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Registration No. 333-
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
XYBERNAUT CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 54-1799851
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(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification No.)
12701 Fair Lakes Circle
Fairfax, Virginia 22033
(703) 631-6925
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(Address, including zip code, and telephone number,
Including area code, of registrant's principal executive offices)
Edward G. Newman
12701 Fair Lakes Circle
Fairfax, Virginia 22033
(703) 631-6925
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(Name, address, including zip code, and telephone number,
Including area code, of agent for service)
Copy to:
Martin Eric Weisberg, Esq.
Jenkens & Gilchrist Parker Chapin LLP
The Chrysler Building
405 Lexington Avenue
New York, New York 10174
(212) 704-6000
Approximate date of commencement of proposed sale to public: As soon as
practicable after the effective date of this Registration Statement.
If the only securities on this Form are being offered pursuant to
dividend or interest reinvestment plans, please check the following box. [ ]
If any of the securities being registered on this Form are to be
offered on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act of 1933, other than securities offered only in connection with
dividend or interest reinvestment plans, check the following box. [X]
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following box
and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering. [ ] __________
If this Form is a post-effective amendment filed pursuant to Rule
462(c) under the Securities Act, check the following box and list the Securities
Act registration statement number of the earlier effective registration
statement for the same offering. [ ]
If delivery of the prospectus is expected to be made pursuant to Rule
434, please check the following box. [ ]
CALCULATION OF REGISTRATION FEE
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Proposed Maximum Proposed Maximum Amount of
Title of Each Class Amount to be Offering Price Aggregate Registration
of Securities to be Registered Registered(1) Per Share Offering Price Fee(6)
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Common Stock, $.01 par value per share... 9,131,016(2) $ 2.26(4) $20,636,096 $1,669.46
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Common Stock, $.01 par value per share..... 3,424,658(2)(3) $ .91(5) $3,116,439 $ 252.12
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Common Stock, $.01 par value per share.. 800,000(2)(3) $1.53(5) $1,224,000 $ 99.02
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Total Registration Fee.................. $2,020.60
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(1) Represents the shares of common stock being registered for resale by the
selling stockholders and the number of shares of common stock issuable upon
exercise of warrants to purchase shares of our common stock by the selling
stockholders.
(2) Pursuant to Rule 416 of the Securities Act of 1933, as amended (the
"Securities Act"), the shares of common stock offered hereby also include
such presently indeterminate number of shares of common stock as shall be
issued by us to the selling stockholders upon adjustment under
anti-dilution provisions covering the additional issuance of shares by
Xybernaut resulting from stock splits, stock dividends or similar
transactions.
(3) Represents the number of shares of common stock issuable upon exercise of
warrants to purchase shares of our common stock.
(4) Estimated solely for the purpose of calculating the registration fee
pursuant to Rule 457(c) and (g) of the Securities Act; based on the average
($2.26) of the closing bid ($2.25) and asked ($2.26) price on the Nasdaq
Small Cap Market on September 24, 2003.
(5) Estimated solely for the purpose of calculating the registration fee
pursuant to Rule 457(g) of the Securities Act, based on the higher of (a)
the exercise price of the warrants or (b) the offering price of securities
of the same class included in this registration statement.
(6) Calculated pursuant to Section 6(b) of the Securities Act based upon
Proposed Maximum Aggregate Offering Price multiplied by .00008090.
The Registrant hereby amends this Registration Statement on such date or dates
as may be necessary to delay its effective date until the Registrant shall file
a further amendment which specifically states that this Registration Statement
shall thereafter become effective in accordance with Section 8(a) of the
Securities Act of 1933 or until this Registration Statement shall become
effective on such date as the Commission, acting pursuant to Section 8(a), may
determine.
The information in this prospectus is not complete and may be changed. These
securities may not be sold until the registration statement filed with the
Securities and Exchange Commission is effective. This prospectus is not an offer
to sell nor is it seeking an offer to buy these securities in any state where
the offer or sale is not permitted.
SUBJECT TO COMPLETION, DATED SEPTEMBER 29, 2003
PROSPECTUS
XYBERNAUT CORPORATION
13,355,674 shares of common stock
The selling stockholders of Xybernaut Corporation listed on page 10 of this
prospectus are offering for sale up to 13,355,674 shares of common stock of
Xybernaut under this prospectus.
The selling stockholders may offer their shares through public or private
transactions, at prevailing market prices, or at privately negotiated prices.
See "Plan of Distribution".
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NASDAQ Small Cap Market Symbol:
"XYBR"
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On September 24, 2003, the closing price of one share of our common stock
on the NASDAQ Small Cap Market was $2.26.
This investment involves a high degree of risk. You should carefully
consider the factors described under the caption "Risk Factors" beginning
on page 2 of this prospectus.
Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved these securities or determined if
this prospectus is truthful or complete. Any representation to the contrary
is a criminal offense.
The date of this prospectus is _________ __, 2003
RISK FACTORS
Before you buy shares of our common stock, you should be aware that
there are various risks associated with that purchase, including those described
below. You should consider carefully these risk factors, together with all of
the other information in this prospectus and the documents we have incorporated
by reference in the section "Where You Can Find More Information About Us,"
before you decide to purchase shares of our common stock.
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Risks Associated with Our History of Losses and Future Need for Capital
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We have a history of losses and, if we do not achieve profitability, we may not
be able to continue our business in the future.
Our sales, marketing, research, development and general and
administrative expenses have resulted in significant losses and are expected to
continue to result in significant losses for the foreseeable future. We have
incurred the following losses since 1997:
Fiscal years ended:
o December 31, 1997 $(10,051,757)
o December 31, 1998 $(13,001,338)
o December 31, 1999 $(16,697,413)
o December 31, 2000 $(24,185,222)
o December 31, 2001 $(32,199,579)
o December 31, 2002 $(26,580,833)
Fiscal quarter ended:
o March 31, 2003 $(5,378,478)
o June 30, 2003 $(3,256,866)
We could be required to cut back or stop operations if we are unable to reduce
cash operating expenses and obtain needed financing.
We have recorded net losses since our inception. These losses are
primarily attributable to the operating expenses incurred by us to design,
develop, market and sell our mobile and wearable computer products and to
provide general and administrative support for these operating activities.
During these periods, our revenues and gross margins have not been sufficient to
fund these operating activities. As a result, we have consistently recorded
negative cash flows from operating activities and net losses and had an
accumulated deficit of $139,658,503 at June 30, 2003.
The combination of our operating losses and working capital
requirements has severely impacted our financial position and liquidity. Certain
of our liabilities are past their stated terms of payment, including those owed
to vendors that provide services and inventory that we require to execute our
business plan. We generally believe that we have a reasonably good relationship
with most of our vendors and creditors. However certain of our vendors have
filed legal actions to recover overdue accounts payables and ceased providing
services and products to us. We do not believe that
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these actions will have a material adverse effect on us however there can be no
assurances that other vendors will not pursue similar actions.
During 2003 and 2002, we funded our operating and investing activities
through our financing activities, which consist primarily of private placements
of common stock, warrant and stock option exercises and borrowings.
We have taken steps that we believe are necessary to improve our
operations and raise additional capital, both of which are needed to enhance our
ability to meet our cash flow needs through December 31, 2003 and thereafter.
Beginning in April 2002, we have performed reviews of our operations and
implemented various cost cutting programs to significantly reduce our operating
expenses. Assuming there are no significant changes to our business plan, we
expect to maintain savings of over 50% from annualized fourth quarter 2001
levels. During the fourth quarter of 2002 and the first and second quarters of
2003, we met our current target to reach a quarterly operating expense level of
between $4,000,000 and $5,000,000. Future significant fluctuations may still
occur as a result of non-recurring charges associated with cost-saving
initiatives as well as our research and development activities, which will vary
depending on wearable/mobile computer product development cycles during any
given period.
We believe that our current staffing and resources will be sufficient
to carry out our business plan for the foreseeable future. In addition to the
cost cutting initiatives already undertaken, we continue to review all aspects
of our operations and may take additional actions to reduce operating expenses
further.
During the period from January 1, 2003 through the date of this filing,
we raised approximately $22,000,000 through sales of our common stock to
institutional investors, through warrant and stock option exercises and through
borrowings, inclusive of the financings included in this filing. Potential
sources of additional financing include private equity offerings, strategic
investments, and various forms of debt financing. We believe that the
combination of cash on hand, cash flows from operations, and outside funding
will provide sufficient liquidity to meet our ongoing cash requirements. This is
based both on our historical ability to raise capital and on debt and equity
financings currently available to us. However, there can be no assurance that we
can or will obtain sufficient funds from operations or from additional
financings on terms acceptable to us. If we are unable to obtain sufficient
additional financing, we will be required to cut back or stop operations.
We may face difficulties in obtaining needed financings.
The equity markets, especially for small capitalization technology
stocks, have remained depressed, and the U.S. and world economies have generally
been in a decline or recession. If a sustained decline in the general equity
markets, the price of our common stock, or the U.S. or world economy were to
occur, we could face difficulties in our ability to raise additional capital.
We have historically made several private placements of our common
stock per year, primarily to a limited number of institutional investors who
specialize in making similar types of investments. If these institutional
investors were to choose to not participate in future private placements, we
could face difficulties in our ability to raise additional capital.
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Risks Associated with the Industry in Which We Operate
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Our future revenues and ability to produce new products depend substantially on
the success of the Mobile Assistant(R) and AtigoTM series.
The Mobile Assistant and Atigo series are our principal products and
our success will depend to a large extent upon their commercial acceptance,
which cannot be assured. Additional product development will result in
significant research and development expenses that may be unrecoverable should
commercialization of new products prove unsuccessful. We also could require a
higher level of funding if research and development or sales and marketing
expenses are greater than we anticipate. As with most high technology products,
new models must be introduced periodically for us to remain competitive. There
can be no assurance that these new models can be successfully developed or
marketed or will be commercially accepted.
We have significant commitments to purchase inventory and services in the
future.
We have commitments to purchase inventory, tooling and/or engineering
and other services from our suppliers and manufacturers related to our current
and future hardware product lines. We expect that we will enter into similar
commitments in the future as we design, develop and procure future wearable
computer product lines.
In March 2003, we entered into an agreement with IBM under which we
were released of our prior obligation to pay a penalty or procure inventory
other than $4,910,000 in MA V computing units, flat panel displays, peripherals
and component parts. The final pricing provided to us represents a discount from
the original contractual prices. Under the March 2003 agreement, IBM will ship
inventory monthly from March 2003 through December 2003 and we will remit
payments monthly from March 2003 through January 2004.
In addition to the obligation to IBM related to the MA V described
above, we have commitments to purchase computing units, flat panel and head
mounted displays, miscellaneous computing components as well as engineering and
other services from our various vendors related to the MA V, Atigo, MA TC, and
future product lines. We believe that, if necessary, the timing and amount of
many of these shipments, services and payments may be adjusted through the
payment of cancellation fees, contract negotiations or the satisfaction of
obligations through the issuance of our equity securities. However, there can be
no assurance that we can successfully modify these contracts or commitments.
Excluding the potential impact of contract modifications, we estimate
that we will make total payments of approximately $4,000,000 during the period
from July 2003 through January 2004 related to inventory commitments as of June
30, 2003, which amount includes the commitment to purchase the additional MA V
products from IBM discussed above. We expect that we will enter into similar
inventory and engineering commitments in the future as we design, develop and
procure future mobile and wearable computer product lines.
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We may have to lower prices or spend more money to effectively compete against
companies with greater resources than us, which could result in lower revenues
and/or profits.
The success of our products in the marketplace depends on many factors,
including product performance, price, ease of use, support of industry
standards, competing technologies and customer support and service. Given these
factors we cannot assure you that we will be able to compete successfully. For
example, if our competitors offer lower prices, we could be forced to lower
prices which could result in reduced or negative margins and a decrease in
revenues. If we do not lower prices we could lose sales and market share. In
either case, if we are unable to compete against our main competitors which
include established companies like CDI, ViA Inc., Texas Microsystems, Symbol,
Raytheon, Panasonic and others, we would not be able to generate sufficient
revenues to grow our company or reverse our history of losses.
In addition, we may have to spend more money to effectively compete for
market share, including funds to expand our infrastructure, which is a capital
and time intensive process. Further, if other companies choose to aggressively
compete against us, we may have to reduce our prices and spend more money on
advertising, promotion, trade shows, product development, marketing and overhead
expenses, hiring and retaining personnel, and developing new technologies. These
lower prices and higher expenses would adversely affect our operations and cash
flows.
Currency fluctuations, especially in the Japanese Yen and European Euro, may
significantly increase our expenses and affect our results of operations.
The exchange rates for some local currencies in countries where we
operate may fluctuate in relation to the U.S. dollar. Such fluctuations may have
an adverse effect on our competitive position as well as our expenses, revenues,
earnings, assets or liabilities when local currencies are translated into U.S.
dollars. We have significant operations in Asia, in particular Japan, and
Europe, in particular Germany. Also, we are party to supplier arrangements with
several companies in Asia and Europe for the production of the Mobile Assistant
series. Our foreign operations, including payments to our suppliers, are
typically funded in the local currencies. Any changes in the value of the U.S.
dollar against these currencies could result in an increase in our reported
expenses or inventory costs or a decrease in our reported revenues which, if
substantial, could have a material adverse effect on our financial condition and
results of operations.
If our sales and receivables continue to be concentrated among a small number of
our customers, the loss of a customer, a substantial decrease of sales to one of
our customers or a customer's inability to pay amounts owed to us may have a
material adverse effect on our sales, operating results and cash flows.
A significant percentage of our sales has been concentrated among a
relatively small number of customers. For the fiscal quarter ended June 30,
2003, we had one (1) customer which comprised more than 10% of our total
revenues, representing 45% of total revenues. Additionally, at June 30, 2003, we
had two (2) customers which each comprised more than 10% of our total accounts
receivable, representing an aggregate of 65% of total accounts receivable. There
can be no assurance that this concentration of sales and receivables among
customers will not continue in the future. The loss of a significant customer or
a substantial decrease in sales to such a customer would have a material adverse
effect on our sales and operating results. Our arrangements with certain of our
customers, especially those related to the sale of our wearable computer
hardware products, are based on the receipt of purchase orders and otherwise are
not subject to long-term written contracts and generally may be terminated upon
short notice. In addition, these and other customers may demand
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price concessions from us that could adversely affect profit margins. Also, our
cash flows may be adversely affected if a customer is unable or unwilling to
repay amounts owed to us.
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Risk Associated with
Our Internal Operations and Policies
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Since we do not intend to declare dividends in the foreseeable future, the
return on your investment will depend upon appreciation of the market price of
your shares.
We have never paid any dividends on our common stock. Our board of
directors does not intend to declare any dividends in the foreseeable future,
but intends to retain all earnings, if any, for use in our business operations.
As a result, the return on your investment in us will depend upon any
appreciation in the market price of our common stock. The holders of common
stock are entitled to receive dividends when, as and if declared by the board of
directors out of funds legally available for dividend payments. The payment of
dividends, if any, in the future is within the discretion of our board of
directors and will depend upon our earnings, capital requirements and financial
condition, and other relevant factors.
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Risks Which May Dilute the Value of Your Xybernaut
Shares or Limit the Effect of Their Voting Power
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The price of our common stock is highly volatile.
The price of our common stock is highly volatile. During the period
from January 1, 2000 to September 24, 2003 the price of our common stock has
ranged from a high of $29.97 to a low of $0.19. Following periods of volatility
in the market price of a company's securities, securities class action
litigation has often been instituted against such a company. If similar
litigation were instituted against us, it could result in substantial costs and
a diversion of our management's attention and resources, which could have an
adverse effect on our business. The volatile fluctuations of the market price
are based on (1) the number of shares in the market at the time as well as the
number of shares we may be required to issue in the future, compared to the
market demand for our shares; (2) our performance and meeting expectations of
our performance, including the development and commercialization of our products
and proposed products; (3) market conditions for technology companies in the
small capitalization sector; and (4) general economic and market conditions.
Our executive officers, directors and principal stockholders, together, may
exercise control over all matters submitted to a vote of stockholders.
As of April 24, 2003, our executive officers, directors and principal
stockholders beneficially owned, in the aggregate, approximately 4% of our
outstanding shares of common stock. These stockholders, if acting together, may
be able to effectively control most matters requiring approval by our
stockholders. The voting power of these stockholders under certain circumstances
could have the effect of delaying or preventing a change in control of
Xybernaut.
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We have recently issued a significant amount of our common stock.
During the period from January 1, 2003 through September 24, 2003, we
raised approximately $22,000,000 through sales of our common stock to
institutional investors and through warrant and stock option exercises. As a
result of our financings and other activities, 54,237,609 shares of common stock
were issued during this period, which number includes 9,131,016 shares of common
stock issued and included on this prospectus. This represents a 48% increase in
the number of shares outstanding as compared to the number of shares outstanding
as of January 1, 2003.
We have 18,198,414 shares of our common stock reserved for future issuances
which can substantially dilute the value of your Xybernaut common stock.
The issuance of reserved shares would dilute the equity interest of
existing stockholders and could have a significant adverse effect on the market
price of our common stock. As of September 24, 2003 we had 18,198,414 shares of
common stock reserved for possible future issuances upon conversion of options
and warrants, which number includes 4,224,658 shares of common stock reserved in
connection with shares underlying warrants included on this prospectus. These
options and warrants are convertible into or exercisable for shares of common
stock at prices that may represent discounts from future market prices of the
common stock. The exercise of these options or warrants could result in
substantial dilution to existing holders of common stock. The sale of the common
stock acquired at a discount could have a negative impact on the trading price
of the common stock and could increase the volatility in the trading price of
the common stock. See the section entitled "Dilution" for a summary of the
number of shares which could be issued upon conversion of the outstanding
preferred stock at various market prices.
In addition, we may seek additional financing which may result in the
issuance of additional shares of our capital stock and/or rights to acquire
additional shares of our capital stock. Those additional issuances of capital
would result in a reduction of your percentage interest in Xybernaut.
Anti-takeover measures in our certificate of incorporation could adversely
affect the voting power of the holders of the common stock.
Our certificate of incorporation authorizes anti-takeover measures such
as the authority to issue "blank check" preferred stock and the staggered terms
of the members of our board of directors. Those measures could have the effect
of delaying, deterring or preventing a change in control without any action by
our stockholders. In addition, issuance of preferred stock, without stockholder
approval, on those terms as the board of directors may determine, could
adversely affect the voting power of the holders of the common stock, including
the loss of voting control to others.
INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
This prospectus contains certain forward-looking statements which
involve substantial risks and uncertainties. These forward-looking statements
can generally be identified because the context of the statement includes words
such as "may," "will," "except," "anticipate," "intend," "estimate," "continue,"
"believe," or other similar words. Similarly, statements that describe our
future plans, objectives and goals are also forward-looking statements. Our
factual results, performance or achievements could differ materially from those
expressed or implied in these forward-looking statements as a result of certain
factors, including those listed in "Risk Factors" and elsewhere in this
prospectus.
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WHERE YOU CAN FIND MORE INFORMATION ABOUT US
We file annual, quarterly and special reports, proxy statements and
other information with the Securities and Exchange Commission (the "SEC"). You
may read and copy any document we file at the SEC's public reference rooms in
Washington, D.C., New York, New York and Chicago, Illinois. Please call the SEC
at 1-800-SEC-0330 for further information on the public reference rooms. Our SEC
filings are also available to the public over the Internet at the SEC's Website
at "http://www.sec.gov."
We have filed with the SEC a registration statement on Form S-3 to
register the shares being offered. This prospectus is part of that registration
statement and, as permitted by the SEC's rules, does not contain all the
information included in the registration statement. For further information with
respect to us and our common stock, you should refer to the registration
statement and to the exhibits and schedules filed as part of the registration
statement, as well as the documents discussed below.
The SEC allows us to "incorporate by reference" the information we file
with them, which means that we can disclose important information to you by
referring you to those documents. The information incorporated by reference is
an important part of this prospectus, and information that we file later with
the SEC will automatically update or supersede this information.
This prospectus may contain summaries of contracts or other documents.
Because they are summaries, they will not contain all of the information that
may be important to you. If you would like complete information about a contract
or other document, you should read the copy filed as an exhibit to the
registration statement or incorporated in the registration statement by
reference.
We incorporate by reference the documents listed below and any future
filings we will make with the SEC under Sections 13(a), 13(c), 14 or 15(d) of
the Securities Exchange Act of 1934 (File No. 0-19041) until all of the shares
are sold:
o Quarterly Report on Form 10-Q for the fiscal quarter ended
June 30, 2003 filed with the SEC on August 13, 2003;
o Quarterly Report on Form 10-Q for the fiscal quarter ended
March 31, 2003 filed with the SEC on May 15, 2003;
o Annual Report on Form 10-K/A for the fiscal year ended
December 31, 2002 filed with the SEC on April 30, 2003;
o Annual Report on Form 10-K for the fiscal year ended December
31, 2002 filed with the SEC on March 28, 2003; and
o The description of our common stock contained in the
registration statement on Form 8-A filed on July 15, 1996
under the Exchange Act (File No. 0-15086), including all
amendments or reports filed for the purpose of updating that
description.
You may request a copy of these filings, at no cost, by writing to us
at 12701 Fair Lakes Circle, Suite 550, Fairfax, Virginia 22033, (703) 631-6925,
Attention: Thomas D. Davis or by e-mail at investorrelations@xybernaut.com.
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You can review and copy the registration statement, its exhibits and
schedules, as well as the documents listed below, at the public reference
facilities maintained by the SEC as described above. The registration statement,
including its exhibits and schedules, are also available on the SEC's web site.
USE OF PROCEEDS
The selling stockholders are selling all of the shares covered by this
prospectus for their own accounts. Accordingly, we will not receive any proceeds
from the resale of the shares.
We will receive proceeds, if any, from the exercise of warrants. We
will use those proceeds, if any, for working capital and general corporate
purposes.
We will bear the expenses relating to this registration, other than
discounts and commissions, which will be paid by the selling stockholders.
DILUTION
As of September 24, 2003 we had issued and outstanding 167,853,331
shares of common stock. At that date, there were an additional 18,198,414 shares
of common stock reserved for possible future issuances as follows:
o options to purchase 6,472,365 shares at an exercise price
between $0.24 and $23.38 per share. We have registered the
shares issuable upon exercise of the options under the
Securities Act;
o warrants to purchase 8,287,397 shares at a price between $0.50
and $5.00 per share. Of the 8,287,397 shares, we have
previously registered a total of 3,942,739 shares issuable
upon exercise of these warrants. This prospectus covers an
additional 4,224,658 shares of common stock issuable upon
exercise of warrants, which shares will be freely tradable
without restriction (subject to prospectus delivery
requirements) on the effective date of the registration
statement. The remaining 120,000 shares will be deemed to be
"restricted securities" when issued; and
o 3,438,652 shares issuable upon exercise of options under the
Company's stock incentive plans which have not been granted as
of September 24, 2003. We have registered the shares issuable
upon exercise of the options.
The shares which will be deemed "restricted securities" may be sold
under Rule 144. Rule 144 permits sales of "restricted securities" by any person,
whether or not an affiliate of the issuer, after a one year holding period. At
that time, sales can be made subject to the Rule's volume and other limitations
and after two years by non-affiliates without adhering to Rule 144's volume or
other limitations. In general, an "affiliate" is a person with the power to
manage and direct our policies. The SEC has stated that, generally, executive
officers and directors of an entity are deemed affiliates of the issuing entity.
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SELLING STOCKHOLDERS
This prospectus covers the resale by the selling stockholders of up to
13,355,674 shares of our common stock.
The natural person holding voting and/or dispositive control over the
shares owned by Chesterfield Inc. is Mr. Michael Cohen. The address of
Chesterfield Inc. is 11 Lamed Hae Street, Givatayim, Israel.
The natural person holding voting and/or dispositive control over the
shares owned by Essex Trading Ltd. is Mr. Ralph Inbar. The address of Essex
Trading Ltd. is Fitzroy Mews 5, Suite No. 7, London, England.
The natural person holding voting and/or dispositive control over the
shares owned by Sundial Investments, Limited is Ms. Beverly Simmons. The address
of Sundial Investments, Limited is Gretton House, P.O. Box 65, Duke Street,
Grand Turk, Turks & Caicos Islands, British West Indies.
The following table lists the selling stockholders and certain
information regarding the ownership by such selling stockholders of shares of
our common stock as of September 24, 2003, and as adjusted to reflect the sale
of the shares. Information concerning the selling stockholders, their pledgees,
donees and other non-sale transferees who may become selling stockholders may
change from time to time. To the extent the selling stockholders or any of their
representatives advise us of such changes, we will report those changes in a
prospectus supplement to the extent required. See "Plan of Distribution."
The registration of the following shares through this registration
statement allows the selling stockholders to sell their share holdings in the
future on the open market and is not necessarily an indication of intent to sell
the shares.
Percentage Shares of Common
of Common Stock Owned
Shares of Common Stock Owned Shares of After Offering (2)(3)
Stock Owned Prior to Prior to Common Stock ---------------------
Offering (1) the Offering to be Sold(2) Number Percent
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Chesterfield Inc. 10,273,973(4) 6.1% 10,273,973(4) 0 0%
Essex Trading Ltd. 2,400,000(5) 1.4% 2,400,000(5) 0 0%
Sundial Investments, Limited 681,701 * 681,701 0 0%
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* Less than 1%
(1) Includes shares of common stock and warrants to purchase shares of
common stock included on this registration statement.
(2) Assumes that the selling stockholders will exercise all of their
warrants into shares of common stock.
(3) Assumes all of the securities offered hereby will be sold by the
selling stockholders.
(4) Includes 3,424,658 shares of common stock issuable upon exercise of
warrants.
(5) Includes 800,000 shares of common stock issuable upon exercise of
warrants.
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The common stock has the material rights and obligations discussed
below and under the section entitled "Description of Securities." We have filed
the agreements relating to these rights and obligations with the SEC. We urge
you to read them in their entirety.
Chesterfield Inc. acquired its shares of common stock in a private
placement transaction entered into on September 8, 2003. Under the terms of the
common stock and warrant purchase agreement between Chesterfield Inc. and us, we
agreed to sell 6,849,315 shares of our common stock at a price of $0.73 per
share, representing an approximate 20% discount to the closing price of our
common stock for the trading day on the date of the agreement, for gross
proceeds of $5,000,000. We also issued warrants to purchase 3,424,658 shares of
our common stock exercisable at the following exercise prices: (i) if exercised
at any time from the date of issuance of the warrants through September 8, 2004,
the exercise price shall be equal to $0.91 per share, which was the market price
of the common stock on the date the transaction was entered into, (ii) if
exercised at any time from September 9, 2004 through and including September 8,
2005, the exercise price shall be equal to 200% of the market price of the
common stock on the date the transaction was entered into, and (iii) if
exercised at any time from September 9, 2005 through and including September 8,
2006, the exercise price shall be equal to 300% of the market price of the
common stock on the date the transaction was entered into. These warrants are
exercisable for a period of 3 years from the date of issuance. We may call up to
100% of the these warrants if our common stock price is equal to or greater than
$3.00 per share for 5 consecutive trading days prior to the date that we call
the warrants. In connection with our sale of common stock pursuant to the common
stock and warrant purchase agreement, we entered into a registration rights
agreement pursuant to which, among other things, we agreed to use our best
efforts to file a registration statement to register for resale the shares of
common stock, including the shares of common stock issuable upon exercise of the
warrants, no later than 30 days after the closing date and cause such
registration statement to become effective as promptly as practicable after
filing but no later than December 8, 2003.
Essex Trading Ltd. acquired its shares of common stock in a private
placement transaction entered into on September 16, 2003. Under the terms of the
common stock and warrant purchase agreement between Essex Trading Ltd. and us,
we agreed to sell 1,600,000 shares of our common stock at a price of $1.25 per
share, representing an approximate 18% discount to the closing price of our
common stock for the trading day on the date of the agreement, for gross
proceeds of $2,000,000. We also issued warrants to purchase 800,000 shares of
our common stock exercisable at the following exercise prices: (i) if exercised
at any time from the date of issuance of the warrants through September 16,
2004, the exercise price shall be equal to $1.53 per share, which was the market
price of the common stock on the date the transaction was entered into, (ii) if
exercised at any time from September 17, 2004 through and including September
16, 2005, the exercise price shall be equal to 200% of the market price of the
common stock on the date the transaction was entered into, and (iii) if
exercised at any time from September 17, 2005 through and including September
16, 2006, the exercise price shall be equal to 300% of the market price of the
common stock on the date the transaction was entered into. These warrants are
exercisable for a period of 3 years from the date of issuance. We may call up to
100% of the these warrants if our common stock price is equal to or greater than
$3.00 per share for 5 consecutive trading days prior to the date that we call
the warrants. In connection with our sale of common stock pursuant to the common
stock and warrant purchase agreement, we entered into a registration rights
agreement pursuant to which, among other things, we agreed to use our best
efforts to file a registration statement to register for resale the shares of
common stock, including the shares of common stock issuable upon exercise of the
warrants, no later than 30 days after the closing date and cause such
registration statement to become effective as promptly as practicable after
filing but no later than December 16, 2003.
-11-
Sundial Investments, Limited entered into a financing transaction with
us on March 26, 2003 whereby we borrowed $1,750,000 pursuant to a one-year
promissory note issued to Sundial Investments, Limited that bore interest at a
rate of 3.5% per annum. On May 30, 2003, the Company repaid the remaining
principal and interest on the note in the aggregate amount of $252,229 through
the issuance to Sundial Investments, Limited of an aggregate of 681,701 shares
of our common stock at an agreed upon valuation of $.37 cents per share. In
connection with our issuance of common stock pursuant to our agreement, we
agreed to include the shares of common stock on a registration statement filed
by us.
All of the warrants have adjustment provisions for dilution events
including stock splits, stock dividends and similar transactions.
Other than the transactions disclosed above pursuant to which the
selling stockholders received the securities being registered for resale on this
prospectus, the selling stockholders are not affiliated with us and have not had
any material relationship with us or our affiliates during the past three years.
DESCRIPTION OF SECURITIES
General
Our authorized capital stock consists of 200,000,000 shares of common
stock, par value $0.01 per share, and 6,000,000 shares of preferred stock, par
value $0.01 per share. As of September 24, 2003, we have 167,853,331 shares of
common stock issued and outstanding. We have reserved 18,198,414 shares of
common stock for issuance upon exercise of options and warrants.
Common Stock
Voting
The holders of our common stock are entitled to one vote for each share
held of record on all matters submitted to a vote of stockholders. Our
certificate of incorporation and by-laws do not provide for cumulative voting
rights in the election of directors. Accordingly, holders of a majority of the
shares of common stock entitled to vote in any election of directors may elect
all of the directors standing for election.
Dividends
Holders of common stock are entitled to receive ratably those dividends
as may be declared by our board of directors out of funds legally available for
that purpose.
Rights on Liquidation
In the event of our liquidation, dissolution or winding up, holders of
common stock are entitled to share ratably in the assets remaining after payment
of liabilities.
-12-
Pre-emptive or Redemption Rights
Holders of common stock have no preemptive, conversion or redemption
rights. All of the outstanding shares of common stock are fully-paid and
nonassessable.
Preferred Stock
Our board of directors has the authority to issue up to 6,000,000
shares of preferred stock from time to time in one or more series. Our board has
the authority to establish the number of shares to be included in each series,
and to fix the designations, powers, preferences and rights of the shares of
each series and the applicable qualifications, limitations or restrictions. The
issuance of preferred stock may have the effect of delaying or preventing a
change in control. The issuance of preferred stock could decrease the amount of
earnings and assets available for distribution to the holders of common stock,
if any, or could adversely affect the rights and powers, including voting
rights, of the holders of the common stock. In certain circumstances, the
issuances could have the effect of decreasing the market price of the common
stock.
As of the date of this prospectus, we have not designated any shares of
preferred stock other than the series A, B, C, D and E preferred stock, all of
which have been fully converted into common stock.
Anti-takeover Considerations
Our certificate of incorporation authorizes the issuance of up to
6,000,000 shares of $0.01 par value preferred stock. The issuance of preferred
stock with such rights could have the effect of limiting stockholder
participation in certain transactions such as mergers or tender offers and could
discourage or prevent a change in our management. We have no present intention
to issue any additional preferred stock.
We have a classified or staggered board of directors which limits an
outsider's ability to effect a rapid change of control of our board. In
addition, at the 1998 Annual Meeting of Stockholders held on September 24, 1998,
our stockholders approved measures to amend our certificate of incorporation and
by-laws, where applicable, to:
o implement an advance notice procedure for the submission of
director nominations and other business to be considered at
annual meetings of stockholders;
o permit only the President, the Vice Chairman of our board, the
Secretary or our board of directors to call special meetings
of stockholders and to limit the business permitted to be
conducted at such meetings to be brought before the meetings
by or at the direction of our board;
o provide that a member of our board of directors may only be
removed for cause by an affirmative vote of holders of at
least 66 2/3% of the voting power of the then outstanding
shares entitled to vote generally in the election of directors
voting together as a single class;
o fix the size of our board of directors at a maximum of twelve
directors, with the authorized number of directors set at ten,
and our board of directors having the sole power and authority
to increase or decrease the number of directors acting by an
-13-
affirmative vote of at least a majority of the total number of
authorized directors most recently fixed by our board of
directors;
o provide that any vacancy on the board may be filled for the
unexpired term (or for a new term in the case of an increase
in the size of the board) only by an affirmative vote of at
least a majority of the remaining directors then in office
even if less than a quorum, or by the sole remaining director;
o eliminate stockholder action by written consent;
o require the approval of holders of 80% of the then outstanding
voting stock and/or the approval of 66 2/3% of the directors
for certain corporate transactions; and
o require an affirmative vote of 66 2/3% of the voting stock in
order to amend or repeal any adopted amendments to the
certificate of incorporation and bylaws adopted at the
meeting.
Those measures combined with the ability of our board of directors to
issue "blank check" preferred stock and the staggered terms of the members of
our board of directors, could have the effect of delaying, deterring or
preventing a change in control without any further action by the stockholders.
In addition, the issuance of preferred stock, without stockholder approval, on
such terms as our board may determine, could adversely affect the voting power
of the holders of the common stock, including the loss of voting control to
others.
Transfer Agent and Registrar
Continental Stock Transfer & Trust Company is our Transfer Agent and
Registrar for our common stock.
PLAN OF DISTRIBUTION
The selling stockholders and their pledgees, donees, transferees and
other subsequent owners, may offer their shares at various times in one or more
of the following transactions:
o on any U.S. securities exchange on which our common stock may
be listed at the time of sale;
o in the over-the-counter market;
o in privately negotiated transactions;
o in connection with short sales; or
o in a combination of any of the above transactions.
The selling stockholders may offer their shares of common stock at
prevailing market prices at the time of sale, at prices related to those
prevailing market prices, at negotiated prices or at fixed prices.
The selling stockholders may also sell the shares under Rule 144
instead of under this prospectus, if Rule 144 is available for those sales.
The transactions in the shares covered by this prospectus may be
effected by one or more of the following methods:
-14-
o ordinary brokerage transactions and transactions in which the
broker solicits purchasers;
o purchases by a broker or dealer as principal, and the resale
by that broker or dealer for its account under this
prospectus, including resale to another broker or dealer;
o block trades in which the broker or dealer will attempt to
sell the shares as agent but may position and resell a portion
of the block as principal in order to facilitate the
transaction; or
o negotiated transactions between the selling stockholders and
purchasers without a broker or dealer.
The selling stockholders and any broker-dealers or other persons acting
on the behalf of parties that participate in the distribution of the shares may
be deemed to be underwriters. Any commissions or profits they receive on the
resale of the shares may be deemed to be underwriting discounts and commissions
under the Securities Act.
As of the date of this prospectus, we are not aware of any agreement,
arrangement or understanding between any broker or dealer and the selling
stockholders with respect to the offer or sale of the shares under this
prospectus.
We have advised the selling stockholders that during the time they are
engaged in distributing shares covered by this prospectus, they must comply with
the requirements of the Securities Act and Rule 10b-5 and Regulation M under the
Exchange Act. Under those rules and regulations, they:
o may not engage in any stabilization activity in connection
with our securities;
o must furnish each broker which offers common stock covered by
this prospectus with the number of copies of this prospectus
which are required by each broker; and
o may not bid for or purchase any of our securities or attempt
to induce any person to purchase any of our securities other
than as permitted under the Exchange Act.
INDEMNIFICATION FOR SECURITIES ACT LIABILITIES
Section 145 of the Delaware General Corporation Law allows a company to
indemnify its directors and officers against expenses, judgments, fines and
amounts paid in settlement under the conditions and limitations described in the
law. Our certificate of incorporation authorizes us to indemnify our officers,
directors and other agents to the fullest extent permitted under Delaware law.
Our certificate of incorporation provides that a director is not
personally liable for monetary damages to us or our stockholders for breach of
his or her fiduciary duties as a director. A director will be held liable for a
breach of his or her duty of loyalty to us or our stockholders, his or her
intentional misconduct or willful violation of law, actions or inactions not in
good faith, an unlawful stock purchase or payment of a dividend under Delaware
law, or transactions from which the director derives an improper personal
benefit. This limitation of liability does not affect the availability of
equitable remedies against the director including injunctive relief or
rescission.
We have purchased a directors and officers liability and reimbursement
insurance policy that covers liabilities of our directors and officers arising
out of claims based upon acts or omissions in their capacities as directors and
officers.
-15-
Insofar as indemnification for liabilities arising under the Securities
Act may be permitted to our directors, officers and controlling persons pursuant
to the foregoing provisions, or otherwise, we have been advised that in the
opinion of the SEC such indemnification is against public policy as expressed in
the Securities Act and is, therefore, unenforceable.
LEGAL MATTERS
Jenkens & Gilchrist Parker Chapin LLP, New York, New York, a stockholder
of our company, will pass upon the validity of the securities offered hereby.
Martin Eric Weisberg, Esq., a member of the firm, is our Secretary, one of our
Directors, and a stockholder in our company.
EXPERTS
The financial statements incorporated in this prospectus by reference to
the Annual Report on Form 10-K and Form 10-K/A for the year ended December 31,
2002, have been so incorporated in reliance on the report of Grant Thornton LLP,
independent certified public accountants, given on the authority of said firm as
experts in auditing and accounting.
-16-
======================================== ======================================
We have not authorized any dealer,
salesperson or any other person to give
any information or to represent anything
other than those contained in this
prospectus in connection with the offer
contained herein, and, if given or made,
you should not rely upon such
information or representations as having
been authorized by Xybernaut 13,355,674
Corporation. This prospectus does not SHARES OF COMMON STOCK
constitute an offer of any securities
other than those to which it relates or
an offer to sell, or a solicitation of
an offer to buy, those to which it
relates in any state to any person to
whom it is not lawful to make such offer
in such state. The delivery of this
prospectus at any time does not imply
that the information herein is correct XYBERNAUT CORPORATION
as of any time after the date of this
prospectus.
TABLE OF CONTENTS
Page
Risk Factors..............................2
Information Regarding Forward-Looking
Statements .......................7
Where You Can Find More
Information About Us..............8
Use of Proceeds...........................9
Dilution..................................9
Selling Stockholders ....................10 -------------------------
Description of Securities................12 PROSEPECTUS
Plan of Distribution ....................14 -------------------------
Indemnification for Securities
Act Liabilities..................15
Legal Matters............................16
Experts .................................16 ____________________, 2003
======================================== ======================================
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.
The following table sets forth the various expenses which will be paid
by us in connection with the issuance and distribution of the securities being
registered on this registration statement. The selling stockholders will not
incur any of the expenses set forth below. All amounts shown are estimates.
Filing fee for registration statement.............$ 2,020.60
Legal fees and expenses ..........................$10,000.00
Accounting expenses...............................$ 5,000.00
----------
Total.............................................$17,020.60
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
Section 145 of the General Corporation Law of the State of Delaware
(the "DGCL") provides, in general, that a corporation incorporated under the
laws of the State of Delaware, such as the registrant, may indemnify any person
who was or is a party or is threatened to be made a party to any threatened,
pending or completed action, suit or proceeding (other than a derivative action
by or in the right of the corporation) by reason of the fact that such person is
or was a director, officer, employee or agent of the corporation, or is or was
serving at the request of the corporation as a director, officer, employee or
agent of another enterprise, against expenses (including attorneys' fees),
judgments, fines and amounts paid in settlement actually and reasonably incurred
by such person in connection with such action, suit or proceeding if such person
acted in good faith and in a manner such person reasonably believed to be in or
not opposed to the best interests of the corporation, and, with respect to any
criminal action or proceeding, had no reasonable cause to believe such person's
conduct was unlawful. In the case of a derivative action, a Delaware corporation
may indemnify any such person against expenses (including attorneys' fees)
actually and reasonably incurred by such person in connection with the defense
or settlement of such action or suit if such person acted in good faith and in a
manner such person reasonably believed to be in or not opposed to the best
interests of the corporation, except that no indemnification will be made in
respect of any claim, issue or matter as to which such person will have been
adjudged to be liable to the corporation unless and only to the extent that the
Court of Chancery of the State of Delaware or any other court in which such
action was brought determines such person is fairly and reasonably entitled to
indemnity for such expenses.
Our certificate of incorporation provides that directors will not be
personally liable for monetary damages to us or our stockholders for breach of
fiduciary duty as a director, except for liability resulting from a breach of
the director's duty of loyalty to us or our stockholders, intentional misconduct
or willful violation of law, actions or inactions not in good faith, an unlawful
stock purchase or payment of a dividend under Delaware law, or transactions from
which the director derives improper personal benefit. Such limitation of
liability does not affect the availability of equitable remedies such as
injunctive relief or rescission. Our certificate of incorporation also
authorizes us to indemnify our officers, directors and other agents, by bylaws,
agreements or
otherwise, to the fullest extent permitted under Delaware law. We have entered
into an indemnification agreement with each of our directors and officers which
may, in some cases, be broader than the specific indemnification provisions
contained in our certificate of incorporation or as otherwise permitted under
Delaware law. Each indemnification agreement may require us, among other things,
to indemnify such officers and directors against certain liabilities that may
arise by reason of their status or service as a director or officer, against
liabilities arising from willful misconduct of a culpable nature, and to obtain
directors' and officers' liability insurance if available on reasonable terms.
We maintain directors and officers liability policies that contain a
combined limit of liability of $12,500,000 per policy year.
ITEM 16. EXHIBITS.
NUMBER DESCRIPTION OF EXHIBIT
4.1 Form of Warrant issued to Chesterfield Inc.
4.2 Form of Common Stock and Warrant Purchase Agreement, dated as of
September 8, 2003, between Chesterfield Inc. and Xybernaut Corporation.
4.3 Form of Registration Rights Agreement, dated as of September 16, 2003,
between Chesterfield Inc. and Xybernaut Corporation.
4.4 Form of Warrant issued to Essex Trading Ltd.
4.5 Form of Common Stock and Warrant Purchase Agreement, dated as of
September 16, 2003, between Essex Trading Ltd. and Xybernaut
Corporation.
4.6 Form of Registration Rights Agreement, dated as of September 16, 2003,
between Essex Trading Ltd. and Xybernaut Corporation.
4.7 Letter Agreement, dated as of May 30, 2003, between Sundial Investments
Limited and Xybernaut Corporation.
5.1 Opinion of Jenkens & Gilchrist Parker Chapin LLP.
23.1 Consent of Grant Thornton LLP.
23.2 Consent of Jenkens & Gilchrist Parker Chapin LLP (included in their
opinion filed as Exhibit 5.1).
ITEM 17. UNDERTAKINGS.
The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made,
a post-effective amendment to this registration statement;
(i) To include any prospectus required by Section 10(a)(3) of
the Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising
after the effective date of the registration statement (or the most
recent post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth
in the registration statement. Notwithstanding the foregoing, any
increase or decrease in volume of securities offered (if the total
dollar value of securities offered would not exceed that which was
registered) and any deviation from the low or high and of the estimated
maximum offering range may be reflected in the form of prospectus filed
with the Securities and Exchange Commission pursuant to Rule 424(b) if,
in the aggregate, the changes in volume and price represent no more
than 20 percent change in the maximum aggregate offering price set
forth in the "Calculation of Registration Fee" table in the effective
registration statement.
(iii) To include any material information with respect to the
plan of distribution not previously disclosed in the registration
statement or any material change to such information in the
registration statement;
(2) That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment will be deemed to be
a new registration statement relating to the securities offered therein, and the
offering of such securities at that time will be deemed to be the initial bona
fide offering thereof.
(3) To remove from registration by means of a post-effective amendment
any of the securities being registered which remain unsold at the termination of
the offering.
Insofar as indemnification for liabilities arising under the Securities
Act of 1933 may be permitted to directors, officers and controlling persons of
the registrant pursuant to the foregoing provisions, or otherwise, the
registrant has been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the
Securities Act and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities
(other than the payment by the registrant of expenses incurred or paid by a
director, officer or controlling person of the registrant in the successful
defense of any action, suit or proceeding) is asserted by such director, officer
or controlling person in connection with the securities being registered, the
registrant will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as
expressed in the Securities Act and will be governed by the final adjudication
of the issue.
The undersigned registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act of 1933, each filing of the
registrant's annual report pursuant to section 13(a) or section 15(d) of the
Securities Exchange Act of 1934 (and, where applicable, each filing of an
employee benefit plan's annual report pursuant to section 15(d) of the
Securities Exchange Act of 1934) that is incorporated by reference in the
registration statement will be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time will be deemed to be the initial bona fide offering thereof.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
registrant certifies that it has reasonable grounds to believe that it meets all
of the requirements for filing on Form S-3 and has duly caused this registration
statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Fairfax, Commonwealth of Virginia on September 26,
2003.
XYBERNAUT CORPORATION
By: /s/ Edward G. Newman
---------------------------------------
Edward G. Newman
Chief Executive Officer and
Chairman of the Board of Directors
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that each individual whose signature
appears below constitutes Edward G. Newman and Steven A. Newman, each acting
alone, his true and lawful attorney-in-fact and agent, with full power of
substitution and resubstitution, for him and in his name, place and stead, in
any and all capacities, to sign any and all amendments to this Form S-3 and to
file the same with exhibits thereto, and all documents in connection therewith,
with the Securities and Exchange Commission, granting unto said
attorneys-in-fact and agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and necessary to be done in
and about the premises, as fully to all intents and purposes as he might or
could do in person, hereby ratifying and confirming all that said
attorneys-in-fact and agents or any of them, or their or is substitute or
substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, this
registration statement on Form S-3 has been signed below by the following
persons in the capacities indicated on September 26, 2003.
Signature Title
/s/ Edward G. Newman Chief Executive Officer and Chairman of the Board of
- --------------------------- Directors
Edward G. Newman
/s/ Steven A. Newman President, Chief Operating Officer and Vice Chairman
- ------------------------------------ of the Board of Directors
Steven A. Newman, M.D.
/s/ Thomas D. Davis Senior Vice President and Chief Financial Officer
- ------------------------------------
Thomas D. Davis
/s/ Kazuyuki Toyosato Executive Vice President and Director
- ------------------------------------
Kazuyuki Toyosato
Signature Title
/s/ Eugene J. Amobi Vice President and Director
- ------------------------------------
Eugene J. Amobi
/s/ Martin Eric Weisberg Secretary and Director
- ---------------------------
Martin Eric Weisberg, Esq.
Director
- ------------------------------------
James S. Gilmore III, Esq.
Director
- ------------------------------------
Marc Ginsberg
/s/ Phillip E. Pearce Director
- ------------------------------------
Phillip E. Pearce
/s/ James J. Ralabate Director
- ------------------------------------
James J. Ralabate
/s/ Lt. Gen. Harry E. Soyster Director
- ------------------------------------
Lt. Gen. Harry E. Soyster
/s/ Dr. Edwin Vogt Director
- ------------------------------------
Dr. Edwin Vogt
Director
- ------------------------------------
Noritsugu Yamaoka
SECURITIES AND
EXCHANGE
COMMISSION
WASHINGTON, D.C. 20549
-------------
EXHIBITS TO
FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
-------------
XYBERNAUT CORPORATION
(EXACT NAME OF ISSUER AS SPECIFIED
IN ITS CHARTER)
September 26, 2003
NUMBER DESCRIPTION OF EXHIBIT
4.1 Form of Warrant issued to Chesterfield Inc.
4.2 Form of Common Stock and Warrant Purchase Agreement, dated as of
September 8, 2003, between Chesterfield Inc. and Xybernaut Corporation.
4.3 Form of Registration Rights Agreement, dated as of September 8, 2003,
between Chesterfield Inc. and Xybernaut Corporation.
4.4 Form of Warrant issued to Essex Trading Ltd.
4.5 Form of Common Stock and Warrant Purchase Agreement, dated as of
September 16, 2003, between Essex Trading Ltd. and Xybernaut
Corporation.
4.6 Form of Registration Rights Agreement, dated as of September 16, 2003,
between Essex Trading Ltd. and Xybernaut Corporation.
4.7 Letter Agreement, dated as of May 30, 2003, between Sundial
Investments, Limited and Xybernaut Corporation.
5.1 Opinion of Jenkens & Gilchrist Parker Chapin LLP.
23.1 Consent of Grant Thornton LLP.
23.2 Consent of Jenkens & Gilchrist Parker Chapin LLP (included in their
opinion filed as Exhibit 5.1).