SEC FORM 4

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

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Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person^*

HICKS STEPHEN M

(Last)

(First)

(Middle)

10411 MOTOR CITY DRIVE

SUITE 650

(Street)

BETHESDA

20817

(City)

(State)

(Zip)

2. Issuer Name and Ticker or Trading Symbol
TECHNEST HOLDINGS INC [ TCNH ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

X	Director	10% Owner
	Officer (give title below)	Other (specify below)

3. Date of Earliest Transaction (Month/Day/Year)
10/21/2010

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	Amount	(A) or (D)	Price		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
Common Stock	10/21/2010		A⁽¹⁾		912,897	A⁽¹⁾	$0.03	243,017	D⁽¹⁾⁽²⁾⁽³⁾
Common Stock								21,358,562	I	See Footnotes⁽²⁾⁽³⁾

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	8. Price of Derivative Security (Instr. 5)		10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)

Explanation of Responses:

1. Reporting Person beneficially owns 243,017 shares of Issuer's common stock issued to the reporting person pursuant to a stock grant agreement in consideration of the reporting person's service as a director of Technest Holdings, Inc.

2. Reporting Person is the President of the general partner of Trillium Partners LP. Trillium Partners LP purchased 912,897 shares of common stock of Issuer from an unaffiliated shareholder pursuant to a stock purchase agreement. Reporting Person is a Manager of Southridge Advisors, LLC ("Southridge"), which acts as the general partner to Southridge Partners L.P, and acts as the investment advisor to Southshore Capital Fund Ltd., a Cayman Island corporation, ("Southshore"). Reporting Person is the Manager of Southridge Capital Management LLC ("Southridge Capital"), which acts as the investment sub- advisor to Aberdeen Avenue LLC, a Cayman Island limited liability company ("Aberdeen"), and Garth LLC, a Cayman Island limited liability company ("Garth"). Reporting Person has voting and investment control over the securities held by such entities, but disclaims beneficial ownership of such shares other than those issued to Reporting Person as a Director of the Issuer.

3. Southridge Partners LP is the beneficial owner of an aggregate of 13,170,173 shares of Issuer's Common Stock. Southridge Capital is the record holder, held for the benefit of Aberdeen, of 3,274,639 shares of common stock. Southshore is the beneficial owner of an aggregate of 1,072,257 shares of Issuer's Common Stock. Aberdeen is beneficial owner of an aggregate of 5,089,421 shares of Issuer's Common Stock, or which it is the record holder of 1,814,782 shares. Garth is the beneficial owner of 304,578 shares of the Issuer's Common Stock. Trillium Partners LP is the beneficial owner of 1,379,116 shares of Issuer's Common Stock.

	/s/ Stephen Hicks	10/22/2010
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
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