On October 16, 2001, Villiger purchased 5,000 Series F private placement units, consisting of a total of 5,000 Series F preferred shares convertible at any time into 2,000,000 shares of the Issuer’s common stock, and 2,500 Series F warrants. Each Series F warrant was exercisable for 400 common shares of the issuer at $0.375 per share through October 31, 2006. As a result of the Series F unit purchase, Villiger held 3,400,000 shares of the Issuer, for a total of 22.0590% of the issuer’s outstanding common shares and 41.6667% of the Issuer’s outstanding Series F preferred shares as of October 16, 2001.
On January 20, 2003, Villiger purchased 18 Series G private placement units, consisting of 18 shares of Series G preferred shares convertible at any time into 5,625,000 shares of the Issuer’s common stock and 18 Series G warrants. Each Series G warrant was exercisable for 312,500 common shares of the Issuer at $0.08 per share through October 31, 2013. As a result of the Series G unit purchase, as of January 20, 2003, Villiger held 14,750,000 shares of the Issuer, for a total of 55.3197% of the Issuer’s outstanding common shares and 32.7273% of the Issuer’s outstanding Series G preferred shares.
On May 23, 2003, Villiger acquired 750,000 common stock purchase warrants of the Issuer in connection with the issuance of a 12-month promissory note evidencing a loan from Villiger to the Issuer. The warrants were exercisable at $0.08 through May 23, 2008.
On December 31, 2005, Villiger acquired 2,360,474 common shares of the Issuer, purchased using proceeds of a cash dividend paid to the Issuer’s Series G preferred shareholders. As of December 31, 2005, Villiger held 17,760,474 shares of the Issuer, for a total of 64.7880% of the Issuer’s outstanding common shares, 41.6667% of the Issuer’s outstanding Series F preferred shares and 32.7273% of the Issuer’s outstanding Series G Preferred shares.
On May 1, 2006, Villiger acquired a total of 15,000,000 shares of the Issuer’s common stock by converting his Series F preferred stock and Series G preferred stock into common shares, and exercising the Series F, Series G and May 23, 2003 warrants for shares of the issuer’s common stock, at an adjusted warrant exercise price of $0.04, pursuant to a plan approved by the Issuer’s Board of Directors to raise additional capital from the holders of its outstanding warrants and stock options at a reduced price of $0.04 per share in order to a) prevent further dilution by the issuance of additional securities to outsiders, and (b) to restructure the capitalization of the Company. Also on May 1, 2006, Villiger acquired 1,062,941 common shares of the Issuer, purchased using proceeds of a cash dividend paid to the Issuer’s Series G preferred shareholders. As of May 1, 2006, Villiger held 18,823,415 common shares of the Issuer, a total of 27.3703% of the Issuer’s outstanding common shares.
On February 13, 2007, Villiger acquired 416,666 common shares of the Issuer as compensation related to a Secured Multi-Draw Term Loan Facility Agreement in the amount of $2,000,000, with a maturity date of January 11, 2010. As of February 13, 2007, Villiger held 19,240,081 common shares of the Issuer, a total of 27.9761% of the Issuer’s outstanding common shares.
On November 29, 2010, Villiger received warrants of the Issuer, exercisable for the purchase of 1,000,000 common shares of the Issuer through November 29, 2015, at an exercise price of $0.07 per share, in connection with an amendment to the Secured Multi-Draw Term Loan Facility Agreement. As of November 29, 2010, Villiger held 20,240,081 shares of the Issuer, consisting of 19, 240,081 common shares and 1,000,000 common share purchase warrants, a total of 28.6363% of the Issuer’s outstanding common shares.
On August 10, 2011, Villiger received warrants of the Issuer, exercisable for the purchase of 1,000,000 common shares of the Issuer through August 30, 2016, at an exercise price of $0.063 per share, in connection with an amendment to the Secured Multi-Draw Term Loan Facility Agreement. As of August 10, 2011, Villiger held 21,240,081 shares of the Issuer, consisting of 19, 240,081 common shares and 2,000,000 common share purchase warrants, a total of 29.6319% of the Issuer’s outstanding common shares.
On May 30, 2012, Villiger received warrants of the Issuer, exercisable for the purchase of 1,000,000 common shares of the Issuer through May 30, 2017, at an exercise price of $0.08 per share, in connection with an amendment to the Secured Multi-Draw Term Loan Facility Agreement. As of May 1, 2006, Villiger held 22,240,481 shares of the Issuer, consisting of 19, 240,081 common shares and 3,000,000 common share purchase warrants, a total of 30.6001% of the Issuer’s outstanding common shares.
Villiger has sole voting power and sole dispositive power in respect of the entirety of the number of shares indicated in Item 5, above. There are no other persons known to have the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, such securities.
