Airbee Wireless, Inc.
9400 Key West Avenue
Rockville, MD 20850-3322
October 31, 2008
U.S. Securities & Exchange Commission
Division of Corporate Finance
100 F Street, NE
Washington, DC 20549
Attn: Stephen Krikorian and Morgan Youngwood
Re: | Response to Comments on Airbee Wireless, Inc. |
Form 10-Q filed on May 20, 2008
Form 10-Q/A filed on March 10, 2008
Form 8-K/A filed on March 10, 2008
File No. 000-50918
Dear Messrs. Krikorian and Yioungwood:
In connection with our responses to the SEC comment letter dated August 15, 2008, the Company acknowledges the following regarding our above-captioned reports:
· | The Company is responsible for the adequacy and accuracy of the disclosure in the filing; |
· | Staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with respect to the filing; and |
· | The Company may not assert staff comments and the declaration of effectiveness as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States. |
Sincerely,
/s/ E. Eugene Sharer | |
E. Eugene Sharer | |
Interim Chief Financial Officer |
Exhibit 1
AIRBEEWIRELESS, INC.
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT
FOR THE THREE MONTHS ENDED MARCH 31, 2008
Common Stock | Additional Paid-In | Accumulated Other Comprehensive | Unearned | Accumulated | Deferred | Treasury | Stock Subscription | Prepaid | ||||||||||||||||||||||||||
Description | Shares | Amount | Capital | Income | Compensation | Deficit | Financing | Stock | Receivable | Consulting | Total | |||||||||||||||||||||||
Balance, December 31, 2007 | 116,253,248 | $ | 4,650 | $ | 15,625,500 | $ | 63,938 | $ | (6,660 | ) | $ | (17,159,157 | ) | $ | (4,216,751 | ) | $ | (297,539 | ) | $ | - | $ | (83,333 | ) | $ | (6,069,352 | ) | |||||||
Issuance of common stock for cash | - | - | - | - | ||||||||||||||||||||||||||||||
Shares issued for services | - | - | - | - | ||||||||||||||||||||||||||||||
Shares issued for professional fees - | ||||||||||||||||||||||||||||||||||
financing | 1,374,828 | 55 | 66,645 | 66,700 | ||||||||||||||||||||||||||||||
Mercatus Deferred Financing | (33,334,000 | ) | (1,333 | ) | $ | (7,665,487 | ) | 7,666,820 | - | |||||||||||||||||||||||||
Debt discount on Mercatus Deferred | ||||||||||||||||||||||||||||||||||
Financing | 3,450,069 | (3,450,069 | ) | - | ||||||||||||||||||||||||||||||
Repayment of Golden Gate Debenture, | ||||||||||||||||||||||||||||||||||
Liquidated Damages & accrued interest | 312,394 | 312,394 | ||||||||||||||||||||||||||||||||
Conversion of Shareholder Notes | ||||||||||||||||||||||||||||||||||
Payable to stock | 10,494,596 | 420 | 323,802 | 324,222 | ||||||||||||||||||||||||||||||
Shares issued to replace founder's | ||||||||||||||||||||||||||||||||||
pledged shares sold by Montgomery | 10,000,000 | 400 | (400 | ) | - | |||||||||||||||||||||||||||||
Stock issued on partial conversion of | ||||||||||||||||||||||||||||||||||
Montgomery convertible debenture | 5,210,938 | 208 | 66,492 | 66,700 | ||||||||||||||||||||||||||||||
Fair value of Notes Payable conversion | ||||||||||||||||||||||||||||||||||
feature | (3,836 | ) | (3,836 | ) | ||||||||||||||||||||||||||||||
Amortization of unearned | ||||||||||||||||||||||||||||||||||
compensation | 555 | 555 | ||||||||||||||||||||||||||||||||
Options issued under FASB 123R | - | |||||||||||||||||||||||||||||||||
FASB 123R options forfeited | - | |||||||||||||||||||||||||||||||||
Reclassification of outstanding | ||||||||||||||||||||||||||||||||||
warrants to liability due to potential | ||||||||||||||||||||||||||||||||||
shortage of authorized shares | - | |||||||||||||||||||||||||||||||||
Comprehensive income | 39,267 | 39,267 | ||||||||||||||||||||||||||||||||
Prepaid consulting less amortization of | ||||||||||||||||||||||||||||||||||
financing fees | 83,333 | 83,333 | ||||||||||||||||||||||||||||||||
Net loss for the quarter | (1,112,761 | ) | (1,112,761 | ) | ||||||||||||||||||||||||||||||
Balance, March 31, 2008 | 109,999,610 | 4,400 | 12,175,179 | 103,205 | (6,105 | ) | (18,271,918 | ) | - | (297,539 | ) | - | - | (6,292,778 | ) |
Exhibit 2
AIRBEEWIRELESS, INC.
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT
FOR THE SIX MONTHS ENDED JUNE 30, 2008
Common Stock | Additional Paid-In | Accumulated Other Comprehensive | Unearned | Accumulated | Deferred | Treasury | Stock Subscription | Prepaid | ||||||||||||||||||||||||||
Description | Shares | Amount | Capital | Income | Compensation | Deficit | Financing | Stock | Receivable | Consulting | Total | |||||||||||||||||||||||
Shares issued for services | - | - | - | - | ||||||||||||||||||||||||||||||
Shares issued for professional fees - | ||||||||||||||||||||||||||||||||||
financing | 8,307,572 | 102 | 104,102 | 104,204 | ||||||||||||||||||||||||||||||
Shares issued for anti-dilution | 5,750,000 | 230 | (230 | ) | - | |||||||||||||||||||||||||||||
Shares issued for interest on | ||||||||||||||||||||||||||||||||||
convertible debentures | 3,791,540 | 151 | 76,487 | 76,638 | ||||||||||||||||||||||||||||||
Penalty shares issued upon N/P default | 1,000,000 | 40 | 22,960 | 23,000 | ||||||||||||||||||||||||||||||
Mercatus Deferred Financing | (33,334,000 | ) | (1,333 | ) | $ | (7,665,487 | ) | 7,666,820 | - | |||||||||||||||||||||||||
Debt discount on Mercatus Deferred | ||||||||||||||||||||||||||||||||||
Financing | 3,450,069 | (3,450,069 | ) | - | ||||||||||||||||||||||||||||||
Repayment of Golden Gate Debenture, | ||||||||||||||||||||||||||||||||||
Liquidated Damages & accrued interest | 312,394 | 312,394 | ||||||||||||||||||||||||||||||||
Conversion of Shareholder Notes | ||||||||||||||||||||||||||||||||||
Payable to stock | 12,209,961 | 489 | 366,039 | 366,528 | ||||||||||||||||||||||||||||||
Shares issued to replace founder's | ||||||||||||||||||||||||||||||||||
pledged shares sold by Montgomery | 10,000,000 | 400 | (400 | ) | - | |||||||||||||||||||||||||||||
Stock issued on partial conversion of | ||||||||||||||||||||||||||||||||||
Montgomery convertible debenture | 6,877,605 | 275 | 106,425 | 106,700 | ||||||||||||||||||||||||||||||
Stock issued on partial conversion of | ||||||||||||||||||||||||||||||||||
Golden Gate convertible debenture | 1,927,360 | 77 | 33,923 | 34,000 | ||||||||||||||||||||||||||||||
Fair value of Notes Payable conversion | ||||||||||||||||||||||||||||||||||
feature | (3,836 | ) | (3,836 | ) | ||||||||||||||||||||||||||||||
Zimmers returned penalty shares issued | (3,200,000 | ) | (128 | ) | (679,872 | ) | (680,000 | ) | ||||||||||||||||||||||||||
Amortization of unearned | ||||||||||||||||||||||||||||||||||
compensation | 1,105 | 1,105 | ||||||||||||||||||||||||||||||||
Options issued under FASB 123R | 1,521 | 1,521 | ||||||||||||||||||||||||||||||||
FASB 123R options forfeited | -98 | (98 | ) | |||||||||||||||||||||||||||||||
Reclassification of outstanding | ||||||||||||||||||||||||||||||||||
warrants to liability due to potential | ||||||||||||||||||||||||||||||||||
shortage of authorized shares | - | |||||||||||||||||||||||||||||||||
Comprehensive income | (33,736 | ) | (33,736 | ) | ||||||||||||||||||||||||||||||
Prepaid consulting less amortization of | ||||||||||||||||||||||||||||||||||
financing fees | 83,333 | 83,333 | ||||||||||||||||||||||||||||||||
Net loss for the quarter | (1,117,460 | ) | (1,117,460 | ) | ||||||||||||||||||||||||||||||
Balance, June 30, 2008 | 129,583,286 | 4,953 | 11,756,295 | 30,202 | (5,555 | ) | (18,276,617 | ) | - | (297,539 | ) | - | - | (6,788,261 | ) |