ) | ||||
�� | ||||||||
Net cash used by investing activities | (120,124 | ) | (40,611 | ) | ||||
Financing activities | ||||||||
Proceeds from issuance of notes payable, related party | 620,000 | 1,565,000 | ||||||
Payments on notes payable, related party | (100,000 | ) | (290,000 | ) | ||||
Proceeds from advance from related party | — | 222,900 | ||||||
Repayments of advance from related party | — | (222,900 | ) | |||||
Issuance of common stock and exercise of warrants for cash | — | 642,750 | ||||||
Net cash provided by financing activities | 520,000 | 1,917,750 | ||||||
Net (decrease) increase in cash and cash equivalents | (780,972 | ) | 1,058,761 | |||||
Cash and cash equivalents, beginning of period | 1,085,628 | 26,867 | ||||||
Cash and cash equivalents, end of period | $ | 304,656 | $ | 1,085,628 | ||||
Cash paid during the year for interest | $ | — | $ | 42,651 |
1. | We are currently holding preliminary discussions with parties who are interested in licensing, purchasing the rights to, or establishing a joint venture to commercialize certain applications of our technology. |
2. | We are seeking growth capital from certain strategic and/or government (grant) related sources. In addition to said capital, these sources may, pursuant to any agreements that may be developed in conjunction with such funding, assist in the product definition and design, roll-out, and channel penetration of our products. As part of this step we will attempt to take advantage of key programs associated with the recently enacted American Recovery and Reinvestment Act of 2009. |
Years Ended December 31, | ||||||
2010 | 2009 | |||||
Dividend rate | 0 | % | 0 | % | ||
Risk free interest rate | 1.96%–3.68 | % | 1.65%–3.49 | % | ||
Expected term | 5 – 6.5 years | 5 – 10 years | ||||
Expected volatility | 97%– 112 | % | 92%– 106 | % |
Fair Value Measurements at December 31, 2010 | ||||||||||||||||
Total carrying value | Quoted prices in active markets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | |||||||||||||
Warrant liability | 3,958,318 | — | — | 3,958,318 |
Warrant Liability | ||||||||
Balance at December 31, 2009 | $ | 4,577,119 | ||||||
Changes in fair value | (618,801 | ) | ||||||
Balance at December 31, 2010 | $ | 3,958,318 |
Warrant Liability | ||||
Balance at December 31, 2009 | $ | 4,577,119 | ||
Changes in fair value | (618,801 | ) | ||
Balance at December 31, 2010 | $ | 3,958,318 |
December 31, | ||||||||
2010 | 2009 | |||||||
Furniture and fixtures | $ | 38,764 | $ | 33,530 | ||||
Computer equipment | 64,305 | 57,344 | ||||||
Demonstration equipment | 104,871 | — | ||||||
Office and lab equipment | 216,248 | 194,429 | ||||||
424,188 | 285,303 | |||||||
Less accumulated depreciation | 276,277 | 265,920 | ||||||
$ | 147,911 | $ | 19,383 |
December 31, | ||||||||
2010 | 2009 | |||||||
Prepaid expenses | $ | 31,070 | $ | 50,335 | ||||
Prepaid insurance | 29,948 | 31,699 | ||||||
Prepaid services paid for with common stock | 172,118 | 21,537 | ||||||
Prepaid loan costs | 25,000 | — | ||||||
$ | 258,136 | $ | 103,571 |
December 31, | ||||||||
2010 | 2009 | |||||||
Accrued expenses, other | $ | 39,850 | $ | 127,768 | ||||
Accrued registration rights penalty | 5,000 | 41,000 | ||||||
Accrued interest | 14,676 | 28,127 | ||||||
Accrued interest, related party | 157,683 | 13,502 | ||||||
Accrued warranty costs | 11,452 | — | ||||||
Contractual obligation | 13,200 | 13,200 | ||||||
$ | 241,861 | $ | 223,597 |
December 31, | ||||||||
2010 | 2009 | |||||||
Convertible notes payable; interest at 9%; $50,000 currently in default; collateralized by the Company’s patents and patent applications | $ | 50,000 | $ | 150,000 | ||||
Convertible notes payable, related party; interest at 9%; collateralized by the Company’s patents and patent applications | — | 175,000 | ||||||
Note payable, related party; 7% interest; unsecured; settled during 2010 | — | 300,000 | ||||||
Note payable, related party; interest at 10% per annum; due April 30, 2011 | 1,000,000 | 1,000,000 | ||||||
Note payable, related party; 10% interest; unsecured; due April 30, 2011 | 620,000 | 250,000 | ||||||
Note payable; related party | 624 | 624 | ||||||
1,670,624 | 1,875,624 | |||||||
Less amounts currently due | 1,670,624 | 1,575,624 | ||||||
Long-term portion | $ | $ | 300,000 |
Exercise Prices | ||||||||||
$0.25 per share | $0.75 per share | |||||||||
Fair value of underlying stock on date of award | $ | $ | 0.09 – 0.19 | $ | $ | 0.51 – 1.49 | ||||
Dividend rate | 0 | % | 0 | % | ||||||
Risk free interest rate | 1.65%–2.58 | % | 2.20%–2.49 | % | ||||||
Expected term | 5 years | 5 years | ||||||||
Expected volatility | 92%–94 | % | 95%–96 | % |
February 2009 | 124,875 | ||||
March 2009 | 999,000 | ||||
April 2009 | 416,250 | ||||
August 2009 | 124,875 | ||||
1,665,00 | |||||
September 2009 | 162,500 | ||||
October 2009 | 412,500 | ||||
575,000 |
Common Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | |||||||||||||
Outstanding at December 31, 2008 | 8,606,556 | $ | 0.26 | 7.58 | $ | 38,294 | ||||||||||
Granted | 4,190,058 | $ | 0.21 | |||||||||||||
Exercised | (25,000 | ) | $ | 0.17 | $ | 3,250 | ||||||||||
Forfeited or expired | (472,732 | ) | $ | 0.58 | ||||||||||||
Outstanding at December 31, 2009 | 12,298,882 | $ | 0.26 | 7.64 | $ | 1,052,839 | ||||||||||
Granted | 2,970,000 | $ | 0.30 | |||||||||||||
Forfeited or expired | (371,125 | ) | $ | 0.32 | ||||||||||||
Outstanding at December 31, 2010 | 14,897,757 | $ | 0.25 | 7.19 | $ | 946,754 | ||||||||||
Exercisable at December 31, 2010 | 13,834,563 | $ | 0.25 | 7.02 | $ | 940,594 | ||||||||||
Exercisable at December 31, 2009 | 11,951,021 | $ | 0.24 | 7.61 | $ | 1,034,594 |
Number of Options | Weighted Average Grant Date Fair Value | |||||||
Nonvested options - December 31, 2008 | 1,276,563 | $ | 0.37 | |||||
Granted | 4,190,058 | $ | 0.31 | |||||
Forfeited | (30,334 | ) | $ | 0.17 | ||||
Vested | (5,088,426 | ) | $ | 0.30 | ||||
Nonvested options - December 31, 2009 | 347,861 | $ | 0.27 | |||||
Granted | 2,970,000 | $ | 0.25 | |||||
Vested | (2,244,663 | ) | $ | 0.25 | ||||
Forfeited | (10,004 | ) | $ | 0.28 | ||||
Nonvested options - December 31, 2010 | 1,063,194 | $ | 0.25 |
Warrants | Remaining Number Outstanding | Weighted Average Remaining Life (Years) | Weighted Average Exercise Price | |||||||||
Warrants-Daily Financing | 197,055 | .98 | $ | 0.55 | ||||||||
Warrants-Additional Financing | 428,637 | 1.70 | $ | 0.40 | ||||||||
Warrants-Robb Trust Note | 50,000 | 1.42 | $ | 0.55 | ||||||||
Warrants-Financing | 14,750,000 | 1.99 | $ | 0.25 | ||||||||
Warrants-Placement Agent Warrants | 793,641 | 2.26 | $ | 0.25 | ||||||||
Warrants-Tangredi | 3,000,000 | 2.25 | $ | 0.36 | ||||||||
Warrants-Ehrenberg | 250,000 | 2.59 | $ | 0.30 | ||||||||
Warrants-Consulting Agreement | 825,000 | 3.77 | $ | 0.31 | ||||||||
Warrants-Note Conversions | 2,302,538 | 3.42 | $ | 0.39 | ||||||||
Warrants-Stock Purchases 2009 | 758,270 | 3.40 | $ | 0.34 | ||||||||
Warrants-Mandelbaum | 50,000 | 3.33 | $ | 0.19 | ||||||||
Warrants-Services | 400,000 | 4.06 | $ | 0.50 | ||||||||
Total | 23,805,141 |
For the Years Ended December 31, | ||||||||
2010 | 2009 | |||||||
Exercise price | $ | 0.25 | $ | 0.25 | ||||
Market value of stock at end of period | $ | 0.29 | $ | 0.30 | ||||
Expected dividend rate | N/A | N/A | ||||||
Expected volatility | 158% – 165 | % | 112% – 117 | % | ||||
Risk-free interest rate | 0.61% – 0.82 | % | 1.70% – 2.20 | % | ||||
Expected life in years | 2.00 – 2.58 | 3.00 – 3.58 | ||||||
Shares underlying warrants outstanding classified as liabilities | 15,543,641 | 15,543,641 |
Total Liabilities As previously Reported | Change | Total Liabilities As Restated | Stockholders’ Deficit As previously Reported | Change | Stockholders’ Deficit As Restated | |||||||||||||||||||
March 31, 2009 | $ | 4,599,317 | $ | 2,080,830 | $ | 6,680,147 | $ | (4,246,075 | ) | $ | (2,080,830 | ) | $ | (6,326,905 | ) | |||||||||
June 30, 2009 | $ | 4,565,431 | $ | 2,425,223 | $ | 6,990,654 | $ | (3,982,146 | ) | $ | (2,425,223 | ) | $ | (6,407,369 | ) | |||||||||
September 30, 2009 | $ | 3,968,231 | $ | 10,774,888 | $ | 14,743,119 | $ | (3,158,106 | ) | $ | (10,774,888 | ) | $ | (13,932,994 | ) | |||||||||
December 31, 2009 | $ | 4,299,685 | $ | 4,577,119 | $ | 8,876,8045 | $ | (2,678,939 | ) | $ | (4,577,1119 | ) | $ | (7,256,058 | ) | |||||||||
March 31, 2010 | $ | 5,117,253 | $ | 6,085,147 | $ | 11,202,400 | $ | (3,058,161 | ) | $ | (6,085,147 | ) | $ | (9,143,308 | ) | |||||||||
June 30, 2010 | $ | 5,165,059 | $ | 4,250,053 | $ | 9,415,112 | $ | (3,094,998 | ) | $ | (4,250,053 | ) | $ | (7,345,051 | ) | |||||||||
September 30, 2010 | $ | 5,147,657 | $ | 4,861,284 | $ | 10,008,941 | $ | (3,428,140 | ) | $ | (4,861,284 | ) | $ | (8,289,424 | ) |
Other Inc (Exp) As previously Reported | Change | Other Inc (Exp) As Restated | Net Loss As previously Reported | Change | Net (Loss) Income As Restated | EPS As previously Reported | EPS As Restated | |||||||||||||||||||||||||
For the Three Months Ended: | ||||||||||||||||||||||||||||||||
March 31, 2009 | $ | (156,161 | ) | $ | (146,858 | ) | $ | (303,019 | ) | $ | (648,786 | ) | $ | (146,858 | ) | $ | (795,644 | ) | $ | (0.05 | ) | $ | (0.06 | ) | ||||||||
June 30, 2009 | $ | (95,353 | ) | $ | (344,392 | ) | $ | (439,745 | ) | $ | (344,000 | ) | $ | (344,392 | ) | $ | (688,392 | ) | $ | (0.04 | ) | $ | (0.04 | ) | ||||||||
September 30, 2009 | $ | (203,771 | ) | $ | (9,438,212 | ) | $ | (9,641,983 | ) | $ | (436,927 | ) | $ | (9,438,212 | ) | $ | (9,875,139 | ) | $ | (0.06 | ) | $ | (0.50 | ) | ||||||||
For the Year Ended | ||||||||||||||||||||||||||||||||
December 31, 2009 | $ | (620,907 | ) | $ | (3,731,694 | ) | $ | (4,352,601 | ) | $ | (3,385,382 | ) | $ | (3,731,694 | ) | $ | (7,117,076 | ) | $ | (0.17 | ) | $ | (0.36 | ) | ||||||||
For the Three Months Ended: | ||||||||||||||||||||||||||||||||
March 31, 2010 | $ | (46,504 | ) | $ | (1,508,027 | ) | $ | (1,554,531 | ) | $ | (520,038 | ) | $ | (1,508,027 | ) | $ | (2,028,065 | ) | $ | (0.02 | ) | $ | (0.07 | ) | ||||||||
June 30, 2010 | $ | (55,233 | ) | $ | 1,835,094 | $ | 1,779,861 | $ | (624,681 | ) | $ | 1,835,094 | $ | 1,210,413 | $ | (0.02 | ) | $ | 0.04 | |||||||||||||
September 30, 2010 | $ | (55,933 | ) | $ | (611,231 | ) | $ | (667,164 | ) | $ | (555,692 | ) | $ | (611,231 | ) | $ | (1,166,923 | ) | $ | (0.02 | ) | $ | (0.04 | ) |
Year ended December 31, | ||||||||
2010 | 2009 | |||||||
Tax benefit at U.S. statutory rate | $ | (487,000 | ) | $ | (2,420,000 | ) | ||
State income tax benefit, net of federal benefit | (52,000 | ) | (258,000 | ) | ||||
Effect of non-deductible expenses | 1,000 | 1,000 | ||||||
Employee stock-based compensation | 221,000 | 536,000 | ||||||
Change in warrant valuation | (210,000 | ) | 1,269,000 | |||||
Other adjustments | 154,000 | 994,000 | ||||||
Change in valuation allowance | 373,000 | (132,000 | ) | |||||
$ | — | $ | — |
December 31, | ||||||||
2010 | 2009 | |||||||
Deferred tax assets (liabilities), current: | ||||||||
Bonus payable | $ | 108,300 | $ | 108,300 | ||||
Accrued deferred compensation payable | 428,300 | 386,300 | ||||||
Stock warrant consideration and other | 84,000 | 49,100 | ||||||
Deferred license revenue | 30,900 | 32,400 | ||||||
Valuation allowance | (651,500 | ) | (576,100 | ) | ||||
$ | — | $ | — | |||||
Deferred tax assets (liabilities), noncurrent: | ||||||||
Deferred license revenue | $ | 48,100 | $ | 77,400 | ||||
Depreciation | 3,400 | 3,400 | ||||||
Net operating loss carryforwards | 7,644,600 | 7,261,000 | ||||||
Valuation allowance | (7,596,100 | ) | (7,341,800 | ) | ||||
$ | — | $ | — |
June 30, 2011 | December 31, 2010 | September 30, 2011 | December 31, 2010 | |||||||||||||
(unaudited) | (unaudited) | Assets | ||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 841,797 | $ | 304,656 | $ | 423,908 | $ | 304,656 | ||||||||
Accounts receivable, net of allowance for doubtful accounts of $18,650 and $0 at June 30, 2011 and December 31, 2010, respectively | 807,967 | 828,632 | ||||||||||||||
Accounts receivable, net of allowance for doubtful accounts of $42,263 and $0 at September 30, 2011 and December 31, 2010, respectively | 795,940 | 828,632 | ||||||||||||||
Other receivables | 69,526 | 59,526 | 114,157 | 59,526 | ||||||||||||
Inventory | 371,970 | 294,069 | 372,372 | 294,069 | ||||||||||||
Deferred offering costs | 547,376 | 175,000 | 592,881 | 175,000 | ||||||||||||
Debt issue costs | 49,807 | — | 32,515 | — | ||||||||||||
Prepaid expenses and other current assets | 57,916 | 83,136 | 90,047 | 83,136 | ||||||||||||
Total current assets | 2,746,359 | 1,745,019 | 2,421,820 | 1,745,019 | ||||||||||||
Property and equipment, net | 144,914 | 147,911 | 194,102 | 147,911 | ||||||||||||
Other assets: | ||||||||||||||||
Deposits | 2,280 | 3,280 | 2,280 | 3,280 | ||||||||||||
Patents, net of accumulated amortization of $120,890 and $112,240 at June 30, 2011 and December 31, 2010, respectively | 79,309 | 74,363 | ||||||||||||||
Patents, net of accumulated amortization of $124,836 and $112,240 at September 30, 2011 and December 31, 2010, respectively | 81,636 | 74,363 | ||||||||||||||
Total other assets | 81,589 | 77,643 | 83,916 | 77,643 | ||||||||||||
$ | 2,972,862 | $ | 1,970,573 | $ | 2,699,838 | $ | 1,970,573 | Liabilities and Stockholders’ Deficit | ||||||||
Current liabilities: | ||||||||||||||||
Accounts payable, including related party payables of $434,437 and $151,440 at June 30, 2011 and December 31, 2010, respectively | $ | 877,239 | $ | 620,196 | ||||||||||||
Accounts payable, including related party payables of $423,101 and $151,440 at September 30, 2011 and December 31, 2010, respectively | $ | 810,923 | $ | 620,196 | ||||||||||||
Accrued compensation and related benefits | 1,405,606 | 1,426,022 | 1,405,606 | 1,426,022 | ||||||||||||
Accrued interest | 257,535 | 172,359 | ||||||||||||||
Accrued expenses, other | 268,374 | 241,861 | 72,646 | 69,502 | ||||||||||||
Current portion of deferred revenue | 590,541 | 647,804 | 615,206 | 647,804 | ||||||||||||
Current portion of convertible notes payable | — | 50,000 | — | 50,000 | ||||||||||||
Current portion of notes payable, related party | 624 | 1,620,624 | 624 | 1,620,624 | ||||||||||||
Current portion of convertible notes payable, related party net of unamortized discount of $1,049,432 and $0 at June 30, 2011 and December 31, 2010, respectively | 1,450,568 | — | ||||||||||||||
Current portion of convertible notes payable, related party net of unamortized discount of $708,294 and $0 at September 30, 2011 and December 31, 2010, respectively | 1,791,706 | — | ||||||||||||||
Total current liabilities | 4,592,952 | 4,606,507 | 4,954,246 | 4,606,507 | ||||||||||||
Long-term liabilities: | ||||||||||||||||
Warrant liability | 4,616,255 | 3,958,318 | 3,776,909 | 3,958,318 | ||||||||||||
Deferred revenue, less current portion | 86,840 | 127,840 | 66,340 | 127,840 | ||||||||||||
Total long-term liabilities | 4,703,095 | 4,086,158 | 3,843,249 | 4,086,158 | ||||||||||||
Stockholders’ deficit: | ||||||||||||||||
Preferred stock; $0.01 par value; 10,000,000 shares authorized; 0 shares issued and outstanding | — | — | — | — | ||||||||||||
Common stock; $0.01 par value; 200,000,000 shares authorized; 36,352,277 and 33,563,428 shares issued and 36,095,064 and 33,306,215 shares outstanding at June 30, 2011 and December 31, 2010, respectively | 363,523 | 335,635 | ||||||||||||||
Common stock; $0.01 par value; 200,000,000 shares authorized; 37,774,817 and 33,563,428 shares issued and 37,517,604 and 33,306,215 shares outstanding at September 30, 2011 and December 31, 2010, respectively | 377,749 | 335,635 | ||||||||||||||
Capital in excess of par value | 32,713,926 | 29,852,347 | 33,820,520 | 29,852,347 | ||||||||||||
Accumulated deficit | (38,128,522 | ) | (35,637,962 | ) | (39,023,814 | ) | (35,637,962 | ) | ||||||||
(5,051,073 | ) | (5,449,980 | ) | (4,825,545 | ) | (5,449,980 | ) | |||||||||
Treasury stock at cost, 257,213 shares | (1,272,112 | ) | (1,272,112 | ) | (1,272,112 | ) | (1,272,112 | ) | ||||||||
Total stockholders’ deficit | (6,323,185 | ) | (6,722,092 | ) | (6,097,657 | ) | (6,722,092 | ) | ||||||||
$ | 2,972,862 | $ | 1,970,573 | $ | 2,699,838 | $ | 1,970,573 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||||
(restated) | (restated) | (restated) | (restated) | |||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||
Sales | $ | 1,103,579 | $ | 989,642 | $ | 1,941,773 | $ | 1,376,424 | $ | 605,449 | $ | 931,874 | $ | 2,547,222 | $ | 2,308,298 | ||||||||||||||||
License fees | 20,500 | 20,500 | 41,000 | 41,030 | 20,500 | 20,500 | 61,500 | 61,530 | ||||||||||||||||||||||||
1,124,079 | 1,010,142 | 1,982,773 | 1,417,454 | 625,949 | 952,374 | 2,608,722 | 2,369,828 | |||||||||||||||||||||||||
Cost of goods sold | 806,674 | 550,196 | 1,507,564 | 871,522 | 466,271 | 755,034 | 1,973,835 | 1,626,556 | ||||||||||||||||||||||||
Gross profit | 317,405 | 459,946 | 475,209 | 545,932 | 159,678 | 197,340 | 634,887 | 743,272 | ||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||
Research and development expenses, net of government grant proceeds of $126,109, $0, 287,473 and $0, respectively | 11,119 | — | 13,155 | — | ||||||||||||||||||||||||||||
Research and development expenses, net of government grant proceeds of $305,425, $0, $592,897 and $0, respectively | (3,838 | ) | — | 9,317 | — | |||||||||||||||||||||||||||
Selling, general and administrative | 792,606 | 1,029,394 | 1,714,903 | 1,588,914 | 487,961 | 697,099 | 2,202,771 | 2,286,013 | ||||||||||||||||||||||||
803,725 | 1,029,394 | 1,728,058 | 1,588,914 | 484,123 | 697,099 | 2,212,088 | 2,286,013 | |||||||||||||||||||||||||
Loss from operations | (486,320 | ) | (569,448 | ) | (1,252,849 | ) | (1,042,982 | ) | (324,445 | ) | (499,759 | ) | (1,577,201 | ) | (1,542,741 | ) | ||||||||||||||||
Other expense (income): | ||||||||||||||||||||||||||||||||
Change in fair value of warrant liability | (1,694,170 | ) | (1,835,094 | ) | 657,937 | (327,066 | ) | 126,008 | 611,231 | 783,944 | 284,165 | |||||||||||||||||||||
Interest expense | 416,899 | 55,233 | 580,438 | 101,736 | 446,505 | 55,933 | 1,026,945 | 157,669 | ||||||||||||||||||||||||
Interest income | (634 | ) | — | (664 | ) | — | (374 | ) | — | (1,038 | ) | — | ||||||||||||||||||||
Other income | (1,200 | ) | — | (1,200 | ) | — | ||||||||||||||||||||||||||
(1,277,905 | ) | (1,779,861 | ) | 1,237,711 | (225,330 | ) | 570,939 | 667,164 | 1,808,651 | 441,834 | ||||||||||||||||||||||
Net income (loss) | $ | 791,585 | $ | 1,210,413 | $ | (2,490,560 | ) | $ | (817,652 | ) | ||||||||||||||||||||||
Net Loss | $ | (895,384 | ) | $ | (1,166,923 | ) | $ | (3,385,852 | ) | $ | (1,948,575 | ) | ||||||||||||||||||||
Net income (loss) per common share, basic | $ | 0.02 | $ | 0.04 | $ | (0.07 | ) | $ | (0.03 | ) | ||||||||||||||||||||||
Net income (loss) per common share, diluted | $ | 0.02 | $ | 0.03 | $ | (0.07 | ) | $ | (0.03 | ) | ||||||||||||||||||||||
Net loss per common share, basic and diluted | $ | (0.02 | ) | $ | (0.04 | ) | $ | (0.10 | ) | $ | (0.03 | ) | ||||||||||||||||||||
Weighted average number of common shares, basic | 35,089,169 | 29,800,194 | 34,335,348 | 29,577,797 | ||||||||||||||||||||||||||||
Weighted average number of common shares, diluted | 56,239,845 | 40,245,491 | 34,335,348 | 29,577,797 | ||||||||||||||||||||||||||||
Weighted average number of common shares, basic and diluted | 36,682,582 | 19,872,184 | 35,126,357 | 29,696,897 |
Common Stock | Capital in Excess of | Accumulated | Treasury | Total Stockholders’ | Common Stock | Capital in Excess of | Accumulated | Treasury | Total Stockholders’ | |||||||||||||||||||||||||||||||||||||||
Shares | Amount | Par Value | Deficit | Stock | Deficit | Shares | Amount | Par Value | Deficit | Stock | Deficit | |||||||||||||||||||||||||||||||||||||
Balance, December 31, 2010 | 33,563,428 | $ | 335,635 | $ | 29,852,347 | $ | (35,637,962 | ) | $ | (1,272,112 | ) | $ | (6,722,092 | ) | 33,563,428 | $ | 335,635 | $ | 29,852,347 | $ | (35,637,962 | ) | $ | (1,272,112 | ) | $ | (6,722,092 | ) | ||||||||||||||||||||
Issuance of common stock for services | 121,346 | 1,213 | 41,608 | — | — | 42,821 | 225,192 | 2,252 | 78,993 | — | — | 81,245 | ||||||||||||||||||||||||||||||||||||
Stock based compensation | — | — | 630,096 | — | — | 630,096 | — | — | 671,099 | — | — | 671,099 | ||||||||||||||||||||||||||||||||||||
Issuance of common stock for settlement of accounts payable | 202,703 | 2,027 | 72,973 | — | — | 75,000 | ||||||||||||||||||||||||||||||||||||||||||
Warrant issued with convertible note payable, related party | — | — | 435,240 | — | — | 435,240 | — | — | 435,240 | — | — | 435,240 | ||||||||||||||||||||||||||||||||||||
Beneficial conversion feature on convertible notes payable, related party | — | — | 1,064,760 | — | — | 1,064,760 | — | — | 1,064,760 | — | — | 1,064,760 | ||||||||||||||||||||||||||||||||||||
Issuance of common stock in exchange for settlement of debt | 2,667,503 | 26,675 | 666,875 | — | — | 693,550 | 2,667,503 | 26,675 | 666,875 | — | — | 693,550 | ||||||||||||||||||||||||||||||||||||
Exercise of warrants | 1,115,991 | 11,160 | (11,160 | ) | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Reclassification of warrant liability upon warrant exercise | — | — | 965,354 | — | — | 965,354 | ||||||||||||||||||||||||||||||||||||||||||
Revaluation of common stock issued to vendors for services | — | — | 23,000 | — | — | 23,000 | — | — | 24,039 | — | — | 24,039 | ||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (2,490,560 | ) | — | (2,490,560 | ) | — | — | — | (3,385,852 | ) | — | (3,385,852 | ) | ||||||||||||||||||||||||||||||||
Balance, June 30, 2011 | 36,352,277 | $ | 363,523 | $ | 32,713,926 | $ | (38,128,522 | ) | $ | (1,272,112 | ) | $ | (6,323,185 | ) | ||||||||||||||||||||||||||||||||||
Balance, September 30, 2011 | 37,774,817 | $ | 377,749 | $ | 33,820,520 | $ | (39,023,814 | ) | $ | (1,272,112 | ) | $ | (6,097,657 | ) |
For the Six Months Ended June 30, | ||||||||
2011 | 2010 | |||||||
(restated) | ||||||||
Operating activities | ||||||||
Net loss | $ | (2,490,560 | ) | $ | (817,652 | ) | ||
Adjustments to reconcile net loss to net cash used by operating activities: | ||||||||
Depreciation and amortization | 25,393 | 2,153 | ||||||
Amortization of discount and beneficial conversion feature on notes payable | 450,568 | — | ||||||
Issuance of common stock, stock options and stock warrants for services and amortization of common stock issued for services | 87,937 | 163,164 | ||||||
Stock based compensation | 630,096 | 478,548 | ||||||
Change in fair value of warrant liability | 657,937 | (327,066 | ) | |||||
Increase in allowance for doubtful accounts | 18,450 | — | ||||||
(Increase) decrease in: | ||||||||
Accounts receivable | 2,215 | (999,829 | ) | |||||
Other receivables | (10,000 | ) | — | |||||
Inventory | (77,901 | ) | (96,982 | ) | ||||
Prepaid expenses and other current assets | 4,104 | (6,415 | ) | |||||
Increase (decrease) in: | ||||||||
Accounts payable and accrued expenses | 357,106 | 51,279 | ||||||
Accrued compensation and related benefits | (20,416 | ) | 56,667 | |||||
Deferred revenue | (98,263 | ) | 312,428 | |||||
Net cash used by operating activities | (463,334 | ) | (1,183,705 | ) | ||||
Investing activities | ||||||||
Increase in patent costs | (13,596 | ) | — | |||||
Purchase of property and equipment | (13,746 | ) | (10,484 | ) | ||||
Net cash used by investing activities | (27,342 | ) | (10,484 | ) | ||||
Financing activities | ||||||||
Proceeds from issuance of notes payable, related party | 1,500,000 | 620,000 | ||||||
Payments on notes payable | (50,000 | ) | (100,000 | ) | ||||
Payments for debt issue costs and deferred offering costs | (422,183 | ) | — | |||||
Net cash provided by financing activities | 1,027,817 | 520,000 | ||||||
Net increase (decrease) in cash and cash equivalents | 537,141 | (674,189 | ) | |||||
Cash and cash equivalents, beginning of period | 304,656 | 1,085,628 | ||||||
Cash and cash equivalents, end of period | $ | 841,797 | $ | 411,439 | ||||
Supplemental cash flow information: | ||||||||
Cash paid during the year for interest | $ | 34,158 | $ | — | ||||
Supplemental disclosure of non-cash investing and financing activities: |
For the Nine Months Ended September 30, | ||||||||
2011 | 2010 | |||||||
(restated) | ||||||||
Operating activities | ||||||||
Net loss | $ | (3,385,852 | ) | $ | (1,948,575 | ) | ||
Adjustments to reconcile net loss to net cash used by operating activities: | ||||||||
Depreciation and amortization | 38,979 | 7,879 | ||||||
Amortization of discount and beneficial conversion feature on notes payable | 791,707 | — | ||||||
Issuance of common stock, stock options and stock warrants for services and amortization of common stock issued for services | 127,400 | 326,060 | ||||||
Stock based compensation | 671,099 | 549,330 | ||||||
Change in fair value of warrant liability | 783,944 | 248,165 | ||||||
Increase in allowance for doubtful accounts | 42,263 | — | ||||||
(Increase) decrease in: | ||||||||
Accounts receivable | (9,571 | ) | (736,058 | ) | ||||
Other receivables | (54,631 | ) | — | |||||
Inventory | (78,303 | ) | (133,734 | ) | ||||
Prepaid expenses and other current assets | (28,027 | ) | (48,630 | ) | ||||
Increase (decrease) in: | ||||||||
Accounts payable and accrued expenses | 427,596 | 92,369 | ||||||
Accrued compensation and related benefits | (20,416 | ) | 80,416 | |||||
Deferred revenue | (94,098 | ) | 230,187 | |||||
Net cash used by operating activities | (787,910 | ) | (1,332,591 | ) | ||||
Investing activities | ||||||||
Increase in patent costs | (19,869 | ) | (4,210 | ) | ||||
Purchase of property and equipment | (72,573 | ) | (19,771 | ) | ||||
Net cash used by investing activities | (92,442 | ) | (23,981 | ) | ||||
Financing activities | ||||||||
Proceeds from issuance of notes payable, related party | 1,500,000 | 620,000 | ||||||
Payments on notes payable | (50,000 | ) | (100,000 | ) | ||||
Payments for debt issue costs and deferred offering costs | (450,396 | ) | — | |||||
Net cash provided by financing activities | 999,604 | 520,000 | ||||||
Net increase (decrease) in cash and cash equivalents | 119,252 | (836,572 | ) | |||||
Cash and cash equivalents, beginning of period | 304,656 | 1,085,628 | ||||||
Cash and cash equivalents, end of period | $ | 423,908 | $ | 249,056 | ||||
Supplemental cash flow information: | ||||||||
Cash paid during the year for interest | $ | 76,512 | $ | — | ||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||
Settlement of accounts payable with the issuance of 202,703 shares of common stock | $ | 75,000 | $ | — | ||||
Reclassification of warrant liability to equity upon warrant exercise | $ | 965,354 | — | |||||
Application of proceeds due and payable under note, including accrued interest, to purchase 2,667,503 shares of common stock at $0.26 per share | $ | 693,550 | $ | — | ||||
Issuance of note payable with a beneficial conversion feature | $ | 1,064,760 | $ | — | ||||
Issuance of note payable with a discount equivalent to the relative fair value of the accompanying warrant | $ | 435,240 | $ | — | ||||
Issuance of 375,000 shares of common stock in conversion of notes payable | $ | — | $ | 75,000 |
1. | Background Information |
2. | Going Concern |
3. | Significant Accounting Policies |
Six Months Ended June 30, 2011 | Six Months Ended June 30, 2010 | Nine Months Ended September 30, 2011 | Nine Months Ended September 30, 2010 | |||||||||||||
Dividend rate | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Risk free interest rate | 2.70 – 2.93 | % | 2.38% - 2.59 | % | 1.45% – 2.93 | % | 1.96% - 3.68 | % | ||||||||
Expected term | 6.5 years | 5 – 10 years | 6.5 years | 5 – 10 years | ||||||||||||
Expected volatility | 101 - 103 | % | 96% - 107 | % | 101% - 114 | % | 96% - 107 | % |
• | Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | ||
• | Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. |
Fair Value Measurements | ||||||||||||||||
Total carrying value | Quoted prices in active markets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | |||||||||||||
Warrant liability | $ | 4,616,255 | — | — | $ | 4,616,255 |
Fair Value Measurements | ||||||||||||||||
Total carrying value | Quoted prices in active markets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | |||||||||||||
Warrant liability | $ | 3,776,909 | — | — | $ | 3,776,909 |
Warrant Liability | Warrant Liability | |||||||
Balance at December 31, 2010 | $ | 3,958,318 | $ | 3,958,318 | ||||
Reclassification to equity upon warrant exercise | (965,354 | ) | ||||||
Changes in fair value | 657,937 | 783,945 | ||||||
Balance at June 30, 2011 | $ | 4,616,255 | ||||||
Balance at September 30, 2011 | $ | 3,776,909 |
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, 2011 | June 30, 2010 | June 30, 2011 | June 30, 2010 | |||||||||||||
Numerator: | (1) | (2) | ||||||||||||||
Net income (loss) to common shareholders | $ | 791,585 | $ | 1,210,413 | $ | (2,490,560 | ) | $ | (817,652 | ) | ||||||
Interest on convertible debentures | 62,500 | 5,625 | — | — | ||||||||||||
Net income (loss) available to common stockholders | $ | 854,085 | $ | 1,216,038 | $ | (2,490,560 | ) | $ | (817,652 | ) | ||||||
Denominator: | ||||||||||||||||
Weighted average basic shares outstanding | 35,089,169 | 29,800,194 | 34,335,348 | 29,577,797 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Convertible debt | 10,363,542 | 981,090 | — | — | ||||||||||||
Stock options | 4,085,153 | 4,617,032 | — | — | ||||||||||||
Stock warrants | 6,701,980 | 4,847,175 | — | — | ||||||||||||
Weighted average fully diluted shares outstanding | 56,239,845 | 40,245,491 | 34,335,348 | 29,577,797 | ||||||||||||
Net income (loss) per common share—Basic | $ | 0.02 | $ | 0.04 | $ | (0.07 | ) | $ | (0.03 | ) | ||||||
Net income (loss) per common share—Diluted | $ | 0.02 | $ | 0.03 | $ | (0.07 | ) | $ | (0.03 | ) |
4. | Notes Payable |
June 30, 2011 | December 31, 2010 | |||||||
Convertible note payable; interest at 9%; collateralized by the Company’s patents and patent applications | $ | — | $ | 50,000 | ||||
Convertible note payable, related party; interest at 10% per annum; due in full March 22, 2012 | 1,000,000 | 1,000,000 | ||||||
Secured convertible note payable, related party; interest at 10% per annum; due March 22, 2012 | 1,500,000 | — | ||||||
Note payable, related party; 10% interest; unsecured; paid in full | — | 620,000 | ||||||
Note payable; related party | 624 | 624 | ||||||
2,500,624 | 1,670,624 | |||||||
Less unamortized discount | (1,049,432 | ) | — | |||||
Less amounts currently due, net of unamortized discount | 1,451,192 | 1,670,624 | ||||||
Long-term portion | $ | — | $ | — |
September 30, 2011 | December 31, 2010 | |||||||
(unaudited) | ||||||||
Convertible note payable; interest at 9%; collateralized by the Company’s patents and patent applications | $ | — | $ | 50,000 | ||||
Convertible note payable, related party; interest at 10% per annum; due in full March 22, 2012 | 1,000,000 | 1,000,000 | ||||||
Secured convertible note payable, related party; interest at 10% per annum; due March 22, 2012 | 1,500,000 | — | ||||||
Note payable, related party; 10% interest; unsecured; paid in full | — | 620,000 | ||||||
Note payable; related party | 624 | 624 | ||||||
2,500,624 | 1,670,624 | |||||||
Less unamortized discount | (708,294 | ) | — | |||||
Less amounts currently due, net of unamortized discount | 1,792,330 | 1,670,624 | ||||||
Long-term portion | $ | — | $ | — |
5. | Related Party Transactions |
6. | Stock Options and Warrants |
Common Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | Common Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | |||||||||||||||||||||||||
Outstanding at December 31, 2010 | 14,897,757 | $ | 0.25 | 7.19 | $ | 946,754 | 14,897,757 | $ | 0.25 | 7.19 | $ | 946,754 | ||||||||||||||||||||
Granted | 2,510,000 | $ | 0.33 | 2,535,000 | $ | 0.33 | ||||||||||||||||||||||||||
Expired/Forfeited | (136,667 | ) | $ | 0.11 | (136,667 | ) | $ | 0.11 | ||||||||||||||||||||||||
Outstanding at June 30, 2011 | 17,271,090 | $ | 0.32 | 7.04 | $ | 1,406,643 | ||||||||||||||||||||||||||
Exercisable at June 30, 2011 | 15,958,937 | $ | 0.32 | 6.86 | $ | 1,326,355 | ||||||||||||||||||||||||||
Outstanding at September 30, 2011 | 17,296,090 | $ | 0.32 | 6.79 | $ | 1,516,086 | ||||||||||||||||||||||||||
Exercisable at September 30, 2011 | 16,061,854 | $ | 0.32 | 6.62 | $ | 1,433,926 |
Number of Options | Weighted Average Grant Date Fair Value | Number of Options | Weighted Average Grant Date Fair Value | |||||||||||||
Nonvested options - December 31, 2010 | 1,063,194 | $ | 0.25 | 1,063,194 | $ | 0.25 | ||||||||||
Granted | 2,510,000 | $ | 0.27 | 2,535,000 | $ | 0.27 | ||||||||||
Vested | (2,261,041 | ) | $ | 0.24 | (2,363,958 | ) | $ | 0.22 | ||||||||
Nonvested options – June 30, 2011 | 1,312,153 | $ | 0.24 | |||||||||||||
Nonvested options – September 30, 2011 | 1,234,236 | $ | 0.13 |
Warrants | Remaining Number Outstanding | Weighted Average Remaining Life (Years) | Weighted Average Exercise Price | Remaining Number Outstanding | Weighted Average Remaining Life (Years) | Weighted Average Exercise Price | ||||||||||||||||||
Warrants-Daily Financing | 197,055 | .49 | $ | 0.55 | 197,055 | .24 | $ | 0.55 | ||||||||||||||||
Warrants-Additional Financing | 428,637 | 1.21 | $ | 0.40 | 428,637 | .96 | $ | 0.40 | ||||||||||||||||
Warrants-Robb Trust Note | 50,000 | .93 | $ | 0.55 | 50,000 | .68 | $ | 0.55 | ||||||||||||||||
Warrants-Financings (2007, 2008 and 2011) | 18,750,000 | 2.19 | $ | 0.29 | 17,000,000 | 2.01 | $ | 0.30 | ||||||||||||||||
Warrants-Placement Agent Warrants | 793,641 | 1.76 | $ | 0.25 | 401,333 | 1.34 | $ | 0.25 | ||||||||||||||||
Warrants-Tangredi | 3,000,000 | 1.76 | $ | 0.36 | 3,000,000 | 1.51 | $ | 0.36 | ||||||||||||||||
Warrants-Ehrenberg | 250,000 | 2.10 | $ | 0.30 | 250,000 | 1.85 | $ | 0.30 | ||||||||||||||||
Warrants-Consulting Agreements | 825,000 | 3.28 | $ | 0.31 | 825,000 | 3.02 | $ | 0.31 | ||||||||||||||||
Warrants-Note Conversions | 2,302,538 | 2.93 | $ | 0.39 | 2,302,538 | 2.67 | $ | 0.39 | ||||||||||||||||
Warrants-Stock Purchases | 1,720,770 | 4.00 | $ | 0.40 | 1,720,770 | 3.75 | $ | 0.40 | ||||||||||||||||
Warrants-Mandelbaum | 50,000 | 2.84 | $ | 0.19 | 50,000 | 2.59 | $ | 0.19 | ||||||||||||||||
Warrants-Services | 400,000 | 3.56 | $ | 0.50 | 400,000 | 3.31 | $ | 0.50 | ||||||||||||||||
Tota | 28,767,641 | |||||||||||||||||||||||
To | 26,625,333 |
7. | Commitments and Contingencies |
(i) | an amount equal to the sum of (A) the greater of 150% of the base salary then in effect or $320,000 plus (B) the cash bonus and/or merit bonus, if any, awarded for the most recent year; |
(ii) | health and life insurance, a car allowance and other benefits set forth in the agreement until two years following termination of employment, and thereafter to the extent required by COBRA or similar statute; and |
(iii) | all stock options, to the extent they were not exercisable at the time of termination of employment, shall become exercisable in full. |
8. | Genertec Agreement |
9. | CAST Systems Control Technology |
10. | Derivative Financial Instruments |
Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
June 30, | June 30, | September 30, | September 30, | |||||||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||||
Exercise price | $ | 0.25 | $ | 0.25 | $ | 0.25 | $ | 0.25 | $ | 0.25 | $ | 0.25 | $ | 0.25 | $ | 0.25 | ||||||||||||||||
Market value of stock at end of period | $ | 0.37 | $ | 0.30 | $ | 0.37 | $ | 0.30 | $ | 0.38 | $ | 0.36 | $ | 0.38 | $ | 0.36 | ||||||||||||||||
Expected dividend rate | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||||||||||
Expected volatility | 164 | % | 123% - 137 | % | 164% - 173 | % | 119% - 137 | % | 165 | % | 135% - 158 | % | 164% - 173 | % | 135% - 158 | % | ||||||||||||||||
Risk-free interest rate | 0.19% – 0.45 | % | 0.81% – 1.00 | % | 0.19% – 1.25 | % | .81% – 1.60 | % | 0.13% – 0.25 | % | 0.42% – 0.64 | % | 0.13% – 0.25 | % | 0.42% – 0.64 | % |
Total Liabilities As previously Reported | Change | Total Liabilities As Restated | Stockholders’ Deficit As previously Reported | Change | Stockholders’ Deficit As Restated | |||||||||||||||||||
March 31, 2010 | $ | 5,117,253 | $ | 6,085,147 | $ | 11,202,400 | $ | (3,058,161 | ) | $ | (6,085,147 | ) | $ | (9,143,308 | ) | |||||||||
June 30, 2010 | $ | 5,165,059 | $ | 4,250,053 | $ | 9,415,112 | $ | (3,094,998 | ) | $ | (4,250,053 | ) | $ | (7,345,051 | ) | |||||||||
September 30, 2010 | $ | 5,147,657 | $ | 4,861,284 | $ | 10,008,941 | $ | (3,428,140 | ) | $ | (4,861,284 | ) | $ | (8,289,424 | ) |
Other Inc (Exp) As previously Reported | Change | Other Inc (Exp) As Restated | Net Loss As previously Reported | Change | Net (Loss) Income As Restated | EPS As previously Reported | EPS As Restated | |||||||||||||||||||||||||
For the Three Months Ended: | ||||||||||||||||||||||||||||||||
March 31, 2010 | $ | (46,504 | ) | $ | (1,508,027 | ) | $ | (1,554,531 | ) | $ | (520,038 | ) | $ | (1,508,027 | ) | $ | (2,028,065 | ) | $ | (0.02 | ) | $ | (0.07 | ) | ||||||||
June 30, 2010 | $ | (55,233 | ) | $ | 1,835,094 | $ | 1,779,861 | $ | (624,681 | ) | $ | 1,835,094 | $ | 1,210,413 | $ | (0.02 | ) | $ | 0.04 | |||||||||||||
September 30, 2010 | $ | (55,933 | ) | $ | (611,231 | ) | $ | (667,164 | ) | $ | (555,692 | ) | $ | (611,231 | ) | $ | (1,166,923 | ) | $ | (0.02 | ) | $ | (0.04 | ) |
11. | Subsequent Events |
SEC Filing Fee | $ | 2,803.82 | $ | 2,803.82 | ||||
FINRA Fee | $ | 2,700 | ||||||
AMEX Fee | $ | 40,000 | ||||||
Printing Expenses* | $ | 40,000 | $ | 40,000 | ||||
Accounting Fees and Expenses* | $ | 60,000 | $ | 60,000 | ||||
Legal Fees and Expenses* | $ | 275,000 | $ | 150,000 | ||||
Transfer Agent and Registrar Expenses* | $ | 10,000 | $ | 10,000 | ||||
Miscellaneous* | $ | 15,000 | $ | 15,000 | ||||
Total | $ | 445,503.82 | $ | 277,803.82 |
* | Estimated. |
No. | Exhibit | |
3.1 | Certificate of Incorporation of The Dais Corporation filed April 8, 1993 (Incorporated by reference to Exhibit 3.1 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) | |
3.2 | Certificate of Amendment of the Certificate of Incorporation of The Dais Corporation filed February 21, 1997 (Incorporated by reference to Exhibit 3.2 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) | |
3.3 | Certificate of Amendment of the Certificate of Incorporation of The Dais Corporation filed June 25, 1998 (Incorporated by reference to Exhibit 3.3 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) | |
3.4 | Certificate of Amendment of the Certificate of Incorporation of Dais Analytic Corporation filed December 13, 1999 (Incorporated by reference to Exhibit 3.4 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) | |
3.5 | Certificate of Amendment of the Certificate of Incorporation of Dais Analytic Corporation filed September 26, 2000 (Incorporated by reference to Exhibit 3.5 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) | |
3.6 | Certificate of Amendment of the Certificate of Incorporation of Dais Analytic Corporation filed September 28, 2000 (Incorporated by reference to Exhibit 3.6 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) | |
3.7 | Certificate of Amendment of the Certificate of Incorporation of Dais Analytic Corporation filed August 28, 2007 (Incorporated by reference to Exhibit 3.7 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) | |
3.8 | Certificate of Amendment of the Certificate of Incorporation of Dais Analytic Corporation filed March 20, 2008 (Incorporated by reference to Exhibit 3.8 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) |
3.9 | Bylaws of The Dais Corporation (Incorporated by reference to Exhibit 3.9 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) | |
3.10 | Certificate of Amendment of the Certificate of Incorporation of Dais Analytic Corporation filed December 17, 2009 (Incorporated by reference to the exhibits included with the Definitive Proxy Statement Form DEF 14A as filed on October 9, 2009) | |
3.11 | Form of Certificate of Amendment of the Certificate of Incorporation of Dais Analytic Corporation (Incorporated by reference to the exhibits included with the Definitive Proxy Statement Form DEF 14A as filed on October 27, 2010) | |
4.1 | Form of Non-Qualified Stock Option Agreement (Incorporated by reference to Exhibit 4.1 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) | |
4.2 | Form of Non-Qualified Option Agreement (Incorporated by reference to Exhibit 4.2 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) | |
4.3 | Form of Warrant (Daily Financing) (Incorporated by reference to Exhibit 4.3 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) | |
4.4 | Form of Warrant (Financing) (Incorporated by reference to Exhibit 4.4 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) | |
4.5 | Form of Warrant (Robb Trust Note and Additional Financing) (Incorporated by reference to Exhibit 4.5 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) | |
4.6 | Form of Placement Agent Warrant (Financing) (Incorporated by reference to Exhibit 4.6 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) | |
4.7 | Form of 9% Secured Convertible Note (Financing) (Incorporated by reference to Exhibit 4.7 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) | |
4.8 | Form of Note (Robb Trust Note) (Incorporated by reference to Exhibit 4.8 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) | |
4.9 | Form of Amendment to Note (Robb Trust Note) (Incorporated by reference to Exhibit 4.9 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) | |
4.10 | Form of Warrant (Note Conversion) (Incorporated by reference to the Exhibits 4.1 included with the Current Report on Form 8-K, as filed March 13, 2009) | |
4.11 | Form of Warrant (2009 Purchases) (Incorporated by reference to the Exhibits 4.2 included with the Current Report on Form 8-K, as filed March 13, 2009) | |
4.12 | Unsecured Promissory Note from Gostomski, dated December 8, 2009 (Incorporated by reference to the exhibits included with the Annual Report on Form 10K as filed on March 30, 2010) | |
4.13 | Unsecured Promissory Note from Platinum-Montaur, dated December 17, 2009 (Incorporated by reference to the exhibits included with the Current Report on Form 8-K/A as filed on December 22, 2009) | |
4.14 | Unsecured Promissory Note from Samuels, dated February 19, 2010 (Incorporated by reference to the exhibits included with the Current Report on Form 8-K as filed on February 23, 2010) |
4.15 | Unsecured Promissory Note from RBC Capital Markets - Custodian for Leonard Samuels IRA, dated February 19, 2010. (Incorporated by reference to the exhibits included with the Current Report on Form 8-K as filed on February 23, 2010) | |
4.16 | First Amendment to Unsecured Promissory Note from Platinum-Montaur, dated June 28, 2010 (Incorporated by reference to exhibits included in Quarterly Report on Form 10Q as filed August 16, 2010) | |
4.17 | First Amendment to Unsecured Promissory Note from Samuels, dated June 28, 2010 (Incorporated by reference to exhibits included in Quarterly Report on Form 10Q as filed August 16, 2010) | |
4.18 | First Amendment to Unsecured Promissory Note from RBC Capital Markets- Custodian for Leonard Samuels IRA, dated June 28, 2010 (Incorporated by reference to exhibits included in Quarterly Report on Form 10Q as filed August 16, 2010) | |
4.19 | Second Amendment to Unsecured Promissory Note from Platinum-Montaur, dated September 30, 2010 (Incorporated by reference to exhibits included in Quarterly Report on Form 10Q as filed November 15, 2010) | |
4.20 | Second Amendment to Unsecured Promissory Note from Samuels, dated September 30, 2010 (Incorporated by reference to exhibits included in Quarterly Report on Form 10Q as filed November 15, 2010) | |
4.21 | Second Amendment to Unsecured Promissory Note from RBC Capital Markets- Custodian for Leonard Samuels IRA, dated September 30, 2010 (Incorporated by reference to exhibits included in Quarterly Report on Form 10Q as filed November 15, 2010) | |
4.22 | Third Amendment to Unsecured Promissory Note from Platinum-Montaur, dated December 29, 2010 (Incorporated by reference Exhibit 4.22 to Registration Statement on Form S-1 (File No. 333-172259), as filed February 14, 2011) | |
4.23 | Third Amendment to Unsecured Promissory Note from RBC Capital Markets- Custodian for Leonard Samuels IRA, dated December 31, 2010 (Incorporated by reference Exhibit 4.23 to Registration Statement on Form S-1 (File No. 333-172259), as filed February 14, 2011) | |
4.24 | Form of Non-Qualified Stock Option Agreement – 2009 Long-Term Incentive 2009 Plan – Directors and certain designated employees (Incorporated by reference Exhibit 4.24 to Registration Statement on Form S-1 (File No. 333-172259), as filed February 14, 2011) | |
4.25 | Form of Non-Qualified Option Agreement -2009 Long-Term Incentive 2009 Plan – employees (Incorporated by reference Exhibit 4.25 to Registration Statement on Form S-1 (File No. 333-172259), as filed February 14, 2011) | |
4.26 | ||
Amended and Restated Convertible Promissory Note by and between Dais Analytic Corporation and Platinum-Montaur Life Sciences, LLC dated March 22, 2011 (Incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K, as filed March 28, 2011) | ||
Form of Warrant by and between Dais Analytic Corporation and Investors dated 2007 and 2008. (Incorporated by reference to Exhibit 10.3 to Current Report on Form 8-K, as filed March 28, 2011) | ||
Amendment to 2007 Warrant by and between Dais Analytic Corporation and Platinum-Montaur Life Sciences, LLC dated March 22, 2011 (Incorporated by reference to Exhibit 10.4 to Current Report on Form 8-K, as filed March 28, 2011) |
Amendment to 2009 Warrant by and between Dais Analytic and Platinum-Montaur Life Sciences, LLC dated March 22, 2011 (Incorporated by reference to Exhibit 10.5 to Current Report on Form 8-K, as filed March 28, 2011) | ||
Stock Purchase Warrant by and between Dais Analytic Corporation and Platinum-Montaur Life Sciences, LLC dated March 22, 2011 (Incorporated by reference to Exhibit 10.6 to Current Report on Form 8-K, as filed March 28, 2011) | ||
Secured Convertible Promissory Note by and between Dais Analytic and Platinum-Montaur Life Sciences, LLC dated March 22, 2011 (Incorporated by reference to Exhibit 10.8 to Current Report on Form 8-K, as filed March 28, 2011) | ||
Stock Purchase Warrant by and between Dais Analytic Corporation and Platinum-Montaur Life Sciences, LLC dated March 22, 2011 (Incorporated by reference to Exhibit 10.9 to Current Report on Form 8-K, as filed March 28, 2011) | ||
Fourth Amendment to Unsecured Promissory Note from Platinum-Montaur, dated February 28, 2011 (Incorporated by reference to Exhibit 4.26 to Annual Report on Form 10-K, as filed March 31, 2011) | ||
Fourth Amendment to Unsecured Promissory Note from RBC Capital Markets – Custodian for Leonard Samuels IRA, dated February 28, 2011 (Incorporation by reference to Exhibit 4.27 to Annual Report on Form 10-K, as filed March 31, 2011) | ||
Fifth Amendment to Unsecured Promissory Note from RBC Capital Markets – Custodian for Leonard Samuels IRA, dated April 29, 2011 (Incorporation by reference to Exhibit 4.36 to Quarterly Report on Form 10-Q, as filed May 16, 2011) | ||
Amendment to 2007 Warrant by and between Dais Analytic Corporation and RBC Capital Markets- Custodian for Leonard Samuels IRA dated May 12, 2011 (Incorporation by reference to Exhibit 4.37 to Quarterly Report on Form 10-Q, as filed May 16, 2011) | ||
Amendment to 2009 Warrant by and between Dais Analytic Corporation and RBC Capital Markets- Custodian for Leonard Samuels IRA dated May 12, 2011 (Incorporation by reference to Exhibit 4.38 to Quarterly Report on Form 10-Q, as filed May 16, 2011) |
Stock Purchase Warrant by and between Dais Analytic Corporation and RBC Capital Markets- Custodian for Leonard Samuels IRA dated May 12, 2011(Incorporation by reference to Exhibit 4.39 to Quarterly Report on Form 10-Q, as filed May 16, 2011) | ||
Stock and Warrant Purchase Agreement dated May 12, 2011 (Incorporation by reference to Exhibit 4.40 to Quarterly Report on Form 10-Q, as filed May 16, 2011) | ||
5.1 | Legal Opinion of Richardson & Patel LLP * | |
10.1 | 2000 Equity Compensation Plan (Incorporated by reference to Exhibit 10.1 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) | |
10.2 | Form of Employee Non-Disclosure and Non-Compete Agreement (Incorporated by reference to Exhibit 10.2 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) | |
10.3 | Amended and Restated Employment Agreement between Dais Analytic Corporation and Timothy N. Tangredi dated July 29, 2008 (Incorporated by reference to Exhibit 10.3 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) |
10.4 | Amended and Restated Employment Agreement between Dais Analytic Corporation and Patricia K. Tangredi dated July 29, 2008 (Incorporated by reference to Exhibit 10.4 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) | |
10.5 | Commercial Lease Agreement between Ethos Business Venture LLC and Dais Analytic Corporation dated March 18, 2005 (Incorporated by reference to Exhibit 10.6 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) | |
10.6 | First Amendment of Lease Agreement between Ethos Business Venture LLC and Dais Analytic Corporation dated November 15, 2005 (Incorporated by reference to Exhibit 10.7 to Registration Statement on Form S-1 (File No. 333- 152940), as filed August 11, 2008) | |
10.7 | Form of Subscription Agreement (Daily Financing) (Incorporated by reference to Exhibit 10.8 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) | |
10.8 | Form of Subscription Agreement (Financing) (Incorporated by reference to Exhibit 10.9 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) | |
10.9 | Form of Registration Rights Agreement (Financing) (Incorporated by reference to Exhibit 10.10 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) | |
10.10 | Form of Secured Patent Agreement (Financing) (Incorporated by reference to Exhibit 10.11 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) | |
10.11 | Placement Agent Agreement between Dais Analytic Corporation and Legend Merchant Group, Inc., dated October 5, 2007 (Incorporated by reference to Exhibit 10.12 to Registration Statement on Form S-1 (File No. 333-152940), as filed August 11, 2008) | |
10.12 | Consulting Agreement between Dais Analytic Corporation and Harold Mandelbaum dated August 12, 2009 (Incorporated by reference to Exhibit 10.12 to Quarterly Report on Form 10-Q, as filed August 14, 2009) | |
10.13 | Exclusive Distribution Agreement, dated August 21, 2009 between the Company and Genertec America, Inc. (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on August 27, 2009) | |
10.14 | Employee Non-Disclosure and Non-Compete Agreement entered into between Judith Norstrud and Dais Analytic Corporation on October 15, 2009 (Incorporated by reference to the exhibits included with the Current Report on Form 8-K, as filed October 16, 2009). | |
10.15 | 2009 Long Term Incentive Plan (Incorporated by reference to the exhibits included with the Definitive Proxy Statement Form DEF14A as filed on October 9, 2009). | |
10.16 | Technical and Sales Agreement between Dais Analytic Corporation, Beijing Jiexun-CAST Systems Control Technology Co., Ltd. and Genertec America, Inc. dated April 8, 2010, incorporated by reference to the exhibits included with the Current Report on Form 8-K, as filed on April 9, 2010. | |
10.17 | Amended and Restated Employment Agreement between Dais Analytic Corporation and Timothy N. Tangredi dated April 11, 2011(Incorporated by reference to exhibit 10.17 to Amendment 1 to Pre-Effective Registration Statement on Form S-1, as filed April 13, 2011). |
10.18 | Amended and Restated Employment Agreement between Dais Analytic Corporation and Patricia K. Tangredi dated April 8, 2011. (Incorporated by reference to exhibit 10.18 to Amendment 1 to Pre-Effective Registration Statement on Form S-1, as filed April 13, 2011). | |
10.19 | Securities Amendment and Exchange Agreement by and between the Dais Analytic Corporation and Platinum-Montaur Life Sciences, LLC dated as of March 22, 2011. (Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K, as filed March 28, 2011). | |
10.20 | Note and Warrant Purchase Agreement by and between Dais Analytic Corporation and Platinum-Montaur Life Sciences, LLC dated March 22, 2011. (Incorporated by reference to Exhibit 10.7 to Current Report on Form | |
10.21 | Patent Security Agreement by and between Dais Analytic Corporation and Platinum-Montaur Life Sciences, LLC dated March 22, 2011. (Incorporated by reference to Exhibit 10.10 to Current Report on Form | |
10.22 | Second Amendment of Lease Agreement between Ethos Business Venture LLC and Dais Analytic Corporation dated May 23, 2011. (Incorporated by reference to Registrant's Registration Statement on Form S-1/A filed on May 26, 2011) | |
10.23 | Amended and Restated Employment Agreement between Dais Analytic Corporation and Timothy N. Tangredi dated May 23, 2001. (Incorporated by reference to Registrant's Registration Statement on Form S-1/A filed on May 26, 2011) | |
10.24 | Employment Agreement between Dais Analytic Corporation and Scott G. Ehrenberg dated May 24, 2011. (Incorporated by reference to Registrant's Registration Statement on Form S-1/A filed on May 26, 2011) | |
10.25 | Executive Compensation Agreement dated June 17, 2011 between Dais Analytic Corporation and Timothy Tangredi. (Incorporated by reference to Registrant's Registration Statement on Form S-1/A filed on June 22, 2011) | |
10.26 | Executive Compensation Agreement dated September 14, 2011 between Dais Analytic Corporation and Timothy N. | |
10.27 | Amended and Restated Employment Agreement between Dais Analytic Corporation and Timothy Tangredi dated September 14, 2011 (Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K as filed September 15, 2011) | |
10.28 | Executive Compensation Agreement dated January 11, 2012 between Dais Analytic Corporation and Timothy Tangredi (Incorporated by reference to Exhibit 10.48 to Registration Statement on Form S-1/A, filed January 13, 2012) | |
14.1 | Code of Ethics (Incorporated by reference to Exhibit 14.1 to Annual Report on Form 10-K, as filed March 31, 2009) | |
16.1 | Letter from Pender Newkirk & Company LLP, Certified Public Accountants, dated April 27, 2009 (Incorporated by reference to Exhibit 16.1 to Form 8-K, as filed April 28, 2009) | |
23.1 | Consent of Cross, Fernandez & Riley LLP, Certified Public |
23.2 | Consent of Richardson & Patel LLP. (contained in the opinion filed as Exhibit 5.1) | |
24.1 | Power of Attorney. (Incorporated by reference to signature page of Registration Statement on Form S-1) | |
99.1 | Consent of |
* | ||
Portions of this exhibit have been omitted pursuant to a request for confidential treatment. |
DAIS ANALYTIC CORPORATION, | |||
a New York corporation | |||
By: | /S/ TIMOTHY N. TANGREDI | ||
Timothy N. Tangredi, | |||
Chief Executive Officer, President & Chairman | |||
(Principal Executive Officer) |
Dated: | By: | /S/ TIMOTHY N. TANGREDI | |
Timothy N. Tangredi, Chief Executive Officer, President and Chairman | |||
(Principal Executive Officer) | |||
Dated: | By: | /S/ JUDITH C. NORSTRUD | |
Judith C. Norstrud, Chief Financial Officer and Treasurer | |||
(Principal Financial Officer and Accounting Officer) | |||
Dated: | By: | /S/ ROBERT W. SCHWARTZ | |
Robert W. Schwartz, Director | |||
Dated: | By: | /S/ RAYMOND KAZYAKA SR. | |
Raymond Kazyaka Sr., Director |